PBGC Announces Another $719.5 Million Bailout For 4,800 Recipients of Underfunded Pensions
Two underfunded union pensions to receive nearly three quarters of a billion dollars of taxpayer moneys.
In its first for 2023, the Pension Benefit Guaranty Corporation (PBGC) announced on Wednesday that it had approved applications for two more failing union pension plans. This is in addition to the billions distributed to underfunded union pensions in 2022 (see below).
Between the moneys previously approved by the PBGC and announced on Wednesday, the Teamsters Local 641 Pension Plan, based in Union City, New Jersey, and the Printers League Graphic Communications International Union Local 119B New York Pension Plan (GCIU Local 119B Plan), based in East Farmingdale, New York, the two plans will receive a total $719.5 million of taxpayer funds, and distributed to a total of 4,823 recipients.
This averages out to be more than $149,000 per pension participant.
“Special financial assistance for financially troubled multiemployer plans is financed by general taxpayer monies,” according to the PBGC.
From the PBGC announcements:
Printers League Graphic Communications International Union Local 119B New York Pension Plan (GCIU Local 119B Plan). The plan, based in East Farmingdale, New York, covers 1,213 participants in the printing industry.
Plans that applied for and received SFA under the interim final SFA rule issued in July 2021 are permitted to supplement their applications under the provisions of the final SFA rule issued in July 2022. The GCIU Local 119B Plan will receive $15.9 million in supplemented SFA, which is in addition to $90.6 million in SFA approved for the plan in August 2022 under the interim final rule. SFA will better ensure that the plan can continue to pay retirement benefits without reduction for many years into the future.
Teamsters Local 641 Pension Plan (Local 641 Plan). The plan, based in Union City, New Jersey, covers 3,610 participants in the transportation industry.
Plans that applied for and received SFA under the interim final SFA rule issued in July 2021 are permitted to supplement their applications under the provisions of the final SFA rule issued in July 2022. The Local 641 Plan will receive approximately $96.1 million in supplemented SFA, which is in addition to $516.9 million in SFA approved for the plan in March 2022 under the interim final rule. SFA will better ensure that the plan can continue to pay retirement benefits without reduction for many years into the future.
Related:
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