Pension Plans:

Terminations, Asset Reversions, and Replacements Following Leveraged Buyouts

HRD-91-21: Published: Mar 4, 1991. Publicly Released: Mar 4, 1991.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO reviewed what happened to the 558 defined pension plans of 121 public companies acquired in leveraged buyouts (LBO).

GAO found that: (1) 20 percent of the defined benefit plans sponsored by the companies were terminated after LBO; (2) the most common reasons for plan terminations included adopting a new plan and the sale of a plant or division; (3) 99 percent of the terminated plans were overfunded, resulting in a reversion of excess assets to the company; (4) 75 percent of the terminated plans were to be replaced, 38 percent as defined benefit plans and 37 percent as defined contribution plans; (5) it could not determine if participants received the same benefits from the replacement plan as from the terminated plan; and (6) the limited information on the plans that continued showed that the financial condition of most plans did not deteriorate after LBO.

Sep 30, 2015

Sep 29, 2015

Sep 4, 2015

Jun 15, 2015

Jun 2, 2015

May 1, 2015

Feb 26, 2015

Dec 22, 2014

Dec 10, 2014

Looking for more? Browse all our products here