Medical Supply Firm to Wind Down Frozen Pension
December 11, 2009
(PLANSPONSOR.com) - Richmond, Virginia-based medical and surgical supply
distributor Owens & Minor will be seeking approvals from the Internal
Revenue Service (IRS) and the Pension Benefit Guaranty Corporation (PBGC) to
terminate its pension plan.
A company news release said the board of directors approved a proposal to close down the plan in 2011. The plan has been frozen since December 1996 when participants became fully vested.
According to the news release, the company estimated that cash contributions to fully fund the plan will be $8 million to $13 million. In addition, the company said it would record a pre-tax charge to income from continuing operations estimated at $15 million to $19 million upon final termination.
The company still offers a 401(k) program.
More information about the company is at www.owens-minor.com.