Democrats are highlighting the Butch Lewis Act, part of President Joe Biden’s American Rescue Plan, as a crucial preservation of pensions for union workers in Pennsylvania. The law has saved over 1 million union workers and retirees’ pensions, ultimately preventing cuts to the retirement benefits of 2 million workers nationwide. Named after a retired Ohio trucker and Teamsters union leader, the Butch Lewis Act aims to prevent insolvency of approximately 200 multi-employer pension plans for 30 years, protecting workers from facing cuts of up to 50% that would have had a significant impact on retired and retiring Americans.
In a bid to showcase the importance of the Butch Lewis Act, Biden administration officials, union workers from the Bakery, Confectionery, Tobacco Workers, and Grain Millers International Union, and Sen. Bob Casey gathered in Hershey, Pennsylvania. Casey, a Democrat seeking reelection, is facing Republican Dave McCormick in Pennsylvania’s U.S. Senate race. The Biden administration is focusing on swing state Pennsylvania to mobilize union workers for the upcoming election. Biden expressed his commitment to protecting the retirement benefits of workers, emphasizing the importance of avoiding cuts due to broken promises or policies favoring the wealthy over working families.
Rita Lewis, the widow of Butch Lewis, praised the passage of the act, noting the financial struggles faced by union retirees prior to its implementation. The law has provided relief to many workers, allowing them to maintain their homes and financial stability in retirement. Despite the positive impact of the Butch Lewis Act, there are still workers who have not seen their pension benefits restored after facing cuts during the Great Recession. For example, approximately 20,000 workers from Delphi Corp., a subsidiary of General Motors, have been fighting for the restoration of their benefits for the past 15 years, following General Motors’ bankruptcy in 2009. These workers are advocating for the Susan Muffley Act, a similar legislation that aims to restore their pensions, with the support of the White House.
The Butch Lewis Act has received strong support from union members and retirees, who see it as a crucial protection of their hard-earned retirement benefits. Biden and the Democrats have been lauded for fulfilling their promise to workers and ensuring the stability of pension plans for millions of Americans. With the upcoming general election approaching, the focus on swing states like Pennsylvania is intensifying, as both parties seek to appeal to union workers and secure their votes. Union leaders have historically supported Democratic candidates, while the rank-and-file members have shown a willingness to consider Republican alternatives.
The legislation addresses the challenges faced by multi-employer pension plans, which experienced funding shortfalls due to various economic factors including the Great Recession, company bankruptcies, and investment losses. The Butch Lewis Act serves as a lifeline for workers dependent on these pensions, preventing drastic cuts that could have a detrimental impact on their financial well-being in retirement. As the debate continues over the importance of preserving pension benefits for union workers, the success of the Butch Lewis Act in safeguarding these benefits underscores the significance of government intervention in protecting the financial security of retirees.
