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Compliance January 5, 2010
PBGC Reaches Funding Agreement with Whirlpool
January 5, 2010 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) has announced an $11.7-million agreement with appliance maker Whirlpool Corp. to shore up funding for one of its retirement plans.
Reported by Rebecca Moore
The agreement stems from the August 15, 2008, closure of the Benton Harbor, Michigan, company’s LaVergne, Tennessee, facility, in which 649 active participants in the Whirlpool Production Employees Retirement Plan at LaVergne lost their jobs. The plan, which covers about 1,500 workers and retirees, remains ongoing and under the company’s sponsorship.
Under the agreement,
Whirlpool has given the agency an $11.7-million bond that will remain in effect
until August 15, 2013. If the company or the PBGC ends the plan before that
date, and Whirlpool failed to pay any resulting liability, the PBGC would
collect on the bond.
“We salute Whirlpool for its cooperation. The agreement announced today
will give the company’s employees a more secure retirement outlook,” said PBGC
acting director Vince Snowbarger, in the announcement.