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Compliance September 2, 2014
PBGC Takes Over Plan of Los Angeles Nonprofit
September 2, 2014 (PLANSPONSOR.com) – The Pension Benefit Guaranty Corporation (PBGC) will pay retirement benefits for workers covered by a plan sponsored by the Los Angeles Urban League Inc.
Reported by Rebecca Moore
The Los Angeles Urban League is a local chapter of the National Urban League, a non-profit civil rights organization. The chapter ran a Head Start program, which provided early education for pre-kindergarten students, and the PBGC is stepping in because the organization is unable to fund the plan that covers Head Start employees.
The Defined Benefit Pension Plan of Los Angeles Urban League Head Start State Pre-school will end as of August 31, 2014. Employees and retirees who are participants in the Head Start plan will continue to receive benefits from the Los Angeles Urban League until PBGC assumes responsibility.
The agency estimates that as of May 2013, the plan is 45% funded, with $5.6 million in assets to pay $12.5 million in benefits liabilities. The agency will cover $6.7 million of the $6.8 million shortfall.
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