On August 2, 2024, the Pension Benefit Guaranty Corporation took responsibility as trustee for the defined benefit pension plan sponsored by Yellow Corporation. Yellow Corporation filed for bankruptcy protection on August 6, 2023. The Yellow Retirement Pension Plan ended as of May 1, 2024. The plan covers over 4,300 workers and retirees.
PBGC will update the following questions and answers about the Yellow Retirement Pension Plan as more information becomes available.
PBGC is the federal agency created by the Employee Retirement Income Security Act of 1974 (ERISA) to protect pension benefits in private sector defined benefit plans – the kind that typically pay a set monthly amount at retirement. If your pension plan is insured by PBGC and ends without sufficient money to pay all benefits, PBGC’s insurance program will pay you the benefit provided by your pension plan up to the limits set by law.
Yes. PBGC insures the Yellow Retirement Pension Plan. This is a single-employer pension plan that covers over 4,300 pension plan participants.
No. While underfunded pension plans may terminate during bankruptcy proceedings, a company’s bankruptcy filing by itself does not terminate a pension plan.
PBGC stepped in to become responsible for the pension plan because Yellow Corporation ceased operations in July 2023 and is liquidating in bankruptcy. As a result, continuation of the plan is not possible. PBGC and Yellow Corporation agreed to terminate the plan as of May 1, 2024, and transferred responsibility for the plan to PBGC on August 2, 2024.
When an underfunded pension plan is terminated and transferred to PBGC, we notify plan participants and beneficiaries and provide information about their plan and about PBGC.
If you are already receiving a pension benefit, your payments will continue without interruption in the annuity form you chose at retirement.
If you have not yet retired, your payments will begin when you become eligible and apply for pension benefits.
Yellow Retirement Pension Plan workers and retirees with questions about their benefits should contact the PBGC Customer Contact Center at 1-800-400-7242.
At this time, benefits paid from the Yellow Retirement Pension Plan are estimates of the amounts payable by PBGC.
No. You cannot earn additional pension benefits under the plan after the date the plan terminates.
Some pension plans offer their participants lump sum payments for the full value of their pensions, but PBGC generally does not.
PBGC pays benefits in monthly payments for life. However, if the total value of your benefit payable by PBGC is $7,000 or less and you have not started receiving monthly payments, you can receive a lump sum from PBGC.
Yes.
Prior to March 1, 2024, there were three single-employer plans: Roadway LLC Pension Plan, Yellow Corporation Pension Plan, Yellow Retirement Pension Plan.
On March 1, 2024, Yellow merged all three single-employer pension plans, with the surviving plan being the Yellow Retirement Pension Plan. This plan terminated with a date of plan termination of May 1, 2024.
Because the Yellow Corporation Pension Plan and the Roadway LLC Plan merged into the Yellow Retirement Pension Plan prior to PBGC taking over the Yellow Retirement Pension Plan, participants in these merged plans are included in the Yellow Retirement Pension Plan.
PBGC will work with the plan administrator regarding your application.