The Pension Benefit Guaranty Corp. on Thursday announced it would pay $270 million in pension benefits to more than 19,000 current and future retirees of bankrupt Furniture Brands International of St. Louis.
The agency, which will hold an auction today to sell the furniture maker's assets, said it would take over the pension fund, which is about 55 percent funded. The fund has $337 million in assets against $609 million in future unfunded liabilities. The agency, which is the government's insurer for private pension plans, said it expected to make up all but $2 million of the shortfall.
All participants in the plan will receive their benefits up to the annual maximum allowed by law of $57,500. The PBGC said current retires would see no interruption in benefits.
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.
