Four pension plans to cover 4,500 workers and retirees of Intermet Corp. have been assumed by The Pension Benefit Guaranty Corp. The PBGC is an independent federal agency that promotes continuation and maintenance of voluntary private defined benefit pension plans. In selected cases, PBGC will use its insurance programs to take over private plans.
PBGC estimates that the Intermet pension plans are about 49% funded. It plans to cover $62 million of a $64 million shortfall, and will take over the assets and use insurance funds to pay benefits earned under the plans, which end on March 31.
Intermet Corp. filed a Chapter 11 bankruptcy claim (its second since 2004) in August 2008. At the time of the filing, Intermet said it aimed to “allow the company to continue normal operations while it reorganizes its financial and operating structure.”
According to the agency, it intervened because Intermet failed to pay more than $7 million in legally required pension funding contributions. PBGC also determined that the pension plans are unable to pay benefits, when due, because they lack sufficient funding, and that Intermet will not be able to continue supporting the plans.
PBGC Assumes Four Intermet Pension Plans
Metalcaster reportedly failed to make contributions, left pensions underfunded