What you should know: The American Rescue Plan Act of 2021
On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (“ARPA”). The ARPA is a $1.9 trillion economic stimulus package designed to speed up the nation’s recovery from the economic and health effects of the COVID-19 pandemic. While it mostly targets pandemic relief, ARPA also contains pension plan relief for both multiemployer and single employer plans. Rael & Letson has prepared a summary that addresses the ARPA provisions affecting multiemployer pension plans.
Summary of Special Financial Assistance Guidelines – Interim Final Rule
On July 9, 2021, the PBGC and IRS issued interim final rules addressing the Special Financial Assistance (“SFA”) provisions from ARPA. Government funding of the SFA is anticipated to provide an estimated $74 to $91 billion in assistance to more than 100 eligible plans covering more than 3 million participants and address the solvency of the PBGC’s Multiemployer Insurance Program.
Click Here for a summary of the Special Financial Assistance Guidelines – Interim Final Rule (PDF)
Summary of Special Financial Assistance Guidelines – Key Changes
On July 8, 2022, the Pension Benefit Guarantee Corporation (“PBGC”) issued its final rule relating to the Special Financial Assistance program for financially troubled multiemployer plans; a program that was part of ARPA. In doing so, the PBGC adopted the provisions of the Interim Final Rule published on July 9, 2021, with some additional modifications that respond to the comments received after the Interim Final Rule was published.
Click Here for a summary of the Key Changes to the Interim Final Rule (PDF)
Questions about SFA? Please contact us to learn more about recent changes to SFA, tips on creating a successful application, or guidance on communicating plan changes with plan participants.