The three underfunded pension plans cover a total of 877 current or former Erving employees. The PBGC said it stepped in because the company could not emerge from bankruptcy without terminating the plans.
According to a news release, together, the pension plans have $16.8 million to cover $32.9 million in benefit promises. The agency expects to pay $14.7 million of the $16.1 million shortfall.
The announcement said the action will not have a significant impact on the agency’s financial statements, as PBGC included an estimate of the Erving Industries benefit payments in its fiscal year 2010 financial statements, in keeping with generally accepted accounting principles.