CIT Group Inc., Livingston, N.J., plans to maintain its cash balance and 401(k) plans as it reorganizes under Chapter 11 bankruptcy protection, according to documents filed with the U.S. Bankruptcy Court in New York.
CIT, which announced its decision to file for bankruptcy protection Nov. 1, asked the court for permission to continue funding its retirement programs and other employee benefits.
The company contributes about $28.8 million a year to its cash balance plan, and because the next additional contribution is not required until April 2010, CIT “will not be making a contribution during the expected pendency of these Chapter 11 cases,” according to court documents.
CIT contributes about $2.1 million a year to its 401(k) plans, according to the court documents.
CIT’s 401(k) plans had assets of $552 million as of December 2006, while the cash balance plan had assets of $282 million as of the same date, according to the 2009 Money Market Directory. More current data was unavailable.