The Pension Benefit Guaranty Corp. has taken over the defined benefit pension plan of the Los Angeles Urban League Head Start State Pre-school.
In a post on its website, the PBGC says it will pay for the retirement benefits of 233 people covered by the plan, which is sponsored by the Los Angeles Urban League Inc.
PBGC estimates show that as of May 2013, the plan was only 45 percent funded, with $5.6 million in assets and $12.5 million in liabilities.
The post said PBGC will cover $6.7 million of the $6.8 million shortfall.
Retirees from the plan are not expected to suffer any disruption in their benefits.
PBGC will cover all earned benefits up to the legal limit, which is about $59,320 a year for a 65-year old.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
