In addition to the ringing government endorsements and funding for the NLRB, Biden is preparing to deliver a federally funded shot in the arm to private-sector union pension plans. It’s a short-term solution to a long-term problem, given that over 200 of these plans stand on the brink of insolvency. Biden’s bailout also neglects to address a separate issue – the ongoing mismanagement of funds by union bureaucrats.
Biden’s final rule on the subject circles back to funds that were bundled into the 2021 American Rescue Plan Act (meant to boost the economy amid pandemic downswings). A certain percentage will be invested into stocks, and Biden believes that this will keep the flagging pensions solvent until at least 2051. Yet these pension plans were in trouble long before the pandemic, and Biden’s delayed course of action invites skepticism about whether this is a purely political move ahead of midterm elections.
Let’s just say that Biden is foggy on specifics for how this plan will be more than a temporary fix, and the plan places the onus upon taxpayers during a time of inflation. Further, experts expressed disbelief at whether the pension plans could survive without further government bailouts to stay afloat.