Ravenswood Aluminum Co. has agreed to contribute $100 million to its two pension plans, enabling its parent company to go public. The contribution removes the company from the PBGC's annual list of the largest underfunded pension plans.
In an agreement announced today, Ravenswood, an aluminum products manufacturer based in Ravenswood, W.Va., will contribute the money over the next four years. Ravenswood is contributing $40 million above what minimum funding standards would require.
According to the PBGC's 1995 Top 50 list, Ravenswood's plans were underfunded by about $100 million, with assets of $42 million and liabilities of $144 million. It had the lowest funding ratio of any pension plan over the past four years.
Because of the agreement to clear the pension liabilities, Ravenswood's owner, Glencore International AG of Switzerland, is able to sell to the public a majority interest in Century Aluminum Co., Ravenswood's corporate parent. Glencore will no longer be responsible for Ravenswood's plans after the sale.