PBGC to take over 2 Hawker Beechcraft pension plans
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A U.S. bankruptcy court in New York on Thursday approved an agreement between the Pension Benefit Guaranty Corp. and financially troubled aircraft manufacturer Hawker Beechcraft Inc. in which the agency will take over two plans for salaried employees.
One plan has $358.3 million in assets and $727.5 million in liabilities, according to preliminary PBGC estimates. The PBGC says it will be responsible for about $343.7 million of the $369.2 million funding shortfall.
The other plan has $47.4 million in assets and $97.7 million in liabilities. The PBGC says it will be liable for about $47 million of the $50.3 million in promised benefits.
A third pension plan covering members of the International Association of Machinists and Aerospace Workers will be frozen.
The PBGC takeover of the two plans, which have more than 9,500 participants and $390 million in unfunded PBGC-guaranteed benefits, is the agency's biggest loss since 2009, when it terminated several pension plans sponsored by failed automotive parts manufacturer Delphi Corp. and assumed about $6.3 billion in unfunded benefit obligations.
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