8
Wednesday, February 14, 1990 / University Daily Kansan
Ohio senator criticizes companies using pensions to buy junk bonds
The Associated Press
WASHINGTON — Sen. Howard Metzenbaum yesterday criticized "pension raiding" by corporations such as Wichita's Coleman Co. that terminate employee retirement plans to gain surplus assets and turn over the pensions to companies holding junk bonds.
"Pension raids leave workers and retirees with frozen pension checks while their employers laugh their taxes," said Metzenbaum, D-Ohio, dollars," said Metzenbaum, D-Ohio.
Metzenbaum's comments came as his Senate labor subcommittee held a hearing on pension terminations and the potential risks from companies establishing replacement retirement programs with annuities bought from insurance companies heavily invested in high-risk "junk bonds."
Annuities are contracts that pay fixed monthly benefits to retirees.
Surplus pension assets have become a popular target for corporate raiders who acquire a company and use its retirement programs as a source of cash.
Metzenbaum focused on a proposal by the Coleman Co. to terminate employee pension funds valued at $83 million and a scrapped deal to buy annuities from First Executive Corp., a California insurance holding company hit by financial downturns from turmoil in the junk-bond market.
Metzebaum said the subcommittee would consider legislation to impose tighter standards on pension benefits and to increase the protection for retirement benefits.
"Too often, sound pension plans are wring dry of their cash and replaced with annuities offering fixed benefits and no chance of cost-of-living adjustments." Metzenbaum said.
Metzenbaum suggested that Coleman's corporate parent, MacAndrews & Forbes Holding Inc., had a potential conflict of interest in doing business with First Executive and may have violated federal standards in failing to adequately safeguard the interests of retirees.
Coleman officials said they had acted properly.
"It is my belief . . . that the company has acted in every step in good faith and with full appreciation of the work done by me," said Coleman president Larry Jones.
Because Coleman's pension plans are overfunded, MacAndreas & Forbes will be able to take up to $32 million in surplus money for its own use by terminating the pensions and setting up an annuity program.
Coleman officials said they would proceed with their termination plan but would buy annuities from an insurance company carrying the highest rating of claims-paying ability.
Darwin's great-grandson describes his travels
Quentin Keynes discusses details of his world travels with Norma Kramer of Shawnee.
Quentin Keynes delights group of science devotees
By a Kansan reporter
KANSAS CITY, Mo. - Macaroni penguins and sea-going iguanas captured the attention of 150 people last night at a presentation by Charles Darwin's great-grandson.
The meeting room was overflowing with people eager to hear the renowned scientist's descendant speak.
Quentin Keynes spoke at the Linda Hall Library at the University of Missouri-Kansas City about his travels to the Falkland and Galápagos islands.
While narrating a film of his travels, Keynes described the rare and surprisingly tame antichrist in a way that made him
Keynes made the trip because his great-grandfather did but also because he was interested in rare animals:
He studied animals such as the sea-going iguana, macaroni penguin and the elephant seal.
"The sea-going iguaná is so ugly that it has been used in monster movies," Keynes said. "The macaroni penguin reminds one of those tots that you push over and they come up again."
The Galapagos Islands are known for tame wildlife, he said.
"The animals follow you around, they are so curious." Kevens said.
Gordon Sauer, author of a book about Stephen J. Gould, Charles Darwin's associate, said Keynes financed his trips through his films and lectures.
NEW
Jayhawk Buffet
$2.99
All you care to eat
Pizza • Pasta • Breadsticks • Dessert
Add $1 for salad bar. Offered Monday thru Friday, lunch time only.
Godfather's Pizza
711 W. 23rd • 843-6282