President Biden giving nearly $36 billion to aid Teamsters’ pension fund, with 25,000 participants in Illinois – Chicago Tribune

President Joe Biden on Thursday is saying the infusion of nearly $36 billion to shore up a financially troubled union pension plan, stopping extreme cuts to the retirement incomes of greater than 350,000 Teamsters employees and retirees throughout the United States.

The money for the Central States Pension Fund is the most important quantity of federal aid offered for a pension plan, the Biden administration mentioned, and comes from the American Rescue Plan, a $1.9 trillion coronavirus aid package deal that he signed into legislation in 2021.

Many union retirement plans have been underneath monetary strain due to underfunding and different points. Without the federal help, Teamsters members may have seen their advantages diminished by a mean of 60% beginning inside a few years.

“Union workers and their families are finally able to breathe a huge sigh of relief, knowing that their hard-earned retirement savings have been rescued from steep cuts,” mentioned Lisa Gomez, assistant labor secretary for worker advantages safety.

Multiemployer pension funds are created by agreements between unions and corporations and are partially insured by the federal authorities’s Pension Benefit Guaranty Corporation. The insurance coverage program was on monitor to change into bancrupt in 2026, however the pandemic aid money is predicted to preserve it on agency footing by 2051.

Biden traveled to Ohio in July to spotlight the ultimate guidelines for the pension aid program. Before Thursday, this system had awarded aid to 36 troubled pension plans, however none of these had acquired greater than about $1.2 billion.

The quantity going to the Central States Pension Fund represents someplace between one-third and one-half of the whole estimated value of the federal aid program.

The retirement plan has participants in nearly each state, with the most important focus in the Midwest. There are about 40,000 participants in each Michigan and Ohio, nearly 28,000 in Missouri, 25,000 in Illinois and about 22,000 every in Texas and Wisconsin, in accordance to figures offered by the White House.

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