PBGC Pays Pensions at Amcast Industrial Corporation
FOR IMMEDIATE RELEASE
July 28, 2005
WASHINGTON - The Pension Benefit Guaranty Corporation today announced it has assumed responsibility for the pensions of 6,200 workers and retirees of Amcast Industrial Corporation of Dayton, Ohio, a manufacturer of auto parts with production facilities in Alabama and Indiana.
Amcast filed for Chapter 11 bankruptcy protection on November 30, 2004, and applied to terminate its pension plan on March 11, 2005. On June 2, 2005, the bankruptcy court ruled that Amcast had satisfied the legal test for terminating the plan. After legal and financial review, the PBGC determined that the company and its subsidiaries met all criteria under federal law to transfer its pension liabilities to the pension insurance program.
The Amcast Industrial Corporation Merged Pension Plan ended as of May 31, 2005, and the PBGC became trustee on July 26, 2005. According to PBGC estimates, the plan is 47 percent funded, with $77 million in assets to cover $166 million in benefit promises. The PBGC will be liable for $83 million of the $89 million shortfall.
Workers covered by the Amcast Industrial Corp. Merged Pension Plan will receive their pension benefits up to the limits set by law. Retirees will continue to receive monthly benefit checks without interruption, and other workers will receive their pensions when eligible to retire. Under federal pension law, the maximum guaranteed pension at age 65 for participants in plans that terminate in 2005 is $45,614 per year. The maximum guaranteed amount is lower for those who retire earlier or elect survivor benefits. In addition, certain early retirement subsidies and benefit increases made within the past five years may not be fully guaranteed.
Within the next several weeks, the PBGC will send trusteeship notification letters to all participants in the Amcast Industrial pension plan. Workers and retirees with questions may consult the PBGC Web site, www.pbgc.gov/plans or call 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 for 800-400-7242.
Amcast retirees who draw a benefit from the PBGC may be eligible for the federal Health Coverage Tax Credit. Further information may be found on the PBGC Web site.
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. 05-55