Compliance January 16, 2007

PBGC Takes NH Manufacturer's Plan

January 16, 2007 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) has taken responsibility for the pensions of more than 900 former employees of bankrupt Foss Manufacturing Co. Inc., a maker of specialty non-woven fibers.
Reported by

The PBGC stepped in because the pension plan sponsored by Foss faced abandonment after the Hampton, New Hampshire-based company, under chapter 11 bankruptcy protection since September 16, 2005, sold substantially all of its assets and no purchaser was willing to assume the plan. 


The Foss Companies Retirement Benefit Accumulation Plan is 60% funded, with around $18 million in assets to cover almost $30 million in promised benefits, according to PBGC estimates. The PBGC will use its insurance funds to cover all but about $1.5 million of the nearly $12 million shortfall. The pension plan ended as of May 5, 2006, and PBGC became trustee on December 27, 2006, according to the agency.
 
Foss Manufacturing Co. Inc. retirees who draw a benefit from the PBGC may be eligible for the federal Health Coverage Tax Credit. Further information may be found on the PBGC Web site at
http://www.pbgc.gov/workers-retirees/benefits-information/content/page13692.html .

Workers and retirees with questions may consult the PBGC Web site at www.pbgc,gov or by calling toll-free at 1-800-400-7242.

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

«