Biden to announce $36 billion in relief for major pension fund to avoid benefit cuts




 

President Biden on Thursday will announce $36 billion in financial relief to stave off pension cuts for thousands of union workers, the White House said.

Biden will be joined by Labor Secretary Marty Walsh and union leaders and workers to detail the funding for the Central States Pension Fund, which provides benefits mostly for Teamsters union employees that include truck drivers, warehouse workers, construction workers and others. The money will come from the American Rescue Plan's Special Financial Assistance Program, the White House said.

The Central States Pension Fund reported in August that it had $7.4 billion assets and had applied for $35.1 billion in relief. The White House estimated that retirees would have faced a roughly 60 percent reduction in benefits without financial relief.

With the funding to be announced Thursday, it will be able to protect pensions earned by Teamsters employees through at least 2051. The White House estimated that it will protect the benefits of more than 350,000 retirees and current union workers.

"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," the White House said in a fact sheet.

The announcement comes as a major show of support from Biden for union employees, as he has billed himself as the most pro-union president ever to take office. It also comes on the heels of Congress imposing a labor contract on railroad workers to avert a strike, an action they took with support from Biden, who warned of severe economic consequences if freight rails shut down.

That deal did not include additional sick days that union workers had been advocating for, but Biden stressed that he hoped Congress could return to the issue in the future and pass legislation ensuring sick leave for all workers.

For the latest news, weather, sports, and streaming video, head to The Hill.

COMMENTS

More Related News

Biden Administration Announces New $2.2 Billion Aid Package to Ukraine
Biden Administration Announces New $2.2 Billion Aid Package to Ukraine

The U.S. has sent over $27 billion worth of military aid to Ukraine since the Russian 'special military operation' began last year.

What is the State of the Union speech?
What is the State of the Union speech?

US President Joe Biden will deliver his second State of the Union address on Tuesday 7 February - but what is the speech's purpose?

Shoot it? Snare it? Let it go back to China? US officials wring hands over options for spy balloon
Shoot it? Snare it? Let it go back to China? US officials wring hands over options for spy balloon

Among the many lingering questions about a Chinese spy balloon is why it's in U.S. airspace and why now.

Count on a springtime re-election announcement for Biden if he follows Trump, Obama, Bush and Clinton
Count on a springtime re-election announcement for Biden if he follows Trump, Obama, Bush and Clinton's examples

Bill Clinton, George W. Bush, Barack Obama and Donald Trump announced their re-election bids between April and June in the year before the election.

Eight Republicans who could challenge Trump in 2024
Eight Republicans who could challenge Trump in 2024
  • World
  • 2023-02-04 11:00:00Z

The possibility of a crowded GOP presidential primary in 2024 has grown likelier in recent days following reports that former U.S. Ambassador to the U.N...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Latin America