Benefits

Fork in Road for Truckers Fund; PBGC Splits Plan

By Staff Report

May. 27, 2010

The Pension Benefit Guaranty Corp. has split the Chicago Truck Drivers, Helpers and Warehouse Workers Union (Independent) Pension Fund into plans for employees of bankrupt and nonbankrupt companies, agency spokesman Marc Hopkins confirmed.


The PBGC will provide about $4 million annually to the bankrupt companies’ multiemployer plan; the plan for the nonbankrupt companies will not receive any PBGC funding.


Neither the size of the original plan nor the sizes of the new plans were immediately available.


The decision aims to extend solvency of the original plan and preserve full benefits for roughly 3,700 workers and retirees of nonbankrupt trucking firms. About 1,500 current and former workers are in the bankrupt companies’ plan.


“The PBGC approved the move because without partition, the Chicago plan may have become insolvent in 2013, and federal benefit limits would have applied to all its retirees,” the PBGC stated in a news release. “Partition of the plan may delay insolvency to 2019 or later.”


Fifty-two employers in the original plan filed for bankruptcy protection or withdrew from the plan between 1982 and 2004. The plan currently has 57 contributing employers.


Filed by Timothy Inklebarger of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

 

 

About Workforce.com

blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog

Benefits

EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog

Benefits

Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness

workforce blog

Benefits

We are in the midst of a public mental health crisis; how employers can help

Do not ignore these issues or your employees who are living with them. Mental health illnesses are no d...

ADA, benefits, Coronavirus, FMLA, mental health, paid time off