On July 9, 2021, the PBGC issued its interim final rule (the “Rule”) on the process for eligible troubled Multiemployer Pension Plans (“MEPPs”) to apply for and obtain Special Financial Assistance (“SFA”) under the American Rescue Plan Act of 2021 (“ARPA”). The Rule was posted on PBGC’s website and became effective as guidance on July 9, 2021.

The PBGC expects the SFA to directly (via the restoration of previously reduced benefits) and indirectly (by providing enhanced retirement security) help more than three million MEPP participants and beneficiaries. PBGC’s multiemployer insurance program is also expected to prosper; more than 100 plans that would have otherwise become insolvent during the next 15 years will instead forestall insolvency as a direct result of receiving SFA.  More…