There is no maximum amount that eligible plans may receive, and the amount will not be subject to repayment obligations. Along with special assistance granted to qualified and approved plans, benefits previously suspended will be reinstated.
Further details related to financial assistance to eligible multiemployer benefit plans can be found within the bill’s text. Additional requirements include the definition of the modified funding percentage, temporary priority of applications, considerations of actuarial assumptions used in determining eligibility and assistance amounts, among others.
A few other significant multiemployer pension plan provisions contained in the bill include:
Furthermore, other changes that impact plans are included in the Act. These changes include adjustments to the funding standard account rules, extended amortization and pension funding stabilization percentages for single-employer plans, special rules for community newspaper plans, and expanded limitations on excessive employee remuneration.
What should be on your mind now while we wait for the administrative details and processes to come together? If your plan is in or close to endangered, critical, or critical and declining status, talk with your plan advisors or us to become very familiar with the details of the bill, identify those provisions applicable to your plan, and prepare accordingly. Your multiemployer benefit plan may be eligible for special assistance, and if so, you should look for the launch of the application process. The PBGC is required to issue guidance for submitting applications within 120 days of the enactment of the Act.