Compliance September 24, 2014
PBGC Takes Responsibility for Coal Company Plan
September 24, 2014 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) will pay retirement benefits for nearly 2,000 current and future retirees of James River Coal Company.
Reported by PLANSPONSOR staff
PBGC is stepping in because the mining operation based in Richmond, Virginia, sold the majority of its assets in bankruptcy and the buyer is not assuming the pension plan. Employees and retirees who are participants in the James River Coal Company Employees’ Pension Plan will continue to receive benefits from the company until PBGC assumes responsibility.
According to PBGC estimates, the plan is 61% funded with $74 million in assets to pay $121 million in benefits. The agency expects to cover $44.6 million of the $47.1 million shortfall.
The company’s pension plan ended as of August 31, 2014.