The pension plans faced abandonment after the bankrupt Canton, Ohio-based manufacturer of school storage lockers sold substantially all of its assets to Chrysalis Capital, the PBGC said. The plans covered nearly 900 former employees.
The PBGC estimates that the Republic Storage Systems Co. Inc. Pension Plan for Non-bargaining Employees and the Republic Storage Systems Co. Inc. Pension Plan for Bargaining Unit Employees combined are only 47% funded, with $25 million in assets to cover more than $54 million in promised benefits. The PBGC said its insurance will cover all but about $6 million of the shortfall, and assumption of the plans will have no material effect on its balance sheet.
The agency, which became trustee of the plan on October 19, will send trusteeship notification letters to all participants within the next few weeks, according to the announcement. Retirees already receiving benefits will not see an interruption in their payments, and may be eligible for the federal Health Coverage Tax Credit.
Retirees and other former employees of the company can visit www.pbgc.gov or call 800-400-7242 for more information.