PBGC Protects Pension Benefits at KidsPeace Corporation
Pension Benefit Guaranty Corporation (PBGC) sent this bulletin at 05/23/2013 02:50 PM EDT |
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PBGC will pay retirement benefits for more than 2,400 current and future retirees of KidsPeace Corporation, a private charity dedicated to serving the behavioral and mental health needs of children, families, and communities.
KidsPeace Corporation is headquartered in Schnecksville, Pennsylvania with operations in Georgia, Indiana, Maine, Maryland, Minnesota, Nevada, New York, North Carolina, Virginia, and the District of Columbia.
The agency stepped in because the charity organization can't pay its pension obligations and remain in business.
PBGC will pay all pension benefits earned by the hospital's retirees up to the legal limit of almost $56,000 per year for a 65-year-old.
Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.
According to PBGC estimates, as of March 31, 2012, the pension plan was 41 percent funded with $69.3 million in assets to pay $168.4 million in benefits. The agency expects to cover $95.6 million of the $99.1 million shortfall.
The company's pension plan ended on March 31, 2012, because at that time KidsPeace Corporation had ended expectations among participants that they would continue to earn benefits.
For additional information, please call 1-800-400-7242 (8 a.m. to 7 p.m. EST, Monday - Friday) (TTY/ASCII: call 1-800-877-8339 and ask to be connected to 1-800-400-7242), email us at mypension@pbgc.gov, or visit KidsPeace Corporation's plan-specific webpage, KIDSPEACE DEFINED BENEFIT RETIREMENT PLAN.
Additionally, KidsPeace Corporation's retirees who get their pension from PBGC may be eligible for the federal Health Coverage Tax Credit. For more information, see PBGC's Health Coverage Tax Credit (HCTC) FAQs.
