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U.S. Assumes Underfunded Polaroid Pension Plan
Thu Sep 12,12:49 PM ET
WASHINGTON (Reuters) -
The underfunded pension obligations
to 11,000 former employees of bankrupt instant photography
giant Polaroid Corp. have been assumed by the Pension Benefit
Guaranty Corp., the federal agency said on Thursday.
The Cambridge, Massachusetts-based instant film and camera
maker was acquired in July by OEP Imaging Corp., an affiliate
of Bank One Corp.'s One Equity Partners, but the sale
did not include the pension plan.
Polaroid retirees will continue to receive their monthly
checks up to federally guaranteed limits, PBGC Executive
Director Steven Kandarian said in a statement. Others who
earned benefits under the Polaroid plan could start receiving
monthly pension checks when they became eligible to retire.
The PBGC, funded mostly by investments and insurance
premiums paid by companies sponsoring pension plans, estimated
that the Polaroid Pension Plan, with benefit liabilities of
$981 million, is underfunded by about $324 million.
Under federal pension law, the maximum pension guaranteed
for workers in plans that terminate in 2002 is $3,579 a month
for persons retiring at age 65.
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