WARREN, Ohio (WYTV) – Pensions will be restored for 1,350 people who worked at RG Steel facilities in Warren and Wheeling, West Virginia, Sen. Sherrod Brown (D-Ohio) announced.
The Pension Benefit Guarantee Corporation (PBGC) reached the agreement on Friday.
RG Steel, a subsidiary of Renco Group Inc., filed for bankruptcy in May 2012, costing many workers their earned pensions. 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, according to a new release from Sen. Brown’s office.
Sen. Brown has been working 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. He said he was pleased that an agreement could be reached.
“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.”