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Federal agency takes over 2 RG Steel pension plans

Thursday - 11/29/2012, 4:31pm  ET

BALTIMORE - The federal Pension Benefit Guaranty Corporation says it is taking control of two RG Steel pension plans.

The federal agency says it is taking over the RG Steel Warren and the RG Steel Wheeling plans. The Warren Plan has 1,208 participants while the Wheeling Plan has 146. The agency says preliminary calculations show the two are underfunded by about $89 million.

The steelmaker sought bankruptcy protection in late May. Since then, the agency says RG has sold off practically all of its assets, mostly to liquidators, and none of the buyers have assumed the pension plans.

RG Steel was based at its Sparrows Point plant outside Baltimore. The company also had plants in Warren, Ohio and Wheeling, W.Va. as well as finishing facilities in Yorkville and Martins Ferry, Ohio.


(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)