Bill Cassidy - Ranking Member of the Senate HELP Committee | Official U.S. Senate headshot
Bill Cassidy - Ranking Member of the Senate HELP Committee | Official U.S. Senate headshot
U.S. Senator Bill Cassidy, M.D., the ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, has expressed his firm stance on the Biden administration's decision instructing the Central States Pension Fund to return $127 million that was wrongfully paid out. Dr. Cassidy emphasized the importance of returning the funds promptly, stating, "The $127 million was wrongfully paid out and needs to be returned to the American people. There should be no more delays. Central States must return this money immediately."
The issue arose when a report by the PBGC Office of Inspector General revealed that the Central States fund was overpaid by $127 million due to including deceased participants in its bailout request. Despite recommendations to cross-check participant lists with the Social Security Administration's Full Death Master File, this procedure was not followed. The failure to utilize this important tool led to improper payments and increased the risk of fraud.
During a questioning session in November, Teamsters President Sean O'Brien acknowledged that the fund should return the wrongfully paid $127 million in taxpayer dollars. Despite this, Central States officials initially hesitated to return the excess money, which was obtained by including deceased participants on the active roster.
Under mounting pressure from Senator Cassidy, Central States sought guidance from the Departments of Labor and Treasury regarding the legal authority to return the funds. After the Department of Labor confirmed that Central States was not only authorized but legally obligated to return the $127 million, the Department of Treasury also supported this decision.
The determination that Central States must return the funds highlights the importance of accountability and adherence to proper procedures in financial transactions involving taxpayer money. The efforts led by Senator Cassidy have paved the way for ensuring that the funds are rightfully returned to the American people as per the official determination.
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