Compliance July 29, 2011

PBGC Takes on Pensions of Alabama Aircraft Industries

July 29, 2011 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation will pay the retirement benefits of more than 3,000 workers and retirees of the bankrupt airplane maintenance firm, Alabama Aircraft Industries, Inc. of Birmingham, Alabama.
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The agency said it stepped in after the bankruptcy court found the company could not afford its pension plan. The Alabama Aircraft pension plan has $82.4 million to cover $142.8 million in benefit promises, according to PBGC estimates.   

The agency expects to pay about $58.9 million of the $60.4 million shortfall.  

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PBGC’s loss from the Alabama Aircraft plan’s unfunded liabilities was included in its fiscal year 2010 financial statements.

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