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PBGC Blog: Retirement Matters

There isn't any doubt that the economy has taken a big hit in recent years.

As the housing market begins to rebound and the stock market hits a new high, the percentage of Americans who are confident that they will have enough money for a comfortable retirement is the lowest it has been in 23 years.

According to the latest Retirement Confidence Survey by the Employee Benefit Research Institute (EBRI) only 13 percent were very confident of having a comfortable retirement, while 38 percent were somewhat confident, 21 percent not too confident, and 28 percent not at all confident.

Some of the biggest factors influencing the drop in confidence are high debt levels, and uncertainty about employment.

Read the 2013 EBRI Retirement Confidence Survey Results.

Couple moving out of their sold home.

Do you get a PBGC pension check?

If so, you've got a long-term relationship going on — with PBGC.

We're happy about that.  But, we want to stay in touch.  

Even if your check is deposited directly into your bank account, PBGC still needs your current street address to keep paying you.

So when you move, be sure to tell us your new address. 

You can do it online with MyPBA.  If you've never used MyPBA, it's easy to get started.

Or, you can change your address through our Customer Contact Center at 1-800-400-7242.  

We'll sleep better knowing where you are.  And, we promise to drop you a line now and then.

Weekly Pension News Round-Up

  |   March 15, 2013

Here's what made headlines this week in pension news:  

The Journal Gazette publishes, "Retiring securely a rising concern."

HeraldNet runs, "Pensions part of system that actually works right." 

SmartHR Manager blogs about "More Pension Sponsors Considering Lump-sum Payouts." 

Do you have any idea where the United States ranks when it comes to retirement security? You guessed first place? No, that's not it.

Second? Not that either.

In fact, the U.S. barely made the top 20 ranking. The U.S. ranked number 19, among 150 countries listed by retirement security, behind many Eastern and Western European countries, according to Natixis Global Asset Management firm.

The Natixis Global Retirement Index "gauges how well retired citizens live in 150 nations" based on 20 measures of health, wealth, quality of life and "material well-being" that affect citizens' retirement security.

More...

Here's what made headlines this week in pension news: 

Crain's Detroit Business writes, "PBGC to take over Metavation pension plans before supplier is sold."

PLANSPONSOR.COM offers PBGC perspectives on multiemployer plan issues in "Gotbaum Offers Suggestions for Multiemployer Plan Crisis."

PBGC will pay retirement benefits for more than 1,500 current and future retirees of Metavation LLC, an auto parts supplier based in Southfield, Mich. 

The agency is stepping in because the company's parent, Revstone Transportation LLC, is selling its ownership interest. The transaction will further compromise Metavation's underfunded pension plans, which will be unable to pay retirement benefits.

Formally known as Hillsdale Automotive LLC until 2008, Metavation sponsors two pension plans: the Hillsdale Salaried Pension Plan and the Hillsdale Hourly Pension Plan. Both plans will end as of March 1, 2013.

PBGC will pay all pension benefits earned by the company's retirees up to the legal limit of about $57,500 a year for a 65-year-old.

Until PBGC becomes trustee, the plan remains under Metavation's control. Plan participants will be notified by letter when the agency takes responsibility. At that time, retirees will continue to get benefits without interruption, and future retirees can apply for benefits when eligible.

Metavation makes powertrain and chassis components for the automotive industry. The company also provides other parts for engines, drivelines, and transmissions.

According to PBGC estimates based on information provided by Metavation, the plan is 50 percent funded with $47 million in assets to pay $93 million in benefits. The agency is expected to cover most of the $46 million shortfall.

Participants with questions about their pension benefits should contact the plan administrator. The agency won't be able to address concerns about benefits until it takes responsibility for the plan.