Biden heading to Ohio to spotlight rule to rescue pensions
CLEVELAND (AP) — Reassuring frustrated blue-collar voters, President Joe Biden on Wednesday visited Ohio to highlight federal action to shore up troubled pension funding for millions now on the job or retired.
Biden’s speech at a Cleveland high school is showcasing a final rule tied to his $1.9 trillion coronavirus relief package from last year. The rule allows troubled multi-company pensions to be made financially whole, ensuring full benefits for 2 to 3 million workers and retirees.
Hurt politically by inflation at a 40-year high and damage wrought by the pandemic, the president chose to deliver his message in a state that has been trending strongly Republican, with Donald Trump easily carrying it twice. This is Biden’s sixth visit as president as he labors to personally reverse that electoral tide.
Details about Biden’s remarks were shared by two administration officials who insisted on anonymity to preview his speech.
The roughly 200 pension plans receiving assistance faced possible insolvency without government aid. And without the full benefits, workers and retirees could struggle to pay for housing, food and other essentials. The financial support should help keep the pension funds solvent for roughly 30 years until 2051.
That’s important, several retirees said.
Bill DeVito, 73, was an iron worker for almost 50 years before retiring a decade ago. When his pension was cut 40% in 2017, he said, “it was devastating.”
“The thing of it is, we had a lot of politicians over the years saying, hey, we’ll try to help you, we’ll do everything we can, and nobody’s ever done anything for us until Joe Biden come along,” he said.
Jeffrey Carlson, 67, of the Cleveland suburb of North Ridgeville, said that a year before he retired in 2017, he learned his pension would be cut, too.
“I’m grateful for anything that we could get back,” he said. “I know I earned it. I worked hard.”
Multiemployer plans are created through agreements between companies and a union, and are insured by the federal Pension Benefit Guaranty Corporation (PBGC). In 2014, Congress passed the Multiemployer Pension Reform Act that allowed plans, for the first time, to cut workers and retirees’ benefits in order to ensure that pensions projected to run out of money remained solvent.
The American Rescue Plan passed in March 2021 included a special finance assistance program that allows struggling multiemployer pension plans to apply to the PBGC for assistance. The final rule being unveiled by the Biden administration is designed to make it easier for the pensions’ investments to receive a higher rate of return.
The effort to highlight a program to help union workers comes as Democrats hope to pick up a U.S. Senate seat in Ohio, where a strong showing with working class voters could play a pivotal role.