PBGC Negotiates $2.5 Million Additional Pension Funding for Workers at Stahl USA Inc.
FOR IMMEDIATE RELEASE
March 18, 2011
WASHINGTON—The Pension Benefit Guaranty Corporation today announced an agreement with Stahl USA Inc. to improve funding for a pension plan covering more than 150 of the company's workers and retirees.
The agreement stems from the August 2009 shutdown of a manufacturing facility in Peabody, Mass.
Under the agreement, the company will pay $2.5 million to the Stahl USA Pension Plan by Sept. 15, 2012. The payments are in excess of the company's required plan contributions.
"PBGC works with companies to make their pension plans more secure for the people who count on them," said PBGC Director Josh Gotbaum. "We applaud Stahl USA for working with us, and we're sure their employees and retirees do, too."
Stahl USA is a subsidiary of Stahl Holdings BV, which is headquartered in the Netherlands. The company produces leather finishing products and high performance coatings.
The Employee Retirement Income Security Act of 1974 (ERISA), the federal pension law that created 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, 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 and never has. Operations are financed entirely by insurance premiums paid by companies that sponsor pension plans and from the assets and recoveries on behalf of plans that have been assumed by PBGC.
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PBGC No. 11-28