PBGC's Pre-Holiday Pension Bailout: Machinists' And Roofers' Failing Union Pensions To Receive $85.1 Million
Fewer than 1,400 plan participants will receive a combined $85.1 million in tax-payer funds.
The holidays brought good cheer to union pension recipients as the Pension Benefit Guaranty Corporation (PBGC) announced on December 22nd the continuation of its doling out of billions of dollars in taxpayer-funded pension bailouts with the approval of two more union pension funds.
In total, 1,384 pension plan participants of the International Association of Machinists Motor City Pension Plan (Machinists Motor City Plan) and the Toledo Roofers Local No. 134 Pension Plan (Toledo Roofers Local 134 Plan) will receive a combined $85.1 million—or an average of $60,785 each.
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.
“There were over 200 multiemployer plans on pace to become insolvent risking benefits for millions of workers and their families,” noted LaborPress.org last month.
Below are the links to each press release (emphasis added), as well as the amounts given to each plan.
1. International Association of Machinists Motor City Pension Plan (Machinists Motor City Plan)
On January 1, 2018, the Machinists Motor City Plan implemented a benefit suspension under the terms of the Multiemployer Pension Reform Act of 2014 (MPRA) in order to address the plan’s troubled financial condition at that time and its projected insolvency. The plan reduced benefits of about 840 plan participants. On average, affected participants’ benefits were reduced 45 percent.
PBGC’s 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. SFA will enable the plan to pay retirement benefits without reduction for many years into the future. The plan will receive $66 million in SFA, including interest to the expected date of payment to the plan.
2. Toledo Roofers Local No. 134 Pension Plan (Toledo Roofers Local 134 Plan)
On April 1, 2019, the Toledo Roofers Local 134 Plan implemented a benefit suspension under the terms of the Multiemployer Pension Reform Act of 2014 (MPRA) in order to address the plan’s troubled financial condition at that time and its projected insolvency. The plan reduced benefits of about 200 plan participants. On average, affected participants’ benefits were reduced 45 percent.
PBGC’s 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. SFA will enable the plan to pay retirement benefits without reduction for many years into the future. The plan will receive $19.1 million in SFA, including interest to the expected date of payment to the plan.
[Emphasis added.]
Related:
Six More Failing Union Pension Plans Have Been Bailed Out By The PBGC In The Past Seven Days
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