The Pension Benefit Guaranty Corp. approved special financial assistance applications totaling nearly $480 million to help four struggling multiemployer pension plans.
The Southern California, Arizona, Colorado and Southern Nevada Glaziers, Architectural Metal and Glass Workers Pension Plan, also known as the Southern California Glaziers Plan, will receive about $436.3 million in special financial assistance, the PBGC announced Tuesday.
In addition, Local 917 Pension Plan will also receive about $22.1 million; New Bedford Fishermen's Pension Fund will receive $13.4 million; and Pension Plan for Employees of United Furniture Workers of America and Related Organizations, also known as the United Furniture Workers Plan, will receive $8.1 million.
Under the American Rescue Act of 2021, the SFA program was created as a way to help multiemployer plans facing financial hardship.
Southern California Glaziers Plan, based in Covina, Calif., covers 3,606 participants in the construction industry and became insolvent in 2009, according to a PBGC news release. After the PBGC started providing financial assistance to the plan in 2010, participants' benefits were cut to PBGC guarantee levels, roughly 50% below the benefits payable under the terms of the plan.
The approval of the Southern California Glaziers Plan's SFA application allows it to restore benefit reductions from the plan's insolvency, and pay retirement benefits without reduction for many years into the future, the PBGC said.
Local 917 Pension Plan, based in Floral Park, N.Y., covers 1,653 participants in the transportation industry and was projected to become insolvent in 2025. New Bedford Fishermen's Pension Fund, New Bedford, Mass., covers 445 participants in the fishing industry and was projected to face insolvency in 2024. United Furniture Workers Plan, Nashville, Tenn., covering 95 participants in the manufacturing industry, was projected to become insolvent in 2023.
Without the SFA program, all three plans would have had to reduce benefits to PBGC guarantee levels upon their insolvency — roughly 10% below the benefits payable under the terms of the Local 917 Pension Plan and New Bedford Fishermen's Pension Fund, and roughly 55% below the benefits payable under the terms of the United Furniture Workers Plan, the PBGC said.
Their respective SFA payments will allow them to pay retirement benefits without reduction for many years to come, according to the PBGC.
Southern California Glaziers Plan had a funding ratio of 3.3% with $170 million in projected benefit obligations as of Jan. 1, 2015, according to the plan's most recent Form 5500 filing. The plan had $13 million in assets as of Dec. 31, 2015, the filing showed.
Local 917 Pension Plan had a funding ratio of 27.3% with $46 million in projected benefit obligations as of Nov. 1, 2021, according to the plan's most recent Form 5500 filing. The plan had $8.5 million in assets as of Oct. 31, 2022, the filing showed.
New Bedford Fishermen's Pension Fund had a funding ratio of 33.8% with $18 million in projected benefit obligations as of Jan. 1, 2021, according to the plan's most recent Form 5500 filing. The plan had $5 million in assets as of Dec. 31, 2021, the filing showed.
United Furniture Workers Plan had a funding ratio of 20.4% with $13 million in projected benefit obligations as of Jan. 1, 2021, according to the plan's most recent Form 5500 filing. The plan had $2.6 million in assets as of Dec. 31, 2021, the filing showed.
Excluding these announcements, the PBGC had approved about $53 billion in special financial assistance to plans that cover more than 763,000 workers, retirees and beneficiaries as of Tuesday, the PBGC said.
