In its announcement, the PBGC said The Falcon Products Inc. Retirement Plan and the Shelby Williams Industries Inc. Employees Pension Plan ended as of August 31, 2005. Together the plans are 44% funded, with about $26 million in assets to cover nearly $59 million in promised benefits. The PBGC estimates that it will be responsible for $31.6 million of the $33 million shortfall, according to the announcement.
Workers covered by the two plans will receive their pension benefits up to the limits set by law. Retirees will continue to receive monthly benefit checks without interruption,and other workers will receive their pensions when eligible to retire.
Under federal pension law, the maximum guaranteed pension at age 65 for participants in plans that terminate in 2005 is $45,614 per year. The maximum guaranteed amount is lower for those who retire earlier or elect survivor benefits. In addition, certain early retirement subsidies and benefit increases made within the past five years may not be fully guaranteed.
The PBGC will send trusteeship notification letters to all participants in the two plans within the next several weeks.