Press Releases

Rice Announces $112.6 Million in Special Financial Assistance Funding for Local 138 Pension Fund

The Special Financial Assistance funding for Local 138 Pension Fund is the first multiemployer plan application approved through the American Rescue Plan

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Garden City, NY, January 7, 2022 | comments

GARDEN CITY, NY – The Pension Benefit Guaranty Corporation (PBGC) approved Local 138 Pension Plan’s application for $112.6 million in Special Financial Assistance funding on December 21, 2021, Rep. Kathleen Rice (NY-04) announced today.

“I was proud to vote for the American Rescue Plan last March and am very pleased to see that this important law is doing just what it’s named for,” said Rep. Kathleen Rice. “This law is rescuing 1,723 pensioners who have earned their retirement from devastating cuts. The working families covered under the Local 138 Pension Trust Fund can now be sure they will continue to receive their hard-earned retirement benefit long into the future.”

“The Biden-Harris Administration’s American Rescue Plan is delivering for people all over the country, including more than 1,700 transportation workers, retirees and their families who will benefit from more than $112M in special financial assistance,” said U.S. Secretary of Labor Marty Walsh, who chairs the Pension Benefit Guaranty Corporation. “This program is going to help millions of people avoid losing their hard-earned benefits. At the U.S. Department of Labor, we are committed to ensuring a lifetime of empowerment for our nation’s workers.”

“Local 138 Pension Trust Fund is tremendously happy and thankful to be approved for the Special Financial Assistance,” said a representative from the Local 138 Pension Trust Fund Board of Trustees. “This funding will alleviate a great burden to our participants for which we are very grateful.”

Congress created the American Rescue Plan’s Special Financial Assistance Program to support severely underfunded multiemployer pension plans and prevent working Americans from seeing cuts to their retirement benefits. Local 138’s Pension Plan was projected to run out of money in 2022, and absent funding from the Special Financial Assistance Program, Local 138 would have been required to reduce participants’ benefits by at least 20 percent. Once Local 138 receives this critical funding, pensions will be funded without reductions for many years to come.

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