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Compliance June 8, 2011
PBGC Takes Over Plan of Concrete Products Maker
June 8, 2011 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation will pay the retirement benefits of more than 800 workers and retirees of bankrupt Schwab Industries, Inc. of Dover, Ohio.
Reported by Rebecca Moore
The agency said it acted to protect worker pensions as the former concrete products maker went out of business. PBGC has taken over the pension plan’s assets and will use insurance premiums to pay covered benefits.
The agency estimates that the Schwab pension plan has $19.5 million to cover $38.4 million in benefit promises. It expects to pay about $18.5 million of the $18.9 million shortfall.
PBGC’s loss from the Schwab plan’s unfunded liabilities were included in its fiscal year 2010 financial statements.