Biden boosts union pension fund with $36 billion injection of taxpayer money
The money for the
"Thanks to today's announcement, tens of thousands of union workers in states like
"Imagine losing half of that pension or more through no fault of your own," he continued. "You did your part. You paid in. Imagine what it does financially, to your peace of mind. What it does to your dignity because you count on not having anybody to retire."
Sen.
"Once again Biden is paying back his Big Labor allies to the detriment of taxpayers and the 90% of American workers who have chosen not to affiliate with a union," he said. "Long before COVID, union officials have been mismanaging plans like the Teamsters Central States fund, which makes it especially offensive that the pandemic has been used as the excuse for this bailout."
Established in 1955, the
Like other strained pension funds, Central States has been plagued with a variety of problems. Rising costs, a weaker stock market, and a drop in the number of active workers participating in the fund have crippled its revenue.
It is not the only pension fund struggling as union membership declines. Other pension plans have warned they will run out of money soon.
A report by the
As plans become insolvent, they apply to the PBGC, a government organization to protect the plans. But the multi-employer program was in bad shape and faced the likelihood of insolvency in 2026 and a "near certainty" of insolvency by 2027 due to the cost of covering pension failures.
In a gift to unions, Biden included the
Under the measure, pension plans can apply for federal grant funding, which would be used to pay retirement benefits to workers. Multi-employer plan sponsors can apply for the aid through 2025, and the funds must be invested in investment-grade bonds.
PGIM Investments announces ETF closure
Pritzker signs unemployment insurance agreement into law
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News