The agency will pay benefits for nearly 470 current and future retirees of the law firm, which is based in Detroit, Michigan. The agency stepped in because the firm would be unable to maintain its pension plan and remain in business.
In 2008, the firm was hit with financial troubles especially in Michigan and New York City. In January 2013, the firm asked PBGC to assume responsibility for its pension plan.
According to PBGC estimates, as of March 20, 2013 (the plan termination date), the pension plan was 47% funded with $34 million in assets to pay $73 million in benefits. The agency expects to cover most of the $39 million shortfall.
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