Gold Toe Moretz Holding Corp., a stocking manufacturer based in Newton, N.C., will contribute an additional $2 million to the pension plan of workers at a shuttered plant in Burlington, N.C., through Jan. 31, 2013, under a deal with the PBGC, confirmed Marc Hopkins, PBGC spokesman.
As part of the agreement, Gold Toe has given the Pension Benefit Guaranty Corp. a $7.5 million security interest in its property, Mr. Hopkins said.
“We think Gold Toe would honor its commitment to the pension plan,” Mr. Hopkins wrote in an e-mail response to questions. “But if that doesn’t happen, the agency will monetize its interest in the inventory, which is mostly socks, and use those funds for the benefit of plan participants.”
Under ERISA, the PBGC is required to seek additional protection when more than 20% of a company’s employees covered by a pension plan lose their jobs in a shutdown.
The Gold Toe Retirement Plan, according to a PBGC news release, remains ongoing and has more than 2,500 participants.
Additional details about the Gold Toe plan were not available. John Moretz, Gold Toe’s chairman and CEO, had not returned telephone calls by press time.