{"id":2279,"date":"2023-03-14T22:20:06","date_gmt":"2023-03-14T22:20:06","guid":{"rendered":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/?p=2279"},"modified":"2023-03-14T22:20:08","modified_gmt":"2023-03-14T22:20:08","slug":"federal-government-awards-36-billion-for-the-central-states-pension-fund","status":"publish","type":"post","link":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/federal-government-awards-36-billion-for-the-central-states-pension-fund\/","title":{"rendered":"Federal Government Awards $36 Billion for the Central States Pension Fund"},"content":{"rendered":"
\"Teamster<\/figure>\n

Late December 2022, President Biden announced what is being called historic relief to protect the pensions of 350,000 Central States Pension Fund workers and retirees. At an amount of $36 billion, it is the largest award of federal financial support intended to support worker and retiree pension security. The funds came from the American Rescue Plan\u2019s Special Financial Assistance Program, which provides security for over 200 distressed multiemployer pension plans and the associated estimated two to three million workers\u2019 pension benefits to ensure the plans remain solvent in order to pay workers\u2019 full benefits through 2051.<\/p>\n

Teamster Workers and Retirees Pensions Protected<\/h2>\n

The Central States Pension Fund is primarily comprised of Teamster workers and retirees serving in roles ranging from truck drivers and construction workers to food processors and warehouse workers. Without this recent award these workers and retirees would have experienced an estimated 60% reduction in the pension benefits they had already earned. Now, with this historic relief, workers and retirees from the states of Florida (19,000), Illinois (25,000), Indiana (20,000), Minnesota (19,000), Missouri (28,000), Tennessee (14,000) and Texas (22,000) are assured of receiving their full benefits through 2051. Many of these individuals rely heavily on their pensions to support them during their retirement years.<\/p>\n

The Multiemployer Pension Reform Act<\/h2>\n

Before the American Rescue Plan was signed by President Biden on March 11, 2021, the Multiemployer Pension Reform Act enabled 18 multiemployer plans to cut worker and retiree pension benefits, if necessary to remain solvent. Now, through the American Rescue Plan\u2019s Special Financial Assistance Programs, workers whose benefits were reduced are eligible to have their benefits restored. This program is regarded as the most significant policy for helping multiemployer pensions remain solvent since the Employee Retirement Income Security Act (ERISA) was enacted.<\/p>\n

Best Practices Multiemployer Pension Plan Administration<\/h2>\n

Even with this legislative protection, it is important that trustees and administrators of multiemployer pension plans adhere to best practices in the plan\u2019s administration. To ensure this, many plans opt to hand over this function to a third-party administrator (TPA) experienced in pension administration. When selecting a TPA to manage a pension plan\u2019s administration, seek out one, like Amalgamated Employee Benefits Administrators, that can provide end-to-end services encompassing:<\/p>\n