Posts tagged pension bailout
‘Betrayed’: Unions, White House irate over Teamsters president’s RNC speech
July 18, 2024 // President Biden secured a pension bailout that restored retirement accounts for about 350,000 Teamsters members, appointed staunchly pro-labor allies to the National Labor Relations Board and instituted labor requirements for federal contracts. The backlash against O’Brien’s speech reflects the high stakes of the 2024 presidential election for the nation’s labor movement, which fears Trump will undo these policies.
U.S. Taxpayers To Bail Out Failing Musicians’ Union Pension Fund With $1.5 Billion, PBGC Announces
July 15, 2024 // “As of July 15, 2024, PBGC has announced approval of about $61.9 billion in SFA to plans that cover about 1,076,000 workers, retirees, and beneficiaries,” the PBGC stated in its announcement. In June, Democrats stated they planned to use the taxpayer-funded pension bailout scheme to rally union voters in the upcoming November general elections.
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.
Video: This is just bailing out the pension plans: Diana Furchtgott-Roth
November 28, 2023 // How come the Teamster bosses put enough money in the union bosses" pension plan, but the plan for their worker members went bankrupt? Former Labor Department chief economist Diana Furchtgott-Roth discusses the report that teamsters pension allegedly took $127M from U.S. taxpayers for nearly 3,500 dead people on ‘The Evening Edit.’
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.
Flanked by Union Allies, Biden Touts $36 Billion Pension Bailout
December 9, 2022 // President Joe Biden announced a $36 billion bailout for the Central States Pension Fund, one of the nation’s biggest multi-employer plans, touting the help for union workers and retirees as he looks to mend ties with organized labor after a contentious rail deal.
Punching In: High Court Signals Coming Curbs on Agency Deference
August 2, 2022 // The Supreme Court earlier this summer affirmed that agencies can’t regulate “major questions” with significant economic or political implications unless Congress explicitly gives them the power to do so, Given the court’s recently expanded view of what presents a “major question,” some attorneys say the conservative-majority court may next take a swipe at Chevron deference all together. And with the Biden administration’s ambitious regulatory agenda, the DOL’s moves to define an approach to independent contractor status, alter how prevailing wages are calculated, expand overtime pay protections, or issue most any other regulation could be more vulnerable to litigation if that happens. A revised version of President Joe Biden’s $94 billion bailout for union-backed pension plans will take effect next week, outlining a realistic path for hundreds of cash-strapped plans to pay benefits for the next 30 years. Michael Lotito, co-chair of Littler Mendelson PC’s Workplace Policy Institute,
Opinion: Biden’s pension ‘guarantee’ stretches the law to bail out unions
July 15, 2022 // “PBGC has, after this further review of the statute, additional consultation with its Board agencies [Treasury, DOL, and, Commerce], consideration of comments, and extensive actuarial modeling, determined that an alternative interpretation… is reasonable and more likely to result in the [taxpayer funds] an eligible plan receives being sufficient for the plan to pay full benefits through 2051.” There is no limiting principle on the spending of taxpayer money if agencies can disregard the law with the hope no one has the standing to obtain judicial review. PBGC’s rationale that the American Rescue Plan’s goal to keep plans going through 2051 justifies overriding the statute to change the interest rate would also justify illegally pumping additional billions into plans if they run out of money before 2051, which is exactly what President Biden “guaranteed” on Wednesday. The bailout will cover only a small fraction of the $757 billion of underfunding in the plans. More than 95 percent of the system’s 11 million participants are in plans less than 60 percent funded. Why not also ignore the law’s eligibility criteria and bailout other plans? Chevron v Natural Resources Defense Council, Majority Leader Charles Schumer