On Wednesday the agency moved to end the Cinram Music Union Pension plan, which has some 280 participants and is about 53 percent funded, according to PBGC estimates.
We took this step because the company that sponsors the plan is about to sell the majority of its assets to a buyer that isn't assuming the pension plan.
The plan's sponsor, Cinram (U.S.) Holding's Inc., is involved in a Chapter 15 case in the U.S. Bankruptcy Court in Wilmington, Del., while its Toronto-based parent, Cinram International Inc., sought creditor protection under the Companies' Creditors Arrangement Act in a Canadian court.
The agency will take control of the Cinram plan because most of the U.S. assets will be sold to a buyer that isn't assuming responsibility for the plan. The Cinram plan will terminate as of July 25, 2012. As of this date, all participants of this plan won't earn further benefits.
Until PBGC becomes trustee, the plan remains under the control of Cinram. Plan participants will be notified by letter when the agency takes responsibility. At that time, retirees will continue to get benefits without interruption, and future retirees can apply for benefits when eligible.
Participants with questions about their pension benefits should contact the plan administer. The agency won't be able to address concerns about benefits until it takes responsibility for the plan.