Feb. 26 (Bloomberg) — When Hostess Brands Inc. went bankrupt in 2012, it triggered anxiety among employees at Ottenberg's Bakery, a family-owned enterprise in Maryland. The companies shared a pension plan, and if Hostess couldn't pay its retirees, Ottenberg's would have to pick up the tab.
Gary League, 53, who has delivered Ottenberg's bread for almost three decades, worried he might lose his nest egg, maybe even his job.
"If you have all these guys out on retirement and you only have Ottenberg's paying into it, the math doesn't add up," League said. "I was thinking I would have to work forever."
Last week, he got the good news — the U.S. government saved his benefits by sacrificing those of Hostess' drivers, who will now get a reduced payout financed by the government.
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