SFA Update – Today’s Approval

The PBGC Special Financial Assistance program for troubled multiemployer plans approved a new plan for bailout:

The Iron Workers Local 17 Pension Fund (Iron Workers Local 17 Fund). The fund, based in Cleveland, Ohio, covers 1,900 participants in the construction industry. On February 1, 2017, the Iron Workers Local 17 Fund implemented a benefit suspension under the Multiemployer Pension Reform Act of 2014 (MPRA). The fund reduced benefits of about 950 participants. On average, affected participants’ benefits were reduced by 30 percent. PBGC’s approval of the SFA application enables the plan to restore benefits suspended under the terms of MPRA and to make payments to retirees to cover prior benefit suspensions. SFA will enable the plan to pay retirement benefits without reduction for many years into the future. The plan will receive $48.9 million in SFA, including interest to the expected date of payment to the plan. “President Biden’s American Rescue Plan will deliver Special Financial Assistance to the Iron Workers Local 17 Pension Fund that ensures these 1,900 construction workers and retirees covered by this plan will receive the retirement benefits they have earned,” said U.S. Secretary of Labor Marty Walsh, chair of the Pension Benefit Guaranty Corporation Board of Directors. “This assistance will deliver the secure retirement these workers were promised in return for many years of hard work.” 

Our updated summary of the 36 plans in the system – 25 approvals and 11 under review:

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: