PBGC Loses Round in Lawsuit Over Findlay Industries Pension

Dec. 30, 2016, 5:10 PM

Federal pension insurers can’t fund the benefits of Findlay Industries Inc. retirees by collecting from companies that purchased Findlay’s assets or an irrevocable trust established by the company’s founder, a federal judge ruled Dec. 29 (PBGC v. Findlay Indus., Inc., 2016 BL 434822, N.D. Ohio, No. 3:15-cv-01421-JZ, 12/29/16).

The trust was established to care for the sisters of Findlay founder Philip D. Gardner and thus wasn’t a “trade or business” that could be used to satisfy pension liability, the judge found, dealing a blow to the Pension Benefit Guaranty Corporation. Further, federal law doesn’t allow the PBGC to ...

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