Westbank Louisiana News

U.S. Senator Bill Cassidy, M.D., the ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, successfully ensured the return of $127 million in taxpayer funds that were wrongly paid to the Central States Pension Fund. This amount was part of the $90 billion pension bailout included in the American Rescue Plan Act.

Cassidy expressed his satisfaction with the recovery of the funds, stating, “The previous refusal to return $127 million in wrongfully obtained funds was unacceptable. Glad to see Central States change course and rightfully return these funds back to taxpayers. Oversight needs to continue to ensure all wrongfully paid bailout funds from the Democrats’ irresponsible bailout are returned to the American people.”

Last November, the Pension Benefit Guaranty Corporation’s (PBGC) Office of Inspector General disclosed that the Central States fund had been overpaid by $127 million due to including deceased participants in its bailout request. Cassidy has been at the forefront of efforts to recoup these funds and ensure they are returned to American taxpayers.

In response to Cassidy's efforts, the PBGC is conducting a full census audit of 62 other pension plans that received a bailout through the ARPA to determine if there have been similar overpayments.

Teamsters President Sean O’Brien, representing Central States retiree participants, acknowledged the wrongful payment and stated that the fund should return the $127 million in taxpayer dollars. Despite this, Central States officials initially resisted returning the excess money. It was only after Cassidy's persistent pressure that Central States sought guidance from the Departments of Labor and Treasury on the legal authority to return the funds. Both departments confirmed that Central States had the obligation to repay the funds, leading to the initiation of a wire transfer back to the Treasury.

Cassidy has also raised concerns about ensuring that taxpayer dollars are not used for pension bailouts involving deceased individuals and has called for continued oversight to prevent similar instances in the future.

The exact total of overpayments to all multiemployer pension plans following the Democrats' bailout program remains unknown, with Cassidy pushing for transparency and accountability in the handling of taxpayer funds in such initiatives.