A final rule outlining the distribution of funding Congress approved last year for severely underfunded multiemployer pension plans may be nearing release. The White House is reviewing the Pension Benefit Guaranty Corporation (PBGC)’s special financial assistance rule. White House approval of economically significant rules is the last regulatory hurdle before final release by a government agency. Congress approved the funding for troubled multiemployer pension plans in the American Rescue Plan Act of 2021.
The PBGC published an interim final rule in July setting strict limits on the ways plans could invest the money they receive, which created opposition from employers and unions that feared those limits could impede the economic recovery Congress had promised. The PBGC already has approved 26 special financial assistance applications at a cost of about $6.6 billion. --FCA