Pension Insurer Commits $26 Million to Union Funds Merger (1)

The federal pension insurer is blessing the merger of two union funds—one of which is facing insolvency within six years—with $26 million in financial aid designed to spare over 1,500 laborers from benefit cuts.

The Pension Benefit Guaranty Corporation will pay $8.9 million a year for the next three years to preserve Laborers International Union of North America Local 1000’s troubled pension plan, Director Gordon Hartogensis announced Tuesday. The official determination letter endorses combining Local 1000’s plan with LIUNA Local 235’s less-distressed pension fund.

The agency touted the melding of the two retirement plans as the first of its kind ...