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Compliance June 30, 2011
PBGC Preserves Pensions at Bankrupt Companies
June 30, 2011 (PLANSPONSOR.com) - In an effort to save the retirement plan of roughly 7,400 workers and retirees of the Oklahoma-based Tronox, the Pension Benefit Guaranty Corporation worked with the company to emerge from bankruptcy with its pension plan intact.
Reported by
Rebecca Moore
According to a news release, in addition to Tronox, PBGC worked with the following companies to keep pensions ongoing following bankruptcy reorganization or asset sales in the second quarter of 2011:
- Boston Generating LLC (Utilities) – Boston, Massachusetts, 113 participants;
- Fair Point Communications Inc. (Telecommunications and Cable) – Charlotte, North Carolina, 2,400 participants; and
- Japan Airlines Co., Ltd. (Airlines) – El Segundo, California, 500 participants.
The agency said its success in the FY2011 second quarter secured benefits promised to some 10,400 workers and kept more than $400 million in pension liabilities off PBGC’s balance sheet.
Since 2009, PBGC has worked with debtors and creditors in more than 40 bankruptcies to preserve benefits for over 300,000 workers and retirees, and to keep more than $4 billion off the agency’s books.
The announcement explained that if a pension plan is terminated, PBGC will pay pension benefits to employees and retirees; however, because of limits set by law, some retirees might get reduced pensions, and PBGC does not insure health benefits at all.