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President Biden returned to his “Union Joe” roots on Thursday when he swooped in with a $36 billion bailout for the Teamsters’ ailing pension fund.
The money for the Central States Pension Fund is the largest amount of federal dollars ever used to bail out a pension plan. It comes out of the $86 billion in taxpayer money allocated to faltering pension plans in Mr. Biden’s $1.9 trillion COVID relief package last year.
Mr. Biden said the payout will ensure 350,000 union workers and retirees can collect benefits through at least 2051. Without the bailout, the fund would have had to cut benefits by as much as 60%, according to the White House.
“Thanks to today’s announcement, tens of thousands of union workers in states like Ohio, Michigan, Texas, Wisconsin, and Missouri, can go to bed tonight knowing the pension they worked so damn hard for is there for them when they need it,” Mr. Biden said.
“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. Charles E. Grassley, Iowa Republican, called it a “blank check with no measures to hold mismanaged plans accountable.”
Mark Mix, president of the National Right to Work Committee that advocates against mandatory union participation, said the bailout encourages more irresponsible behavior from union pension managers.
