707 On SFA Road

The Road Carriers Local 707 Pension Fund , which became the first plan to seek bailout money under the PBGC Special Financial Assistance program for troubled multiemployer plans got an acknowledgment according today’s email blast:

Yesterday the pension fund received confirmation from the PBGC that they received our application for Special Financial Assistance.
Our application is now officially being reviewed and the 120 day maximum time limit to process our application has begun. “This confirmation does not constitute a determination as to the completeness nor reasonableness of the application nor approval of the amount of Special Financial Assistance requested.”

People are contacting me over several issues. The most asked question is how the fund will pay back retroactive benefit payments.

All retroactive benefit payments will be in a lump sum.
Retirees will be given the opportunity to have these payments made directly to a tax deferred account such as an IRA. More details on eligible tax deferred plans and the process of making the lump sum distribution to a tax deferred plan will be forthcoming. Additionally, while other plans eliminated their service pension, we did not.

Active members can continue to retire with an unreduced pension at 30 years of service at any age and 25 years of service at age 57.
I will continue to keep you updated as our application proceeds through the application process. Feel free to email me with any questions you may have. As always thanks again to Senate Majority leader Chuck Schumer for his continued support.

Kevin McCaffrey President, Teamsters Local 707

Plan Name: Road Carriers Local 707 Pension Fund
EIN/PN: 51-6106510/001
Total participants @ 1/31/20 4,247 including:
Retirees: 2,778
Separated but entitled to benefits: 694
Still working: 775

Asset Value (Market) @ 2/1/19: 5,545,790
Value of liabilities using RPA rate (3.07%) @ 2/1/19: $867,395,077 including:
Retirees: $594,491,960
Separated but entitled to benefits: $101,994,777
Still working: $170,908,340

Funded ratio: 0.64%
Unfunded Liabilities as of 2/1/19: $861,849,287

Asset Value (Market) as of 1/31/20: $4,891,825
Contributions(H): $4,892,655 Contributions (SB): $19,996,755 Payouts: $19,927,937
Expenses: $895,571

One response to this post.

  1. […] example, the Road Carriers Local 707 Pension Fund reported unfunded liabilities of $862 million as of 2/1/19. With artful projections about future assets and […]

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