PBGC to dole out another $2.2 billion of taxpayer monies to five more failing union pension plans
To date, $49.7 billion in taxpayer monies have been used to bailout failing union pension plans.
As it has for the past year, the Pension Benefit Guaranty Corp (PBGC) announced on Thursday that it is spending more than $2.62 billion in taxpayer monies to bailout five more failing union pension plans.
“As of June 29, 2023, PBGC has approved about $49.7 billion in SFA to plans that cover over 687,000 workers, retirees, and beneficiaries.” — PBGC
Although each press release (linked below) was similarly worded, the PBCG stated that, as of June 29, 2023, PBGC has approved about $49.7 billion in special financial assistance (SFA) to plans that cover over 687,000 workers, retirees, and beneficiaries
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 last year.
Below are the links to each press release, as well as the amounts given to each plan.
1. National Integrated Group Pension Plan (National Integrated Group Plan).
The plan, based in Scranton, Pennsylvania, covers 48,254 participants in the manufacturing industry. The National Integrated Group Plan will receive approximately $887.1 million in special financial assistance, including interest to the expected date of payment to the plan.
2. IBEW Local Union No. 237 Pension Plan (IBEW Local 237 Plan)
The plan, based in Niagara Falls, New York, covers 430 participants in the construction industry. The plan will receive $32.2 million in SFA, including interest to the expected date of payment to the plan.
3. Bricklayers and Allied Craftsmen Local 7 Pension Plan (Bricklayers Local 7 Plan)
The plan, based in Akron, Ohio, covers 397 participants in the construction industry. The Bricklayers Local 7 Plan will receive approximately $9.1 million in supplemented SFA, which is in addition to $34.1 million in SFA approved for the plan in October 2022 under the interim final rule.
4. PACE Industry Union-Management Pension Fund (PACE Industry Plan)
The plan, based in Nashville, Tennessee, covers 64,522 participants in the manufacturing industry. The PACE Industry Plan will receive approximately $1.3 billion in special financial assistance, including interest to the expected date of payment to the plan.
5. Composition Roofers Local 42 Pension Plan (Roofers Local 42 Plan)
The plan, based in Cincinnati, Ohio, covers 495 participants in the construction industry. The plan will receive $33.6 million in SFA, including interest to the expected date of payment to the plan.
“There were over 200 multiemployer plans on pace to become insolvent risking benefits for millions of workers and their families,” noted LaborPress.org last year.