One of the issues surrounding the possible bankruptcy of any of the U.S. auto makers has been that the Pension Benefit Guarantee Corporation (the “PBGC”) would have to take over that company’s pension plans, perhaps overtaxing the PBGC’s resources and jeopardizing the pension benefits under those plans (and others). On April 30, 2009, Chrysler filed for bankruptcy protection.
To deal with such issues, the PBGC has added to its website a page entitled “Chrysler Pension Plans: Information for Workers and Retirees”. As to the current status of those plans, the page states that Chrysler’s bankruptcy filing does not change the status of the defined benefit pension plans sponsored by Chrysler for its workers and retirees. The plans remain ongoing and are insured by the Pension Benefit Guaranty Corporation. As the bankruptcy process unfolds, the PBGC will work with Chrysler, its unions, and all other stakeholders to ensure continuation of the pension plans.
The page from the PBGC website which talks about the Chrysler Pension Plans is here.