The Emergency Pension Plan Relief Act of 2021 (EPPRA), enacted as part of the American Rescue Plan Act of 2021 (ARPA), contained unprecedented financial relief for the most troubled multiemployer pension plans (MEPPs). The MEPPs community is eagerly awaiting guidance from the Pension Benefit Guaranty Corporation (PBGC) on the requirements for MEPPs to apply for the special financial assistance under the ARPA. New Section 4262(c) of ERISA provides that the PBGC will issue this guidance no later than 120 days after enactment or by July 9, 2021. Also, more guidance is anticipated on the impact of this funding windfall on employer’s obligations for withdrawal liability.

In the interim, the Congressional Research Service (CRS) (Multiemployer Defined Benefit Pension Plans Potentially Eligible for Special Financial Assistance Under the American Rescue Plan Act (congress.gov)) indicated that both the universe of plans potentially eligible for ARPA relief and the amount of such relief may be greater than initially anticipated. For example, just one MEPP, the Central States, Southeast & Southwest Areas Pension Plan, reported a funding shortfall of approximately $43.6 billion. While there is no specific amount appropriated under the new law, pre-enactment projections estimate expenditures to qualifying plans of approximately $86 billion. The CRS’s report, issued on May 28, 2021, indicates that the $86 billion figure may be overly optimistic. The number of MEPPs eligible for assistance and the actual amount of assistance may well exceed original estimates. We are closely monitoring how this expansive federal assistance program might provide some relief to contributing employers.

As with most aspects of the ARPA multiemployer subsidy, a myriad of questions remains unanswered. We will report future developments as they occur; please contact the authors with any questions in the interim.

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Photo of David M. Pixley David M. Pixley

David M. Pixley is a principal in the Cleveland, Ohio office of Jackson Lewis P.C. His practice focuses on employee benefits and ERISA litigation.

David’s practice includes counseling clients on all aspects of employee benefits and ERISA litigation involving single employer and multiemployer…

David M. Pixley is a principal in the Cleveland, Ohio office of Jackson Lewis P.C. His practice focuses on employee benefits and ERISA litigation.

David’s practice includes counseling clients on all aspects of employee benefits and ERISA litigation involving single employer and multiemployer benefit plans.

In addition to his extensive courtroom experience, David routinely advises and counsels clients with regard to employee benefit plan compliance, administration, participant disclosures, reporting and drafting requirements under ERISA, the Internal Revenue Code, ACA, HIPAA and COBRA. David assists clients in correcting errors under the IRS’ Employee Plans Compliance Resolution System and the DOL’s Voluntary Fiduciary Correction Program. He also advises employers and investors on multiemployer benefit plan issues that arise during a corporate restructuring and in the context of M&A transactions.

Prior to joining Jackson Lewis, David served as outside Fund Counsel to multiemployer pension and welfare plans and has extensive experience with employer withdrawal liability, payroll audits, and delinquent contribution matters. He routinely speaks and writes about the issues facing employers contributing to and exiting multiemployer plans.

At the Ohio State University, he was a member of the Rugby Football Club. After law school, prior to beginning his career as an attorney, David was deployed as a member of the Ohio Army National Guard and awarded the Global War on Terrorism Expeditionary Medal.