Feds take over the B’nai B’rith pension plan
The U.S. government’s takeover of B’nai B’rith International’s pension plan, which is more than $25 million in debt, raises serious questions about the long-term viability of the 169-year-old, once-giant Jewish organization.
The plan, which has about 500 participants, has $55.6 million in liabilities but only $30.1 million in assets. On Sept. 11, the federal government’s Pension Benefit Guarantee Corp. said it would assume control of payments and raised questions about B’nai B’rith’s future.
“The agency stepped in because B’nai B’rith wouldn’t have been able to pay its bills or stay in business unless the plan was terminated,” it said in a posting that day on its blog…
Michael Faulkender, an associate professor of business at the University of Maryland, could not comment on the specifics of the B’nai B’rith situation, but he did say that the move “definitely creates concern about the long-term health of the agency because the PBGC would expect the company to make the pension whole if they had the ability to do so before stepping in and taking over…”
The PBGC guarantees all pension benefits up to the legal limit of $54,000 per year for a 65-year-old, according to congressional regulations…
B’nai B’rith has a vaunted history in American Jewish life, having started the Anti-Defamation League, the B’nai B’rith Youth Organization and what is now Hillel: The Foundation for Campus Jewish Life. All three have left the parent organization and now operate independently. The social activities of many hundreds of B’nai B’rith fraternal lodges — such as bowling leagues and community volunteer projects — were a staple of organized American Jewish life throughout much of the 20th century.
But membership, which in the 1970s was said to have stood at 500,000, has waned substantially. No current figures were available. In 2002, the organization sold its eight-story headquarters in Washington and moved into a suite of nearby offices…
In March 2011, B’nai B’rith’s then-president, Dennis Glick, resigned abruptly from his volunteer position after being indicted on five counts, including federal charges of tax fraud. Glick, a certified public accountant, was found guilty last October “of corruptly endeavoring to obstruct and impede the Internal Revenue laws and willfully preparing false tax returns.”
At the time, a B’nai B’rith spokeswoman said that Glick’s legal problems were private and had no connection to the organization.
I’ve witnessed the slow dying away of a number of old-timey ethnic and religious fraternal organizations. Nothing as abrupt or surprising as this. I always felt the B’nai B’rith would be around forever.
You know – on reflection – this also answers the claims made by conservative Jewish lobbyists that they can deliver the “Jewish Vote” as a block. Not anymore, man!