Painters Local 466 Pension Plan to Receive $5.4 Million

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Pension Plan

PBGC Approves Special Financial Assistance for Menands, New York-based plan

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 Local Union No. 466 Painters, Decorators, and Paperhangers Pension Plan (Painters Local 466 Plan). The plan, based in Menands, New York, covers 45 participants in the construction industry.

The Painters Local 466 Plan became insolvent in November 2020. At that time, PBGC started providing financial assistance to the plan. As required by law, the Painters Local 466 Plan reduced participants’ benefits to the PBGC guarantee levels, which was roughly 45 percent below the benefits payable under the terms of the plan.

PBGC’s approval of the SFA application enables the plan to restore all benefit reductions caused by the plan’s insolvency and to make payments to retirees to cover prior benefit reductions. SFA will enable the plan to pay retirement benefits without reduction for many years into the future. The plan will receive $5.4 million in SFA, including interest to the expected date of payment to the plan.

“Without this Special Financial Assistance, these 45 construction workers and retirees would not get all the retirement benefits they earned through years of hard work,” said U.S. Secretary of Labor Marty Walsh, chair of the Pension Benefit Guaranty Corporation’s Board of Directors. “With funding from President Biden’s American Rescue Plan, these workers once again have the right to full payment of their benefits.” 

In addition to the $5.4 million of SFA paid to the plan, PBGC’s Multiemployer Insurance Program will be repaid $0.5 million, which is the amount of the plan’s outstanding loans, including interest, for the financial assistance PBGC provided beginning in November 2020 and ending on the expected date of payment of SFA to the plan.

Photo by Tatiana P on Unsplash

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