Statement of Acting Director Vince Snowbarger on Visteon Pensions
FOR IMMEDIATE RELEASE
December 18, 2009
WASHINGTON -Vince Snowbarger, acting director of the Pension Benefit Guaranty Corporation, issued the following statement today:
"Under Visteon's plan of reorganization, the company proposes to transfer to the PBGC three of its pension plans, which cover more than 21,000 workers and retirees, and which have an aggregate shortfall of $544 million. When pension plans terminate, many retirees lose hard-earned benefits because of limits set by federal law. The PBGC estimates that workers and retirees in the three Visteon plans would lose almost $100 million in benefits, with early retirees most likely to see benefit reductions. Continuation of the pension plans would preserve those benefits. The PBGC hopes that Visteon can reach agreement with its creditors and lenders on a reorganization that allows the company to retain all its pension plans."
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.
— ### —
PBGC No. 10-10