Dear Participants,
We are delighted to announce that on July 25, 2024, the New England Teamsters Pension Fund was approved to receive more than $5.7 billion in funding under the Pension Benefit Guaranty Corporation’s (PBGC’s) Special Financial Assistance (SFA) Program. This approval concludes a nearly two-year process, during which the Board of Trustees and the Fund Office worked diligently to secure the funding. The Pension Fund began meeting with the PBGC in the Fall of 2022 and submitted its formal application in February 2023, as soon as it was eligible to do so under the SFA Program. We could not be more pleased to share this news with you, particularly given the positive impact the receipt of the SFA funds will have on the long-term financial health of the Pension Fund.
PBGC’s SFA Program was established under the American Rescue Plan Act of 2021 (ARPA), also referred to as the COVID-19 Stimulus Package or American Rescue Plan – an omnibus $1.9 trillion economic stimulus bill that also included funding for the stimulus checks received by the vast majority of Americans, state and local governments, COVID-19 vaccine distribution, school re-openings, unemployment benefits, and small businesses. ARPA was signed into law by President Joseph Biden on March 11, 2021, after being narrowly passed by the 117th United States Congress with only Democratic support.
The Pension Fund received the SFA funds, as scheduled, on August 26, 2024. The payment of pension benefits and the administrative expenses of the plan through SFA funds will begin on September 3, 2024. While PBGC’s SFA Program is designed to ensure solvency through 2051, the Board of Trustees already is working to support the Pension Fund’s financial health well beyond that date. We will continue to keep you informed of developments in that regard. In the meantime, please click here for a Frequently Asked Questions document that provides additional information for participants and click here for a Frequently Asked Questions document that provides additional information for employers.
Thank you for your attention to this important development for the Pension Fund.
Board of Trustees
