The Pension Benefit Guaranty Corp. announced on Thursday the provision of Special Financial Assistance funds to two struggling pension funds.
The first was the Bakery Drivers and Salesmen Local 194 and Industry Pension Fund. The PBGC provided $110.9 million to prevent the plan’s insolvency, which was expected to occur in 2024. If the plan became insolvent, it would have cut benefits by approximately 45% to PBGC minimum levels. The plan is based in North Brunswick, New Jersey, and covers 1,155 workers.
The bakery drivers plan applied for relief in December 2022, stating the plan had been in critical and declining status since 2020.
The second SFA recipient was the United Independent Union-Newspaper Guild of Greater Philadelphia Pension Plan. The UIU-NPG plan received $296.2 million to prevent its insolvency, which was anticipated to start in 2025. At the point, the anticipated cut to benefits was 50% to PBGC minimum levels. The plan is based in Philadelphia and has 2,566 participants.