PBGC to Protect Fruehauf Trailer Corp. Pensions
FOR IMMEDIATE RELEASE
October 04, 2004
WASHINGTON-The Pension Benefit Guaranty Corporation (PBGC) today announced it will assume responsibility for the pensions of more than 3,700 former employees of the bankrupt Fruehauf Trailer Corp., a manufacturer and distributor of trucks that liquidated in bankruptcy in 1998. Since Fruehauf's liquidation, the pension plan has been sponsored by Pension Transfer Corp. of Corona del Mar, Calif.
The PBGC estimates the Fruehauf Trailer Corporation Retirement Plan has roughly $54 million in assets to cover more than $61 million in benefit liabilities. The PBGC will make up the shortfall of more than $7 million out of its insurance funds . Fruehauf retirees will continue to receive their pension checks without interruption, and other former Fruehauf employees will receive their pensions from the PBGC when they become eligible to retire.
The pension plan ended as of October 4, 2004, but will remain under the administration of Pension Transfer Corp. until the PBGC becomes trustee. Under federal pension law, the maximum guaranteed pension at age 65 for participants in plans that terminate in 2004 is $44,386 per year.
Fruehauf pension plan participants with questions may contact PBGC's Contact 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. Information about pension insurance also may be found on PBGC's Web site, www.pbgc.gov.
The PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits earned by 44 million American workers and retirees participating in over 31,000 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 investment returns.
— ### —
PBGC No. 05-02