The PBGC today announced the takeover of Foster Grant Inc.'s pension plan, underfunded by $4.8 million.
Foster Grant, a Leominster, Mass., company specializing in sunglasses and eye-care products, filed for bankruptcy in 1990 and sold all of its assets. The plan has about $10 million in assets and $14.8 million in liabilities to cover about 1,000 retirees and former employees. Nearly all participants will get the same benefit they now receive or will be receiving when they retire, the PBGC said.
The administrators of the $449.1 million Longshoremen's STA-ILA Pension Trust and Benefit Fund, Baltimore, may freeze the defined benefit plan and replace it with a defined contribution plan.
The idea is in its initial stages, but it is an option being considered to meet the needs of the fund's changing work force, said Stephen M. Byan, co-administrator and secretary.
The defined benefit plan is fully funded and well managed, but the work force is aging and contributions lag benefit payments. Only good investment returns keep the fund growing.
Plus, administrators and trustees need to consider what might happen when the union's collectively bargained agreement expires in September 1996. A new agreement could result in smaller contributions from employers.
Utendahl Capital Management has launched Advent Capital Management, a money management firm specializing in convertible securities. The firm has $30 million in assets from three institutional clients. Tracy V. Maitland, formerly the lead convertibles salesman in the equity capital markets division of Merrill Lynch, is president. The investment team includes Nancy E. Enslein, a former research analyst at Oppenheimer Capital, and Robert L. Farmer, a former trading analyst with Miller Capital/Paladin, as vice presidents.
Utendahl is a fixed-income manager with $220 million under management.