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PBGC Blog: Retirement Matters

PBGC will pay retirement benefits for nearly 1,400 current and future retirees at White Rose Inc., an independent food wholesaler based in Carteret, N.J.

The agency is stepping in because White Rose plans to sell its assets in bankruptcy and the pension plan will be abandoned. The company's plan, Third Amended and Restated Di Giorgio Retirement Plan, will end as of Oct. 27, 2014.

PBGC will pay all pension benefits earned by the plan's retirees up to the legal limit of about $59,320 a year for a 65-year-old.

Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.

Employees and retirees who are participants in White Rose's plan will continue to receive benefits from the company until PBGC assumes responsibility.

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ReichholdPBGC will pay retirement benefits for more than 4,500 current and future retirees at Reichhold Inc., a manufacturer of resins used for composites, based in Durham, N.C.

The agency is stepping in because the company plans to sell its assets in bankruptcy and the pension plan will be abandoned. The Reichhold Inc. Retirement Plan will end as of Oct. 17, 2014.

PBGC will pay all pension benefits earned by the plan's retirees up to the legal limit of about $59,320 a year for a 65-year-old.

Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.

Employees and retirees who are participants in the Reichhold plan will continue to receive benefits from the company until PBGC assumes responsibility.

According to PBGC estimates, the plan is 70 percent funded with $228 million in assets to pay $325 million in benefit liabilities. The agency is expected to cover $90 million of the $97 million shortfall.

On Sept. 30, 2014, Reichhold and three of its affiliates sought Chapter 11 protection in the U.S. Bankruptcy Court in Wilmington, Del. The company said in court papers that financiers Third Avenue Management, Black Diamond Capital Management, and J.P. Morgan Chase, which hold Reichhold's senior secured notes, intend to be the lead bidders for Reichhold's assets. An auction, sale hearing, and closing are slated for Dec. 19, 2014; Dec. 22, 2014; and January 30, 2015, respectively.

Constar Logo

PBGC will pay retirement benefits for more than 4,400 current and future retirees of Constar Inc., a plastic container manufacturer based in Trevose, Pa. just outside Philadelphia.

The agency stepped in because the company is selling the majority of its assets in bankruptcy proceedings and the buyer isn't assuming responsibility for the pension plan.

PBGC will pay all pension benefits earned by Constar's retirees up to the legal limit of about $59,320 for a 65-year-old.

Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.

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Case Study — Furniture Brands Retirement Plan

Often times, mergers and acquisitions happen while employees, both current and past, miss the memo. Mergers and acquisitions are both an aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow.

By now you may be asking what all of this means and how it affects you. Well, we're glad you asked.

Today we announced that PBGC moved to terminate the Furniture Brands International Inc. pension plan. PBGC is stepping in because the company plans to sell the majority of its assets in bankruptcy and the buyer isn't assuming the pension plan.

While you may not realize that the company you work/worked for was previously bought out by Furniture Brands, this bankruptcy case can possibly affect your pension.

If you were ever employed by companies under the Furniture Brands umbrella, this news is for you.

See the full PBGC News Release and the list of pension plans acquired by Furniture Brands International Inc.

PBGC will pay retirement benefits for over 4,100 current and future retirees of Journal Register Company, a leader in local news and information in 10 states.

The agency stepped in because Journal Register Company and its subsidiary Journal Register East, Inc. (plan sponsor) filed voluntary Chapter 11 bankruptcy petitions in the U.S. Bankruptcy Court for the Southern District of New York on September 5, 2012. The companies sold the majority of their assets in bankruptcy proceedings and the buyer did not assume the company's single-employer pension plan.

PBGC will pay all pension benefits earned by Journal Register retirees up to the legal limit of about $56,000 for a 65-year-old.

Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.

According to PBGC estimates, the Journal Register pension plan is 51 percent funded with $91.5 million in assets to pay $177.7 million in benefits. The agency expects to cover the $86.2 million shortfall.

For additional information, please email us at mypension@pbgc.gov or call 1-800-400-7242 (8 a.m. to 7 p.m. EST, Monday – Friday) (TTY/ASCII: call 1-800-877-8339 and ask to be connected to 1-800-400-7242).

Pennfield Corporation logoPBGC will pay retirement benefits for nearly 580 current and future retirees of Pennfield Corp., an animal feed mill based in Lancaster, Pa.

The agency stepped in because Pennfield sold the majority of its assets in bankruptcy proceedings to agribusiness giant Cargill, Inc. Cargill did not assume responsibility for the pension plan.

PBGC will pay all pension benefits earned by Pennfield retirees up to the legal limit of about $56,000 for a 65-year-old.

Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.

According to PBGC estimates, Pennfield's plan was 54 percent funded with $15 million in assets to pay $28 million in benefits. The agency expects to cover the entire $13 million shortfall.

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