Special Financial Assistance Program for Multiemployer Pension Plans: Frequently Asked Questions
The American Rescue Plan Act, signed into law on March 11, 2021, established the Special Financial Assistance (SFA) program to fund financially troubled multiemployer pension plans. A number of conditions apply relating to benefit increases, plan mergers, withdrawal liabilities, and actuarial assumptions, among other matters. Within these parameters, plan sponsors may wonder how to allocate SFA funds for optimal outcomes. We cover some key questions that can help sponsors think through how to put these assets to best use.