For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
Compliance May 23, 2006
PBGC Grabs Pittsburgh Brewing Co. Plan
May 23, 2006 (PLANSPONSOR.com) - The agency that
insures private-sector pension plans has taken over a
retirement program covering 532 workers and retirees of
Pittsburgh Brewing Co.
Reported by Fred Schneyer
The Pension Benefit Guaranty Corporation (PBGC) said in a news release that The Pittsburgh Brewing Co. Pension Plan was frozen in 1995 and that it formally ended in April 2005. The bankrupt company had made Iron City Beer and other brands.
Tuesday’s move came after a US Bankruptcy Court judge approved the plan termination (SeeFriday Set as Pittsburgh Brewing Pension Turnover Pact ) and after the PBGC decided that the Pittsburgh Brewing Co. plan met the legal criteria for a PBGC takeover (See Pittsburgh Brewing to PBGC: Take Our DB Plan ).
The PBGC estimated the plan is 50% funded, with about $12 million in assets to cover nearly $24 million in promised benefits. The agency said it expects to be responsible for $11 million of the $12 million shortfall.
Termination of the plan does not affect the IUE-CWA Pension Fund, an ongoing multi-employer pension plan whose several employer-sponsors include Pittsburgh Brewing Co., the PBGC announcement said.
« Report: Reprimanded Boston Health Exec Admits to More Sex Harassment