PBGC Protects Pensions of 2,600 in Michigan Health Care Pension Plan
FOR IMMEDIATE RELEASE
May 15, 1997
The Pension Benefit Guaranty Corporation today announced it is taking over the Michigan Health Care Corporation pension plan to protect the pensions of over 2,600 workers and retirees.
The company filed for bankruptcy in March 1995 and its assets were sold in April 1997. The pension plan will terminate effective April 18, 1997. The pension plan, covering all hospital workers, including almost 300 retirees, is underfunded by about $11 million, with assets of $21 million and liabilities of $32 million.
"Because the pension plan is insured, former employees can be secure 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.
Nearly all of the participants are expected to receive the same benefits they are now receiving or would be entitled to receive when they retire. The maximum pension 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.
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.
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by more than 42 million American workers and retirees participating in about 50,000 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. 97-29