Several companies, like US Airways and Bethlehem Steel have gone bankrupt and have had their pension plans taken over by the PBGC (Pension Benefit Guarantee Corporation). Could this happen to IBM as a result of the lawsuit?
That is highly unlikely. US Airways and Bethlehem Steel were troubled companies for reasons that had little to do with their pension plans. As a result of the poor financial condition of these companies, their pension plans became highly under-funded over time. When the companies finally went bankrupt, they could no longer afford to contribute to their pension plans. Therefore, the PBGC took over the plans to protect the employees and retirees.
Related Questions
- Several companies, like US Airways and Bethlehem Steel have gone bankrupt and have had their pension plans taken over by the PBGC (Pension Benefit Guarantee Corporation). Could this happen to IBM as a result of the lawsuit?
- Has the Pension Benefit Guaranty Corporation (PBGC) assumed responsibility for the above mentioned Plans?
- What Lehman Brothers pension plans did PBGC insure?
