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Global Home Products underfunded pension plan may be assumed by PBGC
By Caroline Salls
Pittsburgh, April 12 - Global Home Products LLC's underfunded pension plan would be assumed by The Pension Benefit Guaranty Corp. under a PBGC motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.
According to a PBGC news release, the pension plan covers about 1,300 employees and retirees of bankrupt Anchor Hocking CG Operating Co. LLC, a unit of Global Home Products LLC.
The PBGC said it is stepping in because Anchor Hocking has missed $5.7 million in required contributions, and the pension plan will be abandoned as a result of the sale of substantially all of Anchor Hocking's assets.
Retirees and beneficiaries will continue to receive their monthly benefit checks without interruption, and other participants will receive their pensions when they are eligible to retire.
According to PBGC estimates, the Anchor Hocking Pension Plan for Union Employees is 13% funded, with $1.3 million in assets to cover $10.1 million in benefit liabilities.
The PBGC said it expects to be liable for about $4 million of the $8.8 million shortfall.
The agency said it will take over the assets and use PBGC insurance funds to pay guaranteed benefits earned under the plan, which terminated on April 12.
The release said the PBGC's request to assume the Anchor Hocking Pension Plan for Union Employees has no effect on other pension plans that covered Anchor Hocking workers before this plan was established in 2004.
Global Home Products is a Westerville, Ohio-based designer, marketer and manufacturer of branded consumer and specialty products to retail and hospitality customers and original equipment manufacturers. The company filed for bankruptcy on April 10, 2006. Its Chapter 11 case number is 06-10430.
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