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Compliance January 17, 2007
PBGC Takes MI Auto Parts Maker's Plans
January 17, 2007 (PLANSPONSOR.com) - The nation's
private-sector pension insurer has taken responsibility for
the two pension plans of a now-liquidated maker of plastic
automobile components.
Reported by Fred Schneyer
According to a news release from the Pension Benefit Guaranty Corporation (PBGC), its move affects the pensions of more than 1,100 former employees of Venture Holdings Corp., which is based in Fraser, Michigan. The two Venture plans, known as the “Lancaster Plan” and the “Seabrook Plan”, cover hourly workers.
The PBGC estimated the plans have a combined shortfall of $12.4 million, with total assets of $12.5 million and liabilities of $24.9 million. The Lancaster Plan terminated on August 31, 2004 and the Seabrook Plan terminated on September 30, 2004. The agency took over as trustee of both plans on December 11, 2006.
According to the announcement, the PBGC stepped
in because the plans faced abandonment after the
company, in liquidation, sold substantially all assets and
no purchaser was willing to assume the pension
programs.
Under federal pension law, the maximum guaranteed
pension at age 65 for participants in plans that terminated
in 2004 is $44,386 per year. The maximum guaranteed amount
is lower for those who retire earlier or elect survivor
benefits. In addition, certain early retirement
subsidies and benefit increases made within the past five
years may not be fully guaranteed.