Thursday, January 20, 2005

Lawnmowers Go Under

First it was the Steel industry, then came the Airlines...now Lawnmowers!? They call it the PBGC put and it seems to be coming in handy. The way things are going, PBGC will be the only place left to get an old fashioned pension benefit.

  • The Pension Benefit Guaranty Corporation today announced it will assume responsibility for the pensions of about 4,500 workers and retirees of Murray Inc., a maker of outdoor power equipment based in Brentwood, Tenn. Murray Inc. filed for bankruptcy protection on November 8, 2004. The Murray Inc. Pension Plan for Hourly Paid Employees and The Murray Inc. Employees’ Retirement Fund Plan are 53 percent funded, with $131 million in assets to cover $246 million in promised benefits. The PBGC estimates it will be liable for about $103 million of the $115 million shortfall. RecentlyThe Pension Benefit Guaranty Corporation announced that it would assume responsibility for the pensions of more than 14,000 active and retired pilots at United Airlines. The United Airlines Pilot Defined Benefit Pension Plan is 49 percent funded on a termination basis, with $2.8 billion in assets to cover $5.7 billion in benefit liabilities, according to PBGC estimates. Of the $2.9 billion in underfunding, the PBGC expects to be liable for approximately $1.4 billion in guaranteed benefits, making the United pilots plan the third-largest claim in the history of the insurance program.


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