By Rebecca Moore
Source: Plan Sponsor
The Pension Benefit Guaranty Corporation (PBGC) has released its Fiscal Year (FY) 2021 Annual Report, which shows its multiemployer plan insurance program has a positive net position of $481 million at the end of FY 2021—a sharp contrast to the program’s deficit of $63.7 billion at the end of FY 2020.
The agency’s multiemployer plan program is now likely to remain solvent for more than 30 years, due to the enactment of the American Rescue Plan Act (ARPA) of 2021, PBGC said in an announcement. ARPA created a special financial assistance (SFA) program, which PBGC estimates will provide funding to more than 250 severely underfunded pension plans covering more than 3 million Americans.