Laserfiche WebLink
annuity contract that will be selected by CF6I, as Plan <br />fiduciary.3 <br />Paragraph 56 of the Plan of Reorganization states: <br />56. Funding of Non-Contributory Pension Plan of <br />CFI Steel Corporation. On the Effective Date, the <br />Debtors shall, pursuant to Bankruptcy Code section <br />1123(a)(5)(G), take the following actions to provide <br />for the funding of the Non-Contributory Pension Plan of <br />CF&I Steel Corporation. Debtors shall contribute funds <br />sufficient to purchase, and shall cause the Non- <br />contributory Pension Plan to purchase, single premium <br />fully paid non-participating annuities, intended to <br />qualify under applicable ERISA and tax standards, <br />sufficient to satisfy the unfunded obligations of the <br />Non-Contributory Pension Plan to retirees. In <br />accordance with the provision of the Plan for the <br />Governance of the Debtors, Debtors and the Reorganized <br />Debtors will seek to accomplish a standard termination <br />of the Non-Contributory Pension Plan by observing the <br />requirements of ERISA section 4041 as well as <br />applicable IRC provisions. In any event, such actions <br />shall, notwithstanding any otherwise applicable <br />nonbankruptcy law, be deemed under the Plan to waive <br />and cure any defaults of the Debtors related to the <br />Non-Contributory Pension Plan of CFfiI Steel <br />Corporation. After such actions are taken, all <br />obligations of any of the Debtors or the Reorganized <br />Debtors to and all Claims against any of the Debtors of <br />PBGC, IRS, or any other Person related to the Non- <br />contributory Pension Plan of CF6I Steel Corporation <br />shall be deemed to have been satisfied in full without <br />further action on the part of Debtors or the <br />Reorganized Debtors. <br />3The selection of an insurer for purposes of providing an annuity <br />contract upon the standard termination of a pension plan is a <br />fiduciary decision governed by the standards set forth under <br />section 404 of ERISA, as opposed to the contribution itself, <br />which is a sponsor function. CF6I, as Plan fiduciary, is mot <br />seeking a ruling with respect to its selection of an insurer to <br />provide an annuity contract. The only question before this Court <br />is whether CFfiI, as Plan gponsor, may contribute the amount <br />necessary to purchase an annuity contract, given the annuity <br />market changes during the past year. <br />5 <br />