The Pension Benefit Guaranty Corporation (PBGC) on Sept. 6 announced that it will pay the retirement benefits of multinational chemical manufacturer Vertellus Specialties. The move covers the benefits of more than 900 current and future retirees of the firm and 10 affiliates.
The PBGC will cover nearly all of the plan’s $36 million funding shortfall. It says the plan is 59% funded and has assets of just over $52 million but benefits to pay amounting to just over $88 million.
The PBGC is taking the action because the potential buyer of Vertellus and the 10 affiliates in bankruptcy proceedings will not continue Vertellus’ pension plan. Vertellus and the affiliates filed for Chapter 11 protection on May 31.
The PBGC takeover means that the company’s retirees will have no interruption in their benefits and that future retirees still can apply for them when they are eligible to do so.
The PBGC will cover nearly all of the plan’s $36 million funding shortfall. It says the plan is 59% funded and has assets of just over $52 million but benefits to pay amounting to just over $88 million.
The PBGC is taking the action because the potential buyer of Vertellus and the 10 affiliates in bankruptcy proceedings will not continue Vertellus’ pension plan. Vertellus and the affiliates filed for Chapter 11 protection on May 31.
The PBGC takeover means that the company’s retirees will have no interruption in their benefits and that future retirees still can apply for them when they are eligible to do so.
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