The Pension Benefit Guaranty Corp. will take over the defined-benefit pension plan of New United Motor Manufacturing Inc. in Fremont, California, PBGC spokesman Gary Pastorius said Tuesday, March 2.
NUMMI is jointly owned by Toyota Motor Corp. and Motors Liquidation Corp., the liquidating entity that remained after General Motors Co. emerged from Chapter 11 bankruptcy protection. It plans to end production at its Fremont assembly plant on March 31.
The PBGC has determined that the plan will be abandoned as a result of the plant closure, leaving the company unable to pay benefits, according to a news release.
The New United Motor Manufacturing Inc./UAW Hourly Defined Benefit Pension Plan is 55 percent funded, with $161 million in assets and $292 million in liabilities, according to PBGC estimates. The PBGC expects to cover $126 million of the $131 million shortfall.
Filed by Timothy Inklebarger of Pensions & Investments, a sister publication of Workforce Management. Jerry Geisel of Business Insurance, another sister publication, contributed to this report. To comment, e-mail editors@workforce.com.
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