Pennsylvania Unions Reminded of Pension Gains from Biden's Rescue Plan as Election Looms

By Madz Dizon

Jun 22 2024, 04:58 AM EDT

Pennsylvania Unions Reminded of Pension Gains from Biden's Rescue Plan as Election Looms — U.S. President Joe Biden delivers remarks about his administration's work to lower the cost of breathing treatments for asthma and COPD patients during an event with healthcare advocates and stakeholders in the Indian Treaty Room in the Eisenhower Executive Office Building on April 03, 2024 in Washington, DC. Chip Somodevilla/Getty Images

With the general election approaching, Democrats are eager to highlight the preservation of pensions for many workers in Pennsylvania. Thanks to a coronavirus pandemic-era aid package that continues to provide support.

Biden's American Rescue Plan Protects 2 Million Workers' Pensions

According to the White House, over one million union workers and retirees' pensions have been protected by the Butch Lewis Act, which was passed into law in the spring of 2021.

Implemented as part of President Joe Biden's American Rescue Plan, the law will effectively prevent cuts to the retirement benefits of 2 million workers and retirees nationwide.

The name of this is in honor of a retired Ohio trucker and Teamsters union leader who dedicated his final years to opposing significant reductions to the Teamsters' Central States Pension Fund, AP reported.

The organization established a unique financial assistance program that enables multi-employer pension plans in need to seek support from the Pension Benefit Guaranty Corp., a federal agency dedicated to safeguarding the retirement incomes of workers in defined benefit pension plans.

Butch Lewis Act to Stabilize 200 Multi-Employer Pension Plans

The Butch Lewis Act aims to address the financial challenges faced by approximately 200 multi-employer pension plans, providing a potential solution to their insolvency for a period of 30 years.

Numerous workers were on the verge of experiencing significant reductions in their benefits, potentially resulting in severe economic consequences for over 2 million retired and retiring individuals.

According to The Hill, Biden highlighted the significant number of individuals in Illinois whose pensions have been safeguarded, reaching a total of 71,000 people.

Furthermore, the pensions of 71,000 New Yorkers, 62,000 Ohioans, 61,000 Michiganders, 39,000 Missourians, and 33,000 Wisconsinites have been safeguarded.

The president also mentioned that a significant number of Teamsters, United Food and Commercial Workers, and United Steelworkers and United Auto Workers' pensions have been safeguarded.