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On October 13, 1987, Products' board of directors passed a
resolution to terminate the Pension Plan and Money Purchase Plan.
The resolution read as follows:
Immediately terminate the company pension plans
noted as the O.W.G. Products, Inc., Employees Defined
Benefit Pension Plan and the O.W.G. Products, Inc.,
Money Purchase Plan and to notify the pension
administrator, Pension Services Corporation of this
meeting and instruct that these plans be terminated
immediately in the current plan year and in accordance
with appropriate tax guidelines, as outlined under the
Internal Revenue Code and in accordance with the
provisions of the Pension Benefit Guaranty Corporation
for terminating plans and other laws regarding pension
benefit plans as required.
Gant wrote a letter dated October 15, 1987, to Pension Services
Corporation (Pension Services), the plans' third-party
administrator, requesting that the Pension Plan be discontinued.
Neither Products nor Gant gave written notice to plan
participants of the intent to terminate the Pension Plan and the
Money Purchase Plan during the Pension Plan and the Money
Purchase Plan years ended June 30, 1988. Furthermore, Products
did not give written notice to the Pension Benefit Guaranty
Corporation (PBGC) of its intent to terminate the Pension Plan.
On June 22, 1988, Gant, acting as trustee for both the
Pension Plan and Profit Sharing Plan (formerly the Money Purchase
Plan) purchased group annuity contracts for the participants in
these plans. On December 6, 1988, Gant distributed individual
annuity contracts to the plan participants. The present value of
vested accrued benefits for the Pension Plan's participants was
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Last modified: May 25, 2011