September 23 -- MTD Products Inc., Cleveland, made an agreement with the PBGC under which the company has made a $4.2 million contribution to its pension plan and will waive a credit balance resulting from a $2.8 million contribution in excess of the minimum required contribution made on Sept. 11, 2009.
The pension plan had $222.6 million in assets as of Dec. 2, 2007, according to Money Market Directories, the most recent data available.
The company’s actions are part of an agreement with the PBGC, resulting from the July 28, 2009, closing of its Brownsville, Tenn., plant, where 358 active retirement plan participants lost their jobs, confirmed PBGC spokesman Marc Hopkins.
“Unlike situations where the PBGC assumes responsibility for failed pension plans, MTD’s plan, with more than 1,870 participants, has not failed, has complied with all funding requirements and remains ongoing under the company’s sponsorship,” according to a PBGC news release.
Federal pension law requires the PBGC to seek additional protection of a plan when more than 20% of its employees lose their jobs due to cessation of operations at a facility.
“Whenever a company closes a plant and 20% of the workers are separated from employment, we seek additional protection for the pension plan,” Mr. Hopkins said in a telephone interview. “We’re not saying these plans are in danger, but we want to make sure these plans are in the best financial shape possible.”
No comments:
Post a Comment