PoliticsBiden announces multi-million dollar plan to protect the pensions of more than...

    Biden announces multi-million dollar plan to protect the pensions of more than 350,000 workers

    Biden announces multi-million dollar plan to protect the pensions of more than 350,000 workers

    President Joe Biden announced Thursday that $36 billion from the American Rescue Plan (ARP) will be used for the Central States Pension Fund, preventing drastic cuts in pensions and retirement hard-earned benefits of more than 350,000 workers.

    Present at the announcement of the historic pension fund relief plan were Biden, Teamster President Sean O’Brien, AFL-CIO President Liz Shuler, Labor Secretary Marty Walsh, and workers and Teamster retirees with pensions from multiple employers.

    Funding provided by President Biden’s American Rescue Plan will prevent approximately 60% cuts in pension benefits in coming years for more than 350,000 Central States Pension Fund workers and retirees.

    These workers contributed to the Central States Pension Fund for years and faced cuts to their pensions. through no fault of their own.

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    Approved by the Pension Benefit Guaranty Corporation, this is the largest grant of federal financial support for pension security for workers and retirees and the largest award from the American Rescue Plan Special Financial Assistance Program.

    Known as the “Butch Lewis Act,” named after the heroic Ohio pension union leader, this program provides security to more than 200 distressed multi-employer pension plans due to declining funding, helping to ensure that the pension plans of some 3 million workers remain solvent and pay full benefits until at least 2051.

    Ensuring that workers and their families enjoy the retirement security they earned through a lifetime of work is a central part of President Biden’s economic plan.

    President Biden is building the economy from the bottom up for what it takes help ensure a dignified retirement for all working America and their families.

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    American Rescue Plan’s Special Financial Assistance Program Provides financial relief to struggling multi-employer pension plans and ensures that millions of families facing benefit cuts receive all the benefits they earned.

    Multi-employer plans are created through agreements between employers and a union, with plans generally involving multiple employers in a single industry or related industries.

    A typical worker whose multi-employer plan becomes insolvent you would see your expected pension benefits substantially reduced.

    Before the American Rescue Plan, workers and retirees who participated in more than 200 multi-employer pension plans faced the possibility of not receiving all the earned benefits they need to support themselves and their families in retirement.

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    These plans are insured by a federal agency, the Pension Benefits Guarantee Corporation (PBGC), which provides partial benefit protection for approximately 11.2 million workers and retirees in approximately 1,400 union-connected private sector multiemployer plans.

    Prior to the America Rescue Plan, PBGC’s multi-employer pension insurance program was projected to it would file for insolvency in 2026.

    Under President Biden’s Special Financial Assistance program, financially distressed multi-employer pension plans may apply to PBGC for assistance.

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    Source: La Opinion

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