The Pension Benefit Guaranty Corp. has awarded three more struggling multiemployer plans special financial assistance totaling $245 million.
The International Brotherhood of Teamsters Local 734 Pension Plan, which is based in Chicago and covers 3,453 participants in the transportation industry, will receive approximately $99.7 million in special financial assistance, or SFA, the PBGC announced Jan. 13.
The Local 734 Plan was projected to become insolvent and run out of money in 2032, according to the PBGC. It had a funding ratio of 26% with $264 million in projected benefit obligations as of Jan. 1, 2023, according to the plan's most recent Form 5500 filing. As of Dec. 31, 2023, the plan had $98 million in assets, the filing showed.
The PBGC also said the International Union of Operating Engineers Upstate New York Engineers Pension Fund will receive approximately $85.5 million. The Syracuse, New York-based plan covers 6,461 participants in the construction industry.
The Operating Engineers plan had a funding ratio 61% with $568 million in projected benefit obligations as of April 1, 2022, according to the plan's most recent Form 5500 filing. As of March 31, 2023, the plan had $322 million in assets, the filing showed.
Lastly, the PBGC awarded assistance to the Laborers' International Union of North America Local No. 265 Pension Plan, based in Cincinnati, Ohio, which covers 1,460 participants in the construction industry. The union plan will receive approximately $59.4 million in SFA. The plan was projected to become insolvent and run out of money in 2027.
It had a funding ratio of 34% with $99 million in projected benefit obligations as of Nov. 1, 2022, according to the plan's most recent Form 5500 filing. As of Oct. 31, 2023, the plan had $29 million in assets, the filing showed.
Created by the American Rescue Plan Act that Democrats passed in March 2021, the SFA Program is designed to shore up struggling multiemployer pension plans through 2051.
As of Jan. 13, the PBGC had approved about $70 billion in SFA to plans that cover about 1.2 million workers, retirees and beneficiaries.
