Get more! Sign up for PLANSPONSOR newsletters.
Compliance March 17, 2011
PBGC Steps in to Take Illinois Company Pension
March 17, 2011 (PLANSPONSOR.com) – The Pension Benefit Guaranty Corporation (PBGC) will cover the retirement benefits of nearly 800 employees and retirees of Böwe Bell + Howell Co.
Reported by Fred Schneyer
The PBGC said in a news release that it acted because Böwe Bell + Howell’s parent company, Böwe Systec AG of Augsburg, Germany, is selling all its assets in bankruptcy. Following the sale, the pension plan will be abandoned, leaving PBGC to pay about $21 million in unfunded benefits. The agency expects to cover $20.8 million of the $20.9 million shortfall.
By taking action before the sale, the agency can more easily recover assets from the company and its units to help pay benefits to members of Böwe Bell + Howell’s retirement plan, the PBGC said in its announcement.
Böwe Bell + Howell was a maker of high-speed postal inserting and sorting systems based in Wheeling, Illinois.
You Might Also Like:
PBGC Rescues Teamsters and UFCW Plans
The two local plans received SFA grants to protect their solvency through 2051.
Central States Has Repaid SFA Overpayment
The multiemployer plan was overpaid $127 million for the accidental inclusion of about 3,500 dead participants in their grant application.
Comment Period Extended for SECURE 2.0 Reporting, Disclosure Rules
Federal agencies are seeking advice on how to improve the reporting and disclosure system for retirement plans governed by ERISA.