PBGC’s Weapon of Last Resort Brings Victory in St. Gobain
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- The PBGC has settled its action to terminate the St. Gobain pension plan for an incremental $207 million contribution to the plan.
- The PBGC acted after St. Gobain refused to discuss the effect of the proposed transaction on the plan and the PBGC.
- Sponsors should anticipate inquiries from the PBGC when engaging in a transaction at a time at which their pension plans are significantly underfunded. By undertaking a constructive dialogue with the PBGC, sponsors can often address their concerns, with no or reasonable accommodations.