Some stability might be coming to Nortel employees and retirees in the U.S. The Pension Benefit Guaranty Corp. is taking over the retirement fund of Nortel’s U.S. operation. That covers 23,000 people.
Congress created the PBGC 35 years ago to protect employees and pensioners of bankrupt companies. Its Web site says it currently protects the pensions of nearly 44 million American workers and retirees in more than 29,000 private single-employer and multiemployer defined benefit pension plans.
Nortel’s retirement fund is 58 percent funded. Assets are a little more than $700 million, with benefit liabilities of more than $1.2 billion.