The PBGC will take over the defined benefit pension fund of Butzel Long, a Detroit-based law firm, the agency announced Wednesday.
The Pension Benefit Guaranty Corp. said in a statement that the agency stepped in because the firm would be unable to maintain its pension fund and remain in business.
According to PBGC estimates, as of the March 20 termination date, the pension fund was 47% funded, with $34 million in assets to pay $73 million in benefits. The agency said in the statement it expects to cover most of the $39 million shortfall.
Calls to Justin Klimko, Butzel Long president; Lori Thomas, human resources director; and Maribeth Farkas, publicist, were not returned at press time.