Hovensa LLC, an oil refinery that operated in the U.S. Virgin Islands, is abandoning its pension plan after shuttering operations in 2012. 

The Pension Benefit Guaranty Corp. will assume pension obligations to 1,600 current and future retirees, covering all benefits up to the legal limit of $60,136, according to a statement from the agency. 

The plan is reportedly 75 percent funded, with $127 million in assets covering $169 million in liabilities. The PBGC said it expects to cover $38.2 million of the $41.8 million shortfall. 

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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.