Tobacco.org

Philip Morris agrees to protect Miller employee pensions 

WASHINGTON (July 10, 2002 2:12 p.m. EDT) - The federal government has reached an agreement with Philip Morris Cos. to protect retirement benefits for more than 9,500 workers at its subsidiary Miller Brewing Co., which is being sold to London-based South African Breweries.

Miller Brewing's pension obligations are underfunded by about $150 million, the Pension Benefit Guaranty Corp. estimated Wednesday. The corporation is the government's insurance program for private workers' pensions.

Philip Morris has agreed to make up the shortfall in case the money is needed to cover benefits promised to Miller Brewing workers and retirees.

Jump to full article »