WASHINGTON-Vince Snowbarger, acting director of the Pension Benefit Guaranty Corporation, issued the following statement today:
"Lyondell Chemical Co. emerges from bankruptcy today with its defined benefit pension plans intact. This is good news for the 33,000 covered workers and retirees, who will continue to receive the full retirement benefits they worked so hard to earn.
Too often, the outcome in bankruptcy is termination of the pension plan, reduced benefits for retirees, and transfer of unfunded liabilities to the PBGC. We are pleased that Lyondell Chemical has maintained its pension plans throughout the reorganization process, and continues to honor the retirement promises it made to its workers and retirees."
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 29,000 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.