PBGC to Pay Pension Benefits at Schwab Industries
FOR IMMEDIATE RELEASE
June 08, 2011
WASHINGTON—The Pension Benefit Guaranty Corporation will pay the retirement benefits of more than 800 workers and retirees of bankrupt Schwab Industries, Inc. of Dover, Ohio.
PBGC, which safeguards the pensions of 44 million Americans, acted to protect worker pensions as the former concrete products maker went 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.
Schwab Industries retirees who get their pensions from the PBGC may be eligible for the federal Health Coverage Tax Credit. The PBGC Web site provides details at http://www.pbgc.gov/wr/benefits/hctc/hctc-faqs.html.
PBGC, which receives no taxpayer funds, has taken over the pension plan's assets and will use insurance premiums to pay covered benefits. The Schwab pension plan has $19.5 million to cover $38.4 million in benefit promises, according to PBGC estimates. The agency expects to pay about $18.5 million of the $18.9 million shortfall.
PBGC's loss from the Schwab plan's unfunded liabilities were included in its fiscal year 2010 financial statements.
The PBGC protects the pension benefits of 44 million Americans in 27,500 private-sector pension plans. The agency is directly responsible for paying the benefits of more than 1.5 million people in failed pension plans. PBGC receives no taxpayer dollars and never has. Its operations are financed by insurance premiums and with assets and recoveries from failed plans
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PBGC No. 11-43