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Newsday newsday.com 11 Jan, 2022 11:15 am

Bailout for pension fund of Local 138 averts looming insolvency

Bailout for pension fund of Local 138 averts looming insolvency
The distressed pension fund of a Long Island union will receive a $112.6 million bailout from the federal Pension Benefit Guarantee Corp., officials said. The pension fund of Local 138 in Baldwin, cov

The pension fund of Local 138 in Baldwin, covering 1,723 union members in the transportation and warehouse industries, projected that it would reach insolvency in 2022, according to its application for assistance.Without the funding injection, Local 138, an affiliate of Local 802 of the International Brotherhood of Teamsters, would have been required to cut pensioners’ benefits about 20% below the benefits expected under the plan’s terms, the PBGC said in a statement.Christina Maderich, the Local 138 fund administrator, said she was seeking clearance from the board of trustees to provide further information.Kathleen Rice (D-Garden City) said funding from the American Rescue Plan is sparing Local 138’s pensioners "from devastating cuts.

Employers contributing to the Local 138 pension fund included Krasdale Foods, Grocery Haulers and SLB Transportation.The agency covers multi-employer pension plans like that of Local 138 as well as single-employer plans.

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