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.

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.