The U.S. Pension Benefit Guaranty Corporation (PBGC), a federal-ran agency, has revealed it will be taking over the pension plans of more than 21,000 retirees and future retirees of the now shut down A&P retail chain.
“PBGC is stepping in because A&P has sold the majority of its assets in bankruptcy proceedings and most of the buyers declined to keep the plans going,” the agency announced in a statement. “The agency will pay all pension benefits earned by A&P retirees up to the legal maximum of $60,136 a year for a 65-year-old.”
The PBGC will be taking over the following plans:
Following A&P’s file for bankruptcy in July of last year and the sale of all of its locations, the company was able to raise more than $900 million to pay off loans and debt. However, as reported by news source Lohud.com, a shortfall of a combined $291 million has kept A&P from fulfilling its the pension benefits it has promised.
While the PBGC will be taking over the three plans listed prior, the remaining New York-New Jersey Amalgamated Pension Plan for A&P Employees has not been terminated and will be administered by UFCW Local 464A in Little Falls, and Acme Markets Inc.