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.
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