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

Rhea-AI Summary

The Paul Mueller Company (OTC Pink: MUEL) has initiated the standard termination of its Noncontract Employees Retirement Plan, informing affected parties through a Notice of Intent to Terminate. This termination requires sufficient funds to pay all benefits owed. The company will apply to the IRS for approval, expecting the process to take about a year. The termination is estimated to require a contribution of $10-15 million and will result in a non-cash reduction to net income of $29-32 million. The plan represents a significant portion of the company's total benefit obligations.

Positive

• None.

Negative

• Estimated contribution of $10-15 million for plan termination.
• Non-cash reduction to net income projected at $29-32 million.

SPRINGFIELD, Mo., Dec. 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 Noncontract 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 Company Contract Employees Retirement Plan standard termination was previously announced in a press release on November 1, 2022.

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 noncontract plan termination will require the Company to contribute $10-15 million and that the termination will result in a non-cash reduction to Net Income of $29-32 million. The noncontract plan represents $76.4 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 the recent announcement by Paul Mueller Company regarding its retirement plan?

Paul Mueller Company announced the standard termination of its Noncontract Employees Retirement Plan on December 1, 2022.

How much will the Paul Mueller Company contribute for the retirement plan termination?

The company estimates it will need to contribute between $10-15 million for the plan termination.

What is the expected impact of the retirement plan termination on net income for MUEL?

The termination is expected to result in a non-cash reduction to net income of $29-32 million.

When will Paul Mueller Company apply for IRS approval for the retirement plan termination?

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

What does the Noncontract Employees Retirement Plan represent in terms of benefit obligation?

The Noncontract Employees Retirement Plan represents $76.4 million of the total $99.9 million benefit obligation as of December 31, 2021.