Economy
Renco Group to Take Back RG Steel Pension
Written by Sandy Williams
March 4, 2016
The Renco Group will retake two RG Steel pension funds back from the Pension Benefit Guaranty Corp., ending a three year lawsuit. The deal is only the second time in PBGC’s history that a terminated pension plan was restored to an employer.
The PBGC is an entity that insures multi-employer pension plans and protects the retirement income of workers when a company terminates a plan without sufficient funds to continue to pay all benefits.
PBGC claimed that Renco lied about the impending sale of RG Steel in Sparrows Point, Md., in order to evade responsibility for the pension fund.
“Renco strongly believes, as we have throughout, that the PBGC’s allegations were erroneous and that the company acted appropriately and within its rights when it concluded a financing transaction that had the incidental effect of releasing Renco from liability for RG Steel’s pension plans,” said Renco Group spokesperson Jim McCarthy.
Under Friday’s agreement, Renco will take back the pension funds effective June 1, 2016. Renco will pay all future benefits and $35 million in shutdown benefits not guaranteed by PBGC but covered in the plan. Renco Group will also reimburse the PBGC $15 million for benefits that agency has paid since taking over the two pension funds in November 2012. At that time the pensions were underfunded by $82 million and $7.4 million.
McCarthy said restoring the plans “was the most sensible, economic and practical resolution to the dispute, and it puts an end to the significant expense and distraction of continued litigation.”
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Second steel derivatives S232 inclusion window opens, business community voices concern
The US Department of Commerce announced that its second window for submitting applications for the inclusion of derivative steel and aluminum products in Section 232 tariffs is now open, according to the US Federal Register. September’s Inclusion Window Sept. 15 through Sept. 29, applicants can email requests for inclusions to the Defense Industrial Base Programs. The first […]
Steel Summit: ITR economist urges execs to prepare for growth, not recession
If the steel industry professionals who made it to the very final presentation of this year’s SMU Steel Summit were expecting another round of cautious forecasting, they were in for a surprise. Because what they got was a wake-up call.
ISM: Manufacturing growth remained down in August
US manufacturing activity remained muted in August despite a marginal gain from July's recent low, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Steel Summit: Dr. Basu blames tariffs for riskier path ahead
Steel executives packed the main conference hall of the 2025 SMU Steel Summit on Tuesday, Aug. 26, to hear economist Dr. Anirban Basu lay out his blunt view of tariffs, inflation, and demand.
Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.