Compliance July 17, 2007

PBGC Takes on Hardware and Building Supply Co's Plan

July 17, 2007 (PLANSPONSOR.com) - The nation's private-sector pension insurer has seized the underfunded pension plan covering nearly 900 former employees of Scotty's Inc., a hardware and building supply chain based in Winter Haven, Florida.
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A news release from the Pension Benefit Guaranty Corporation (PBGC) said the agency took over the plan because Scotty’s left more than $1 million in required contributions to its pension plan unpaid, and the pension plan is slated to be abandoned after the hardware company’s bankruptcy liquidation.

Scotty’s plan is 55% funded, with some $8.3 million in assets to cover $15 million in benefit liabilities. The PBGC expects to be liable for entire $6.7 million shortfall.

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The agency announcement said it will take over the assets and use PBGC insurance funds to pay guaranteed benefits earned under the plan, which   terminated on June 27, 2005.The PBGC became trustee of the plan on June 20, 2007.

Scotty’s filed for Chapter 11 protection in the U.S. Bankruptcy Court in Wilmington, Delaware on September 10, 2004. The case was converted to a Chapter 7 liquidation on June 27, 2005. 

Under federal pension law, the maximum guaranteed pension at age 65 for participants in plans that terminate in 2005 is $45,614 per year.

Products July 16, 2007

Boston Firm Unveils Two 130/30 Offerings

July 16, 2007 (PLANSPONSOR.com) - Independence Investments LLC, a Boston-based money manager, has unveiled Long/Short 130/30 U.S. Mid-Capitalization Core and Long/Short 130/30 U.S. Large Capitalization Value strategies to the institutional market.
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According to a company news release, the 130/30 mid-cap core and large cap value strategies are managed by a team led by Senior Vice Presidents John C. Forelli,   Jay C. Leu, and Thomas D. Spicer,   who oversee the firm’s large cap and mid-cap equity strategies.

Independence ‘s long/short strategies maintain 100% net market exposure and generally include 125-175 long positions and 40-80 short positions, with holdings diversified by sector and industry, and active risk concentrated in stock selection.

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“Our long/short 130/30 approaches are enhanced versions of our existing strategies and by eliminating long-only constraints we are able to make better use of all the information in our proprietary valuation models,” said Mark Lapman, chief executive officer and chairman of the investment committee in the announcement.

There will be a minimum account investment of $1 million, the company said.

More information is at   www.independence.com .

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