The American Rescue Plan Act of 2021 (ARP) was signed into law by President Biden in March 2021. It established a special financial assistance (SFA) program that provides one-time cash payments to eligible multiemployer defined benefit plans. The Pension Benefit Guaranty Corporation (PBGC) estimates the SFA program will provide approximately $94 billion to over 200 plans, impacting more than 3 million participants.
On July 9, 2021, the PBGC issued an interim final rule and the IRS issued Notice 2021-38 related to the SFA program. This Multiemployer Review describes the new guidance, covering items such as eligibility, deadlines, assistance amounts, restoration of suspended benefits, how the assistance is invested and used, and conditions for recipients.