From Sandy Rich, Chief of Negotiations and Restructuring:
Beechcraft, previously known as Hawker Beechcraft, emerged from bankruptcy February 21. Despite the company's original plan to terminate three pension plans, we at PBGC were able to work with the company, its employees, and company creditors to preserve one of the three plans while providing the safety net of PBGC trusteeship to the two terminated pension plans.
Beechcraft will continue a pension plan that will provide benefits to 8,300 participants. PBGC will provide guaranteed level benefits to the 9,500 beneficiaries of the terminated plans. In addition, PBGC supported a $2.5 million settlement with Beechcraft that will provide salaried retirees additional benefits exceeding those paid by PBGC under rules set by Congress.
It's important to know that bankruptcy does not always lead to termination of company-sponsored pension plans. In fact, it's our goal to preserve plans when possible.
Real retirement security is found in lifetime income that you can't outlive or outspend. That's why everyone at PBGC pursues every option to keep pension plans going.
And, in cases where that can't happen, we're ready to step in and pay benefits up to the legal max of almost $57,500 for a 65-year-old retiree.
When PBGC steps in, no one ever misses a payment.