PBGC Director Millard Hails Continuation of Pension Plans At Dura Automotive
FOR IMMEDIATE RELEASE
June 27, 2008
WASHINGTON- Charles E.F. Millard, director of the Pension Benefit Guaranty Corporation, issued the following statement today:
"As Dura Automotive emerges from Chapter 11 protection today, the PBGC applauds the continuation of the company's defined benefit pension plans. Throughout the restructuring process, Dura indicated that it would keep its plans ongoing, and it's making good on that promise. Dura should be commended for keeping the pension commitments made to its workers and retirees."
As insurer of America's private defined benefit pensions, the PBGC takes an active role in corporate bankruptcy proceedings on behalf of workers whose pension plans are not fully funded. Since 2005, the PBGC has worked with 13 auto parts companies that have emerged successfully from Chapter 11 protection without terminating their pension plans. These include Federal Mogul Corp., Tower Automotive and Dana Corp.
Dura Automotive, which makes pedal systems, parking brake mechanisms and transmission gear systems, sponsors four defined benefit pension plans that cover more than 4,600 participants. The plan of reorganization confirmed by the bankruptcy court provides that Dura Automotive will continue to sponsor and maintain those plans. During the bankruptcy case, Dura Automotive continued to make pension funding contributions as required by ERISA, the federal pension law that created the PBGC. The agency actively participated in the bankruptcy proceeding, serving as a member of the official committee representing unsecured creditors.
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. 08-38