Thursday, June 30

AP Wire | 06/30/2005 | Federal program to take over Techneglas' hourly worker pensions

AP Wire | 06/30/2005 | Federal program to take over Techneglas' hourly worker pensions (registration required):

Posted on Thu, Jun. 30, 2005

Federal program to take over Techneglas' hourly worker pensions

Associated Press

COLUMBUS, Ohio - The federal government said Thursday that it will assume responsibility for the pensions of about 3,000 hourly workers at bankrupt television glass manufacturer Techneglas.

The Pension Benefit Guaranty Corp. said it decided to step in because the pension plan would have been abandoned as Columbus-based Techneglas reorganizes. The company also has missed $17 million in required contributions, the government said.

The PBGC said the plan had about $67 million to cover $164 million in promised benefits. The government program plans to cover about $70 million of the difference.

Retirees will continue to receive their benefit checks without interruption.

Techneglas, which is owned by Nippon Electric Glass Co. of Japan, filed for bankruptcy in September after closing plants in Columbus and Pittston, Pa. The company employed 3,400 at its peak in 1997 but has been hurt by the increasing popularity of televisions that use plasma, LCD and projection and other new technologies.

The PBGC is the insurer of last resort for more than 31,000 private-sector defined benefit pension plans covering 44 million American workers and retirees.

I leave Ohio, and all hell breaks out. I remember reading about how well Techneglas was doing in the business section of the Columbus Dispatch before I left for Florida. Now I'm finding out that they've filed for bankruptcy, and they've thrown their pension plan into disarray. I'd like to say that I'm shocked, but then again, considering how many other pension plans are going to be drowning the Pension Benefit Guaranty Corp., this is just merely a drop in the bucket.

Sheesh. Less than 50% in assets to cover the benefits?

Yeah, I can see how Social Security is going to be saved by private accounts, just like depending on pension funds.