Hancock asks PBGC to oversee pension plan
Hancock, which filed for Chapter 11 bankruptcy protection in February and later moved to liquidate, essentially went out of business on
The remnants of the fabrics and craft retailer is winding down its operations.
When it filed for Chapter 11 on
Hancock established its pension
The PBGC guarantees private defined-benefit pensions much like the
"There is no taxpayer money involved," he said. "It's funded primarily by companies that pay into the insurance fund."
The PBGC guaranty does not include 401(k) or other retirement plans.
The motion filed last Friday said the PBGC on
The motion also said the PBGC plans to have
"Given the cessation of the debtors' business and the need to provide for continuity of present and prospective retirement pension benefits to Hancock's now-former employees, the debtors have determined that it is in the best interests of their estates to have the company enter into an agreement with the PBGC to terminate the plan," the motion stated.
Any objections to the motion must be filed by
Hopkins said Hancock pensioners should not experience a glitch in their pension benefits as the switch is made from Hancock to the PBGC delivering the checks.
The PBGC pays pension benefits up to the maximum guaranteed benefit set by law to those who retire at 65 (
PBGC in fiscal year 2015 paid
The single-employer program in which
Twitter: @dennisseid
___
(c)2016 the Northeast Mississippi Daily Journal (Tupelo, Miss.)
Visit the Northeast Mississippi Daily Journal (Tupelo, Miss.) at www.djournal.com
Distributed by Tribune Content Agency, LLC.
AIA Statement on the Passage of California’s Cures Database Bill
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News