PBGC to Protect Pension Benefits of CSC Steel Employees
FOR IMMEDIATE RELEASE
February 28, 2002
The Pension Benefit Guaranty Corporation (PBGC) today announced that it has taken over the underfunded pension plans covering approximately 1,000 people who worked for CSC, Ltd., a bankrupt producer of quality bar steel in Warren, Ohio.
PBGC took action because the company is liquidating in bankruptcy and the pension plan does not have enough money to pay all benefits. The PBGC insurance program will protect the basic pension benefits of CSC workers. Retirees will continue to receive monthly checks subject to federal maximum guarantees, and other CSC employees will receive benefits when they are eligible to retire.
The CSC, Ltd. Production and Maintenance Pension Plan and CSC, Ltd. Clerical Pension Plan have a combined underfunding of about $56 million, according to PBGC estimates. PBGC will add its assets to those of the plans to make sure the guaranteed pension benefits of CSC employees are paid.
The plan was terminated as of October 31, 2001. Under federal pension law, the maximum pension guaranteed for workers in plans that terminated 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 retirees older or younger than age 65 and for those who choose survivor benefits.
Workers and retirees do not need to take any action. CSC 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.
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 44 million American workers and retirees participating in over 35,000 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. 02-15