Paul Mueller Announces Its Intent to Terminate the Paul Mueller Company Contract Employees Retirement Plan

Rhea-AI Summary

Paul Mueller Company (OTC Pink: MUEL) has initiated a standard termination of its Contract Employees Retirement Plan by sending a Notice of Intent to Terminate to affected participants. The firm plans to apply for IRS approval, which could take around a year. The termination is expected to cost the company $4-6 million and will result in a non-cash reduction in net income of $15-16 million. The plan represents $23.5 million of the total $99.9 million benefit obligation as of December 31, 2021. The Non-Contract Employees Retirement Plan remains unaffected.

Positive

• Initiated standard termination of the retirement plan, indicating proactive financial management.
• Plans to provide affected participants with lump sum payments or monthly annuities.

Negative

• Estimated $4-6 million contribution needed for plan termination.
• Non-cash reduction to net income estimated at $15-16 million.

SPRINGFIELD, Mo., Nov. 01, 2022 (GLOBE NEWSWIRE) -- Paul Mueller Company (OTC Pink: MUEL) (the “Company”) announced today that it has initiated a standard plan termination of the Paul Mueller Company Contract Employees Retirement Plan by sending out a “Notice of Intent to Terminate (NOIT)” to all affected plan participants and other affected parties. The standard termination requires a plan to have enough money to pay all benefits owed to participants and beneficiaries. The Paul Mueller Non-Contract Employees Retirement Plan is not part of this plan termination.

The Company will apply to the Internal Revenue Service (“IRS”) for its approval of the termination. The Company expects to file the application with the IRS in the next few months. This process takes approximately a year to complete, culminating in the affected participants receiving either a lump sum payment or a monthly annuity payment provided by an insurance company. 

The Company estimates the Contract plan termination will require the Company to contribute $4-6 million and that the termination will result in a non-cash reduction to Net Income of $15-16 million.  The Contract plan represents $23.5 million of the $99.9 million of benefit obligation disclosed on December 31, 2021.

Press Contact: Ken Jeffries | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9346

kjeffries@paulmueller.com | https://paulmueller.com

FAQ

What is Paul Mueller Company's plan to terminate the retirement plan?

Paul Mueller Company is initiating a standard termination of its Contract Employees Retirement Plan, impacting certain plan participants.

How much will the termination of the retirement plan cost Paul Mueller Company?

The termination is expected to require a contribution of $4-6 million from the company.

What is the impact of the plan termination on net income for Paul Mueller Company?

The termination will result in a non-cash reduction to net income estimated between $15-16 million.

Will the non-contract employee retirement plan be affected by the termination?

No, the Non-Contract Employees Retirement Plan is not part of the termination.

When does Paul Mueller Company expect to file for IRS approval regarding the termination?

The company expects to file the application with the IRS in the next few months.