Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Compliance October 5, 2010
PBGC Takes on another Auto Parts Maker Plan
October 5, 2010 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) has assumed responsibility for the underfunded pension plan covering more than 780 former workers and retirees of Plastech Exterior Systems Inc., an auto-parts maker in Dearborn, Michigan.
Reported by Rebecca Moore
The agency said it stepped in because Plastech and its parent company, Plastech Engineered Products Inc., liquidated in bankruptcy proceedings, and there will be no sponsor left to fund or administer the plan.
According to PBGC estimates, the Plastech Exterior Systems Inc. Retirement Plan is 77% funded, with assets of $17.1 million to cover $22.5 million in benefit liabilities. The agency expects to be responsible for $5.2 million of the $5.4 million shortfall. This increase in claims was not previously included in the agency’s fiscal year 2009 financial statements, according to a news release.
The plan ended on June 30, 2008, and the agency assumed responsibility for the plan on September 13, 2010.« Volatile Market Presents Challenges for DB Plan Investment Decision Making