Compliance April 21, 2011
PBGC Takes on Plan of Former Bank Holding Company
April 21, 2011 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation will cover the retirement benefits of nearly 2,600 employees and retirees of FBOP Corp. of Oak Park, Illinois.
Reported by Rebecca Moore
A PBGC news release said the agency acted because FBOP, a former bank holding company, is selling all of its assets, abandoning its pension plan, and going out of business.
FBOP’s pension plan has $55 million in assets to cover $111.6 million in benefit liabilities, according to the PBGC. The agency expects to cover substantially all of the $56.6 million shortfall.
PBGC’s action will increase the agency’s claims by $56.6 million and was not previously included in its fiscal year 2010 financial statements, the announcement said.