The Pension Benefit Guaranty Corp. is assuming control of an underfunded pension plan from former owners of Oberdorfer LLC, an aluminum foundry in DeWitt, NY, according to a local report. Advanced Metals Group, a holding company, is the current owner of the former Oberdorfer Foundries, which has been in operation since 1875.
PBGC is a federal corporation that guarantees pension benefits to workers covered by underfunded, private-sector pension plans. The funds are provided by insurance payments, not tax revenues. Marc Hopkins, a spokesman for the agency, confirmed the plan had been taken over, but explained that PBGC had not released a statement on the matter because so few individuals are covered by the plan.
The plan being acquired by PBGC was the responsibility of a former owner of the foundry, who died leaving the plan with no funding source. The plan has liabilities of $3.7 million for 191 individuals, but its current assets total just $830,383.00. PBGC will fund the outstanding amount. According to Hopkins, 191 people are covered by the pension plan, and of those 102 are retired.
Current employees of Oberdorfer are covered by a separate plan, which is not in question.
Oberdorfer LLC uses cold box, shell, and no-bake molding to produce cast aluminum components for aviation, transportation, utilities, aerospace, military, high-performance automotive, and medical markets.