Statement from PBGC Communications Director J. Jioni Palmer on the Potential Liquidation of Hostess Brands Inc.
November 21, 2012
"We understand that the Bankruptcy Court has approved Hostess' motion for an orderly wind down of its businesses and sale of its assets," said J. Jioni Palmer, Senior Advisor & Director of Communications and Public Affairs. "However, PBGC exists to safeguard retirement security in uncertain times, and that's what we'll do for the 2,300 men and women in Hostess's single-employer plan if the company liquidates. The plan is underfunded by about $55 million.
"Hostess belongs to 42 multiemployer plans, but its liquidation wouldn't cause those plans to immediately become insolvent. PBGC doesn't take responsibility for multiemployer plans, but instead gives financial assistance to the plans that can't pay benefits."
PBGC protects the pension benefits of 40 million Americans in 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. For more information, visit PBGC.gov.
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PBGC No. 12-34