PBGC Provides More Than $1B to 3 More Ailing Multiemployer Plans

The plans were projected to become insolvent within 10 years.



The Pension Benefit Guaranty Corporation this week allocated more than $1 billion to three struggling multiemployer pension funds with more than 30,000 combined participants through the Special Financial Assistance program.

The IUE-CWA Pension Plan, a pension in the manufacturing industry with 13,760 participants, will receive $260 million. The Pittsburgh-based fund was projected to become insolvent in 2029, at which point it would have had to cut benefits by 15%.

IUE-CWA had 658 active participants at the end of 2021, 7,640 participants receiving benefits and 4,086 entitled to benefits in the future.

The UFCW Local One Pension Plan, a pension fund in the service industry with 19,177 participants, will receive $764 million. The Oriskany, New York-based fund was projected to become insolvent in 2026, when it would have had to cut benefits by 15%.

The plan had 672 active participants at the beginning of 2021, but only 294 at the end of 2021. It also had 7,493 participants receiving benefits and another 10,491 entitled to future benefits, according to the fund’s Form 5500.

The Newspaper Guild International Pension Plan, a Washington, D.C.-based fund with 5,824 participants, will receive $62 million in SFA money. The plan was projected to become insolvent by 2034, when it would have had to cut benefits by 15%.

The plan had 364 active participants at the end of 2021, 1,557 participants receiving benefits and 2,825 entitled to benefits in the future, according to its Form 5500.

 

 

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