PBGC Negotiates more than $900,000 Additional Pension Funding for Workers at EGS Electrical Group, LLC
FOR IMMEDIATE RELEASE
May 11, 2011
WASHINGTON—The Pension Benefit Guaranty Corporation today announced an agreement with EGS Electrical Group, LLC to improve funding for a pension plan covering more than 650 of the company's workers and retirees.
The agreement stems from the November 2009 shutdown of a manufacturing facility in Shoemakersville, Pa.
Under the agreement, the company will pay $918,799 to the EGS Electrical Group, LLC Pension Plan For Bargaining Unit Employees by June 2014. The payments are in excess of the company's required plan contributions.
"We work with companies to make pension plans stronger for the people who need them," said PBGC Director Josh Gotbaum. "We appreciate EGS Electrical's help in giving their employees a more secure retirement future."
EGS Electrical Group of Rosemont, Ill., makes electrical construction materials and electrical heating cable products for residential and commercial applications.
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. 11-41