PBGC Rules on Multiemployer Pension Bailout

The Pension Benefit Guaranty Corporation (PBGC) today announced an interim final rule implementing a new Special Financial Assistance (SFA) Program for financially troubled multiemployer defined benefit pension plans.

Pertinent excerpts coming over the weekend but, for now, it looks like the bailout number moved from $86 billion to $94 billion per the PBGC press release:

The American Rescue Plan (ARP) Act of 2021 (P.L. 117-2) — a historic law passed by Congress and signed by President Biden on March 11, 2021 — contains provisions to provide an estimated $94 billion in assistance to eligible plans that are severely underfunded. Additionally, it assists plans by providing funds to reinstate previously suspended benefits. ARP also addresses the solvency of PBGC’s Multiemployer Insurance Program, which was projected to become insolvent in 2026.  

The interim final rule sets forth what information a plan is required to file to demonstrate eligibility for SFA and the formula to determine the amount of SFA that PBGC will pay to an eligible plan. ARP authorizes PBGC to prioritize SFA applications of plans in specified groups, and the interim final rule identifies the priority order in which such plans are permitted to apply. The interim final rule also outlines a processing system, which will accommodate the filing and review of many applications in a limited amount of time. In addition, it specifies permissible investments for SFA funds and establishes certain restrictions and conditions on plans that receive SFA. 

The interim final rule is posted on PBGC’s website today, July 9, 2021. The rule is also on public inspection today at FederalRegister.gov and is scheduled for publication in the Federal Register on July 12, 2021. PBGC has included a 30-day public comment period in this rulemaking from the date of publication in the Federal Register. All interested parties may submit their comments, suggestions, and views on the rule’s provisions here: reg.comments@pbgc.gov or https://www.regulations.gov

10 responses to this post.

  1. Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on July 10, 2021 at 1:04 am

    No problem, Sleepy Joe and the Dim’s will just print more $$$$

    Reply

    • Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on July 10, 2021 at 3:44 pm

      Heat up the Fed Printing Presses… We can call it “The Butch Lewis and Sleepy Joe Save the World Act” …The solution is so SIMPLE!🐾😺🐾

      Reply

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  4. […] the PBGC has posted its interim final rule on the implementation of this bailout. This means that there will be a 30 day comment period before the decisions are finalized. But should this rule be […]

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  5. […] the PBGC has posted its interim final rule on the implementation of this bailout. This means that there will be a 30 day comment period before the decisions are finalized. But should this rule be […]

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  6. […] the PBGC has posted its interim final rule on the implementation of this bailout. This means that there will be a 30 day comment period before the decisions are finalized. But should this rule be […]

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  7. […] Posted on July 12, 2021July 12, 2021 by Mary Pat Campbell PBGC Rules on Multiemployer Pension Bailout […]

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  8. […] the PBGC has posted its interim final rule on the implementation of this bailout. This means that there will be a 30 day comment period before the decisions are finalized. But should this rule be […]

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