The PBGC entered into talks with PwC on learning of the proposed sale of PwC's consulting business to IBM, a $3.5 billion deal that closed Wednesday. Under its agreement with PBGC, PwC will transfer $200 million to its defined benefit plan within a week of the sale's closing.
The company will contribute an additional $64 million to the plan by March 15, 2003. PwC also agreed to maintain the pension plan's existing credit balance and make annual plan contributions in amounts greater than required by law.
This agreement, which will be in effect for a minimum of five years, is a product of PBGC's Early Warning Program in which the agency monitors companies and negotiates agreements when transactions occur that might impact workers' pensions or the federal pension insurance program.
Under a contract with PBGC's Inspector General, PricewaterhouseCoopers serves as outside auditor of the financial condition of PBGC's single-employer and multiemployer insurance programs.
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits earned by more than 44 million American workers and retirees participating in over 35,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and by PBGC's investment returns.
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cewaterhouseCoopers has agreed to contribute $264 million to the pension plan it sponsors for nearly 47,000 workers and retirees, according to the Pension Benefit Guaranty Corporation.