The Pension Benefit Guaranty Corp.
has taken over the underfunded defined-benefit pension plan of Nortel Networks Inc., the Nashville, Tennessee-based subsidiary of Canadian telecommunications company Nortel Networks Corp.
The plan is 58 percent funded, with $716 million in assets to cover $1.23 billion in liabilities. The PBGC said it will cover the entire shortfall.
The Nortel Networks plan has been frozen for all participants since December 31, 2007. The parent company is in Chapter 11 bankruptcy.
Filed by Timothy Inklebarger of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail firstname.lastname@example.org.
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