PBGC to Pay Benefits for Employees at Los Angeles Urban League Inc.
PBGC will pay retirement benefits for 233 people covered by a plan sponsored by the Los Angeles Urban League Inc., a local chapter of the National Urban League, a non-profit civil rights organization.
In addition to the organization's work to advance equal opportunities for African American and other minority youths, the group also ran a Head Start program, which provided early education for pre-kindergarten students.
The agency is stepping in because the organization is unable to fund the plan that covers Head Start employees. The Defined Benefit Pension Plan of Los Angeles Urban League Head Start State Pre-school will end as of Aug. 31, 2014.
PBGC will pay all pension benefits earned by the plan's retirees up to the legal limit of about $59,320 a year for a 65-year-old.
Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.
Employees and retirees who are participants in the Head Start plan will continue to receive benefits from the Los Angeles Urban League until PBGC assumes responsibility.
As of May 2013, PBGC estimates show the plan is 45 percent funded with $5.6 million in assets to pay $12.5 million in benefits. The agency will cover $6.7 million of the $6.8 million shortfall.
The Los Angeles Urban League was founded in 1921 and has provided workforce development programs to foster adult and youth employment. In 1965 the organization started early childhood educational programs, including the federally funded Head Start program.