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 (PDF)
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 the American Rescue Plan Act (“ARPA”) of 2021. 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 From Interim Final Rule
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 the American Rescue Plan Act of 2021 (“ARP”). 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)