PBGC Takes Bankrupt Manufacturer's Two Pension Plans

June 19, 2007 (PLANSPONSOR.com) --The Pension Benefit Guaranty Corporation (PBGC) announced Tuesday that it has assumed responsibility for the pensions of more than 500 former employees of Specialty Filaments Inc.

A PBGC news release said the nation’s private-sector pension insurer stepped in because nearly $4 million in required contributions to the company’s two underfunded pension plans were due and unpaid, and the pension plans would be abandoned after Specialty Filaments completed bankruptcy liquidation.

The two plans are the Polymers Inc. Restated Pension Plan and the Retirement Plan for Union Employees of E.B. and A.C. Whiting Company. Together, the plans have assets of $4.2 million to cover $13.3 million in benefit liabilities, according to PBGC estimates. The agency expects to be responsible for about $8.7 million of the $9.1 million shortfall, the release said.

Both plans were terminated as of January 11, 2007, when Specialty Filaments filed for Chapter 7 bankruptcy. The company was a manufacturer of materials used in brushes and brooms based in Middlebury, Vermont.

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The U.S. Bankruptcy Court approved a sale of substantially all of the company’s assets to an affiliate of the Thomas Monahan Co. of Arcola,  Illinois, in a transaction that does not include the pension plans, according to the news release.

Does It Feel Good to Do Good?

June 18, 2007 (PLANSPONSOR.com) - Researchers at the University of Oregon claim that giving money to a good cause stimulates the same pleasure centers in a group of women volunteers as food and sex.

That feeling came even when the contribution was mandatory, like a tax. However, the 19 female student test subjects felt even better when they voluntarily made a donation, according to Ulrich Mayr, a psychology professor at the University of Oregon.

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In the study, which appeared in the journal Science , Mayr and two economists gave the 19 female student volunteers $100 each and then tracked their brain activity in a functional magnetic resonance imaging scanner.

The women were shown their money automatically being transferred from their account to a local food bank. When the money reached the food bank account, it activated portions of the brain (specifically, the caudate nucleus and the nucleus accumbens) known for pleasure. The effect was even greater when they got to choose to give the money away.

A “Warm Glow”

According to the article, altruism sometimes is manifested as a “warm glow” associated with the act of giving. In that case, economists speculate, the act is not entirely selfless because the giver makes the donation in order to feel good (this group was referred to as “egoists”). But economists have also proposed that not all warm glows are self-interested – that some may have positive emotions wash over them just from witnessing good deeds. This is called “pure altruism,” and it may be motivating society’s biggest givers (altruists reportedly give twice as much as the egoists).

As it turns out, “That very same brain area not only tracks what is good for us, but what is good for others,” Mayr said in a phone interview with Reuters. “The fact that we find pleasurable activity in those mandatory tax-like situations strongly suggests the existence of pure altruism,” he said.

Of course, there may be a difference between giving away a fictional $100 that has been given to you for an experiment – and having $100 of your own money taken from you.


You can hear an interview with Ulrich Mayr at http://podcasts.aaas.org/science_podcast/SciencePodcast_070615.mp3

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