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Compliance June 22, 2010
PBGC Takes on Plan of Michigan Metal Parts Supplier
June 22, 2010 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) has assumed responsibility for the underfunded pension plan covering more than 4,800 former workers and retirees of Grede Foundries Inc.
Reported by Rebecca Moore
The PBGC said it took action because the metal components supplier based in Novi, Michigan, sold substantially all of its assets in bankruptcy proceedings and the buyer did not assume the plan.
According to a press release, the PBGC estimates the Grede Foundries Inc. Employees’ Retirement Plan is 47% funded with $60.9 million in assets to cover $130.6 million in benefit liabilities. The PBGC expects to be responsible for $69.7 million of the $74.4 million shortfall.
The plan ended on November 30, 2009, and the agency assumed responsibility for the plan on June 14, 2010.