The Southern California, Arizona, Colorado, and Southern Nevada Glaziers Pension Plan covers 5,200 workers and retirees in the construction industry. The plan became insolvent in January 2010, and the agency has sent an initial payment of $639,113 to ensure that the plan’s 1,500 retirees receive their guaranteed benefit, according to the announcement.
The plan will receive a cash distribution each month to fund benefit obligations. The agency estimates its total financial commitment to the plan will be $117 million.
The United Food and Commercial Workers Local 1049 Pension Plan covers 400 food service industry workers in Cedar Knolls, New Jersey. The plan became insolvent in January 2010, and the agency has sent an initial $132,000 to ensure the plan’s 240 retirees get their guaranteed benefit.
The plan will receive a cash distribution each quarter to fund benefit obligations. The agency estimates its total financial commitment to the plan will be $5.2 million.
Unlike PBGC’s protection of plans sponsored by a single employer, the agency does not take over insured multiemployer plans, but instead sends financial assistance to insolvent plans. The frequency of the payment schedule is based on the size of the plan. Generally smaller plans are paid on a quarterly basis, while larger plans receive monthly assistance. Currently the PBGC gives assistance to 40 insolvent multiemployer plans.
The PBGC multiemployer insurance program protects the benefits of about 10 million workers and retirees in almost 1,500 multiemployer defined benefit pension plans. At the end of fiscal year 2009, the program had assets of $1.5 billion to cover about $2.3 billion of financial assistance expected to be paid in the future, the announcement said.
More about the PBGC’s Multiemployer Insurance Program is here.