PBGC Lends Help to Two Multiemployer Pension Plans

The Printing Industry and Union Consolidated Pension Plan covers 300 workers and retirees in the printing industry in Pittsburgh, Pennsylvania. The plan became insolvent in March 2010, and the agency sent an initial payment of $69,200 to ensure that the plan’s 206 retirees receive their guaranteed benefit.   

The plan will receive a cash distribution each month to fund benefit obligations. The agency estimates its total financial commitment to the plan will be $3 million, according to a news release.   

The Florida Marble Polishers Pension Trust Fund covers about 125 workers and retirees in the masonry construction industry mostly located in the Miami area. The plan became insolvent in March 2010, and the agency sent an initial payment of $64,200 to ensure that the plan’s 86 retirees receive their guaranteed benefit.   

The plan will receive a cash distribution each month to fund benefit obligations. The agency estimates its total financial commitment to the plan will be $2.3 million, the news release said.   

Unlike PBGC’s protection of plans sponsored by a single employer, the agency does not take over insured multiemployer plans, but instead sends financial assistance to insolvent plans. Generally smaller plans are paid on a quarterly basis, while larger plans receive monthly assistance.   

Federal pension law sets forth limits on retiree benefits in insolvent multiemployer plans. Individuals who retire after 30 years of service may be eligible for a guaranteed benefit of up to $12,870.

  Currently the PBGC gives assistance to 42 insolvent multiemployer plans, which cover approximately 94,000 participants.