Did the United States pay a $127 million subsidy counting 3,479 dead people?

[Peter Gulia]

According to a report from the Pension Benefit Guaranty Corporation’s Office of Inspector General, the US overpaid the Central States teamsters pension plan about $127 million because an application for special financial assistance reported 3,479 participants who had died.

“While the [PBGC]’s review process required Central States to provide a list of all Plan participants and proof of a search for deceased participants (death audit), the [PBGC] did not cross-check the information against the Social Security Administration’s (SSA) Full Death Master File (DMF)—the source recommended by the U.S. Government Accountability Office for reducing improper payments to deceased people. (The Full DMF is more accurate than any database private pension plans have access to[,] and is used by the [PBGC] in its other insurance programs to ensure proper payments of pension benefits to plan participants).”

Deceased Participants in the Central States' Special Financial Assistance Calculation.pdf

[CuseFan]

On 11/4/2023 at 8:36 AM, Peter Gulia said:

report from the Pension Benefit Guaranty Corporation’s Office of Inspector General

Wait, teamsters and possible pension fraud? Never would have crossed my mind in a million years, where is Jimmy Hoffa when you need him? If I end up next to him in the next few days you all know who did it - you won't find me, though, but if you a paint imperfection in the NY Giants or Jets logo in the Meadowlands end zone, that's probably where I'll be - LOL!

[Peter Gulia]

Jokes and laughs aside, in fairness the report did not suggest a failing of Central States, Southeast & Southwest Areas Pension Plan.

Rather, the report criticizes the PBGC for not using the full death master file, a resource not available to Central States.

https://oig.pbgc.gov/pdfs/SR-2023-10.pdf

[Effen]

Agreed.  This is not a sign of fraud in any way.  Central States has 360,000 participants so they found < 1% were deceased.  They received $36 B in SFA.  Yes, $127M is a big number but it is only .35% of what they received.  Also, not like that money goes into anyone's pocket - other than truckers and other pensioners who use it to live on.  

PBGC has changed their procedures and now do their own data scrubs before the SFA filing is reviewed.  Previously, funds needed to show documentation that they scrubbed the data, but now, PBGC does it for them.  

[Belgarath]

Cuse - Jimmy Hoffa's body can undoubtedly be found in my wife's pocketbook, along with the lost city of Atlantis, several hundred pounds of loose change, pay stubs and sales slips dating back to 1981, rotten bananas, several dozen pens, and a Civil War cannon. And that's not even the main compartment!

[CuseFan]

Sorry, I know managing a huge union fund and population is no walk in the park, and I did not read the article, but as an old timer the connection between teamsters and dead people collecting pensions struck me as humorous. So, to keep it going, I wonder how many of them voted on Tuesday?!

I know the real gist of the article was the failings of a government agency, but making fun of that is like shooting fish in barrel.