The Graphic Communications National Pension Fund (NPF) has agreed to repay over $8 million in excess funds received from the Pension Benefit Guaranty Corporation (PBGC) under the Special Financial Assistance Program. This agreement follows a civil settlement.
The Special Financial Assistance (SFA) Program, established by the American Rescue Plan Act of 2021, aims to protect workers in multiemployer pension plans from significant benefit reductions. Administered by the PBGC, the program provides one-time payments to eligible pension plans to ensure they can pay benefits through 2051. To determine funding needs accurately, SFA applicants must document an independent death audit to identify deceased participants.
An audit by the PBGC’s Office of Inspector General (PBGC-OIG) found that NPF's census data erroneously included approximately 371 deceased participants among its more than 30,000 plan members. This error led to an overstatement of NPF’s SFA award by about $8 million out of a total award of approximately $1.5 billion. The NPF cooperated with the investigation and assisted with actuarial analyses necessary for calculating and validating the excess funds.
“The Civil Division will continue to work with PBGC to recover any excess funds paid in connection with the SFA Program,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “I commend the NPF for its cooperation with the government’s efforts to identify and quantify excess SFA Program funds, as well as its prompt repayment.”
“Correcting an inaccurate SFA payment serves everyone’s interests and gives the public greater confidence in the stewardship of taxpayer money by Federal employees,” said PBGC Inspector General Nicolas J. Novak. “We appreciate the continuing cooperation of the affected plans with PBGC and DOJ’s efforts.”
“PBGC is working diligently with other plans to facilitate return of SFA funds based on inaccurate census data,” said PBGC Acting Director Ann Y. Orr. “PBGC appreciates the collaborative efforts of DOJ and PBGC-OIG involved in these recoveries.”
This resolution resulted from coordinated efforts between several agencies including Justice Department’s Civil Division, Commercial Litigation Branch, PBGC-OIG, PBGC Office of General Counsel, Department of Labor, and Department of Treasury. This marks the second settlement involving excess SFA fund returns from PBGC, bringing combined recoveries to over $134 million.
Senior Trial Counsel Kelley Hauser from Civil Division’s Commercial Litigation Branch handled this matter.
The claims resolved by this settlement are allegations only; there has been no determination of liability.
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