Federal Agency Takes Control of Standard Register's Pension Plan
DAYTON, Ohio—September 2, 2015—The underfunded pension plan for the employees of Standard Register has been taken over by a federal agency, according to a report in the Dayton Business Journal.
The Stanreco Plan and the 8,500 current and future retirees of the bankrupt company will now fall under the guidance of Pension Benefit Guaranty (PBGC). That agency estimates the plan was underfunded by $322 million, with $289 million in assets to pay and $611 million in benefit liabilities, the newspaper reported.
Pension Benefit Guaranty is coming to the rescue because Taylor Corp. of North Mankato, Minnesota—which purchased Standard Register's assets in bankruptcy proceedings back in June—is not assuming responsibility for the pension plan, while Standard Register is trying to complete its Chapter 11 process.
Retirees age 65 will be paid the legal limit of $60,136 a year by PBGC, according to the Business Journal. Future retirees can apply for benefits as they become eligible. Current retirees will receive their benefits uninterrupted, but the paper noted that higher-paid retirees will take a substantial hit because they have drawn above the limit.
The Standard Register pension plan ended on Monday.