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.
Recommended For You
According to PBGC estimates, Allied Systems pension plans are 58 percent funded with $45 million in assets needed to pay $78 million in benefits.
Allied Systems Holdings is the parent company of 18 transportation-based subsidiaries including the Allied Automotive Group, a vehicle transportation business that operates the country's largest car-hauling fleet.
© 2025 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.
