PBGC to Protect Pension Benefits of Former Duro-Test Employees
FOR IMMEDIATE RELEASE
November 21, 2000
The Pension Benefit Guaranty Corporation (PBGC) today announced it will take over two underfunded pension plans covering around 1,600 people who worked for Duro-Test Corp., Bloomfield, N.J., a former manufacturer and wholesaler of consumer and specialty lighting products now in bankruptcy liquidation.
"PBGC is acting because these pension plans face abandonment after the company liquidates," said PBGC Executive Director David M. Strauss. "As a result of PBGC's action, the retirement benefits of about 1,600 Duro-Test workers are protected, and those workers already retired will continue to receive their pension checks without interruption."
Together, the Duro-Test Corp. Pension Plan and the Duro-Test Corp. Pension Plan for Represented Employees have assets of about $37 million to cover benefit liabilities totaling more than $39 million.
Virtually all workers and retirees will receive the same benefits they are now receiving or would be entitled to receive under the plans. The plans will be terminated as of March 28, 2000, the date Duro-Test filed for bankruptcy liquidation. The maximum pension guaranteed for workers in plans that terminate in 2000 is $3,221.59 a month (or $38,659.08 a year) for persons retiring at age 65. Maximum guarantees are adjusted for retirees at other ages or those who elect survivor benefits.
Workers and retirees do not need to take any action. Anyone with questions about benefits or wishing to retire may contact PBGC's Customer Service Center toll-free at 1-800-400-7242. For TTY/TDD users, call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to 800-400-7242.
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by about 43 million American workers and retirees participating in more than 40,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and investment returns.
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PBGC No. 01-07