PBGC sues Renco for avoiding paying RG Steel employees' pensions
WARREN — The Pension Benefit Guaranty Corp. has filed a lawsuit seeking $97 million from the Renco Group, which it claims deliberately dumped a portion of its ownership stake in RG Steel to avoid meeting the pension obligations of about 1,350 workers.
The majority of those pensions belong to former workers at the RG Steel plant in Warren, which was shuttered over the summer after the company filed for bankruptcy protection in May, said Darrel Parker, president of the United Steel Workers of America Local 1375.
In December, laid-off workers learned their pensions would be reduced or cut in half when the government-run PBGC assumed the plan as it typically does for insured companies that declare bankruptcy.
The lawsuit is now seeking more than $87 million in unfunded liabilities, about $5 million in unpaid minimum-funding contributions, and $5 million in termination premiums required when a company stops paying its own pension and turns to the federal agency.
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