The PBGC today announced it has taken over the defined benefit pension plan of IndyMac Bank F.S.B., a unit of IndyMac Bancorp Inc., Pasadena, Calif., according to an agency news release.
The Pension Benefit Guaranty Corp. said it stepped in because IndyMac Bancorp liquidated in Chapter 7 bankruptcy and the plan faced abandonment. The plan was frozen on May 31, 2007, and terminated on July 11, 2008, when IndyMac Bank closed and went into FDIC receivership, the news release said.
Following the bank going into receivership, the FDIC sold substantially all of the bank’s assets to One West Bank Group on March 19, in a deal that did not include the pension plan, the news release said.
The PBGC release said the plan, which covers about 1,900 workers and retirees, is about 89% funded, with assets of $33 million and liabilities of $37 million. The PBGC expects to cover $3.7 million of the $4 million shortfall.