Statement of PBGC Acting Director Vince Snowbarger on Chrysler Bankruptcy
FOR IMMEDIATE RELEASE
April 30, 2009
WASHINGTON-Vince Snowbarger, acting director of the Pension Benefit Guaranty Corporation, issued the following statement today:
"Chrysler's entry into Chapter 11 bankruptcy protection today does not change the status of its defined benefit pension plans. The plans remain ongoing under the sponsorship of Chrysler, and are insured by the Pension Benefit Guaranty Corporation. As the bankruptcy process unfolds, the PBGC will work with Chrysler, its unions, and all other stakeholders to ensure continuation of the pension plans.
"Benefits in the Chrysler pension plans are guaranteed up to the limits set by law. If one or more of the plans end in the course of bankruptcy, many workers and retirees, typically those who retire at younger ages, would see reduced benefits. Workers and retirees who are concerned about their benefit and the impact of a possible pension termination should consult our special Chrysler information page at http://www.pbgc.gov/workers-retirees/chrysler.html."
About the PBGC:
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 29,000 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. 09-23