US - The Pension Benefits Guaranty Corp (PBGC), believed to be US$22.8bn in deficit, has assumed $31m in pension liabilities on behalf of Falcon Products and subsidiary Shelby Williams.
The PBGC said it would assume some $31.6m of the $33m shortfall on behalf of the companies, which cover 2300 workers and retirees and filed for bankruptcy protection in January, 2005. The companies applied to the PBGC to terminate plans in June.
The Falcon Products Retirement Plan and the Shelby Williams Industries Employees Pension Plan ended as of end August, 2005. The funds are together only 44% funded, with around $26m in assets to cover nearly $59m in promised benefits. A third pension plan covering some 70 employees and retirees of another Falcon Products subsidiary, Sellers & Josephson, has remained ongoing pending PBGC's appeal of the bankruptcy court's decision on plan terminations.
According to the PBGC, the court erred by finding that Falcon Products and the other bankrupt companies could not afford the three plans together, rather than considering each plan on a separate basis. “The agency believes such an analysis would have shown that the Sellers & Josephson Inc. Employees Pension Plan could be maintained by Falcon Products,” PBGC wrote in a statement.
The PBGC currently guarantees payment of basic pension benefits earned by 44m American workers and retirees participating in over 31 000 private-sector DB pension plans.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.