The PBGC today reached an agreement with Philip Morris Cos. to safeguard the underfunded pension plan of its Milwaukee-based Miller Brewing Co. subsidiary, which is being sold to South African Brewing Co., London. Under the five-year agreement, Philip Morris guarantees to make up the estimated $150 million shortfall in Miller’s pension fund to pay for promised pensions. If it chooses, Philip Morris may replace the guarantee with a letter of credit to secure the required payments.
The agreement is part of the PBGC’s Early Warning Program, which requires corporations to protect underfunded pension plans before they can sell or buy businesses.
