— Furniture Today,
WASHINGTON — The Pension Benefit Guaranty Corp. has assumed responsibility for a frozen pension program for employees of the former Levitz Home Furnishings Inc.


The plan, which covers 1,600 people, was frozen in 1996, which means Levitz stopped offering it to new employees or adding benefits and services after that time.

PBCG, a federal corporation, said it stepped in because the plan faced abandonment after the bankrupt Levitz sold substantially all assets to Prentice Capital Management — now operating the retailer as Levitz Furniture — in a December 2012 deal that did not include the plan.

“Retirees will continue to receive their monthly benefit checks without interruption and other workers will receive their pension when they are eligible to retire,” PBGC said.

The pension plan is 70% funded with $55.5 million in assets covering $79 million in promised benefits, the PBGC estimated. It expects to be liable for the remaining $23.5 million shortfall.