WASHINGTON (Oct. 20, 2010)—The Pension Benefit Guaranty Corp. has taken responsibility for the underfunded pension plan of more than 840 workers and retirees of the former Chardon Rubber Co., the PBGC has announced.
The Chardon Rubber Co. Retirement Plan is only 57-percent funded, with assets of $16.8 million to cover $29.5 million in liabilities, the agency said. The PBGC expects to cover $12.4 million of the $12.7 million shortfall.
In the next several weeks, the PBGC will send notification letters to all participants in the Chardon Rubber pension plan. However, the takeover means that retirees will continue to receive their monthly benefit payments without interruption, up to a maximum guaranteed amount of $54,000 annually, and other workers will receive their pensions when they are eligible to retire, the agency said.
Workers with questions about the plan may call toll-free at 800-400-7242 or contact the PBGC website, www.pbgc.gov, the agency said.
Founded in 1978, Chardon Rubber filed for Chapter 11 bankruptcy protection in May 2009 because of poor economic conditions, high raw materials costs and the loss of key customers. By Dec. 31, the company had sold off all its assets except its rubber mixing operation, which now does business as Chardon Custom Polymers L.L.C.