Agency takes over pension plans
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WASHINGTON — A federal agency said Friday that it had taken responsibility for pension plans covering nearly 900 workers and retirees of Kaiser Aluminum & Chemical Co.
The Pension Benefit Guaranty Corp., which insures private defined benefit pension plans, estimated that the four pension plans had combined assets of $20.1 million to cover promised benefits totaling $29.6 million.
The agency said it would be liable for $2.7 million of the $9.5-million shortfall.
Kaiser Aluminum & Chemical Co. is a subsidiary of Foothill Ranch-based Kaiser Aluminum Corp., which terminated the pension plans last year as part of its exit from bankruptcy protection.
Helped by a new law, the pension agency reduced its deficit to $18.1 billion last year, an improvement from a shortfall of $22.8 billion recorded in 2005.
The agency had seen its debt swell as steel and airline companies under Bankruptcy Court protection dumped their pension responsibilities on it.
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