AGC of America recently provided comments on the Pension Benefit Guaranty Corporation’s (PBGC) interim final rule implementing the American Rescue Plan Act’s (ARPA) special financial assistance program. The special financial assistance program is designed to help financially troubled multiemployer pension plans avoid insolvency for the next 30 years.
AGC participated in a NCCMP working group of stakeholders to help provide detailed and substantive comments with recommendations to improve the rule and make it more in line with Congressional intent. AGC America also signed onto another comment letter submitted by a group of employer organizations.
Unfortunately, the initial interpretation from the PBGC limited the amount of assistance to troubled plans while imposing restrictive conditions on contributing employers. AGC is cautiously optimistic that the PBGC will address some of the most critical issues in the interim final rule and that, even if the PBGC opts to continue its very narrow and strict interpretation of ARPA, it could cause renewed political pressure to address concerns through other avenues.
While pushing for improvements to the special financial assistance program, AGC also remains committed to seeking authorization of new alternative plan designs, like composite plans. This issue has yet to be addressed by statute.
For more info, contact Jim Young, Senior Director, Congressional Relations, HR, Labor and Safety, at jim.young@agc.org or (202) 547-0133.