Republican lawmakers Tim Walberg and Rick Allen have asked the Department of Justice (DOJ) to help recover millions of dollars in pension payments sent to deceased Americans. The payments were part of the American Rescue Plan Act’s Special Financial Assistance (SFA) program, which aimed to support multiemployer pension plans. In a letter to the DOJ, the lawmakers expressed concern that the Pension Benefits Guaranty Corporation (PBGC) had approved over $127 million in overpayments to at least 3,479 deceased participants of the Central States, Southeast, and Southwest Pension Fund.
Despite this issue being brought to light in November 2023, little enforcement action has been taken regarding more than 60 other plans that received similar improper payments. The PBGC reported that, as of February 7, 2025, approximately 30 of these plans have voluntarily repaid nearly $30 million.
Doj efforts to recover funds
However, the remaining plans have not addressed the overpayments, which total around $165 million in taxpayer dollars. Walberg and Allen, who chair the Education and Workforce Committee and the Health, Employment, Labor, and Pensions Subcommittee respectively, urged the DOJ to take prompt and meaningful action to recover the funds and hold those responsible accountable. They emphasized the importance of transparency and proper use of taxpayer money.
The lawmakers expressed confidence that the current administration’s response will be effective, stating, “We have an opportunity to address these improper payments and to secure repayments for taxpayers. We look forward to working with you and DOJ during the 119th Congress.”
The PBGC, which insures private pension plans for more than 30 million Americans, blamed the errors on inaccurate Census data and has pledged to increase cross-checking with Social Security’s death database to prevent future occurrences.
Image Credits: Photo by Matthew Kwong on Unsplash
