USA: Federal agency assumes liability for pension plan at Pittsburgh Brewing Co.
A government agency assumed responsibility for a pension plan at Pittsburgh Brewing Co., a major hurdle in the company's Chapter 11 bankruptcy reorganization, Associated Press learned May 23.
The maker of Iron City beer has liabilities of about $24 million for the plan but assets of only about $12 million, according to the federal Pension Benefit Guaranty Corp.
The agency, which has absorbed billions of dollars in pension liabilities from insolvent businesses, will be responsible for about $11 million of the financially troubled brewer's $12 million shortfall.
The pension plan covers more than 500 current and former employees.
Retirees will continue to receive pension benefits up to the legally mandated limit of $43,614 per year, the agency said. But some early retirement subsidies and other benefit increases made in recent years are not fully guaranteed, it said.
Last year, Pittsburgh Brewing asked the PBGC to take over one of its two pension funds, saying it had lost $1.2 million from operations since 2002 and would be forced to close unless it was relieved of the obligation.
The financially distressed brewer filed for protection from creditors under federal bankruptcy regulations in December after failing to pay $2.5 million in water and sewage bills.
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