Reliance Frequently Asked Questions
The following questions and answers have been provided by Reliance Insurance Company (in Liquidation) regarding the Reliance Employee Retirement Plan.
Former employees and retirees may have questions on the status of the Reliance Insurance Company Employee Retirement Plan and their benefits. The following "frequently-asked-questions" have been provided here for your use and information.
- What is the status of the Retirement Plan?
Reliance Insurance Company is in liquidation. There is not enough money to pay all of the Company's obligations. By law, administration costs and claims from policyholders have priority over other obligations such as payments to the Retirement Plan. For this reason, the Company can no longer continue to fund the Retirement Plan.
The assets remaining in the Retirement Plan are not enough to fund all the benefits due to the participants.
- If I am retired, will my pension benefits stop?
No. When a distressed company can no longer continue a single-employer plan, the Pension Benefit Guaranty Corporation ("PBGC") steps in and pays benefits based on the provisions of the plan, up to the limits set by law.
- Will my pension benefits be reduced?
Based upon the limits set by law as to the amount that PBGC may pay, it is anticipated that most people will get all they would have received if the Retirement Plan had not failed. But this is a difficult question to answer, as each person's benefits are somewhat different. Some benefits will be reduced, but most will not.
Within months after the PBGC takes control of the Retirement Plan, it will restrict benefits to the maximum Guaranteed Benefits limit described in the memorandum sent to you. If your benefit does not exceed that level, your benefit will not be reduced.
- How can I get more information about the PBGC?
You may access the PBGC website for further information. The address is PBGC.gov.
- Can I call or write to the PBGC now?
You can contact the PBGC at PO Box 151750, Alexandria, VA, 22315-1750, or by calling 1-800-400-7242.
- What does it mean that the PBGC will take control of the Retirement Plan?
The PBGC will take the Retirement Plan's assets and will be responsible for their future investment. The PBGC will also be responsible for all aspects of the administration of the Retirement Plan. Therefore, you will be required to send all claims for benefits to them. They will be responsible for responding to all of your issues regarding the payment of benefits and/or the amount of benefits. The PBGC will be responsible for issuing all benefit payments on a timely basis.
- Who can I call at Reliance if I have any questions regarding the Retirement Plan?
You may call Dale Mihlebach at 215-864-4655.
- What is the amount of Guaranteed Benefits?
If the Retirement Plan terminates in 2001, the maximum monthly pension benefit for people retired at age 65 will be $3,392.05. The maximum pension amount if the Retirement Plan terminates in 2002 will be $3,579.55 for workers who retired at age 65.
- After all the years that I worked for the company, how can you revoke your promise to pay my pension benefits?
The Retirement Plan does not have sufficient assets to fulfill all of its obligations and Reliance does not have available funds to make future contributions to the Retirement Plan.
- Where does my attorney send a complaint against the Retirement Plan?
Your attorney should send any complaint in accordance with ERISA's requirements. A copy of the complaint should be sent to the Company as Plan Administrator. It should be sent to Reliance Insurance Company (In Liquidation), Attention: Employee Retirement Plan Administrator, 3 Parkway, Philadelphia, PA 19102-1376.
- Is there a case number assigned to the retirement plan?
Yes, the case number assigned to the Reliance retirement plan is 1959-1500.