PBGC Takes Mich. Firm Pension Plan
The Pension Benefit Guaranty Corp. (PBGC) said GAC
and Flxible Corp., which manufactured buses in Ann Arbor
and Delaware, Ohio, both liquidated in bankruptcy. GAC
did so in 1998 and Flxible in 1997.
The agency said it stepped in because no entity remains
to administer the plan and pay benefits following
Patton’s own non-bankruptcy liquidation. An insolvent
commercial real estate holding company, Patton ended its
operations on June 30, 2006, and was unable to continue
funding the plan.
According to PBGC estimates, the GAC/Flxible Employees
Retirement Plan is about 58% percent funded, with assets
of $19.8 million and benefit liabilities of $33.8
million. The agency expects to cover the entire $14
million shortfall.
Under federal pension law, the maximum guaranteed pension
at age 65 for participants in plans that terminate in
2006 is $47,659 per year.
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