HARNISCHFEGER INDUSTRIES MISTAKENLY INCLUDED ON LIST OF TOP 50 UNDERFUNDED PENSION PLANS
HARNISCHFEGER INDUSTRIES MISTAKENLY INCLUDED ON LIST OF TOP 50
UNDERFUNDED PENSION PLANS
MILWAUKEE, Dec. 10 /PRNewswire/ -- Harnischfeger Industries (NYSE: HPH) was mistakenly included on a list of the nation's 50 largest underfunded pension plans in fiscal year 1990 released last week by the Pension Benefit Guaranty Corp., it was announced today.
The PBGC calculated the guaranteed benefits liability of Harnischfeger Industries and other companies for the annual list. Liabilities were calculated to reflect only guaranteed benefits and were adjusted to the PBGC's interest and mortality assumptions.
The PBGC incorrectly stated that Harnischfeger Industries faced a guaranteed benefits liability of $161 million. The amount was incorrect because the PBGC used the projected benefit obligation for the plans in question, instead of the vested benefits. A spokesperson for the PBGC indicated that the starting point for the liability calculation should have been the vested benefits.
As a result, with the PBGC's assumptions for interest rate and mortality, the guaranteed benefit liability should have been approximately $111 million, and the net unfunded liability for these plans should have been $25 million, well below the $47 million threshold for inclusion on the list. If the proper calculations had been used, Harnischfeger Industries would not have been on the PBGC list.
Harnischfeger Industries is a diversified international holding company that operates four subsidiaries involved in: papermaking machinery manufacturing (Beloit Corporation); surface mining and overhead material handling equipment manufacturing (Harnischfeger Corporation); and systems integration services (Harnischfeger Engineers, Inc. and Syscon Corporation).
/CONTACT: Francis M. Corby, Jr., senior vice president finance and CFO of Harnischfeger Industries, 414-797-6518/
(HPH) CO: Harnischfeger Industries Inc. ST: Wisconsin IN: INS SU: FC-KW -- NY031 -- 0990 12/10/91 11:47 EST