The PBGC said it acted because Relizon and its parent company Workflow Management Inc. of Norfolk, Virginia, are liquidating in bankruptcy. After the assets of Relizon, Workflow Management and other affiliates are sold off, no entity will remain to fund or manage the pension plan, leaving the PBGC to pay almost $55 million in unfunded benefits.
By taking action before the asset sale, the agency said it is better positioned to recover pension funding from the assets of Workflow Management and its group of companies. Otherwise, the agency’s ability to recover funds for the pensions of Relizon workers would be severely diminished.
Relizon’s pension plan has $49 million in assets to cover $104.4 million in benefit liabilities. The PBGC expects to cover $54.7 million of the $55.4 million shortfall, which will be reported in its 2011 financial statement.The plan ended as of Friday..