According to a press release from the private-sector pension insurer, the pension plan was abandoned following the sale of substantially all of Union Stamping’s assets during bankruptcy proceedings, which left the company without enough assets to pay benefits to all plan participants.
The plan covers about 760 workers and has $1.5 million in assets to cover more than $3.2 million in liabilities. The agency expects to be responsible for the entire $1.7 million shortfall.
Union Stamping retirees will continue to receive
their monthly benefit checks without interruption, and
other workers will receive their pensions when they are
eligible to retire, the agency said.