US pension fund fail 07172009 Nortel

PBGC Moves to Protect Pensions at Nortel Networks Inc.

WASHINGTON—The Pension Benefit Guaranty Corporation (PBGC) today announced it will take responsibility for the underfunded pension plan covering some 23,000 employees and retirees of Nashville-based Nortel Networks, Inc., the U.S. subsidiary of Nortel Networks Corp., an international telecommunications technology concern headquartered in Toronto and formerly a unit of Bell Canada.

The Nortel Networks Retirement Income Plan is 58 percent funded, with assets of $716 million to cover benefit liabilities of $1.23 billion, according to PBGC estimates. The agency expects to cover the entire $514 million shortfall.”

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