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This final rule implements section 9704 of the American Rescue Plan Act by setting forth the requirements for plan sponsors of financially troubled multiemployer defined benefit pension plans to apply for special financial assistance from the Pension Benefit Guaranty Corporation, and related requirements.  

Overall Description of Deadline: Section 4262(c) as added to the Employee Retirement Income Security Act of 1974 (ERISA) by section 9704 of Subtitle H of the American Rescue Plan Act of 2021, requires that within 120 days of the date of enactment of this section, PBGC shall issue regulations or guidance setting forth requirements for special financial assistance (SFA) applications under this section.

Statement of Need:

This final rule is needed to implement section 9704 of the American Rescue Plan Act and set forth the requirements for plan sponsors of financially troubled multiemployer defined benefit pension plans to apply for special financial assistance from the Pension Benefit Guaranty Corporation, and related requirements. 

Anticipated Costs and Benefits:

In its fiscal year (FY) 2021 Projections Report, published in September 2022, PBGC estimated a range of possible outcomes for the total amount of SFA payments under the provisions of the final rule.  The program is likely to provide an estimated $74 billion to $91 billion in assistance.  The estimated impact of the final rule is an increase of $5.6 billion in the mean total amount of SFA. The overall transfer under the SFA Program is uncertain because the amount of SFA each plan will receive is calculated at the time the plan applies to PBGC, and that SFA calculation is based on plan projections and economic conditions at the time of application.  PBGC estimated the average annual information collection, including application, cost of the SFA program will be about $2 million.  The SFA program is expected to assist severely underfunded multiemployer pension plans covering millions of participants and beneficiaries, including the provision of funds to reinstate suspended benefits of participants and beneficiaries.