The PBGC reached an agreement with Ispat International NV and Inland Steel Industries Inc. over the unfunded pension plan of Inland Steel Co., which Ispat is acquiring from Inland.
Under today's agreement, Ispat and Inland will contribute a combined $25 million in cash to the plan immediately and another $20 million later. They also will provide financial guarantees.
Inland Steel's pension plan, which is underfunded by $600 million, has assets of $1.9 billion and liabilities of $2.5 billion.
Meanwhile, the PBGC hiked to $5,000 the amount of benefits it will pay all at once to participants with small benefit accruals in pension plans the agency takes over. Until now, the PBGC paid out only up to $3,500 in lump sums to participants in plans taken over by the PBGC.