WASHINGTON, September 30, 2011 - The Pension Benefit Guaranty Corporation (PBGC) will pay the retirement benefits of more than 580 workers and retirees of Chicago-based Corus Bankshares, Inc., and its subsidiary Corus Bank, which went into FDIC receivership in 2009.
The PBGC, which safeguards the pensions of 44 million Americans, stepped in because Corus is in bankruptcy and its pensions will not continue under its plan of reorganization.
PBGC will pay all pension benefits earned by Corus retirees up to the legal maximum of $54,000 a year for a 65-year-old.
When PBGC takes responsibility for the pension plan it will send notification letters to its members. Until then, the plan will continue under company sponsorship.
Workers and retirees with questions may consult the PBGC Web site, www.pbgc.gov or call toll-free at 1-800-400-7242. For TTY/TDD users, call the federal relay service toll-free at 1-800-877-8339 and ask for 800-400-7242.
Corus retirees who draw a benefit from the PBGC may be eligible for the federal Health Coverage Tax Credit. Further information may be found on the PBGC Web site at http://www.pbgc.gov/wr/benefits/hctc/hctc-faqs.html.
According to PBGC estimates, the Corus pension plan has $19.7 million in assets to cover $32.3 million in benefits. The agency expects to cover virtually all of the $12.6 million shortfall.
The PBGC protects the pension benefits of 44 million Americans in 27,500 private-sector pension plans. The agency is directly responsible for paying the benefits of more than 1.5 million people in failed pension plans. PBGC receives no taxpayer dollars and never has. Its operations are financed by insurance premiums and with assets and recoveries from failed plans. Unless otherwise noted, obligations related to this notice will increase PBGC’s previously reported unfunded liabilities.