WASHINGTON, D.C. – U.S. Sen. Sherrod Brown (D-OH) today applauded news that the Pension Benefit Guarantee Corporation (PBGC) has reached an agreement that will restore the pensions of 1,350 people who worked at RG Steel facilities in Warren, Ohio and Wheeling, West Virginia.
“Steelworkers like the former employees at RG Steel worked to build our country so they could provide for their families and retire comfortably,” said Brown. “This announcement will restore the promise RG Steel made to its employees for their contributions and ensure that employees are paid what they earned.”
RG Steel filed for bankruptcy in May 2012 costing many workers their earned pensions. Under the agreement announced today, the PBGC will restore the plans of 1,350 people who worked for RG Steel, a subsidiary of Renco Group Inc. PBGC took over the plans in 2012, which at the time had a shortfall of about $70 million in 2012. Per the settlement, Renco will take the plans back as of June 1, 2016, pay all future benefits promised to the former employees, and make back payments for benefits not guaranteed by PBGC. Renco will also reimburse PBGC for payments made during the time PBGC oversaw the plans.
When RG Steel filed for bankruptcy, Brown was instrumental in efforts to ensure that laid-off workers were eligible for both Trade Adjustment Assistance (TAA) benefits to transition to new employment and the Health Care Tax Credit (HCTC), which helps workers afford health coverage when they lose their job to unfair trade or their pension becomes insolvent.
Brown has led efforts in the Senate to boost Americans’ retirement security and protect workers’ earned pensions when they are jeopardized by bankruptcy or insolvency.