Statement of Director Josh Gotbaum on Chemtura Pensions
FOR IMMEDIATE RELEASE
November 10, 2010
WASHINGTON-Josh Gotbaum, Director of the Pension Benefit Guaranty Corporation, issued the following statement today:
"We are pleased both that Chemtura Corp. emerged from bankruptcy with its pension plans intact and that the company agreed with PBGC to make a $50 million additional contribution to its most underfunded plan. This is a great development for the company's 15,000 workers and retirees, because they will keep the pensions they have earned. It's also a good day for the PBGC because some $330 million in obligations will stay with Chemtura instead of moving to 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 27,500 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. 11-11