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.
Latest stories
What's the catch with CDI?
Kerrin Rosenberg says while the rise of CDI is positive, understanding the risk and return aspect is a great challenge
Schneider Electric grants £400m fiduciary management mandate to Aon
Schneider Electric has appointed Aon to provide full fiduciary management services for over £400m of assets held in the Schneider Pension Plan.
PIC invests £40m in housing association
Pension Insurance Corporation (PIC) has invested £40m in debt issued by Scottish Borders-based Eildon Housing Association.
Back to Top
