Source: News Channel 2
March 23, 2021
A letter for the former Remington Arms to Remington retirees had some of them thinking they might be losing their pension.
ILION, N.Y. — Some former Remington workers reached out to NEWSChannel 2 after receiving a letter in the mail this past week that had them thinking they were losing their pensions.
All the letter says is that Remington did not meet its obligation to make pension plan contributions of more than $8 million, plus accrued interest of more than $1 million, on Jan. 1 and Jan. 15, respectively.
Union officials that represent the workers say the retirees won’t be losing their pensions, they will just be getting their money from the government instead of the former Remington Arms company.
There is a government agency that guarantees pensions called the Pension Benefit Guaranty Corporation, or PBGC. It’s a government run entity that takes over when, for whatever reason, a company’s pension goes under.
United Mine Workers of America Spokesperson Phil Smith says he too has heard that some retirees were concerned when they received the letter this past week, “I want to make sure people understand that as a result of the bankruptcy, Remington was relieved of their obligation to continue making contributions into the pension plan. That does not mean however that people’s pensions are going to stop. They are not. The Pension Benefit Guaranty Corporation which is a government organization is going to be, for lack of a better word, making transfers from the insurance program that the PBGC has set up into the pension plan, The Remington pension plan.”
Smith says there should be no disruption in the delivery of the pensions and there should be no reduction in the amount that anyone should receive.
Written by: Gary Liberatore