M&G Polymers, Apple Grove, West Virginia, recently filed for Chapter 11 Bankruptcy. The result of that action was that 364 retirees lost their health insurance and had their retirement fund turned over to Pension Benefit Guaranty Corporation (PBGC). PBGC works similar to the (FDIC) Federal Deposit Insurance Corporation, if a bank fails, FDIC insures a portion of the bank customer’s deposits.
The Pension Benefit Guaranty Corporation will cover a portion of a retirees defined pension benefit plan. But not all aspects of the plan.
My concern is defined pension benefit plans are being eliminated by various corporations in favor of 401k plans. When the defined pension benefit plans are gone there will be no funding for PBGC and it will fail. It’s in financial trouble now. It that happens thousands of retirees all over the U.S. will lose their retirement income.
The 364 retirees at M&G lost $44 million in health and retirement benefits. According to the Chapter 11 bankruptcy court, the retirees did not receive 1 cent of that $44 million.
Chapter 11 bankruptcy is a way for corporations and wealthy individuals to avoid their contractual and financial obligations. The individual occupying the oval office in D.C. has filed Chapter 11 bankruptcy five times. Good business or financial rip-off, you decide.
Point Pleasant, W.Va.