Three more failing union pensions bailed out with taxpayer monies by PBGC this week
Latest amount in taxpayer monies given to union pensions brings totals to more than $51 billion.
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. This brings the total in taxpayer monies given away to more than $51 billion since last year.
In three separate press releases issued on Tuesday, the PBGC approved over $1.3 billion to the three failing pension funds.
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 press release, as well as the amounts given to each plan:
1. Western Pennsylvania Teamsters and Employers Pension Plan (Western Pennsylvania Teamsters Plan)
The plan, based in Pittsburgh, Pennsylvania, covers 21,110 participants in the transportation industry. The Western Pennsylvania Teamsters Plan will receive about $279.6 million in supplemented SFA, which is in addition to $715 million in SFA approved for the plan in July 2022 under the interim final rule.
2. Retail Clerks Specialty Stores Pension Plan (Retail Clerks Plan)
The plan, based in Concord, California, covers 1,279 participants in the service industry. The Retail Clerks Plan will receive approximately $60.4 million in special financial assistance, including interest to the expected date of payment to the plan.
3. Automotive Industries Pension Plan (Automotive Industries Plan)
The plan, based in Dublin, California, covers 23,687 participants in the transportation industry. The Automotive Industries Plan will receive approximately $1.1 billion in special financial assistance, including interest to the expected date of payment to the plan.
“PBGC is directly responsible for the benefits of more than 1.5 million participants and beneficiaries in failed pension plans,” the PBGC stated in its press release. “Special financial assistance for financially troubled multiemployer plans is financed by general taxpayer monies.”
