Probe: Federal government paid $127 million fraudulently to Teamsters

A letter from Republican U.S. Rep. Virginia Foxx of North Carolina’s 5th congressional district accuses a federal government agency of “reckless mismanagement” for sending $127 million in pension payments earmarked for deceased members of a Teamsters union.

Originally reported by The New York Post, Foxx’s letter, dated Jan. 16, says that the Pension Benefit Guaranty Corporation issued an allocation to fund the pensions of 3,479 dead individuals. The funds were part of billions in earmarks meant for unions in the Biden administration’s 2021 American Rescue Plan.

Foxx’s letter says that applications were not cross-checked against the Social Security Administration’s full Death Master File. The PBGC — which represents nearly 350,000 Teamster retirees — claims that the moneys shouldn’t be eligible for recovery.

“By all appearances, PBGC intended to shift taxpayer dollars to the Central States Pension Fund in an unauthorized windfall to get this money back,” wrote Foxx, who chairs the U.S. House Committee on Education and Workforce. “PBFC’s dismissive attitude toward taxpayer waste and abuse defies common sense.”

“The Committee intends to conduct robust oversight of PBGC’s negligence, including possible testimony before the Committee,” Foxx added.

The letter asks the PGBC to respond to a series of questions by Jan. 30.