PBGC Helps Preserve Pensions for 53,000 People in the First Quarter
FOR IMMEDIATE RELEASE
March 30, 2011
WASHINGTON—The Pension Benefit Guaranty Corporation today announced that it helped an additional 53,000 people keep their pension benefits in the first quarter of FY 2011 (October-December 2010).
PBGC worked with nine companies in bankruptcy to preserve their pension plans, whether by the reorganized company or by the new owner of their operations. The continuation of the plans means that workers will receive the benefits they were promised, and more than $1.5 billion in pension liabilities were kept off the agency’s books.
“PBGC strives to keep pension promises in the hands of the employers who make them,” said Director Josh Gotbaum. “We’re glad we were able to work with these companies and their lenders to make sure workers will get the retirement benefits they have earned.”
Companies with ongoing plans following bankruptcy reorganization or asset sales in the first quarter of 2011:
- AbitibiBowater Inc. (Forest Products) – Greenville, SC., 9,800, participants
- American Commercial Inc. (Mikasa) (Retail) – Secaucus, N.J ., 700 participants
- American Safety Razor (Consumer Products) – Cedar Knolls, N.J., 1500 participants
- Chemtura Corporation (Chemicals) – Philadelphia, Pa., 15,000 participants
- Education Resources Institute (Financial Institutions and Services) – Boston, Mass., 120 participants
- General Growth Properties (Financial Institutions and Services) – Chicago, Ill., 130 participants
- Hawaiian Telecom (Telecommunications and Cable) – Honolulu, Hawaii, 1700 participants
- Innovative Communications Corp. (Telecommunications and Cable) – U.S. Virgin Islands, 1,000 participants
- Visteon Corp. (Auto Parts) – Van Buren Township, Mich., 23,000 participants
Last year, PBGC worked with debtors and creditors in more than 30 bankruptcies to preserve benefits for over 250,000 workers and retirees, and to keep about $4 billion in obligations off the agency's books.
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. More information can be found at www.PBGC.gov.
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PBGC No. 11-29