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Compliance February 14, 2005
At Urging of PBGC, Rosemore Assumes Crown Central Petroleum Pension Plan
February 14, 2005 (PLANSPONSOR.com) - The Pension
Benefit Guaranty Corporation (PBGC) has reached an agreement
with Rosemore Inc. over the strengthening of a subsidiary's
pension plan
Reported by Kip McDaniel
>The Crown Central Petroleum Corp. pension plan will now be assumed by Rosemore, with Crown contributing $45 million more than is required by law by the end of 2005, according to a release from the PBGC. The agreement was completed under the PBGCs Early Warning Program, under which the agency monitors underfunded pension plans and negotiates protections when pensions are at risk.
>The Crown pension plan is currently underfunded by $113 million, with $128 million in assets available for over $241 million in liabilities, according to the PBGC. The agency, through the Early Warning Program, decided that Rosemore needed to step in to fund the plan because Crown lacked the resources to do so
>The plan was frozen on January 25, 2005, and all future benefits accrual were frozen with it. As a security for the payment by Crown to the plan, the agency will hold liens on certain company assets, according to the agency.
>Crown is a refiner and marketer of petroleum products that is divesting its operations, and is a subsidiary of Baltimore-based Rosemore Inc.