Federal Pension Insurer Takes Over 4 Intermet Plans

   DOW JONES NEWSWIRES 
 

The U.S. government's insurer of private pension plans is taking over four plans covering about 4,500 workers and retirees of bankrupt auto-parts maker Intermet Corp. (INMTQ) after the company failed to contribute more than $7 million to the plans.

The Pension Benefit Guaranty Corp. said it stepped in because the metals-castings maker will not be able to continue supporting the four plans, which are unable to pay benefits when due and are just 49% funded. As of January, PBGC-insured pension plans sponsored by employers in the automobile industry had unfunded benefit liabilities totaling over $60 billion, according to PBGC estimates.

The agency expects to cover $62 million of the $64 million shortfall using insurance funds. Two other Intermet funds are unaffected.

Intermet, like other auto-parts manufacturers, is suffering from its link to struggling auto makers General Motors Corp. (GM), Chrysler LLC and Ford Motor Co. (F), which have been slashing output in light of plunging sales.

The company last August filed for bankruptcy protection for the second time in four years. Intermet is focused on larger vehicles, sales of which have seen some of the biggest declines in the industry. The company makes parts for power trains, chassis and electronics.

-By Mike Barris, Dow Jones Newswires; 201-938-5658; [e-mail]