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Benefits November 30, 2011
PBGC to Take Over Philadelphia Orchestra Pension Plans
November 30, 2011 (PLANSPONSOR.com) – A federal bankruptcy judge agreed to allow the Pension Benefit Guaranty Corporation to take over the Philadelphia Orchestra’s pension plans, reports the New York Times.
Reported by Tara Cantore
The judge stated the plans would unlikely survive if the Orchestra tried to keep running them on its own. The two plans, one for musicians and the other for staff members, cover approximately 200 people. The article states some musicians will likely see their pensions reduced after the takeover.
The orchestra filed for Chapter 11 bankruptcy protection in April, and asked for the government’s help with its pensions, stating it could not raise money if donors thought their donations would end up in a troubled pension fund. (See Philly Orchestra Challenged on Funding Pension and Philadelphia Orchestra Asks Court to Stop Pension Fund from Harassing Donors).