Retirees’ and those who will soon retire have gained much needed relief for their pension plans, which had been cut. The American Rescue Plan provides provisions to fund these plans for decades.
One person who has been working on the issue for quite some time is International Brotherhood of Teamsters Vice President At Large John Murphy. He explained what pensioners can expect when he appeared on America’s Work Force Union Podcast.
Pension relief in the American Rescue Plan
Congressional Democrats and the White House managed to work long sought after pension relief into the American Rescue Plan COVID-19 relief bill. This comes as a relief to the labor community, who has been advocating this relief for years.
Murphy said he is thankful the relief was included. His phone has been busy with retirees’ and soon to be retirees’, from throughout the country, calling him to explain how much the relief does for them and what it allows them to do.
What caused these pensions to need relief?
Murphy explained how the downturn of multiemployer pension plans has been brewing for decades.
Now a year after the beginning of the COVID-19 pandemic in the U.S., which saw millions lose their jobs, people are returning to work. However, multiemployer pension plans rely on hourly contributions from those currently working. This resulted in thousands of hours not being contributed for, causing a lack in funding.
How the American Rescue Plan was passed
The American Rescue Plan was passed through reconciliation, a process not commonly used. The Democrats did not see any way to gain a single Senate Republican vote for the relief bill, causing them to use reconciliation.
Republicans continued to delay the bill in every possible way. Some Republican Senators attempted to send portions to various committees for analysis, while others attempted to add amendments with the goal of removing things such as pension relief.