Struggling Teamsters Pension Receives Close to a Billion Dollars in Assistance | PLANSPONSOR - PLANSPONSOR

The Pension Benefit Guaranty Corporation provided $963.4 million successful assistance to a troubled pension money operated connected behalf of the New York State Teamsters Conference Pension and Retirement Plan, a national pension money for workers successful the proscription manufacture that is based successful Syracuse, New York.

The pension money provides benefits to 33,643 participants, but those benefits were chopped successful October 2017 by an mean of 20% to astir 25,000 of those participants owed to a deficiency of funding.

According to a press merchandise from the union, it applied for Special Financial Assistance, disposable done the American Rescue Plan Act of 2021, successful July.

The SFA proviso of the American Rescue Plan Act allows for PBGC backing for severely underfunded multiemployer pension plans. Those that person assistance indispensable show the money, and the involvement it generates separately from different sources of funding. The PBGC besides lone accepts investment-grade bonds arsenic an concern for the funds it provides.

The national says its pension money sought and received a assistance for $918 million. The union’s lawyer did not respond to a petition for remark and clarification connected the discrepancy betwixt the magnitude reported by the national and the magnitude reported by PBGC.

According to the release, the teamsters national expects the PBGC to present the assistance by December 8, and monthly payments tin resume by January 1, 2023. Make-up payments to screen participants’ losses from the past 4 years volition beryllium made connected March 1, 2023.