WASHINGTON—The Pension Benefit Guaranty Corporation was named to the Committee of Unsecured Creditors in the Hawker Beechcraft bankruptcy today. The agency will push the company and its creditors to successfully reorganize without killing its pension plans.
"When Hawker Beechcraft entered bankruptcy the company put current and future retirees on edge by suggesting that the pension plans could be terminated," said J. Jioni Palmer, PBGC's Director of Communications. "Filing for bankruptcy doesn't give companies a pass on their pension obligations."
Collectively, the company's three plans are underfunded by more than $600 million, making PBGC the largest creditor. Palmer said the agency is committed to producing a winning outcome for all parties.
"Within the past year, we worked with dozens of companies in and out of bankruptcy to preserve their plans. The payoff is that some 200,000 people will keep their pension benefits. That's the outcome we're striving for here."
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.