PBGC Negotiates $8.2 Million Additional Pension Funding for Workers at Peterbilt unit of PACCAR Inc.
FOR IMMEDIATE RELEASE
February 09, 2011
WASHINGTON—The Pension Benefit Guaranty Corporation today announced an agreement with PACCAR Inc. that strengthens a pension plan covering more than 1,200 retirees and former employees at one of the company's Peterbilt truck facilities.
This agreement stems from the 2008 shutdown of the company's Madison, Tenn., plant and is designed to improve the long-term health and stability of the Peterbilt (Nashville) Local 1832 UAW Retirement Income Plan. Under the agreement, the company recently made an $8.2 million payment into the plan, far exceeding the company's required contribution.
"Whenever possible we work with companies to protect retirement benefits," said Director Josh Gotbaum of the PBGC, the federal agency tasked with safeguarding the pensions of 44 million Americans. "We applaud PACCAR for working with us to provide additional funding for its pension plan and peace of mind for its retirees."
PACCAR of Bellevue, Wash., designs and makes light-medium and heavy-duty trucks under the Kenworth, Peterbilt, and DAF brands. The company also designs and makes diesel engines.
About the PBGC
The Employee Retirement Income Security Act of 1974 (ERISA), the federal pension law that created the PBGC, requires the agency to seek additional protection when more than 20 percent of a company's employees covered by a pension plan lose their jobs due to a cessation of operations at a facility. However, the agency strives to create settlements that safeguard pension plans, while recognizing the business needs of the companies that sponsor them. Since 2007, under this program, the PBGC has obtained more than $750 million in additional protection for defined benefit plans covering more than 80,000 workers and retirees.
The PBGC is a federal corporation that 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. 11-20