In a significant development aimed at safeguarding the retirement security of American workers and retirees, Senator Bob Casey and White House American Rescue Plan Coordinator Gene Sperling gathered today in Hershey, Pennsylvania, alongside union leaders and pension beneficiaries.
They announced crucial assistance under the American Rescue Plan (ARP) that will prevent drastic benefit cuts for more than 103,000 workers and retirees covered by the Bakery and Confectionery Union and Industry International Pension Fund.
This initiative, which marks the second-largest award under the ARP’s Butch Lewis Act, ensures that over 1 million workers’ pensions nationwide—including 52,000 Pennsylvanians—will remain intact.
Preservation of Pensions
The Bakery and Confectionery Union and Industry International Pension Fund, previously facing financial distress, encompasses a diverse group of workers across the baking and confectionery sectors.
Without the intervention provided by President Biden’s American Rescue Plan, these hardworking individuals would have seen their earned pension benefits reduced by approximately 45% by the end of the decade.
The ARP’s Special Financial Assistance program, administered by the Pension Benefit Guaranty Corporation (PBGC), now ensures that these pensions will remain solvent through at least 2051, providing critical stability for retirees who rely on these benefits.
Biden Administration’s Commitment
Today’s announcement builds on the Biden administration’s broader efforts to support workers and retirees across various industries nationwide.
With over one million workers and retirees already benefiting from ARP protections, the administration emphasizes its commitment to upholding pension rights and ensuring that those who have contributed to these plans receive their full benefits.
This initiative not only averts immediate benefit cuts but also restores previous reductions for retirees in 36 multiemployer plans, underscoring a significant victory for pension security and economic stability.
