PBGC Approves SFA Application for Automotive Industries Plan

Automotive Industries Plan Averts Insolvency and Reduction of Benefits Through Receipt of Special Financial Assistance

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 Automotive Industries Pension Plan (Automotive Industries Plan). The plan, based in Dublin, California, covers 23,687 participants in the transportation industry.

The Automotive Industries Plan will receive approximately $1.1 billion in special financial assistance, including interest to the expected date of payment to the plan. The plan was projected to become insolvent and run out of money in 2033. Without the SFA Program, the Automotive Industries Plan would have been required to reduce participants’ benefits to the PBGC guarantee levels upon plan insolvency, which is roughly 50 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.

“Millions of people work for years, looking forward to the day when the promise of a secure, dignified retirement is kept,” said Acting Secretary of Labor Julie Su. “Today, the Biden-Harris administration is delivering on that promise for 23,687 workers by providing Special Financial Assistance in the Automotive Industries Pension Plan that ensures they can retire with the dignity they deserve.”