Posts tagged Central States Pension Fund
In swing states that once went for Trump, unions organize to prevent a repeat
October 1, 2024 // This year, UNITE HERE says it is once again mobilizing its members and plans to knock on more than 3 million doors in Nevada, Arizona, Pennsylvania, Ohio, North Carolina and Michigan “to ensure that Kamala Harris wins the presidency.” In Wisconsin, the Laborers are building political messaging into a union project to engage members more closely, “connecting union members with other union members,” Miller said, to explain how negotiations affect wages and health and retirement benefits, as well as the importance of increasing union representation.
Chairwoman Foxx, Ranking Member Cassidy Introduce Bill Recouping Pension Bailout Sent for Dead People, Increasing Oversight of Pension System
January 31, 2024 // In November, the Pension Benefit Guaranty Corporation’s (PBGC) Office of Inspector General (OIG) published a report disclosing that the PBGC overpaid the Central States fund by $127 million after the plan included at least 3,479 dead participants in its bailout request. According to the PBGC OIG, the PBGC’s review process did not require cross-checking the plan participant list with the Social Security Administration’s (SSA) Full Death Master File (Full DMF), despite this practice being recommended as a standard procedure by the OIG. As far back as 2018, the OIG instructed PBGC that using the Full DMF is not only crucial, but essential, to prevent overpayments of annuities to people who are already dead. Under questioning from Sen. Cassidy, Teamsters President Sean O’Brien, who represents nearly 350,000 Central States, Southeast and Southwest Areas Pension Fund (Central States Pension Fund) retiree participants, stated that the fund should return $127 million in taxpayer dollars that were wrongfully paid to it. However, the PBGC has indicated it does not intend to recoup this money, even though it has the legal authority to claw back wrongfully obtained funds. Further, the Central States Pension Fund has not returned the overpayment of taxpayer funds and is treating them as a fund asset. We still do not know how much the PBGC has overpaid for ghost annuities in total to all multiemployer pension plans.
House probe starts after $127M in bailout funds paid to dead Teamsters’ pension plan
January 16, 2024 // Foxx and Good also said the “mismanagement casts doubt on PBGC’s implementation of the larger program, the $91 billion Special Financial Assistance (SFA) program,” saying Central States had sent a follow-up letter to the inspector general’s office that implied it would use the money “as their personal slush fund” to help it “achieve its statutory objective of remaining solvent through 2051.” Inspector General Nicholas Novak previously told The Post that there was no clawback function available to PBGC as part of the American Rescue Plan, through which the Biden administration provided more than $80 billion to other multi-employer pension funds.
Biden Shoveled $36 Billion In Taxpayer Funds To Bail Out Teamsters For Mismanaged Pensions
March 5, 2023 // Lost in all of this has been one spectacular giveaway: $100,000 per beneficiary of the Central States Pension Fund (CSPF). The fund provides pension benefits to nearly 360,000 private-sector workers and retirees, mostly Teamsters Union members. U.S. Rep. Kevin Brady, R-Texas, called the deal out in December, noting it was “the largest private pension bailout in American history” that benefited only “a tiny minority of workers.” He suggested it resulted from the insanity of “allowing those who mismanaged pensions to determine whether their funds qualify for taxpayer assistance with no safeguards.” The $36 billion comes almost two years after the passage of the $1.9 trillion American Rescue Plan. That “rescue” was the Biden administration’s Covid spending bonanza. Biden signed it into law in the spring of 2021, when the economy was already well into recovery. The housing market was booming. The stock market was on a steady upward climb. It was obvious that the “rescue” would cause inflation. It was obvious Democrats were taking advantage of an opportunity to give away public largesse. And did they ever. Lest we doubt the ongoing influence of the Teamsters in American politics, the recent $36 billion giveaway says it all. It says to the union bosses, who make up half of the CSPF board: “You can watch the pension fund’s health decline for decades. You can make unrealistic promises to employees. You can keep the plan below 75 percent funded. You can depend on a pyramid concept where imaginary new members keep coming in to pay for retired members. None of that matters now. The politicians you own will bail you out with the public’s money. In fact, you can take such largesse that union workers in other multi-employer plans get left with only crumbs. Write yourself a check. And, as a bonus, we won’t ask you to change anything.”
Biden mends bridges with unions after rail dispute
December 12, 2022 // President Joe Biden has returned to the good graces of labor unions by announcing a $36 billion pension fund bailout that will prevent more than 350,000 truck drivers, warehouse workers, construction staff, and retirees from forfeiting their benefits. But Biden's intervention comes after he rankled the key Democratic constituency by urging Congress to enforce a tentative union dispute agreement between railroad companies and their employees in order to avoid a strike that would have crippled the economy before the holidays.