For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
Compliance July 29, 2011
PBGC Takes on Pensions of Alabama Aircraft Industries
July 29, 2011 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation will pay the retirement benefits of more than 3,000 workers and retirees of the bankrupt airplane maintenance firm, Alabama Aircraft Industries, Inc. of Birmingham, Alabama.
Reported by Rebecca Moore
The agency said it stepped in after the bankruptcy court found the company could not afford its pension plan. The Alabama Aircraft pension plan has $82.4 million to cover $142.8 million in benefit promises, according to PBGC estimates.
The agency expects to pay about $58.9 million of the $60.4 million shortfall.
PBGC’s loss from the Alabama Aircraft plan’s unfunded liabilities was included in its fiscal year 2010 financial statements.You Might Also Like:
White House Announces Nominee for PBGC Director
Deva Kyle, an experienced employee benefits expert, was nominated to become the next director of the Pension Benefit Guaranty Corporation.
Construction Pension Fund With More Than 8,000 Participants Rescued by PBGC
The Kansas plan received a grant of $43.1 million.
Opinions |
Why PBGC’s Flat-Rate Premiums Need to Drop
Lowering premiums might spur some organizations to consider offering a defined benefit plan, which could be an additional form of...