Stant and affiliate's underfunded pension plans to be assumed by PBGC

By Caroline Salls

Pittsburgh, Sept. 15 - The underfunded pension plans of Stant Manufacturing Inc. and its Standard-Thomson Corp. affiliate would be assumed by the Pension Benefit Guaranty Corp. under a PBGC motion, according to a PBGC news release.

The plans cover about 900 employees and retirees of Stant Manufacturing and Standard-Thomson.

The pension insurer said its action comes as Stant and its domestic subsidiaries seek approval for the sale of substantially all assets under a proposed transaction that would not include the pension plans.

If the PBGC delayed action until after the sale closes, the agency said the possibility of recovering on its claims for unfunded pension liabilities would be severely diminished.

Collectively, the PBGC said the Stant Pension Plan (Hourly Employees)and the Pension Plan for Hourly Employees of Standard-Thomson are 61% funded, with $14.3 million in assets to cover $23.4 million in benefit liabilities.

The agency said it expects to be liable for $8.9 million of the $9 million shortfall.

The PBGC will take over the assets and use insurance funds to pay guaranteed benefits earned under the plans, which ended on Sept. 15.

Stant, a Connersville, Ind.-based automotive fuel system and gas cap manufacturer, filed for bankruptcy on July 27. Its Chapter 11 case number is 09-12647.

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