International Brotherhood of Teamsters Vice President At-Large John Murphy appeared on the America’s Work Force Union Podcast to discuss the Central States Pension Plan’s ability to file for relief from the Pension Benefit Guaranty Corporation (PBGC), which will protect full benefits for retirees and working Teamsters through 2051.
Under the American Rescue Plan funding, six pension funds, so far, have applied for and received approval for special financial assistance totaling $1 billion.
The high water mark for the PBGC will come on April 1, when the Central States Pension Plan is eligible to file. The plan is the largest pension plan in the nation identified as being on the brink of collapse, and Murphy expects the plan to file more than north of $30 billion in relief.
The law requires the PBGC to accept or reject the application within 120 days, and Murphy expects complete approval of the Central States’ request. He anticipates relief funds will be available sometime in early August. At that point, more than 360,000 retirees and participants will have nightmare cuts to their accrued benefits removed, he said.
Since the American Rescue Plan was signed into law by President Biden, the relief provided to retirees has been incredible, Murphy noted. The passage of the law is proof representative democracy can still be successful through the work of ordinary people, he added.
Listen to the entire episode to learn more about the relief the American Rescue Plan provides to pension plans.