PBGC will pay retirement benefits for nearly 580 current and future retirees of Pennfield Corp., an animal feed mill based in Lancaster, Pa.
The agency stepped in because Pennfield sold the majority of its assets in bankruptcy proceedings to agribusiness giant Cargill, Inc. Cargill did not assume responsibility for the pension plan.
PBGC will pay all pension benefits earned by Pennfield retirees up to the legal limit of about $56,000 for a 65-year-old.
Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.
According to PBGC estimates, Pennfield's plan was 54 percent funded with $15 million in assets to pay $28 million in benefits. The agency expects to cover the entire $13 million shortfall.
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Pennfield opened for business in 1919 and is headquartered in Lancaster. The company produced, processed, and marketed high-end animal feeds at facilities in Pennsylvania. Pennfield served the entire East Coast, as well as Southern California, but had the majority of its business operations in Pennsylvania. Pennfield has a subsidiary, Pennfield Transport Company, which is also located in Lancaster.