Yellow Loses Challenge to PBGC Pension Bailout Liability Rules

The Pension Benefit Guaranty Corporation has the authority to issue rules on calculating an employer’s liability when withdrawing from multiemployer pension plans that received a massive government bailout, a bankruptcy judge ruled in a dispute involving Yellow Corp.

The federal government’s private pension insurer’s authority to regulate stems from the 1974 Employee Retirement Income Security Act and the 2021 American Rescue Plan Act, Judge Craig T. Goldblatt of the US Bankruptcy Court for the District of Delaware held Friday.

The ruling is a loss for Yellow, which shut down its trucking operations in 2023 and has attempted to avoid vested ...