PBGC Takes Consumers Distributing Plan
The PBGC said in press release that it stepped in
because the pension plan would be unable to pay benefits
when due, failed to meet minimum funding standards, and
faced abandonment as a result of liquidation.
Consumers Distributing was a retail sales company that
liquidated during bankruptcy proceedings in the U.S.
Bankruptcy Court in Trenton, New Jersey, shifting
responsibility for the pension plan to Consumers
Distributing Pension Administration Ltd., a Canadian firm
with offices in New York City.
The two companies are units of Akai Holdings Limited,
liquidating under the High Court of Hong Kong
Administrative Region.
According to PBGC estimates, the Consumers Distributing
Pension Administration Retirement Plan is 15% funded,
with assets of a little over $1 million to cover $7.3
million in benefit liabilities. The PBGC expects to be
responsible for $5.2 million of the $6.3 million
shortfall.
The agency will use plan assets and PBGC insurance funds
to pay guaranteed benefits earned under the plan, which
ended on December 31, 2007. The PBGC became trustee of
the plan on September 2, 2008.