The Pension Benefit Guaranty Corp. said Thursday it has taken over three pension plans sponsored by Great Atlantic & Pacific Tea Co., better known as A&P, which filed for bankruptcy last year and has sold off most of its assets.
Collectively, the three plans of the one-time big Montvale, New Jersey-based supermarket chain have more than 21,000 participants and are underfunded by nearly $292 million, with just over $462 million in assets and nearly $754 million in benefit obligations.
The PBGC says it is covering about $288 million of the $292 million benefit funding shortfall.
The loss is the agency's largest since last August, when it took over a pension plan sponsored by Standard Register Co., a Dayton, Ohio-based printing and marketing communication firm, which filed for bankruptcy and was selling off its assets. The PBGC incurred a nearly $322 million loss when it took over the plan, which had more than 8,500 participants.
The Pension Benefit Guaranty Corp. will restore two pension funds that the agency took over from holding company The Renco Group Inc., the agency announced Friday.