PBGC agrees protection of Visteon pensioners
US - The Pension Benefit Guaranty Corporation (PBGC) has agreed to provide additional protection for Visteon Corporation's pension plan - covering more than 5,300 former employees of the automotive supplier's closed facilities in Connersville and Bedford, Indiana.
Under the accord, Visteon will accelerate a US$10.5m cash contribution to the plan, provide a US$15m letter of credit and provide for a guarantee by certain affiliates of certain contingent pension obligations of up to US$30m.
PBGC director Charles Millard said: "Today's agreement significantly strengthens the financial health of this plan. We commend Visteon's willingness to work with us to achieve an outcome that is favorable to its employees and retirees."
The PBGC negotiated the agreement under federal pension law provisions that permit the agency to seek protection when a plant closing causes more than 20% of covered employees to lose their jobs.
All active participants in the pension plan were separated from employment when, under its restructuring plan, Visteon ceased operations in Connersville in December 2007 and in Bedford in June 2008.
Unlike pension plans that terminate and are assumed by the PBGC, the Visteon pension plan for its Connersville and Bedford employees remains ongoing and under the company's control.
PBGC director Charles Millard said: "Today's agreement significantly strengthens the financial health of this plan. We commend Visteon's willingness to work with us to achieve an outcome that is favorable to its employees and retirees."
The PBGC negotiated the agreement under federal pension law provisions that permit the agency to seek protection when a plant closing causes more than 20% of covered employees to lose their jobs.
All active participants in the pension plan were separated from employment when, under its restructuring plan, Visteon ceased operations in Connersville in December 2007 and in Bedford in June 2008.
Unlike pension plans that terminate and are assumed by the PBGC, the Visteon pension plan for its Connersville and Bedford employees remains ongoing and under the company's control.
Latest stories
BREAKING: Amber Rudd named work and pensions secretary
Former home secretary Amber Rudd is to return to the cabinet as work and pensions secretary after the resignation of Esther McVey.
Five stories you may have missed this week
This week's top stories included proposed draft regulations in a no-deal Brexit which would make scheme investments illegal, and Esther McVey's resignation as secretary of state.
UPDATED: The full list of pensions ministers since 1998
There have been a total of 15 ministers responsible for pensions since 1997. Here is the list in full.
Back to Top
