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Philip Morris, US Agency In Deal On Miller Brewing Pension 

Philip Morris Cos. reached an agreement Wednesday with the federal Pension Benefit Guaranty Corp. to ensure the retirement benefits of more than 9, 500 employees of the company's Miller Brewing Co . subsidiary.

London -based South African Breweries is buying Miller Brewing.

PBGC estimates that Miller Brewing's pension obligations are underfunded by about $150 million. Under the agreement, Philip Morris guarantees that it will make up the difference in case the money is needed to cover the pension benefits promised to Miller Brewing workers and retirees. The company has the option to replace its guarantee with a letter of credit the PBGC can use to secure the required payments.

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