The PBGC put Bendix Commercial Vehicle Systems, Elyria, Ohio, on notice for failing to address a $16.9 million pension liability associated with workers at a Frankfort, Ky., plant that closed more than two years ago, confirmed Jeffrey Speicher, agency spokesman.
The plant, which closed Dec. 31, 2007, and moved to Acuna, Mexico, resulted in the job loss of 60 employees who were participants in the system’s three defined benefit plans, which totaled $114.9 million as of Dec. 31, 2007.
“Under the Employee Retirement Income Security Act of 1974, an employer is required to provide protection for an underfunded pension plan when more than 20% of its employees covered by the plan lose their jobs due to a cessation of operations at a facility,” states a PBGC news release.
The company has the right to appeal the assessed liability to the PBGC appeals board, Mr. Speicher said in a telephone interview.
“The PBGC is committed to enforcing the legal obligations that arise in pension plans when companies shut down facilities under ERISA,” Mr. Speicher said.
Barbara Gould, Bendix spokeswoman, could not be reached for comment.