The PBGC is assuming responsibility for the pensions of 1,500 plan participants and retirees of Aladdin Industries LLC, Nashville, Tenn., the agency announced today. According to PBGC estimates, the Aladdin Industries retirement plan is about 70% funded, with $38 million in assets to cover some $54 million in benefit liabilities. The agency expects to be responsible for the entire $16 million shortfall.
Along with failing to pay $16 million in legally required pension funding contributions, the agency also determined that the pension plan faces abandonment after Aladdin liquidated substantially all of its operating assets, with no purchaser willing or able to assume the plan, according to a PBGC news release. The company ceased manufacturing operations in 2002.
Lillian Jenkins, vice president of human resources at Aladdin, did not return a call by press time seeking comment.