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.