President Joe Biden has just made a huge splash with an announcement that’s bound to bring relief to the over 600,000 Teamster workers and retirees all across the country.
Teamsters Pension Fund Gets a Boost
Thanks to a huge $5.7 billion boost from the American Rescue Plan Act (ARPA), the New England Teamsters pension fund is getting a serious upgrade. This cash infusion is set to protect the pensions of over 72,000 union members, making sure they can retire with the peace of mind they deserve.
The Teamsters
For those not in the know, Teamsters are members of the International Brotherhood of Teamsters, a union that helps workers negotiate better wages, benefits, and working conditions.
Union Coverage
It used to represent just truck drivers but now covers a wide range of jobs, including drivers, warehouse staff, and bakery workers.
A Regional Impact
The pension fund is a big deal for a lot of people: it covers nearly 30,000 workers in Massachusetts, over 13,000 in Connecticut, and thousands more spread across New Hampshire, Rhode Island, Maine, and Vermont.
Biden Brings Good News to the Granite State
The news came during Biden’s visit to New Hampshire, where White House ARPA coordinator Gene Sperling shared the good news.
From Dire Straits to Financial Security
According to Sperling, Teamsters were on track for massive cuts in their pensions – between 50-75%. It sounds dire, but now they’re in a much better position.
The Pension Rescue Mission
“To know this is restored means people are going to be able to age where they want in the home, in the neighborhood they want and, again, be a help to their kids and grandkids,” he said in his announcement.
A Nationwide Pension Protection Plan
In a statement, Biden made it clear that this move wasn’t just for New England – although “Today’s action protects the pensions of 70,000 workers and retirees in New England – including 6,000 in New Hampshire.”
Teamsters Across America Breathe Easy
It’s part of the administration’s broader plan to safeguard pensions across the nation, helping “over 600,000 Teamster workers and retirees have pensions protected from devastating cuts.”
The American Rescue Plan
Biden explained that “Because of the American Rescue Plan (…) over 1 million union workers and retirees have already been protected from brutal cuts of up to 75% to the pensions they sacrificed so much to secure, adding, “This didn’t happen by accident. It’s because my Administration is keeping our commitment to America’s workers.”
Midwest Momentum
The White House claims the ARPA has helped out thousands of Teamsters across the Midwest. Over 40,000 benefited in Ohio and Michigan, 30,000+ in Illinois and Missouri, and about 20,000 in Wisconsin, Minnesota, and Pennsylvania combined.
The Impact of ARPA
It has also reportedly protected over a million union workers and retirees across the country from brutally severe pension reductions – cuts that could have been as high as 75%.
The Politics Behind the Pension Plan
The timing of this announcement is big, as the American Rescue Plan – which passed in 2021 with zero Republican votes – is facing heated criticism. Republicans tried to negotiate a smaller package instead but failed to come to an agreement.
Not a Bailout, But a Lifeline
Biden and his team have pushed back against claims that the plan is a bailout, instead arguing that it’s a lifeline for those who’ve put in decades of hard work. “They earned those pensions after working for decades. And now they can retire with dignity,” Biden said in his statement.
Second to None
This funding is definitely a lifeline for the New England Teamsters, who are receiving the second-largest award under the program so far.
The State Of The Pension Plan
Their pension fund was facing serious challenges before this boost – with only about $3.35 billion in assets and just 20.6% funding.
Protecting Workers, Retirees, and Their Loved Ones
The plan helps a lot of people, including current workers, retirees, and family members of those who have passed away.
The Importance of Pension Protection
Senator Jeanne Shaheen of New Hampshire praised the ARPA’s role in addressing the pension crisis, stating, “Multi-employer pension funds had been experiencing some challenges as companies consolidated, as companies went out of business. And so, as part of the American Rescue Plan, we said that’s not right for people who paid into their pensions.”
The Road Ahead
This huge boost to the pension pot will help in-work and retiring Teamsters across America.
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