Posted on 12/08/2022 7:55:26 AM PST by chuckee
President Joe Biden on Thursday is announcing the infusion of nearly $36 billion to shore up a financially troubled union pension plan, preventing severe cuts to the retirement incomes of more than 350,000 Teamster workers and retirees across the United States.
The money for the Central States Pension Fund is the largest amount of federal aid provided for a pension plan, the Biden administration said, and comes from the American Rescue Plan, a $1.9 trillion coronavirus relief package that he signed into law in 2021.
Many union retirement plans have been under financial pressure because of underfunding and other issues. Without the federal assistance, Teamster members could have seen their benefits reduced by an average of 60% starting within a couple of 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,” said Lisa Gomez, assistant labor secretary for employee benefits security.
Multiemployer pension funds are created by agreements between unions and companies and are partially insured by the federal government’s Pension Benefit Guaranty Corporation. The insurance program was on track to become insolvent in 2026, but the pandemic relief money is expected to keep it on firm footing through 2051.
Biden traveled to Ohio in July to highlight the final rules for the pension relief program. Before Thursday, the program had awarded aid to 36 troubled pension plans, but none of those had received more than about $1.2 billion.
The amount going to the Central States Pension Fund represents somewhere between one-third and one-half of the total estimated cost of the federal aid program.
The retirement plan has participants in almost every state, with the largest concentration in the Midwest. There are about 40,000 participants in both Michigan and Ohio, nearly 28,000 in Missouri, 25,000 in Illinois and about 22,000 each in Texas and Wisconsin, according to figures provided by the White House.
It was allocated by Congress, in the two trillion dollar slush fund they voted for to “deal with Covid”.
Just criminal
Many union retirement plans have been under financial pressure because of underfunding and other issues.
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Hmmm...what “other issues”? Prolly some mismanagement or malfeasance.
This is a demographic disaster, not a case of mismanagement. See the U.S. steel industry for a case study in how this unfolds.
Ummmmm…..
Joe…..
The Covid got into my bank account and ate up all the money.
Can you give me a billion or two to tide me over til the new year?
Crickets from the spineless Gomers Of Politics.
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Totally useless party.
I feel like all those folks saying that the ship has sailed when I point out there is no enumerated power for the congress to even spend money on stuff like this.
With Arbitrary government there are no rules.
There was no requirement for the unions to correct their underfunding problem going forward in exchange for the bailout. Everyone understands, they will continue underfunding until the next Dem administration and Congress bails them out again with taxpayer funds.
Now there’s some fine money laundering. The unions under-fund and poorly invest the pensions, they donate $$$$$ millions of dollars to the Democrats, and we taxpayers pick up the tab. Pretty slick.
We are run by thieves and idiots.
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These people are not idiots, they are cunning thieves who take advantage of idiots.
One thing for certain: we are a kleptocracy now.
Thanks for posting. Was doing a search to see if it had been posted yet.
Most people have a 401K retirement instead of a pension. They have lost a lot of money under Biden,
I smell payment to Teamsters in ballot creation programs.
Now Biden will have to continue paying. He’s now a blackmail bank they can rob and the bank guards have to help them load the getaway trucks of cash.
Now you understand why Democrats were so desperate to install Biden.
Trump would have told the unions to go to hell.
The GOP need to go to court to stop it. If Biden wants to give away money he needs to go to congress.
Follow the dots. Biden attacks fossil fuels, energy prices go through the roof. Then Biden/Pelosi/Schumer go on a reckless spending spree, pumping trillions into a frozen economy due to shutdowns. Inflation went haywire crushing pension plans. Now that buffoon Biden is bailing out pension funds, but won’t relent on fossil fuel hysteria.
What a mega POS.
Spending like drunk sailor. It won’t stop even if they run out of money. They will just confiscate our bank accounts. Banks will fold like a cheap suit. Cripto will be here and easier for them to dictate to citizens. I don’t recognize my country. Heartbroken for my grandchildren. Lord help us!!!
Agree, but I'm trying to remember the last time the GOP did something right.
The way to fix this underfunding nonsense going forward that puts taxpayers on the hoof for underfunded union defined benefit plans is legislation prohibiting the bailout of defined benefit plans going forward. That sends a message to unions pulling this crap they must switch to defined contribution 401K plans like the rest of private sector America that does not have bailout issues. If they stick with defined benefit, they are on their own
Remember during the financial crisis Obama bailed out the UAW pension plan, but the managers, not union members, were SOL. I remember Trump talking about righting this wrong, but don’t know if he did.
This Christmas season, if you have any relatives who are teamster retirees, be sure to send them a great big bag so they can fill it with your money.
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