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Compliance October 5, 2005
PBGC Seizes Huffy Corp. Plan
October 5, 2005 (PLANSPONSOR.com) - The nation's
private-sector pension insurer announced that it has taken
over the plan covering 3,700 workers and retirees of Huffy
Corp.
Reported by Fred Schneyer
A Web announcement from the Pension Benefit Guaranty Corporation (PBGC) said that the Huffy Corp. Retirement Plan ended as of August 31, 2005, and the PBGC became trustee of the plan on October 4, 2005.
The plan is 47% funded, with $71.7 million in assets to cover $152.4 million in benefit promises. The pension insurer said it will be responsible for $80 million of the $80.7 million shortfall. Huffy, a distributor of bicycles and sporting goods is based in Miamisburg, Ohio.
Huffy filed for bankruptcy protection in October 2004 and announced its intention to seek termination of its underfunded pension plan in June 2005. The agency said it had filed claims in Bankruptcy Court for the full amount of the plan’s shortfall. The PBGC said it expects to recover between $7 and $9 million on its claim.
Within the next several weeks, the PBGC will send trusteeship notification letters to all participants in the Huffy pension plan, the agency said.
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