PBGC Wants 2nd Cir. to Rethink Revival of Fund’s Bailout Bid

The federal pension insurer asked the Second Circuit to reconsider allowing the trustees of a bakery drivers union pension fund to reinstate their application for a $130 million bailout from a Covid-19 era government program.

The decision allowing trustees of a terminated pension plan to seek special financial assistance under the 2021 program conflicts with the “bedrock principle” that courts must enforce clear statutory language, the Pension Benefit Guaranty Corp. said in a June 13 petition. The relevant statutory language only authorizes pension plans in “critical and declining status” between 2020 and 2022 to seek this assistance, and the ...