PBGC Announces It Will Give Another Underfunded Teamsters' Pension Plan $54 Million To Avoid Insolvency
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PBGC Announces It Will Give Another Underfunded Teamsters' Pension Plan $54 Million To Avoid Insolvency
In the third pension bailout in three weeks, the PBGC will give a Teamsters' pension plan in New Jersey $54 million.
On Thursday, the Pension Benefit Guaranty Corporation (PBGC) announced that it has approved the bailout of another underfunded Teamster pension plan, marking the third bailout of Teamster pension plans in three weeks.
“The Teamsters Local 966 Plan will receive approximately $54.1 million in Special Financial Assistance, including interest to the expected date of payment to the plan,” the PBGC said in a statement.
Without the taxpayer-funded bailout, the plan was projected to run out of money in 2023.
“Special Financial Assistance, funded by President Biden’s American Rescue Plan, ensures the retirement these 2,356 transportation workers were promised is delivered,” said U.S. Secretary of Labor Marty Walsh, chair of the Pension Benefit Guaranty Corporation’s Board of Directors. “Without this funding these workers would have faced diminished pension payments that threaten the secure retirement that they worked many years to earn.”
In late November, the PBGC gave two failing Teamsters pension plans in New York and Ohio, respectively, over $1 billion.
As of December 1, 2022, according to the PBGC’s statement, the PBGC has approved over $8.9 billion to plans that cover over 193,000 workers, retirees, and beneficiaries.
According to the PBGC, pension plans are not obligated to repay the PBGC moneys they’ve received.
Related:
In Second Bailout Within A Week, PBGC Gives Failing Ohio Teamster Pension Plan $85 Million
PBGC: Underfunded New York State Teamsters Pension Plan Will Receive $963 Million
PBGC bails out Freight Drivers Pension Plan, expected to run out of money in 2023
