Hanesbrands Inc., the parent of Champion, reached a $13.8 million settlement with the Pension Benefit Guaranty Corp., agreeing to strengthen the funding of its retirement plan.
Under the agreement, the underwear and hosiery apparel maker put $7 million into the pension plan this month and will make an additional $6.8 million payment within a year. The payments are in addition to any required contributions to the plan.
The agreement stems from the closure of the company's textiles facility in Eden, N.C. earlier this year, which affected 290 workers in a pension plan which was merged into the Hanesbrand pension plan. It covers more than 30,000 workers and retirees.
The company, which makes Wonderbra, Champion and Playtex apparel, agreed to add to the plan to reduce risk to the PBGC insurance program. The company's plan remains ongoing and under its sponsorship, unlike other situations where the PGBC assumes responsibility for pension plans that can no longer pay benefits.
