Compliance August 11, 2011
PBGC Negotiates $19M Pension Payment from Steel Mill
August 11, 2011 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation announced an agreement with Gerdau that will add $18.6 million in additional funding for two pension plans covering more than 780 of the company’s workers and retirees.
Reported by Rebecca Moore
The agreement stems from the October 2009 shutdown of the company’s steel mill in Sand Springs, Oklahoma. Closure of the Sand Springs mill affected the Retirement Plan for Employees of Sheffield Steel Corporation and the Sheffield Steel Corporation Pension Agreement Plan.
Under the agreement, Gerdau will pay $18.6 million to the two plans over the next three years. The payments are in excess of the company’s required plan contributions.
According to the announcement, Gerdau is the second largest mini-mill steel producer in North America.