Four More Failing Union Pensions Bailed Out By Taxpayers Through PBGC This Week
As it has for the past year, this week, the Pension Benefit Guaranty Corporation (PBGC) utilized taxpayer moneys to bail out four more failing union pension plans.
The monies provided to underfunded union pension plans—also known as multi-employer pension plans—were part of a $90 billion union pension bailout that was included in the $1.5 trillion American Rescue Plan President Biden signed into law last year.
As of August 29, 2023, PBGC has approved about $53 billion in SFA to plans that cover over 763,000 workers, retirees, and beneficiaries. — PBGC
Below are the links to each press release, as well as the amounts given to each plan.
1. New Bedford Fishermen’s Pension Fund (New Bedford Fishermen’s Fund)
The plan, based in New Bedford, Massachusetts, covers 445 participants in the fishing industry. The New Bedford Fishermen’s Fund will receive approximately $13.4 million in special financial assistance, including interest to the expected date of payment to the plan. The plan was projected to become insolvent and run out of money in 2024.
2. Pension Plan for Employees of United Furniture Workers of America and Related Organizations (United Furniture Workers Plan)
The plan, based in Nashville, Tennessee, covers 95 participants in the manufacturing industry. The United Furniture Workers Plan will receive approximately $8.1 million in special financial assistance, including interest to the expected date of payment to the plan. The plan was projected to become insolvent and run out of money in 2023.
3. Teamsters Local 917 Pension Plan (Local 917 Plan)
The plan, based in Floral Park, New York, covers 1,653 participants in the transportation industry. The Local 917 Plan will receive approximately $22.1 million in special financial assistance, including interest to the expected date of payment to the plan. The plan was projected to become insolvent and run out of money in 2025.
4. Southern California, Arizona, Colorado and Southern Nevada Glaziers, Architectural Metal and Glass Workers Pension Plan (Southern California Glaziers Plan).
The plan, based in Covina, California, covers 3,606 participants in the construction industry. The plan will receive $436.3 million in SFA, including interest to the expected date of payment to the plan.
In addition to the $436.3 million of SFA paid to the plan, PBGC’s Multiemployer Insurance Program will be repaid $132.8 million, which is the amount of the plan’s outstanding loans, including interest, for the financial assistance PBGC provided beginning in January 2010 and ending on the expected date of payment of SFA to the plan.
“As of August 29, 2023, PBGC has approved about $53 billion in SFA to plans that cover over 763,000 workers, retirees, and beneficiaries,” the PBGC stated. “Special financial assistance for financially troubled multiemployer plans is financed by general taxpayer monies.”
To read about other PBGC bailouts of union pensions, go here.
