PBGC Protects 2,200 in Monon Pension Plan
FOR IMMEDIATE RELEASE
March 19, 1997
The Pension Benefit Guaranty Corporation (PBGC) is taking steps to become trustee of the Monon Corporation Pension Plan as of March 19 to protect the pensions of almost 2,200 workers.
Monon, of Monon, IN, manufactures truck trailers, domestic containers and container chassis. Its pension plan, which also covers workers in Lansing, Il, is underfunded by about $6.6 million, with liabilities of $9.5 million, and assets of $2.9 million.
The sale of substantially all of Monon's assets will be considered by the U.S. Bankruptcy Court for the Northern District of Indiana later this week. The planned sale will leave the pension plan without a sponsor to provide benefits. PBGC will ask the U.S. District Court to order termination of the plan and to name the agency as trustee.
"Because the pension plan is insured, workers can rest easy knowing that they will have pensions when they retire, and pension benefits will continue for retirees without interruption," said PBGC Acting Executive Director John Seal.
Retirees do not need to take any action. Anyone with questions about benefits or wishing to retire should contact PBGC's Customer Service Center at 1-800-400-7242.
Retirees and future retirees will collect benefits as provided for under the plan, subject to PBGC's legal limits. The maximum guaranteed for workers in plans that terminate in 1997 is $2,761.36 per month (approximately $33,136 annually) for persons retiring at age 65 or later. The guarantee is lower for those who retire early or have survivor's benefits.
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by nearly 42 million American workers and retirees participating in 55,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and investment returns.
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PBGC No. 97-19