The federal Pension Benefit Guaranty Corp. (PBGC) issued a final rule implementing changes to the Special Financial Assistance (SFA) program that will pay up to $91 billion to financially troubled multiemployer pension plans.
The final rule was published in the Federal Register on July 8 and takes effect on Aug. 8, 2022.
Multiemployer defined benefit plans, which serve more than 10 million workers and retirees, are created through agreements between employers in a single industry or related industries, which provide ongoing funding contributions, and unions, which manage the plans. These pensions are insured by the PBGC through an account that is separate from the one that safeguards single-employer pensions.
