Saturday, March 30, 2002
YOUNGSTOWN -- A federal agency is taking over the LTV Corp. pensions Sunday. The bankrupt steelmaker's pension plans are underfunded by $2.2 billion, making it the largest case for the Pension Benefit Guaranty Corp.
Most LTV retirees will receive their full basic pension benefit, although not all of the pension increases approved in a 2000 contract will be covered, the PBGC said.
Workers and retirees don't have to take action, but anyone with questions should call (800) 707-7242.
The plans: Three plans cover 82,500 workers and retirees of the Cleveland-based company, including about 6,000 in the Mahoning Valley.
The pension plan for hourly workers covers 65,000 people and is underfunded by $1.8 billion. The plan for salaried workers covers 14,000 people and is underfunded by $316 million. The plan covering LTV Steel Mining Co. covers 3,500 people and is underfunded by about $70 million.
Separately, the PBGC is preparing to take over the LTV Railroads Pension Plan, which covers 700 people and is underfunded by almost $2 million. That takeover would come after LTV completes the sale of LTV Railroads, which is not in bankruptcy.
The plans covering employees and retirees of LTV Copperweld, LTV's metal fabricating unit, are not affected. That business is ongoing, although LTV is trying to sell it.