The House Education and Workforce Committee issued a subpoena to the head of the Pension Benefit Guaranty Corporation, Gordon Hartogensis, due to an investigation into $127 million in overpayments made to a Teamsters’ pension plan for deceased participants. Chairwoman Virginia Foxx sought information about the overpayments but was denied, prompting the subpoena. The overpayments were made after the pension plan received $35.8 billion from the American Rescue Plan, leading to concerns about misuse of funds.
The PBGC’s Office of Inspector General found that the International Brotherhood of Teamsters’ pension plan made wrongful payments to deceased members without consulting the Social Security Administration’s Full Death Master File. This issue was identified in November and raised questions about the management of federal funding. The House Education and Workforce Committee had repeatedly requested details about the overpayments, which the PBGC failed to provide, leading to the subpoena. The Department of Labor also announced that the funds must be recovered, adding to the urgency of the situation.
A report by the Government Accountability Office revealed $236 billion in improper payments across 14 federal agencies, excluding the PBGC, in fiscal year 2023. This highlights a systemic problem of financial mismanagement within federal agencies. The House Education and Workforce Committee has been actively seeking information about the overpayments in order to consider legislation like the Ghost Handouts and Overpayments Stop Today Act (GHOST Act) to prevent such situations in the future. The deadline for providing relevant documents related to the payments has been set for April 9.
During a Senate Health, Education, Labor, and Pensions Committee hearing in November, International Brotherhood of Teamsters president Sean O’Brien emphasized the need for the PBGC to refund the overpayments. Despite coordination between the PBGC and other entities to finalize an agreement for repayment of the $127 million, questions remain about the handling of taxpayer funds. Further inquiries during a recent hearing failed to satisfy concerns related to the Teamsters’ pension funding. The PBGC director, Gordon Hartogensis, assured that efforts were being made to recover any funds attributable to deceased participants from the pension plans.
The lack of transparency and delays in providing information about the overpayments have raised red flags for the House Education and Workforce Committee, indicating a lack of respect for taxpayer dollars. The Department of Labor’s statement that multiemployer pension plans are obligated to repay overpayments came late in the process and did not explain the months of wasted resources and delays caused by the PBGC. As the investigation continues and efforts to recover the funds progress, there is a growing emphasis on accountability and ensuring that taxpayer funds are used responsibly. The outcome of this situation will likely have implications for future oversight of federal agency expenditures.
