PBGC Approves Special Financial Assistance Application

Food Employers Labor Relations Association and United Food and Commercial Workers (FELRA) Pension Plan to Receive SFA

WASHINGTON, D.C.: The Pension Benefit Guaranty Corporation (PBGC) announced today that it has approved the application submitted to the Special Financial Assistance (SFA) Program by the Food Employers Labor Relations Association and United Food and Commercial Workers Pension Plan (FELRA Pension Plan). The FELRA Pension Plan, based in Landover, Maryland, covers 51,500 participants in the service industry. The plan will receive approximately $1.24 billion in special financial assistance, including interest to the expected date of payment to the plan.

The plan was projected to run out of money in 2022. Without the SFA Program, the FELRA Pension Plan would have been required to reduce participants’ benefits to the PBGC guarantee levels upon plan insolvency, which is roughly 20 percent below the benefits payable under the terms of the plan. SFA will enable the plan to continue to pay retirement benefits without reduction for many years into the future.

“President Biden’s American Rescue Plan will deliver Special Financial Assistance to the Food Employers Labor Relations Association and United Food and Commercial Workers Pension Plan that ensures the more these 51,500 service industry 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.”

source https://nrinews24x7.com/pbgc-approves-special-financial-assistance-application/

April 29, 2022