US - The Pension Benefit Guaranty Corporation (PBGC) has assumed responsibility for the pensions of more than 1,400 workers and retirees of Scovill Fasteners Inc, a button and zipper maker.
It stepped in because the company failed to pay about US$14.7m in legally required pension funding contributions. The agency also determined that the company could no longer afford its pension plan.
According to PBGC estimates, the Scovill Fasteners Inc. Retirement Plan for salaried employees is about 30% funded, with little more than $10m in assets to cover some $34.8m in benefit liabilities. The agency expects to be responsible for the entire $24.5m shortfall.
Scovill Fasteners’ retirees will continue to receive their monthly benefit checks without interruption, and other workers will receive their pensions when they are eligible to retire.
Under federal pension law, the maximum guaranteed pension at age 65 for participants in plans that terminate in 2005 is $45, 614 per year.
Scovill owns units in Canada, China and Mexico. Its operations in Nottingham, in the UK, closed in 2006.
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The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.