Lenox Group's underfunded employee pension plans assumed by PBGC

By Caroline Salls

Pittsburgh, May 19 - Two of Lenox Group Inc.'s pension plans have been assumed by the Pension Benefit Guaranty Corp., according to a PBGC news release.

The PBGC said it stepped in because the underfunded pensions would be abandoned following the sale of substantially all of the company's assets because the sale transaction does not include the pension plans.

According to PBGC estimates, the Lenox China Pension Plan and the Lenox Inc. Retirement Plan are 35% funded, with combined assets of $70 million and benefit liabilities of $200 million. The agency said it expects to cover $128 million of the $130 million total shortfall.

Both plans were frozen on Jan. 1, 2007.

The PBGC said it will take over the assets and use insurance funds to pay guaranteed benefits earned under the plans, which ended as of March 31.

Eden Prairie, Minn.-based Lenox is a maker of tableware, collectibles and giftware. It filed for Chapter 11 bankruptcy protection on Nov. 23 in the U.S. Bankruptcy Court for the Southern District of New York, and its Chapter 11 case number is 08-14679.

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