PBGC Bails Out Southeastern Ohio Carpenters' Union Pension Plan To The Tune of $182.6 Million
As of August 15th, the PBGC has approved $52.4 billion in taxpayer funds to bailout failing union pension plans.
On Tuesday, the Pension Benefit Guaranty Corporation (PBGC) approved $182.6 million in taxpayer monies will be doled out under its Special Financial Assistance (SFA) plan to the Southwest Ohio Regional Council of Carpenters Pension Plan.
The plan, based in Monroe, Ohio, covers 5,399 participants in the construction industry and had suspended benefits in 2019 due to its “troubled financial condition at that time and its projected insolvency,” according to the PBGC’s release.
“The plan reduced benefits of about 4,300 plan participants,” stated the PBGC. “On average, affected participants’ benefits were reduced by 18 percent.”
The PBCG noted that “approval of the SFA application enables the plan to restore benefits suspended under the terms of MPRA and to make payments to retirees to cover prior benefit suspensions.”
Special financial assistance for financially troubled multiemployer (union) plans is financed by general taxpayer monies and, to date, the PBGC has approved nearly $52.4 billion in SFA to plans that cover over 756,000 workers, retirees, and beneficiaries.
To read about other PBGC bailouts of union pensions, go here.
