Stonewalling? House Committee Sends Letter To AG Garland Over PBGC's "Improper" Pension Bailout Payments
In yet another letter, House Committee demands PBGC accountability for taxpayer-funded pension bailout payments paid on behalf of dead participants.
By Peter List, Editor | December 16, 2024
On Monday, the House Committee on Education and the Workforce sent a letter to U.S. Attorney General Merrick Garland demanding answers on the overpayment of union pension bailout funds to dead participants.
The payments—known as “special financial assistance” (or SFA)—are part of the Biden-Harris administration’s taxpayer-funded, multi-billion dollar bailout of failing union pension plans that have taken place over the last few years through the $1.2 trillion American Rescue Plan 2021.
The letter, sent by Committee Chairwoman Rep. Virginia Foxx (R-NC) and Rep. Bob Good (R-VA), Chairman of the Subcommittee on Health, Employment, Labor, and Pensions on Monday morning, called out the Pension Benefit Guaranty Corporation (PBGC) for misspending millions in taxpayer money by overpaying the failing pension funds on behalf of thousands of deceased participants.
“The Committee on Education and the Workforce (Committee) is continuing its investigation of the Biden-Harris administration’s implementation of the Special Financial Assistance (SFA) program that was included in the American Rescue Plan Act,” the letter begins.
“As part of this investigation, the Committee is continuing to seek information about the steps the Department of Justice (DOJ) is taking to ensure that taxpayer money is recovered after the Biden-Harris administration made improper payments to multiemployer pension plans.”
The letter cites “the more than $127 million in SFA program overpayments for at least 3,479 deceased participants” that was paid to the Teamsters’ Central States, Southeast, and Southwest Pension Fund (Central States).”
That plan had received $36 billion in taxpayer funds in 2022.
The Committee letter also cites the Graphic Communications National Pension Fund (NPF), which “agreed to repay $8 million of improper SFA it received on behalf of deceased participants.”
“However,” the letter continues, “PBGC has not reported repayment from more than 60 other plans that received similar improper payments.”
The letter notes that the Committee had written Garland a letter back in August. However, Garland failed to respond.
“DOJ’s failure to respond to our inquiry is frustrating the Committee’s ability to fulfill its investigative and legislative duties on this matter,” the letter states. “Additionally, as the end of the 118th Congress approaches, it appears DOJ is ‘running the clock’ to keep important information away from Congress and the public.”
Go here for prior posts about the PBGC’s taxpayer-funded pension bailouts.
Read the letter in full below:
