PBGC takes on US$12m Foss debt
US - The PBGC has assumed responsibility for Foss Manufacturing's pension plan, which is saddled with a US$12m shortfall.
The agency said it stepped in because the Foss Companies Retirement Benefit Accumulation Plan faced abandonment after the company, under chapter 11 bankruptcy protection since September 16, 2005, sold almost all its assets and no purchaser was willing to assume the plan.
The plan is 60% funded, with around $18m in assets to cover almost $30m in promised benefits, according to PBGC estimates.
"The PBGC will use its insurance funds to cover all but about $1.5m of the nearly $12m shortfall," the agency said. "Assumption of the plan will have no material effect on the PBGC's balance sheet because, following generally accepted accounting principles, an estimate of the liability was included in its fiscal 2006 financial statements."
The pension plan ended as of May 5, 2006, and PBGC became trustee on December 27, 2006.
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