PBGC greenlights more than $1 billion to aid 3 multiemployer plans

By Brian Croce Source: Pensions & Investments The Pension Benefit Guaranty Corp. approved special financial assistance applications totaling more than $1 billion to aid three struggling multiemployer pension plans. UFCW Local One Pension Plan will receive approximately $764 million; the IUE-CWA Pension Plan will receive approximately $260 million; and the Newspaper Guild International Pension Plan will receive approximately $62 million, the PBGC announced Wednesday and Thursday. Created by the American Rescue Plan Act that Democrats passed in March 2021, [...]

PBGC approves supplemental assistance for Teamsters pension plan

By Courtney Degen Source: Pensions & Investments The Pension Benefit Guaranty Corp. on Thursday approved the supplemented special financial assistance application of a New York pension plan for workers and retirees in the transportation industry. New York State Teamsters Conference Pension & Retirement Plan, or NYS Teamsters Conference Plan, will receive $438 million as a supplement to the $963 million in special financial assistance that was approved for the plan in November 2022. President Joe Biden signed the Special [...]

2023-04-13T14:07:39-07:00April 13th, 2023|Categories: PBGC|Tags: , , |

PBGC issues multiemployer withdrawal liability proposal

By Brian Croce Source: Pensions & Investments The Pension Benefit Guaranty Corp. has proposed a rule to provide interest rate assumptions for determining a withdrawing employer's liability to a multiemployer plan. An employer that withdraws from an underfunded multiemployer plan may owe withdrawal liability to the plan under the Employee Retirement Income Security Act of 1974. The amount owed represents the withdrawn employer's share of the amount by which the present value of the plan's non-forfeitable benefits exceed the [...]

2022-10-20T15:16:02-07:00October 20th, 2022|Categories: PBGC|Tags: , |

PBGC’s multiemployer assistance rule loosens investing restrictions

By Brian Croce Source: Pensions & Investments The Pension Benefit Guaranty Corp. on Wednesday unveiled a final rule for a federal assistance program that aids struggling multiemployer plans. The Special Financial Assistance Program, created by the American Rescue Plan Act that Democrats passed in March 2021, was designed to shore up struggling multiemployer pension plans through 2051. The PBGC estimates the total cost will range from $74 billion to $91 billion. Under the program, a multiemployer plan is eligible for assistance [...]

2022-07-08T11:10:04-07:00July 8th, 2022|Categories: PBGC|Tags: , |

PBGC pension fund programs now on solid footing

By Brian Croce Source: Pensions & Investments The Pension Benefit Guaranty Corp.'s single-employer and multiemployer programs each had positive net funding positions at the end of the fiscal year for the first time in nearly two decades, according to the agency's fiscal year 2021 annual report. The long-troubled multiemployer program improved to a net funding position of $481 million at the end of fiscal year 2021, compared with a $63.7 billion shortfall at the end of the previous fiscal [...]

2021-11-22T15:41:09-08:00November 22nd, 2021|Categories: PBGC|Tags: , |

American Rescue Plan Act Turns Things Around for PBGC Multiemployer Plan Program

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 [...]

2021-11-17T09:09:00-08:00November 17th, 2021|Categories: PBGC|Tags: , |

PBGC’s multiemployer outlook greatly improves after help from Congress

By Brian Croce Source: Pensions & Investments The Pension Benefit Guaranty Corp.'s multiemployer program outlook has substantially improved following passage of the American Rescue Plan Act, according to the agency's fiscal year 2020 annual report. Last year's report projected a very high likelihood of the program's insolvency by September 2025 and near certainty by September 2026. In the latest report, released Monday, the most pessimistic scenario projects the fund to go insolvent in fiscal year 2036, while optimistic scenarios [...]

2021-09-23T09:51:00-07:00September 23rd, 2021|Categories: PBGC|Tags: |

PBGC multiemployer rule gets mixed reviews

By: Hazel Bradford Source: Pensions & Investments The Pension Benefit Guaranty Corp.'s interim final rule about how underfunded multiemployer plans can get special financial assistance is getting mixed reviews. The assistance was part of the American Rescue Plan Act of 2021 enacted in March and provides an estimated $94 billion in federal assistance grants for the most at-risk plans to pay benefits, if it will help them survive for 30 years. The interim final rule, issued July 9, provides [...]

2021-07-19T09:10:25-07:00July 19th, 2021|Categories: PBGC|Tags: , |

PBGC ‘To-Do’ List: Work on Benefits, Penalties and More

By John Iekel Source: ASPPA The Pension Benefit Guaranty Corporation (PBGC) in its spring regulatory agenda enumerates a variety of proposals and actions close to implementation that will address benefits payments, assistance, valuation assessments, penalties and more. Proposals The following proposed rules are on the PBGC’s radar screen. Valuation Assumptions and Methods. The PBGC proposes a rule on valuation assumptions and methods concerning interest and mortality assumptions for asset allocation in single-employer plans, and concerning mass withdrawal liability determination [...]

2021-06-17T16:55:39-07:00June 17th, 2021|Categories: PBGC|Tags: |

Multiemployer plans get tiny reprieve in latest PBGC report

The Pension Benefit Guaranty Corp.'s single-employer program will remain in the black over the next decade, while the multiemployer program could gain another year or two before insolvency, according the agency's latest projections report released Monday. The report for fiscal year 2019 provides 10-year projections ended Sept. 30, under a range of financial scenarios. As of Sept. 30, 2019, the single-employer program had $46.3 billion in assets, while the multiemployer program had a deficit of $82.3 billion. Last year's [...]

2020-09-17T08:52:49-07:00September 17th, 2020|Categories: PBGC|Tags: |
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