Yellow’s Demise Won’t Sink Central States, Due to US Bailout (1)

The Biden administration’s multiemployer retirement plan bailout program will protect the nation’s largest pension from being dragged under by trucking giant Yellow Corp.'s impending demise.

Yellow’s prolonged funding woes gave the Central States, Southeast and Southwest Areas Pension Plan enough forewarning to factor the company’s possible bankruptcy into the special financial assistance package it applied for and received under Biden’s American Rescue Plan (Pub. L. No. 117-2) late last year.

Unpaid contributions and withdrawal liability Yellow still owes the Teamsters union pension are unsettled, however, as bankruptcy courts could begin dividing up the firm’s assets. The case could ...