PBGC Protects Pension Benefits of Alamac Knit Fabrics Employees
FOR IMMEDIATE RELEASE
December 18, 2001
The Pension Benefit Guaranty Corporation (PBGC) has assumed responsibility for the pension plans of almost 2,100 people who worked for the bankrupt Alamac Knit Fabrics, Inc., a textile manufacturer based in Charlotte, N.C.
"PBGC is acting because the company is in bankruptcy liquidation and can no longer sponsor the pension plans," said Steven A. Kandarian, Executive Director of PBGC. "PBGC's insurance program will pay benefits to all covered Alamac employees when they are eligible to retire. We will also make sure that current retirees continue to receive their monthly checks without interruption."
The two pension plans were established in 1997 when the Dyersburg Corporation acquired the Alamac division of Westpoint Stevens, along with the pension assets and liabilities of Alamac employees. The Alamac Knit Fabrics, Inc. Retirement Plan and Hourly Plan have combined assets of about $16.6 million to cover benefit liabilities totaling around $23.2 million and are underfunded by about $6.6 million, according to PBGC estimates.
The plans were terminated as of August 31, 2001. Under federal pension law, the maximum pension guaranteed for workers in plans that terminate in 2001 is $3,392.05 a month (or $40,704.60 a year) for persons retiring at age 65. Maximum guarantees are adjusted for those who retire at other ages or those who elect survivor benefits. PBGC estimates that nearly all Alamac workers will receive their full benefit.
Workers and retirees do not need to take any action. Alamac pension plan participants who have questions about benefits or who wish to retire may contact PBGC's Customer Service Center toll-free at 1-800-400-PBGC (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. General information about PBGC's pension insurance program is available at the agency Web site www.pbgc.gov.
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by more than 43 million American workers and retirees participating in nearly 38,000 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 by PBGC's investment returns.
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PBGC No. 02-09