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
ISM: Manufacturing keeps sliding through October, lowest in ’24
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.
Chicago Business Barometer slips in October
The Chicago Business Barometer fell to a five-month low in October and continues to indicate deteriorating business conditions, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Final Thoughts
We all know the American news cycle moves pretty fast. Viral today, cached tomorrow. So it is with the US presidential election on Tuesday, Nov. 5. People have election fatigue. They've moved on to other things like planning holiday parties, debating Super Bowl hopefuls, or even starting to look forward to our Tampa Steel Conference in February.
CRU: What will the US elections mean for economic policy?
In this Insight piece, CRU economists explore the possible economic effects of Trump's and Harris' agendas.
Architecture Billings Index remains dismal in September
Architecture firms continued to experience soft business conditions through September, according to the latest Architecture Billings Index (ABI) release by the American Institute of Architects (AIA) and Deltek.