Biden administration provides $36 billion relief for pension fund to prevent cuts

ISTANBUL

President Joe Biden announced Thursday that his administration is providing $36 billion in relief for a major union pension fund to prevent cuts for more than 350,000 Teamster workers and retirees across the nation.

Biden called the move "the single largest approval of funds" and added "Union workers and retirees are facing cuts up to 60% of their benefits starting in the next few years if we hadn't act," during a speech at the White House.

"That means some folks would stand to lose $10,000 each and every year of their retirement, the money they earned," he said.

The White House said "workers paid into the fund for years or even decades, and faced cuts through no fault of their own."

"Ensuring that workers and their families enjoy the retirement security they earned through a lifetime of work is a central part of President Biden’s economic plan," it added.

The massive relief will come from Biden's $1.9 trillion coronavirus relief package known as the American Rescue Plan that the president signed into law last year. It will protect pensions for employees at least through 2051.

The Central States Pension Fund, one of the nation's largest, announced this summer it has become seriously underfunded as it pays out $5.7 million more in benefits than employer contributions every day.