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