The federal government will allocate $36 billion to shore up the Central States Pension Fund, a cash-strapped retirement fund that primarily benefits members of the Teamsters union, President Joe Biden announced Thursday.
Around 350,000 union workers and retirees are expected to be impacted by the funding nationwide. Around 40,300 Michigan workers and retirees stand to benefit from the funding, according to White House estimates — the most of any state, followed by Ohio.
Those workers — truck drivers, warehouse workers, construction workers and food processors — would have otherwise faced a 60% reduction in benefits beginning in 2026. With the new allocation, the fund expects to continue to pay full benefits through at least 2051.
