Onieda Hands $48.3M in Pension Liabilities to the PBGC

September 5, 2006 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) announced Wednesday that it would absorb the pension liabilities of Oneida and its affiliates after a bankruptcy court gave the kitchenware distributor the green light.

According to a press release, Oneida filed for bankruptcy protection in March 2006 along with the request to terminate its pension plan. The plans are collectively 31% funded, with $21.6 million in assets to cover liabilities of $72 million for benefits to about 1,900 of the New York-based company’s workers and retirees.

Oneida ‘s two other pension plans, the Buffalo China Salaried Plan and the Buffalo China Union Plan, will remain under the company’s control, according to the news release.

The PBGC said that it will cover an estimated $48.3 million of the $50.4 million shortfall.

The PBGC filed a $2.3 million lien against the company and eight of its affiliates in September 2004, after Oneida missed pension payments (See  PBGC Hits Silverware Firm with Pension Lien ).