The PBGC today took over three underfunded pension plans of bankrupt steelmaker LTV Corp., Cleveland, the federal agencys largest pension fund takeover. The company, which is being liquidated, had combined assets of about $2.2 billion for the three pension funds and liabilities of $4.4 billion, according to PBGC estimates. The plans are: the LTV Steel Hourly Pension Plan, underfunded by nearly $1.8 billion; the LTV Steel Salaried Defined Benefit Retirement Plan, underfunded by about $316 million; and the LTV Steel Mining Co. Pension Plan, about $70 million underfunded. The plans will be terminated Sunday.
The Pension Benefit Guaranty Corp. also is preparing to take over the LTV Railroads Pension Plan, underfunded by almost $2 million. The takeover will begin upon LTVs sale of its railroad unit, which is not in bankruptcy.