PBGC Takes Monon Plan to Secure Pensions
FOR IMMEDIATE RELEASE
March 02, 1998
The Pension Benefit Guaranty Corporation (PBGC) today announced it has taken over the Monon Corporation Pension Plan in order to protect the pensions of almost 2,200 workers.
PBGC sought to become trustee of the plan last year, in a filing now approved by the U.S. District Court for the Northern District of Indiana, because the company was about to be sold and the plan would have been abandoned without a sponsor to provide benefits.
"Because the Monon pension plan is insured by the PBGC, workers can be confident of receiving their pensions when they retire, and workers already retired will continue to receive their checks without interruption," said PBGC Executive Director David M. Strauss.
Monon manufactured truck trailers, containers and container chassis at plants in Monon, Ind. and Lansing, Ill. The company's plan was underfunded by about $3.4 million, with assets of $2.9 million and benefit liabilities of $6.2 million.
Virtually all of the participants are expected to receive the same benefits they are now receiving or would be entitled to receive when they retire. Retirees and future retirees under the plan, which was terminated on March 19, 1997, will collect benefits as the plan provides, subject to PBGC's legal limits. The maximum pension guaranteed for workers in plans that terminated in 1997 is $2,761.36 a month (approximately $33,136 a year) 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 may contact PBGC's Customer Service Center toll-free at 1-800-400-7242. For TTY/TDD users, call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to 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 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. 98-14