Get more! Sign up for PLANSPONSOR newsletters.
Compliance June 7, 2011
PBGC Fighting Gift Basket Retailer’s Move to Dump Pensions
June 7, 2011 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) is fighting a move by Harry & David Holdings Inc. to end the pensions of its 2,700 workers and retirees.
Reported by Rebecca Moore
In its filing for bankruptcy, the gift basket retailer asked for court approval to shed its pension plans (see Gift Basket Retailer Asks to Dump Pensions). However, PBGC said its financial analysis shows that the company will be able to emerge from bankruptcy without cutting off its workers’ pensions.
The bankruptcy court will hold a hearing on the issue on July 22, 2011.
In a news release, the PBGC noted that if the pension plan is terminated, it will pay pension benefits to Harry & David employees, and because of limits set by law, some retirees might get reduced pensions. In addition, the PBGC does not insure health benefits at all.
The retailer’s underfunded pensions include one for upper executives and a $27.4 million plan for current and former employees.You Might Also Like:
White House Announces Nominee for PBGC Director
Deva Kyle, an experienced employee benefits expert, was nominated to become the next director of the Pension Benefit Guaranty Corporation.
Construction Pension Fund With More Than 8,000 Participants Rescued by PBGC
The Kansas plan received a grant of $43.1 million.
Opinions |
Why PBGC’s Flat-Rate Premiums Need to Drop
Lowering premiums might spur some organizations to consider offering a defined benefit plan, which could be an additional form of...