The measure is seen clearing a cloud hanging over unionized trucking companies and others in multiemployer plans
Unionized trucking companies could get a lift from a provision of the $1.9 trillion coronavirus aid package that throws a fiscal lifeline to struggling multiemployer pension plans.
Analysts say the measure President Biden signed into law this month should help clear a cloud that investors see hanging over truckers ArcBest Corp. and Yellow Corp. The unionized carriers are the top two active employers in the largest of the plans likely eligible for relief, the Teamsters’ Central States Pension Fund, which is projected to become insolvent in 2025.
“There was always the lingering risk that if there was severe risk of underfunding you’d have to pay extra into the Central States,” said Citigroup Inc. transportation analyst Christian Wetherbee.
The support also could benefit delivery giant United Parcel Service Inc., which withdrew from the fund in 2007 but as of the end of last year potentially retained some liability if Central States became insolvent, according to securities filings.