Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Compliance February 1, 2013
PBGC Takes Two Hawker Beechcraft Plans
February 1, 2013 (PLANSPONSOR.com) – The Pension Benefit Guaranty Corporation (PBGC) will take two plans covering salaried employees under a settlement with Hawker Beechcraft.
Reported by Rebecca Moore
The agency will assume benefit payments for more than 9,500 workers and retirees from two of Hawker Beechcraft Inc.’s pension plans. The settlement also includes $2.5 million to those salaried retirees whose benefits exceed those paid by PBGC under rules set by Congress.
J. Jioni Palmer, senior adviser and director of Communication and Public Affairs said PBGC helped the salaried retirees achieve a $2.5 million award through its support of their lawsuit against the company. Also under the settlement, PBGC received a $450 million unsecured claim against Hawker Beechcraft in the bankruptcy case.
A third plan, with 8,300 participants, will be frozen and remain with the company.