Gerdau, Tampa, Fla., agreed to fund an additional $19 million for two pension plans affected by the closing of an Oklahoma steel mill, the PBGC announced.
Gerdau closed the mill in Sand Springs, Okla., in October 2009, three years after the company acquired the mill's owner, Sheffield Steel. When the plant closed, the Pension Benefit Guaranty Corp. was required under ERISA to seek additional protection for the two plans. The ERISA trigger kicks in when more than 20% of covered employees lose their jobs if a facility closes.
PBGC gave Gerdau three years to make the payments into the Retirement Plan for Employees of Sheffield Steel Corp. and the Sheffield Steel Corp. Pension Agreement Plan. The payments are on top of the company's required plan contributions.
“Nothing changes, except the plans are going to be better funded,” said Marc Hopkins, PBGC spokesman, in an interview.