ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, August 28, 1996 TAG: 9608280036
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
DATELINE: WASHINGTON
The Pension Benefit Guaranty Corp. said Tuesday it will become trustee for the underfunded pension plans of two former clothing manufacturers in Virginia.
Included are two retirement plans for Imperial Reading Corp. of Lynchburg and one for Aileen Inc. of Edinburg.
The Imperial plans are underfunded by an estimated $4.4 million. The company, which produced children's clothing, sold its assets and closed its operations in 1992.
The Aileen plan is underfunded by $6 million. The sportswear maker began liquidating after unsuccessfully trying to reorganize in bankruptcy protection. It closed in 1995.
No action by retirees and former workers is necessary. Benefits will continue uninterrupted, said PBGC Executive Director Martin Slate.
PBGC is a federal corporation created in 1974 to guarantee the pension payments earned by America's 42 million workers and retirees. It is financed largely by insurance premiums paid by companies that sponsor pension plans.
- Associated Press
LENGTH: Short : 31 linesby CNB