Statement of PBGC Director Joshua Gotbaum on Visteon Plan of Reorganization
FOR IMMEDIATE RELEASE
August 31, 2010
WASHINGTON - "Under the plan approved today, Visteon's 22,000 workers and retirees will continue to receive the full benefits they've earned. Everyone at the PBGC worked hard to preserve the plans and we're pleased that the company can reorganize while keeping its pension commitments."
Visteon, an auto parts supplier based in Van Buren Township, Mich., filed for Chapter 11 protection in the U.S. Bankruptcy Court in Wilmington, Del., on May 28, 2009. The former Ford Motor Co. subsidiary initially contemplated terminating three of its four pension plans, and shifting the obligations to the PBGC's insurance program. The move would have caused $100 million in benefit reductions for the company's 22,000 workers and retirees. The pension transfer also would have added more than $500 million to the PBGC's shortfall. Under the plan of reorganization approved today all of the company's pension plans remain ongoing.
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. 10-49