GREENVILLE, S.C. — JPS Industries Inc. will freeze its pension plan effective Dec. 31, Michael L. Fulbright, chairman, president and chief executive officer, announced in a statement. The plan had $84.7 million in assets and $29.2 million in unfunded projected benefit obligations of as of Nov. 1, 2003, according to its latest 10-K filing on Jan. 30, 2004. However, according to the company's latest 10-Q filing on June 15, 2004, its pension liability totaled $25.9 million on May 1, 2004. The 10-Q filing did not say the liability was unfunded, and it didn't disclose pension assets.
"The highly competitive global manufacturing arena and pending legislation in Congress that will result in more onerous premium costs on companies that offer defined benefit plans made this a necessary course of action for our company," Mr. Fulbright said in the statement. "In conjunction with this change, we are enhancing our 401(k) plan to provide our employees with an improved retirement savings plan that is in their complete control in terms of investment strategy."
The statement didn't provide pension or 401(k) figures or elaborate on the 401(k) enhancement. Neither Mr. Fulbright nor Charles R. Tutterow, executive vice president and CFO, could be reached for comment.
The company's 2004 proxy statement, the latest available on the SEC website, said the pension plan owned 20.3%, or 1.9 million shares, of JPS stock.
The company contributed $165,000 to its 401(k) plan for the year ended Nov. 1, 2003, according to the 10-K. "The company makes a matching contribution of 25% of each participant's contribution with a maximum matching contribution of 1%BD;% of the participant's base compensation," the 10-K reported.