The American Rescue Plan ACT (ARPA)
Financial Assistance to Multiemployer Pension Plans
Pursuant to the American Rescue Plan Act (“ARPA”) the Board of Trustees of the Teamsters Local 641 Pension Fund (“Pension Fund”) applied to the Pension Benefit Guaranty Corporation (“PBGC”) for Special Financial Assistance (“SFA”) to restore pension benefits retroactive to March 1, 2020 when those benefits were first cut due to the pending insolvency of the Pension Fund. The PBGC approved the SFA application and in May 2022 the Pension Fund received approximately $500,000,000.00 from the PBGC to restore benefits retroactive to March 1, 2020 and permit the Pension Fund to keep paying unreduced pension benefits through 2051.
Since that time, the Pension Fund’s office has restored those benefits and issued retroactive payments to participants or their beneficiaries for the restored retroactive cuts.
Subsequent to receiving the SFA, the PBGC issued revised SFA guidance which based upon review by the Pension Fund’s actuary and legal counsel could result in the Pension Fund receiving additional SFA.
On January 18, 2023, the PBGC informed the Trustees of Local 641 Pension Fund that the Plan was approved for additional SFA monies in the amount of $96,092,818.33. These additional funds were received by the Plan on February 21, 2023.
This additional SFA money will be further used to ensure that pension benefits continue to be paid through 2051.
However, please be advised that every year you will receive a critical status notice from the Plan annually as required by law. One of the conditions for the Plan’s receipt of Special Financial Assistance (“SFA”) under the American Rescue Plan Act of 2021 is that the Plan must continue to designate itself in critical and declining status, since the Plan has more retirees than actives.
We want to thank all our Plan professionals for their assistance in insuring our retirees benefits into the future.
Teamsters Local 641 Pension Fund is greatly appreciative for the assistance provided by the PBGC that has permitted Pension Plans such as ours to retroactively fully restore all suspended benefits for all the hardworking Teamsters men and women and their families and ensure their futures.
Sincerely,
Board of Trustees
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Pension Team
Karri Steinmacher- Pension Analyst
Kathleen Kyreakakis- Pension Analyst