Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) and Representative Bob Good (R-VA) are continuing to pressure Attorney General Merrick Garland to recover taxpayer funds that were used to make improper payments to multiemployer pension plans.
In a letter to Garland, Foxx outlines the ongoing investigation of the Biden-Harris administration’s implementation of the Special Financial Assistance (SFA) program that was included in the American Rescue Plan Act. The gross mismanagement of the program has resulted in hundreds of millions of dollars in overpayments to multiemployer pension plans for deceased participants.
In the letter, Foxx and Good write: “In November 2023, the Committee became aware that the Pension Benefits Guaranty Corporation (PBGC) approved more than $127 million in SFA program overpayments for at least 3,479 deceased participants for one plan alone: the Central States, Southeast, and Southwest Pension Fund (Central States). As the result of oversight on this matter, the Committee ensured that the $127 million in overpayments would be recovered on behalf of taxpayers. On April 8, 2024, DOJ announced it had entered into a civil settlement agreement to receive repayment of these funds from Central States. One other plan, the Graphic Communications National Pension Fund (NPF), also agreed to repay $8 million of improper SFA it received on behalf of deceased participants. However, PBGC has not reported repayment from more than 60 other plans that received similar improper payments. We are concerned that none of these other plans have restored the improper payments.”
Despite repeated inquiries from the Committee, DOJ has failed to respond, frustrating the Committee’s ability to fulfill its investigative and legislative duties as the 118th Congress comes to a close.
