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PBGC Takes Over Metaldyne Pension Plan

August 3, 2009
Related Topics: Financial Impact, Benefit Design and Communication, Latest News
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The Pension Benefit Guaranty Corp. is taking over the underfunded pension plan of Metaldyne Corp., a Plymouth, Michigan-based auto parts supplier.

The plan, which covers about 10,770 employees and retirees, is only about 53 percent funded, with $177 million in assets to cover benefit liabilities totaling $334 million, according to PBGC estimates.

Assumption of the plan’s unfunded liabilities will increase the PBGC’s covered claims by $153 million, a sum that was not included in its fiscal year 2008 financial statements, the agency reported.

The PBGC’s move comes after the company’s May 27 filing for bankruptcy protection. Metaldyne is a global manufacturer of metal components for automakers including Ford Motor, General Motors and Chrysler Group.

Filed by Joanne Wojcik of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

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