Compliance January 4, 2011
Motorola Agrees to $100M Pension Payment
January 4, 2011 (PLANSPONSOR.com) – Motorola – now known as Motorola Solutions – has agreed to contribute an extra $100 million to its pension plan over five years as part of a deal with the Pension Benefit Guaranty Corporation (PBGC).
Reported by Fred Schneyer
The PBGC said in an announcement that the plan will continue to operate under the company’s sponsorship; the plan has 87,000 participants.
According to the PBGC, Motorola and the agency entered into the agreement as the company was considering a spinoff of its Motorola Mobility business, and the sale of certain assets of its Networks business.
“One way PBGC protects pensions is to work with companies before they undertake major transactions,” said PBGC Director Josh Gotbaum, in the announcement. “We commend Motorola Solutions for approaching us in advance. The result helps both Motorola and its retirees.”