Reynolds Packaging Group, Richmond, Va., will pay an additional $5.3 million into its defined benefit pension plan over the next four years under an agreement with the PBGC, confirmed PBGC spokesman Marc Hopkins.
The agreement will fund pension benefits for the 114 workers of Reynolds’ Downingtown, Pa., plant, which closed on March 27, 2009,
The pension plan remains ongoing, according to a PBGC news release, but ERISA requires the PBGC to seek additional protection when 20% of a company’s employees covered by a pension plan lose their jobs as a result of a facility closing.
Under the agreement, Reynolds will pay $2.3 million over the required minimum in 2010, and just over $1 million in each of the following three years.
“When plan sponsors close facilities, the agency will actively engage employers to ensure that pension plans receive the additional financial protection required by law,” Vince Snowbarger, PBGC acting director, said in the news release. “We are pleased that Reynolds Packaging Group stepped up and worked with us on this agreement, which enhances the financial health of the plan.”
The company also agreed not to use these additional contributions as well as certain contributions made prior to the agreement to offset future funding requirements.
Further details of the Reynolds Packaging plan could not be immediately learned. A spokesman there could not be reached for comment.