Statement of PBGC Interim Director Charles E.F. Millard on Protection Secured for Chrysler Pensions
FOR IMMEDIATE RELEASE
August 03, 2007
WASHINGTON- Charles E.F. Millard, interim director of the Pension Benefit Guaranty Corporation, issued the following statement today:
"Last spring the PBGC initiated discussions with Daimler and Cerberus that led to their agreement to provide additional protection to Chrysler's pension plans. That agreement goes into effect today. The pension plans will receive an infusion of $200 million in extra contributions, and Daimler will provide a $1 billion guarantee for up to five years."
"As the insurer of America's pension plans, the PBGC will continue to negotiate protection for workers and retirees in transactions like this one. This transaction provides significant protection to the defined benefit insurance system and its stakeholders."
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 30,000 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.
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PBGC No. 07-37