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. As a result, the Pension Fund’s Board of Trustees directed the Pension Fund’s actuary and legal counsel to prepare and submit a supplemental SFA application to the PBGC. That application was filed.
UPDATE
On January 18, 2023, the PBGC informed the Trustees of Local 641 Pension Fund that the Plan has been approved for additional SFA monies in the amount of $96,092,818.33. The PBGC advises that these additional funds should be received by the Plan on or about February 21, 2023.
This additional SFA money will be further used to ensure that pension benefits continue to be paid through 2051.
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
Pension Team
Karri Steinmacher- Pension Analyst
Kathleen Kyreakakis