The Pension Benefit Guaranty Corporation today issued the following statement:
In a sale that became final on June 10, the bulk of the assets of Chrysler LLC were acquired by a new corporate entity whose equity is owned by a group that includes Fiat Corp., the United Auto Workers, and the U.S. and Canadian governments.
Chrysler's defined benefit pension plans remain ongoing under the sponsorship of the new corporate entity. The benefits of the more than 250,000 Chrysler workers and retirees covered by the plans continue to be insured by the PBGC, up to limits set by law.
The PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits earned by 44 million American workers and retirees participating in over 30,000 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.