Bankruptcy Knoxville

As more and more companies seek bankruptcy protection in this troubled economy, many pensioners are anxious to know where they stand. Recently, an auto parts supplier became the fifth in its industry to shed pension obligations. However, the government’s pension insurer has vowed to assume responsibility for the underfunded plan. This move will add about $100 million to the governments PBGC deficit. The total deficit is $21.1 billion this year alone. Because of this move the workers’ pension plan will be fully funded. Detroit News reports the following:

Earlier this year, PBGC assumed responsibility for Troy-based Delphi Corp’s pension plans — a move that saddled PBGC with $6.7 billion in costs for plans covering more than 70,000 people.

PBGC also assumed pension plans at suppliers Metaldyne Corp; Proliance International Inc., an auto parts maker based in New Haven, Conn.; and Portage-based Contech US LLC.

PBGC said earlier this month that its deficit had soared to $21.1 billion this year — up from $10.4 billion last year. But it improved over its mid-year estimate of $33.5 billion.

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