WASHINGTON – The Pension Benefit Guaranty Corporation (PBGC) today released new frequently asked questions (FAQs) for multiemployer pension plans considering a merger in which at least one plan has received special financial assistance (SFA) under the American Rescue Plan Act of 2021.
This guidance is part of PBGC’s ongoing compliance assistance efforts to enhance transparency into the Corporation’s operations and to support its stakeholders.
The new guidance explains key considerations, requirements, and procedural steps for mergers involving SFA‑recipient plans. By facilitating responsible mergers that address financial challenges within the multiemployer system, PBGC aims to promote the long-term stability of pension benefits for workers and retirees.
“We heard our stakeholders about the need for guidance in this area, and we delivered,” PBGC Director Janet Dhillon said. “PBGC will continue working with the pension community to provide clarity and help safeguard the hard-earned pension benefits of the millions of Americans who depend on us.”
The new SFA plan merger FAQs are available on PBGC’s website, along with information about SFA plan mergers that have been approved by PBGC.
Plans are encouraged to request an informal consultation to discuss available options by sending an email to multiemployerprogram@pbgc.gov.
About PBGC
PBGC protects the retirement security of about 30 million American workers, retirees, and beneficiaries in both single-employer and multiemployer private sector pension plans. The agency’s two insurance programs are legally separate and operationally and financially independent. PBGC is directly responsible for the benefits of nearly 1.4 million participants and beneficiaries in failed single-employer pension plans. The Single-Employer Program is financed by insurance premiums, investment income, and assets and recoveries from failed single-employer plans. The Multiemployer Program is financed by insurance premiums and investment income. Special financial assistance for financially troubled multiemployer plans is financed by general taxpayer monies.