Category: Multiemployer pensions

SFA Update – Two Refilers

Mary Pat Campbell

Link: https://burypensions.wordpress.com/2022/05/20/sfa-update-two-refilers/

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The PBGC Special Financial Assistance program for troubled multiemployer plans weekend update showed a refiling of a prior withdrawal (America’s Family Benefit Retirement Plan) that asked for $4,.5 million less and one withdrawal and immediate refile (UTWA NJ Union Employer Pension Plan) that asked for $17,918 more.

Author(s): John Bury

Publication Date: 20 May 2022

Publication Site: burypensions

Central States Fall

Mary Pat Campbell

Link: https://burypensions.wordpress.com/2022/05/09/central-states-fall/

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All 1,298 pages of the Central States, Southeast and Southwest Areas Pension Fund bailout application is on the SFA website but, for me, it is these two pages that tell the tale of the fall of this and many other union pension plans.

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Funded ratio: 21.91%

Unfunded Liabilities as of 1/1/20: $43,878,930,013

Asset Value (Market) as of 12/31/20: $10,409,490,502

Contributions 2020 (MB): $662,009,633

Contributions 2020 (H): $406,600,320

Payouts 2020: $2,842,184,040

Expenses 2019: $53,552,2071

Author(s): John Bury

Publication Date: 9 May 2022

Publication Site: burypensions

SFA Update – One Revision; One Withdrawal

Mary Pat Campbell

Link:https://burypensions.wordpress.com/2022/04/15/sfa-update-one-revision-one-withdrawal/

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The PBGC Special Financial Assistance program for troubled multiemployer plans weekend update showed one plan withdrawing and reapplying immediately with another simply withdrawing.

Our updated summary of the 35 plans in the system – 10 approvals and 25 under review:

Author(s): John Bury

Publication Date: 15 Apr 2022

Publication Site: Burypensions

Teamsters Pension Applies for Bailout After $58 Million Legal Appeal Dismissed

Mary Pat Campbell

Link: https://www.ai-cio.com/news/teamsters-pension-applies-for-bailout-after-58-million-legal-appeal-dismissed/

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A Teamsters pension fund has applied to the Pension Benefit Guaranty Corporation for a bailout after a circuit court denied its appeal in a lawsuit seeking $58 million in withdrawal liabilities from C&S Wholesale Grocers Inc.

The New York State Teamsters Conference Pension and Retirement Fund, a multiemployer plan based in Syracuse, New York, has applied to PBGC for special financial assistance under the American Rescue Plan Act to improve its financial health and restore benefits previously suspended under the Multiemployer Pension Reform Act. The pension fund said the restoration of suspended benefits would be retroactive and prospective, which means participants would be repaid for benefits reduced previously, while also having benefits restored to pre-suspension levels.

Author(s): Michael Katz

Publication Date: 14 Feb 2022

Publication Site: ai-CIO

Education & Labor Committee Releases Multiemployer Pension Rescue Tracker

Mary Pat Campbell

Link:https://edlabor.house.gov/media/press-releases/education-and-labor-committee-releases-multiemployer-pension-rescue-tracker

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Today, the House Committee on Education and Labor unveiled a new Multiemployer Pension Rescue Tracker to highlight the hard-earned pensions saved and businesses protected under Congressional Democrats’ and President Biden’s American Rescue Plan Act.  The multiemployer pension crisis – which was accelerated by the COVID-19 pandemic – threatened to strip more than a million retirees of the pensions they earned over a lifetime of work, jeopardized tens of thousands of businesses and endangered tens of thousands of jobs.

In response, the American Rescue Plan Act created a Special Financial Assistance (SFA) Program to avert the immediate crisis threatening the retirement security of American workers, retirees, and their families.  This solution was supported by a diverse group of stakeholders, including the AFL-CIO, AARP, the United States Chamber of Commerce, UPS and scores of other employers who participate in multiemployer plans.

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To view the pension tracker, click here.

Author: Education and Labor Committee

Publication Date: 2 Feb 2022

Publication Site: House of Representatives

SFA Update – One New Billion Dollar Filer

Mary Pat Campbell

Link: https://burypensions.wordpress.com/2022/02/04/sfa-update-one-new-billion-dollar-filer/

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The PBGC Special Financial Assistance program for troubled multiemployer plans weekend update showed one new plan applying – New York State Teamsters Conference Pension Plan out of Syracuse, NY which, when compared to the other applicants, is the second largest by participant count, asking for the third largest dollar amount amount ($1,035,864,068) and the second smallest as a percentage of unfunded liabilities (30.12%).

Author(s): John Bury

Publication Date: 4 Feb 2022

Publication Site: burypensions

PBGC Approves $100.5 Million Bailout of New Jersey Pension Plan

Mary Pat Campbell

Link:https://www.ai-cio.com/news/pbgc-approves-100-5-million-bailout-of-new-jersey-pension-plan/

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The Pension Benefit Guaranty Corporation (PBGC) has approved a $100.5 million bail out of the Local 408 International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America Pension Plan. It is the fifth plan approved by the PBGC under the Special Financial Assistance (SFA) program, which was enacted under the American Rescue Plan Act of 2021 (ARP).

The Union, New Jersey-based plan, which covers over 1,000 participants in the transportation industry, was certified to be in critical and declining status in the plan year that began in 2020 and became insolvent last September. The plan was required by law to reduce its participants’ benefits to the PBGC guarantee level, which was approximately 60% below the benefits payable under the terms of the pension.

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Struggling pension plans are required under the SFA program to demonstrate eligibility and to calculate the amount of assistance per ARP and PBGC guidelines. Funds provided under the program may be used only to pay plan benefits and administrative expenses, and plans receiving aid are also subject to certain terms, conditions, and reporting requirements.

Author(s): Michael Katz

Publication Date: 28 Jan 2022

Publication Site: ai-CIO

NFL Players Pension Red Zone – $7 Billion

Mary Pat Campbell

Link: https://burypensions.wordpress.com/2022/01/24/nfl-players-pension-red-zone-7-billion/

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It is Super Bowl time which, for some of us, means  that the new 5500 for the Bert Bell/Pete Rozelle NFL Player Retirement Plan (EIN 13-6043636) is out and we get a better idea of how much Joe Burrow really has in common with a Cleveland Iron Worker.

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At 25.53% funding (a massive decrease from last year) are the actuaries setting up the next play for this plan to be a Hail Mary?

Author(s): John Bury

Publication Date: 24 Jan 2022

Publication Site: burypensions

SFA Update – One New Filer

Mary Pat Campbell

Link: https://burypensions.wordpress.com/2022/01/30/sfa-update-one-new-filer/

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The PBGC Special Financial Assistance program for troubled multiemployer plans weekend update showed one new plan applying – Iron Workers Local 17 Pension Fund out of Cleveland, Ohio – notable primarily for how little they are asking for – 22% of the unfunded liabilities reported on their latest 5500 filing. 

Author(s): John Bury

Publication Date: 30 Jan 2022

Publication Site: Burypensions