Archive

Western Union to Add $4.1 Million to Pension Plans

By Staff Report

Aug. 24, 2009


Western Union Financial Services Inc. will make a $4.1 million cash contribution to its defined-benefit plans, under an agreement with the Pension Benefit Guaranty Corp., according to a news release from the pension insurer.


Under the agreement, Englewood, Colorado-based Western Union will make the contribution—in addition to any other required payments—to its plans by September 11, according to the release.


The PBGC said in the release that the agreement was made because ERISA requires the agency to seek additional protection when more than 20 percent of a company’s employees covered by a pension plan lose their jobs at a company facility. Western Union shut down a call center in Bridgeton, Missouri, on August 7, 2008, resulting in 153, or 44 percent, of the call center’s 351 employees losing their jobs.


“Under the agreement, Western Union is putting more money into the plan for the benefit of participants and to reduce risk to the PBGC insurance program by enhancing the plan’s financial health,” the news release said.


Steve Gawlik, a Western Union spokesman, said the company did not release the total assets in its two defined benefit plans, which he said are frozen.


According to a company 10-Q filing with the Securities and Exchange Commission, Western Union’s two plans had unfunded pension obligations of $107.1 million as of December 31.


According to the 2009 Money Market Directory, one of Western Union’s defined benefit plans had assets of $357 million as of December 2007, while the other had assets of $28 million as of September 2007.


Along with the $4.1 million contribution, the SEC filing said the company estimated it would be required to contribute $25 million to the plans in 2010.



Filed by Doug Halonen of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

About Workforce.com

blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog

Employee Engagement

12 practical employee appreciation ideas for better engagement and retention

Summary Showing appreciation to your employees improves engagement and retention. There are 12 practica...

employee appreciation, engagement, HR, raccoons

workforce blog

Compliance

California fast food workers bill: why it’s more than meets the eye and how to prepare

Summary: California signs bill establishing a “fast food council” that has the power to raise the indus...

workforce blog

Employee Engagement

7 statistics on employee turnover in 2022 every HR manager should be aware of

Summary July 2022 saw 5.9 million total separations – More Replacing a full-time employee can cost up t...

employee retention, employee turnover