Katelyn Walker Mooney Acting Assistant Secretary for Policy | Official Website
The U.S. Department of Labor has released a report detailing the impact of the American Rescue Plan on financially distressed pension plans. The Employee Benefits Security Administration's findings highlight that over 1.2 million workers, retirees, and their families have had their retirement benefits secured through this initiative.
As of October 2024, more than $69 billion in Special Financial Assistance has been allocated to 98 multiemployer pension plans. These plans faced average reductions in retirement benefits of 41 percent before receiving aid. The American Rescue Plan has also facilitated over $1.6 billion in restorative and ongoing benefit payments to more than 121,000 retirees, averaging about $13,600 per retiree. Nearly half of these funds were used to reverse previous benefit reductions for retirees.
Acting Secretary Julie Su commented on the significance of pensions, stating, "A pension is more than a number on a sheet of paper; it’s the ability to stop working after years of making a good, honest living." She added that the Biden-Harris administration's plan has ensured a secure retirement for over 1.2 million individuals and anticipates covering more than two million workers and retirees in the future.
The Special Financial Assistance program supports union workers across various industries, including nearly 620,000 Teamsters and significant numbers from other unions such as the United Food and Commercial Workers International and Bakery and Confectionery workers.
Named after Butch Lewis, a former Teamster advocate for pension protection, the legislation aims to maintain solvency for pension plans covering approximately two million workers and retirees until at least 2051.
For further details, readers can access the EBSA report on Special Financial Assistance or review a White House fact sheet on the Butch Lewis Act's impact.
