PBGC to Pay Pension Benefits at FBOP Corp.
FOR IMMEDIATE RELEASE
April 21, 2011
WASHINGTON—The Pension Benefit Guaranty Corporation will cover the retirement benefits of nearly 2,600 employees and retirees of FBOP Corp. of Oak Park, Ill.
PBGC, which safeguards the pensions of 44 million Americans, acted because FBOP, a former bank holding company, is selling all of its assets, abandoning its pension plan and going out of business.
PBGC will pay all pension benefits earned by retirees up to the legal maximum of $54,000 a year for a 65-year-old.
Further information is available at the PBGC Web site, www.pbgc.gov, or by calling toll-free 1-800-400-7242. TTY/TDD users should call the federal relay service toll-free at 1-800-877-8339 and ask for 800-400-7242.
FBOP Corp. retirees who get their pension from PBGC may be eligible for the federal Health Coverage Tax Credit. For more information, see http://www.pbgc.gov/wr/benefits/hctc/hctc-faqs.html.
PBGC, which receives no taxpayer funds, will take over the pension plan assets and use insurance premiums to pay covered benefits. FBOP's pension plan has $55.0 million in assets to cover $111.6 million in benefit liabilities, according to the PBGC. The agency expects to cover substantially all of the $56.6 million shortfall.
PBGC's action will increase the agency's claims by $56.6 million and was not previously included in its fiscal year 2010 financial statements.
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PBGC No. 11-40