WASHINGTON—The Pension Benefit Guaranty Corporation will take responsibility for three pension plans that cover nearly 1,800 people sponsored by Dewey & LeBoeuf LLP, a law firm based in New York City.
PBGC is stepping in to secure its ability to collect against the firm's affiliates that share funding responsibility for the pension plans.
Collectively, the plans are underfunded by more than $80 million. The agency will pay the shortfall, up to limits set by law.
PBGC has determined that Dewey & LeBoeuf's pension plans should end on May 11, 2012.
PBGC will pay guaranteed benefits up to about $56,000 a year for a 65-year-old retiree.
Those receiving benefits will continue to do so without interruption. Future retirees will get their pensions when eligible.
PBGC protects the pension benefits of 44 million Americans in 27,500 private-sector pension plans. The agency is directly responsible for paying the benefits of more than 1.5 million people in failed pension plans. PBGC receives no taxpayer dollars and never has. Its operations are financed by insurance premiums and with assets and recoveries from failed plans.