WASHINGTON — The government Tuesday ordered steel and defense giant LTV Corp. to resume financing of three pension plans covering 100,000 workers and retirees and accused the company of dumping the plans to enhance profits.
"The federal government will not tolerate any interruption in benefit payments to retirees," said a stern Kathleen Utgoff, executive director of the federal Pension Benefit Guaranty Corp. The independent federal agency has said the LTV case threatened the agency's solvency.
The agency is charged with guaranteeing basic retirement benefits in private pension plans. It administers two insurance programs financed by premium payments from employers, covering a total of almost 40 million participants in 112,000 pension plans.
The agency's action "should send a message to other steel companies," Utgoff told reporters at a crowded news conference. "The PBGC has also restored these pension plans in order to curb abuse of the pension insurance program."