American Rescue Plan Act

HISTORIC FEDERAL FUNDING RECEIVED

Pension Benefit Guaranty Corporation (“PBGC”) Approves Graphic Arts Industry Joint Pension Trust for Special Financial Assistance (SFA)— JPT Received $440 million on May 24, 2022 and an additional $82 million on January 11, 2023

The Board of Trustees of the Graphic Arts Industry Joint Pension Trust (“JPT”) is pleased to announce that on April 27, 2022, the PBGC approved the JPT’s Application for SFA under the American Rescue Plan Act of 2021 (“ARPA”). The JPT received the funds from the government in May thereby eliminating the threat of insolvency. Regulations that went into effect August 8, 2022 allowed the JPT to file a supplemented application for an additional SFA allocation which was received in January 2022.

ARPA has now provided sweeping financial relief to multiemployer pension plans like the JPT so as to ensure that these pension funds can continue to pay full benefits to hard working plan participants well into the future.

Click here to link to the PBGC Press Release.

PENSION RELIEF INCLUDED IN COVID STIMULUS BILL
Included in the $1.9 trillion American Rescue Plan Act (“ARPA”) signed into law by President Biden on March 11, 2021, is the Emergency Pension Plan Relief Act of 2021 (“EPPRA”).

EPPRA provides relief to multiemployer pension plans like the Graphic Arts Industry Joint Pension Trust (“JPT”) that are in Critical and Declining Status. Under EPPRA, eligible pension plans can apply for Special Financial Assistance (“SFA”) from the Pension Benefit Guarantee Corporation (“PBGC”) to receive a lump sum payment to be used to make benefit payments and pay plan expenses through June 30, 2051.

On July 9, 2021, the PBGC issued an “Interim Final Rule” addressing how the SFA could be applied for, calculated and distributed. More information on the Interim Final Rule and the JPT’s response was mailed to participants on October 25th.  Click here to see a copy of the letter.

As of now under the Interim Final Rule, the JPT cannot file its application until January 1, 2022. The JPT is preparing documentation and information it anticipates will be required as part of the application so that the JPT can apply as soon as it is able.

This is very exciting news that will benefit our participants. We will provide more information as it becomes available.