|
Employees and retirees of Elkem Metals at Alloy, a former Union Carbide operation, may be losing their retirement benefits.
Officials with Elkem Metals Inc. have notified current and retired employees that they are asking federal officials to give them a waiver for the minimum funding requirements for their employee retirement plan.
Underfunded pensions are creating what some in Congress fear is a "perfect storm." The weak job market and historic low interest rates are contributing to the problem with pension plans going down around the country.
Many companies legally used pension funds for business operations or investments, causing the plans to be underfunded.
Union Carbide officials sold the plant to the Norweign company in 1981. Workers who retired under Union Carbide have their pensions through Union Carbide and are not affected by Elkem's action.
Current workers, both hourly and salaried, as well as people who retired from Elkem after 1981 are in the jeopardized pension plan.
Elkem has more than 900 people in the current pension plan.
Reports indicate the pension plan is underfunded by $28 million. If the underfunding continues, the company could never make up the amount and end up in bankruptcy.
The federal Pension Benefit Guaranty Corp. reported that it recorded an $11.2 billion deficit last year. The PBGC is the federal agency that insures pensions.
The collapse in pensions is becoming a serious problem to America's blue-collar workers.
Elkem has downsized employment in West Virginia, shifting operations to Norway, the plant is now
operated with record low levels of employees.
| 
