On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (“ARPA”). The American Rescue Plan Act of 2021 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.
Click here for a high-level summary of key Multiemployer Pension provisions of the American Rescue Plan Act of 2021
Summary of Special Financial Assistance Guidelines
On July 9, 2021, the PBGC and IRS issued interim final rules addressing the Special Financial Assistance (“SFA”) provisions from the American Rescue Plan Act (“ARPA”) of 2021. Government funding of the SFA is anticipated to provide an estimated $94 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.