Pension tension in store

http://investing.businessweek.com/research/markets/news/article.asp?docKey=600-201209062359KRTRIB__BUSNEWS_24850_1440-1&params=timestamp||09/06/2012%2011:59%20PM%20ET||headline||Pension%20tension%20in%20store%20[Boston%20Herald]||docSource||Knight%20Ridder/Tribune||provider||ACQUIREMEDIA

Sept. 06--Two companies controlled by the daughters of the late millionaire owner of Spag's Supply Inc. have filed for bankruptcy with $6.1 million-plus in unfunded pension liabilities for 400 former employees of the defunct no-frills discount store.
The bankruptcy petitions filed Friday follow the federal Pension Benefit Guaranty Corp.'s September takeover of the pension fund of Spag's, which operated in Shrewsbury for 68 years until 2002.

The bankruptcy petitions filed Friday follow the federal Pension Benefit Guaranty Corp.'s September takeover of the pension fund of Spag's, which operated in Shrewsbury for 68 years until 2002.
"The sponsor was unable to make the required contributions to the plan," said J. Jioni Palmer, a spokesman for the government agency.
PBGC's takeover could result in some former employees not receiving their full benefits. Federal law sets a maximum monthly benefit of $4,500 for workers who retired at age 65 and whose plans were terminated in 2011. "Typically between 85 and 87 percent of beneficiaries of terminated plans get their full benefit," Palmer said.