Judge OKs PBGC's Takeover of Dewey's Pension Plans
Judge Jesse M. Furman of New York's district court has agreed to let the Pension Benefit Guaranty Corp. (PBGC) become the trustee of Dewey's underfunded pension plans. The agency is charged with making sure that workers' pensions in the private sector are safe and takes over in cases such as Dewey's.
Dewey had three pension plans that were underfunded by $80 million when the PBGC moved to take them over in May. Under the ruling, the plans were terminated on May 11 and this date puts the PBGC's claim on Dewey's assets higher than some of its creditors.
The plans covers almost 1,800 people. But in spite of the PBGC's takeover of the plans, some of the employees are likely to face a financial loss. The organization will only pay guaranteed benefits of up to $56,000 per year for a 65-year old retiree.