PBGC took action because the company is liquidating in bankruptcy and the pension plans do not have enough money to pay all vested benefits.
The CSC, Ltd. Production and Maintenance Pension Plan and CSC, Ltd. Clerical Pension Plan have a combined underfunding of about $56 million, according to PBGC estimates.
Under the PBGC, the plans will continue to operate by sending monthly benefit checks subject to federal maximums – $3,392.05 monthly or $40,704.60 yearly. The PBGC will use any remaining plan assets and its own capital to fund the pension payments.
CSC is not the first steel industry company in which the PBGC has had to step in. For example, the agency has also taken over the pension plan of steelmaker LTV, which is also seeking bankruptcy protection.
The PBGC’s Web site is at www.pbgc.gov