PBGC funneled another $1 billion in taxpayer funds to three failing union pensions this week
As of August 1st, nearly $52.2 billion in taxpayer monies have been doled out to failing union pension plans
The Pension Benefit Guaranty Corporation (PBGC) announced it had approved tax-payer funded Special Financial Assistance (SFA) for three more failing union multi-employer pension funds this week.
As of August 1, 2023, PBGC has approved nearly $52.2 billion in SFA to plans that cover over 751,000 workers, retirees, and beneficiaries, the PBGC stated in it press releases.
This week’s bailouts total over $1.03 billion and, as noted previously, 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 in 2021.
Below are the links to each of the three PBGC press releases, as well as the amounts given to each plan:
1. Newspaper Guild International Pension Plan (Newspaper Guild International Plan)
The plan, based in Washington, D.C., covers 5,824 participants in the printing industry. The Newspaper Guild International Plan will receive approximately $62 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 2034.
2. IUE-CWA Pension Plan (IUE-CWA Plan)
The plan, based in Pittsburgh, Pennsylvania, covers 13,760 participants in the manufacturing industry. The IUE-CWA Plan will receive approximately $260 million in special financial assistance, including interest to the expected date of payment to the plan. The plan was projected to become insolvent and to run out of money in 2029.
3. UFCW Local One Pension Plan (UFCW Local One Plan)
The plan, based in Oriskany, New York, covers 19,177 participants in the service industry. The UFCW Local One Plan will receive approximately $764 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 2026.
