The federal government overpaid one of the nation’s largest union-backed pensions by more than $127 million in bailout cash because it failed to detect dead participants the plan had reported, according to a new watchdog memo.
A review by the Pension Benefit Guaranty Corporation’s Office of Inspector General found the government’s private-sector retirement plan insurer didn’t cross-check deceased participants the Central States Pension Plan reported in its application for special financial assistance funding.
As a result, the plan’s $36 billion payout last year accounted for nearly 3,500 participants who are deceased.
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