Visteon Reaches Agreement with PBGC on Pension Protections

January 5, 2009 ( - The Pension Benefit Guaranty Corporation (PBGC) announced an agreement with Visteon Corp. to provide additional protection for the pension plan covering more than 5,300 former employees of the automotive supplier's now-shuttered facilities in Connersville and Bedford, Indiana.

According to the press release, under the agreement, Visteon will accelerate a $10.5 million cash contribution to the plan, provide a $15 million letter of credit, and provide for a guaranty by certain affiliates of certain contingent pension obligations of up to $30 million.

The PBGC said all active participants in the pension plan were separated from employment when, under its restructuring plan, Visteon ceased operations in Connersville in December, 2007, and in Bedford in June, 2008.  The Visteon pension plan for its Connersville and Bedford employees remains ongoing and under the company’s control.

“Today’s agreement significantly strengthens the financial health of this plan.  We commend Visteon’s willingness to work with us to achieve an outcome that is favorable to its employees and retirees,” said PBGC Director Charles E.F. Millard, in the announcement.