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Compliance October 21, 2010
PBGC Takes MI Auto Supplier Plan under Its Wing
October 20, 2010 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) has assumed responsibility for the underfunded pension plan covering 570 former workers and retirees of FormTech Industries, an automotive supplier based in Royal Oak, Michigan.
Reported by Rebecca Moore
The PBGC said it stepped in because FormTech is liquidating in bankruptcy proceedings, and there will be no sponsor left to fund or administer the plan.
The agency estimates the FormTech Industries LLC Pension Plan is 38% funded, with assets of $2.23 million to cover $5.86 million in benefit liabilities. The PBGC expects to be responsible for $2.05 million of the $3.63 million shortfall.
The plan ended on December 31, 2009, and the agency assumed responsibility for the plan on September 10, 2010.