Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Compliance October 5, 2007
PBGC Takes on Pension Plan of NJ Uniform Manufacturer
October 5, 2007 (PLANSPONSOR.com) - The Pension
Benefit Guaranty Corporation (PBGC) will take over the
pension plan of a New Jersey service sector uniform
manufacturer, after the company failed to pay more than $1.3
million in pension funding obligations.
Reported by Adrien Martin
According to a press release, the retirement plan includes 650 workers and retirees and is about 60% funded, with $11.8 million in assets to cover $19.8 million in liabilities. The agency expects to be responsible for the entire $7.9 million shortfall.
The private sector pension insurer determined that
Best Manufacturing Inc., located in Jersey City, could
not meet its benefits payments when they were due and
that the company would be abandoning the plan after its
bankruptcy proceedings.
Best Manufacturing filed for Chapter 11 bankruptcy in the
U.S. Bankruptcy Court in Newark, New Jersey in August
2006.
In February, the court approved the sale of substantially all of the company’s assets for about $35 million to Dan River Inc; however that transaction did not include the pension plan.
« InFRE Research Makes Case for New Retirement Education Approach