PBGC/Ladish Company Agree to Strengthen Funding of Six Pension Plans
FOR IMMEDIATE RELEASE
October 14, 1997
The Pension Benefit Guaranty Corporation (PBGC) and Ladish Company, Inc., a Wisconsin maker of specialty forged metal products, today agreed on steps to improve funding of six underfunded pension plans covering 3,200 workers and retirees. After the steps have been completed, PBGC will remove liens it placed on Ladish assets in 1996.
"PBGC and Ladish successfully worked together to strengthen the funding of worker pensions," said PBGC Executive Director David M. Strauss.
The six plans are underfunded by $52 million, with total assets of $54 million and liabilities of $106 million. Under the agreement, Ladish will take three steps to remove PBGC's liens and increase funding of the plans: contribute $3.9 million in cash to the plans; merge three of the underfunded plans with two other overfunded plans; and contribute $10 million to the three remaining underfunded plans, using proceeds from a completed asset sale. Including the merger, overall pension funding will increase by $17.7 million.
The agreement is a product of PBGC's Early Warning Program under which the agency monitors some 500 companies with underfunded pension plans and negotiates agreements when transactions occur to ensure that workers' pensions are protected.
Ladish, based in Cudahy, Wis. near Milwaukee, is a leading manufacturer of forged and formed metal components for a variety of jet engine, aerospace and general industrial applications.
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by about 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 by investment returns.
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PBGC No. 98-02