Westbank Louisiana News

WASHINGTON – U.S. Senator Bill Cassidy and U.S. Representative Virginia Foxx have introduced legislation aimed at recovering overpayments to pension funds as part of the Democrats' pension bailout included in the American Rescue Plan Act (ARPA). The bill seeks to increase oversight of the pension system and ensure that taxpayer dollars are not being used to pay pension bailouts to deceased individuals.

The Pension Benefit Guaranty Corporation's (PBGC) Office of Inspector General (OIG) recently published a report revealing that the PBGC overpaid the Central States fund by $127 million after including at least 3,479 deceased participants in its bailout request. The report highlighted the failure of the PBGC's review process to cross-check the plan participant list with the Social Security Administration's Full Death Master File, despite recommendations from the OIG.

Under questioning, Teamsters President Sean O'Brien, who represents nearly 350,000 Central States Pension Fund retiree participants, acknowledged that the fund should return the wrongfully paid $127 million in taxpayer dollars. However, the PBGC has indicated that it does not intend to recoup this money, despite having the legal authority to do so. Additionally, the Central States Pension Fund has not returned the overpayment and is treating it as a fund asset.

The newly introduced legislation would require the PBGC to verify past and future pension bailout applications by cross-checking plan participation lists against the Full Death Master File. This measure aims to prevent taxpayer dollars from being used to pay pension bailouts to deceased individuals. The bill would also mandate the PBGC to recoup any ghost pensions received by multiemployer plans as windfalls from taxpayer dollars.

Senator Cassidy expressed his concern over the lack of accountability and oversight in the Democrats' pension bailout, stating, "Rather than pursuing substantive reforms to at-risk pension funds, Democrats bailed out Central States and 103 other pension plans with inadequate accountability and oversight." He emphasized the need for the $127 million wrongfully paid to Central States to be returned to taxpayers promptly.

Chairwoman Foxx echoed the sentiment, criticizing the PBGC's negligence in sending $127 million in taxpayer money for deceased individuals and refusing to recover the funds. She stated, "The complete and total lack of respect for hardworking taxpayer dollars is on full display with Democrats and the Biden administration." Foxx expressed her commitment to introducing the legislation with Senator Cassidy to ensure that taxpayers receive the accountability and oversight they deserve.

Before receiving its ARPA bailout, Central States was considered the largest financially distressed multiemployer pension plan in the nation, according to the White House. Senator Cassidy urged the Central States Pension Fund to return the $127 million overpayment to American taxpayers and requested information on how the union plans to prevent similar mismanagement in the future.

The bill introduced by Senator Cassidy and Chairwoman Foxx aims to rectify the shortcomings in the pension bailout process and increase oversight to protect taxpayer dollars. It seeks to ensure that pension funds are appropriately audited and that overpayments to deceased individuals are recovered. The legislation addresses the need for accountability and transparency in the pension system, ultimately working towards a more efficient and responsible use of taxpayer funds.