PBGC Bailed Out Five More Union Pensions Last Week
PBGC Bailed Out Five More Union Pensions Last Week
Nearly $278 million of taxpayer funds will go to 2,224 pension plan participants.
Last week, the Pension Benefit Guaranty Corporation (PBGC) announced five more failing union pension plans will receive taxpayer moneys to ensure the pensions maintain the ability to pay plan participants.
In total, the PBGC will dole out $277.6 million in “special finance assistance,” covering 2,274 pension plan recipients—which averages to nearly $125,000 per participant, with some receiving nearly up to $158,000 from the PBGC.
“Special financial assistance for financially troubled multiemployer [union] plans is financed by general taxpayer monies,” notes the PBGC.
The PBGC stated that as of January 27, 2023 “PBGC has approved over $45.8 billion in SFA to plans that cover over 553,000 workers, retirees, and beneficiaries,”
The moneys 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.
Below are the links to each press release, as well as the amounts given to each plan.
1. Plasterers Local 82 Pension Fund (Plasterers Local 82 Fund)
The plan, based in Portland, Oregon, covers 317 participants in the construction industry.
The plan reduced benefits of about 250 plan participants. On average, affected participants’ benefits were reduced by 25 percent.
The plan will receive $20.5 million in SFA, including interest to the expected date of payment to the plan.
2. Alaska Ironworkers Pension Plan (Alaska Ironworkers Plan)
The plan, based in Anchorage, Alaska, covers 744 participants in the construction industry.
The plan reduced benefits of about 650 plan participants. On average, affected participants’ benefits were reduced 25 percent.
The plan will receive $53.5 million in SFA, including interest to the expected date of payment to the plan.
3. Graphic Communications Union Local 2-C Retirement Benefit Plan (GCU 2-C Plan)
The plan, based in Warren, Michigan, covers 535 participants in the printing industry.
The GCU 2-C Plan will receive approximately $220,000 in supplemented SFA, which is in addition to $59.1 million in SFA approved for the plan April 2022 under the interim final rule.
4. Local Union No. 466 Painters, Decorators and Paperhangers Pension Plan (Painters Local 466 Plan)
The plan, based in Menands, New York, covers 45 participants in the construction industry.
The Painters Local 466 Plan will receive approximately $1.2 million in supplemented SFA, which is in addition to $5.9 million in SFA approved for the plan in June 2022 under the interim final rule.
5. GCIU Detroit Newspaper Union 13N with Detroit Area Newspaper Publishers (Detroit Newspaper Union Plan)
The plan, based in Warren, Michigan, covers 563 participants in the printing industry.
The Detroit Newspaper Union Plan will receive approximately $18.2 million in supplemented SFA, which is in addition to $119 million in SFA approved for the plan in April 2022 under the interim final rule.