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Compliance September 4, 2007
PBGC Asks Court to Terminate Waltec Forgings Plan
September 4, 2007 (PLANSPONSOR.com) - The Pension
Benefit Guaranty Corporation (PBGC) has asked the U.S.
District Court for the Eastern District of Michigan to
terminate the Waltec American Forgings, Inc. Retirement
Plan.
Reported by Rebecca Moore
According to the PBGC complaint, the agency and company could not come up with an agreement to terminate the plan. Waltec was automatically dissolved in July 2007 for failure to pay required fees and make required filings. It terminated all employees in 2003.
The complaint said the PBGC estimates the plan has $1.89 million to cover $2.88 million in liabilities, and the company’s “cessation of business makes it impossible for the shortfall to be funded or for the Plan to be administered unless the plan is terminated … and PBGC is appointed statutory trustee.”
The PBGC said that after terminating employees and beginning a Canadian insolvency proceeding on January 10, 2006, Waltec did not appoint anyone to carry out administrative duties for the plan, nor has it paid the required minimum contributions to the plan.
The PBGC complaint asked the court to terminate the plan as of January 10, 2006; appoint PBGC as trustee; and order the transfer of all records, assets, and other property of the plan to PBGC.
The PBGC filing with the court is here .