PBGC Negotiates $55 Million In Pension Protection With Visteon

The Pension Benefit Guaranty Corp. Monday announced a $55 million negotiated deal with Visteon Corp. (VC) that provides the agency with additional protection against the company's pension plan.

"Today's agreement significantly strengthens the financial health of this plan. We commend Visteon's willingness to work with us to achieve an outcome that is favorable to its employees and retirees," PBGC's Director Charles Millard said.

The plan covers more than 5,300 former employees of the automotive supplier at two closed facilities in Indiana.

The negotiated protection for the plan calls for Visteon to accelerate a $10.5 million cash contribution to the plan, provide a $15 million letter of credit, and have Visteon and its affiliates be responsible for up to $30 million in contingent pension obligations.

-By Darrell A. Hughes, Dow Jones Newswires; 202-862-6684; [e-mail]

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