Agency assumes Kaiser pension plan

The Pension Benefit Guaranty Corp. has taken over a Kaiser Aluminum Corp. pension plan that covered retirees from several small factories.

The plan, called the Kaiser Aluminum Inactive Pension plan, did not pay retirees from the company’s former smelters in Mead and Tacoma, said spokesman Scott Lamb.

Those plans are still operated by Kaiser, he said, although the company is negotiating with the PBGC about turning over control of those retirement plans, too.

Taking over the Inactive Plan will cost the PBGC about $47 million. Kaiser’s liabilities were $96 million, and the plan was funded to about $49 million.

The PBGC operates as the federal insurer of corporate pension plans and has been forced in recent years to assume control over many pension plans as traditional large companies like Kaiser fall into bankruptcy.

In all, the agency insures 31,000 private-sector benefit pension plans covering about 44 million American workers and retirees.

Under federal pension law, the PBGC guarantees up to $44,386 per year for retirees. Deductions are made for early retirees younger than 65.