PBGC Takes On $11.9M Plymouth Rubber Shortfall

July 19, 2006 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation has agreed to take on the $11.9 million shortfall of Massachusetts-based Plymouth Rubber Co., which filed for bankruptcy protection in July 2005.

The tapes and adhesives manufacturer announced in January that it would terminate its defined benefits plan, which is 22% underfunded with $3.4 million assets, to cover $15.3 million in promised benefits.

The pension plan terminated as of April 1, 2006, and the PBGC became trustee on July 18.