In a significant development for Pennsylvania’s workforce, over 6,700 workers and retirees involved in the baking, confectionery, tobacco, and grain milling industries will see their pensions secured under the American Rescue Plan. This action was announced today by U.S. Senator Bob Casey (D-PA) alongside White House officials and union leaders in Pennsylvania. Senator Casey played a pivotal role in the passage of the American Rescue Plan, which to date has preserved the pensions of more than 52,000 Pennsylvanians, who would have otherwise faced drastic cuts of up to 45 percent.
The rescue efforts are concentrated in several areas, including Philadelphia, Hershey, Lancaster, and Muncy, reflecting the geographical spread of the impact. Prior to the implementation of the American Rescue Plan, the Bakery and Confectionery Union, and Industry International Pension Fund was among the largest distressed multiemployer pension plans nationwide.
The financial lifeline comes courtesy of the Pension Benefit Guaranty Corporation (PBGC), which allocated $3.2 billion in relief to the BCTGM under the plan’s Special Financial Assistance program. This move marks the seventh Pennsylvania-based pension plan to receive aid, joining others like the Western Pennsylvania Teamsters and Employers Pension Fund and the National Integrated Group Pension Plan.
This pension protection initiative underlines a significant push towards securing financial stability for aging workers in critical industries, safeguarding their future post-retirement.