PBGC 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.
As more of our customers seek online service, we continue to look for ways to make our website easier to navigate. The following tools will help you reach your online destination quickly and easily:
- A-Z index: Similar to the index in the back of a book, this feature lists the name of every page and our most popular documents. If you're not sure where you found that page you were reading last week, here's where you can track it down.
- Search: This improved page links you to our most popular pages, such as the unclaimed pension search page. You can also use the search bar at the top of every page to search the entire site. Need help getting started? Visit our Search Help page for tips.
- Glossary: We aim to write in plain language, but in the complicated world of pension benefits, sometimes a technical term is needed. For that reason, we've included a glossary of technical terms.
Links to these and other key features, such as FAQs, Spanish content, and contact information, are located at the top of every page.
But wait, there's more! We also have tools to help you determine if you're in the right place, and if not, where else to look.
Our New to PBGC page explains what we do. Our Finding a Lost Pension page helps track down a pension from your past, and our External Resources page provides channels for further pension information.
We hope you'll have a look around, see some things of interest, and maybe even tell your friends. Happy surfing!
Earlier this month, Labor Secretary Thomas Perez visited PBGC to praise the agency for its good works and to acknowledge PBGC's 40th anniversary. At the same time, the agency officially ushered in a new era of leadership.
Alice Maroni was introduced as the Acting Director. Maroni is no stranger to the agency, serving as Chief Management Officer for the past three years. During his talk, Perez praised Maroni with a vote of confidence, saying the agency will be well-served by her leadership. "You are in very good hands with Alice." he said. "And we have all the confidence in the world, as I suspect you do as well, in her many talents."
Those talents were honed by a distinguished career in public service. Maroni spent a decade at the Smithsonian as Chief Financial Officer, before coming to PBGC in May 2011. Prior to that, she held leadership and management positions at the Department of Defense and on Capitol Hill.
"If you know me, then you know that I am committed to the mission of PBGC," Maroni said in her first agency wide address as Acting Director.
We'd like to highlight some recent updates to PBGC's Open Government webpage. The page includes important PBGC data sets, underlying data that supports PBGC programs. Additionally, the page provides information about how the American public can provide input to help make PBGC's work and performance even better and more engaging.
In accordance with the President's Open Government Initiative, PBGC has posted an updated version of its Open Government Plan [PDF], version 3.0. Our Plan reflects input from senior policy, legal, and technology leadership in PBGC, as well as our customers and visitors.
We've posted two new data sets: Multiemployer Pension Plan Terminations, Mergers, and Insolvencies and Summary of Changes; both are updated annually. These data sets present machine accessible downloadable information that was previously unavailable online.
These data sets can be used to increase agency accountability, improve public knowledge of the agency and its operations, create economic opportunity and further the agency's mission.
PBGC welcomes stakeholder input on these data sets and other ways PBGC can promote the values of transparency, participation and collaboration in government.
To help us do a better job of serving you, please consider the following:
- What PBGC data or content should we make more readily available?
- Which PBGC online service or data would you like to be easier to use?
- Which PBGC service would you like to use on your mobile device?
Please direct feedback to Opengov@pbgc.gov.
PBGC will pay retirement benefits for 233 people covered by a plan sponsored by the Los Angeles Urban League Inc., a local chapter of the National Urban League, a non-profit civil rights organization.
In addition to the organization's work to advance equal opportunities for African American and other minority youths, the group also ran a Head Start program, which provided early education for pre-kindergarten students.
The agency is stepping in because the organization is unable to fund the plan that covers Head Start employees. The Defined Benefit Pension Plan of Los Angeles Urban League Head Start State Pre-school will end as of Aug. 31, 2014.
This entry is part of a series of blog posts that looks back and commemorates the agency's work.
The big blows are landed
The fight to save pensions intensified, as financial crisis led to broken promises and end-runs on pension security. Iconic companies moved to end pension security and the number of people served by PBGC continued to rise.
We started the decade with annual benefit payments to participants surpassing the $1 billion mark for the first time.
As 2001 started, PBGC took over two Trans World Airlines' pension plans. These plans covered 36,500 former workers and retirees and were underfunded by about $700 million. By the end of the year annual benefit payments by PBGC to participants surpassed the $1 billion mark for the first time.
TWA was merely the first big blow of many that decade.