The Pension Benefit Guarantee Corp. will pay out retirement benefits for more than 650 current and future retirees of Allied Systems Holdings Inc.
The Georgia-based vehicle transportation business is selling most of its assets in bankruptcy proceedings, according to the PBGC. Continuing the business' three, single-employee pension plans has been nixed by potential buyers.
PBGC said it will cover a $33 million shortfall as it agrees to pay all pension benefits for retirees up to the legal limit of $57,500 for a 65-year-old. The agency assured retirees that benefits will continue without interruption and future retirees will receive benefits per their eligibility. In addition, Allied Systems retirees receiving pensions from PBGC may be eligible for the federal Health Coverage Tax Credit.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
