Central States was on track to run out of money in 2025. The American Rescue Plan Act's Special Financial Assistance program changed that.
Where Central States stands
Many Teamsters members are in multiemployer plans, the largest of which is Central States. PBGC approved about $35.8 billion of Special Financial Assistance for Central States under the American Rescue Plan Act, announced December 8, 2022, for a plan covering 357,056 participants. Without it, the plan was projected to run out of money in 2025, and benefits would have dropped to PBGC guarantee levels, which PBGC said are roughly 60% below plan benefits.
Repayment
In April 2024 Central States returned more than $126.5 million of the assistance, the part paid on inaccurate participant census data. We found no primary source for a Central States lump sum offer.
What the rescue did
PBGC said the assistance lets Central States keep paying benefits without reduction for many years.
Social Security
Jobs covered by Central States paid into Social Security, so the Windfall Elimination Provision never applied to these pensions, and WEP was repealed anyway for benefits payable after December 2023. If the pension covers your basic expenses, delaying Social Security toward 70 raises the one income source that adjusts for inflation. Model it with the Social Security calculator.
The Teamsters employer page lists the filings behind every date and dollar figure here.