PBGC Grants Four Struggling Pensions Close to $500 Million in Assistance

The Pension Benefit Guaranty Corporation granted special financial assistance funds to four struggling multiemployer plans in different industries this week: construction, transportation, manufacturing, and fishing.

In terms of construction, The Southern California, Arizona, Colorado and Southern Nevada Glaziers, Architectural Metal and Glass Workers Pension Plan received $436.6 million in assistance. The Covina, California-based plan had been insolvent since January 2009, when it had to cut benefits by 50%.

The PBGC funding will include back payments to the plan’s 3,606 participants. An additional $132.8 million will be paid to the PBGC itself to compensate it for unpaid loans extended to the plan.

According to the plan’s Form 5500 from 2015, the most recent available, it had 905 active participants, 1,548 currently receiving benefits, and 1,302 entitled to benefits in the future. It had a funding ratio of 3.3% at the end of 2015.

In transportation, the Local 917 Pension plan received $22.1 million to prevent an insolvency that was expected in 2025. At that time, the plan would have had to cut benefits by an estimated 10%. The Floral Park, New York-based plan covers 1,653 participants in the transportation industry.

According to the plan’s Form 5500 from 2021, it had 132 active participants, 697 receiving benefits, and 640 entitled to benefits in the future. It had a funding ratio of 27.46% at the end of 2021.

The New Bedford Fishermen’s Pension Fund will receive $13.4 million to prevent an insolvency that was expected in 2024 when it would have had to cut benefits by 10%. The New Bedford, Massachusetts-based plan currently covers 445 participants in the fishing industry.

According to its Form 5500 from 2021, the plan had 0 active participants, 279 receiving benefits, and 36 entitled to future benefits. It had a funding ratio of 33.8% at the end of 2021.

Lastly, in manufacturing, the Pension Plan for Employees of United Furniture Workers of America and Related Organizations received $8.1 million to prevent an insolvency that was expected later this year. The Nashville, Tennessee-based plan covers 95 participants in the manufacturing industry.

According to its Form 5500 from 2021, it had 23 active participants, 59 receiving benefits and 8 entitled to future benefits. It was 20.43% funded.