PBGC to Take Over Pensions of Edgewater Steel Workers and Retirees
FOR IMMEDIATE RELEASE
July 22, 1997
The Pension Benefit Guaranty Corporation (PBGC), the federal pension insurance agency, today announced it will take over two pension plans of Edgewater Steel Company of Oakmont, PA, also known as Oakmont Steel, Inc., to protect almost 1,000 workers and retirees. The plans are underfunded by about $22 million.
"PBGC protects pension benefits when companies can no longer keep their pension promises," PBGC Executive Director David M. Strauss said. "Retirees can be assured that insured pension benefits will continue without interruption and workers will receive benefits when they retire."
PBGC is taking this action because the company filed for Chapter 11 bankruptcy on March 21, 1997, the date of plan termination, and is not able to continue to sponsor the plans.
The two plans have combined assets of about $28 million and liabilities of approximately $50 million. The maximum pension guaranteed for workers in plans that terminate in 1997 is $2,761.36 per month (approximately $33,130 annually) for persons who retire at age 65 or later. The guarantee is lower for those who retire early or have survivor's benefits. PBGC does not cover temporary supplemental benefits that were offered by the company.
Workers and retirees do not need to take any action. Anyone with questions about benefits or wishing to retire may 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. 97-36