The PBGC has taken over the defined benefit pension plan of automotive parts supplier FormTech Industries LLC, Royal Oak, Mich., confirmed Marc Hopkins, an agency spokesman.
The Pension Benefit Guaranty Corp. took over the plan because FormTech is liquidating in Chapter 11 bankruptcy proceedings and there will be no sponsor left to fund or administer the plan, according to a PBGC news release.
The FormTech Industries LLC Pension Plan, which covers 570 workers and retirees, is 38% funded, with assets of $2.23 million and liabilities of $5.86 million. PBGC expects to be responsible for $2.05 million of the $3.63 million shortfall, the news release said.
The plan was terminated on Dec. 31, 2009.