Benefits

PBGC Aids Insolvent Multiemployer Pension Plans

By Staff Report

Jan. 29, 2010

The Pension Benefit Guaranty Corp. said Thursday, January 28, that it will provide financial assistance to two insolvent multiemployer pension plans to ensure participants continue to receive benefits.


The PBGC will provide assistance to the Southern California, Arizona, Colorado and Southern Nevada Glaziers, Architectural Metal and Glass Workers Pension Plan in El Monte, California, which has about 5,200 participants. The agency sent an initial payment of $639,113 to ensure that the plan’s 1,500 retirees receive their guaranteed benefits. The PBGC estimates its total commitment to the plan at about $117 million.


The other plan receiving assistance is the United Food and Commercial Workers Local 1049 Pension Plan in Cedar Knolls, New Jersey. The PBGC has made an initial payment of $132,000 to ensure payment of benefits to 240 retirees. The PBGC estimates its total financial commitment will be $5.2 million.


The PBGC’s insurance program for multiemployer plans differs in several ways from its single-employer program. The PBGC actually takes over failed single-employer plans but does not take over insolvent multiemployer plans. Instead, the agency sends financial assistance to the plan to ensure that guaranteed benefits are paid.


The PBGC provides financial assistance to 40 insolvent multiemployer plans out of the roughly 1,500 multiemployer plans it insures. At the end of fiscal 2009, the PBGC had $1.5 billion in assets in its multiemployer insurance program to cover about $2.3 billion of financial assistance the PBGC expects to provide to the plans in the future.



Filed by Jerry Geisel of Business Insurance, 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.



 

What’s New at Workforce.com?

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog

Benefits

What is Earned Wage Access (EWA)? A Few Considerations

Summary Earned wage access (EWA) programs are an increasingly popular way for employees to access their...

benefits, earned wage access products, payroll, time and attendance

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