Under a settlement with the Pension Benefit Guaranty Corporation,Saint-Gobain Containers, Inc., has made $207.5 million ofadditional contributions to its pension plan.

The move helped shore up the plan’s financial standing andalleviates some of the PBGC’s concerns about the plan’s sponsorbeing sold to a company with fewer financial resources.

The settlement included Ardagh Group S.A., and Saint-GobainCorp. The settlement ends ongoing litigation over the agency’sright to take control of the plan because of inadequate funding.The additional contributions improved the plan’s funding level toabout 80 percent from 63 percent in 2013.

“It was clear to us that the proposed sale put the retirementbenefits of nearly 13,000 people in jeopardy, so we moved quicklyto get better funding for the plan. We had to threaten totake possession of it in order to get Saint-Gobain to act,” saidSanford Rich, PBGC's chief of negotiations and restructuring. “Now,because of PBGC’s actions, we have a better funded plan and 13,000people have a more secure retirement.”

In April 2013, PBGC moved to terminate the plan sponsored bySaint-Gobain Containers (also known as Verallia North America)after the company turned down numerous requests to improve fundinglevels. The agency took this action following a January 2013agreement by the parent company to sell the Muncie, Ind.-basedcontainer maker for $1.7 billion to a unit of Ardagh, aLuxembourg-based glass and metal packaging company.

PBGC pressed the parties for better funding because the sale putretirement benefits at risk by moving the plan from a financiallystrong sponsor to Ardagh, which carries a high level of debt.

When the parties declined to provide financial protection forthe plan, PBGC took steps to terminate the plan to protectretirement benefits.

PBGC protects the pension benefits of more than 42 millionAmericans in private-sector pension plans. The agency is directlyresponsible for paying the benefits of more than 1.5 million peoplein failed pension plans.

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