News

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"As of June 30, 2024, 73% of all plans are in the green zone. The funding shortfall for all plans improved by approximately $29 billion during the first six months of 2024.... As of June 30, 2024, 73 plans received nearly $54 billion in SFA ... contributing an additional 7% to the aggregate funded percentage since the program's inception ... The [PBGC] estimates a total SFA payout of about $80 billion to 198 plans by 2027. If all remaining estimated SFA were included in the market value of assets as of June 30, 2024, the aggregate funded percentage would rise from 93% to 96%."

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"Earlier this month, the [PBGC] Office of Inspector General (OIG) published a report disclosing that the PBGC overpaid the Central States fund by $127 million after the plan included 3,479 dead participants in its bailout request ... In a letter sent to [Teamsters President Sean O'Brien], Cassidy urged the Central States Pension Fund to fulfill their commitment to return the $127 million overpayment to American taxpayers and requested information as to how the union will prevent this kind of poor mismanagement in the future."

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

Updated Jul. 19, 2023, to include two sets of new SFA questions and answers: [1] The Permissible Investments SFA questions and answers explain and provide examples of permissible investment grade fixed income (IGFI) securities and return-seeking assets (RSA). [2] The Withdrawal Liability Condition and Make-up Payments of Previously Suspended Benefits SFA questions and answers focus on the withdrawal liability condition requiring phase-in of SFA assets. They clarify the calculation methodology for plans that paid make-up payments of previously suspended benefits.

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"This memorandum provides guidance to [EBSA's] national and regional offices on how multiemployer defined benefit plan administrators can comply with the annual funding notice requirements of section 101(f) of ERISA in the case of plans that received SFA from PBGC under the American Rescue Plan Act or are eligible to apply for SFA from PBGC. This memorandum also includes model language that plan administrators may use in the annual funding notice.

1. The annual funding notice requires a statement of the funded percentage under section 101(f)(2)(B)(i)(II) of ERISA and a statement of the actuarial value of plan assets under section 101(f)(2)(B)(ii)(II) of ERISA. Is SFA taken into account when determining those disclosures? No....
2. Should the annual funding notice's statement of fair market value of assets as of the last day of the notice year and the two preceding years (as required by section 101(f)(2)(B)(ii)(II) of ERISA) reflect SFA received by the plan? Yes....
3. Does a plan's receipt of SFA trigger the 'material effect' explanation required under section 101(f)(2)(B)(vii) of ERISA? Yes....
4. For which plan year should the 'material effect' explanation required by section 101(f)(2)(B)(vii) of ERISA be provided? ...
5. When a plan's receipt of SFA triggers the 'material effect' explanation required under section 101(f)(2)(B)(vii) of ERISA, what information must the explanation include? ...
6. How does a plan's receipt of SFA affect the plan administrator's obligation with respect to the statement required by 29 CFR 2520.101-5(b)(6), relating to plans in endangered, critical, or critical and declining status? ...
7. Does a plan's receipt of SFA affect the general description of the plan's investment policy required by 29 CFR 2520.101-5(b)(5)(iii)? Yes....
8. Does the plan administrator have to separately identify the assets in the SFA account to satisfy the requirements of 29 CFR 2520.101-5(b)(5)(ii)? No....
9. If the plan received SFA, does the annual funding notice have to include a summary of the rules governing insolvency, including the limitations on benefit payments as required by 29 CFR 2520.101-5(b)(8)(ii)? Yes....
10. May an insolvent plan that is eligible for but has not applied for SFA modify the model language in Appendix B of 29 CFR 2520.101-5 summarizing the rules governing insolvent plans to inform participants that the plan is eligible for SFA? Yes....
11. Section 4262(m)(6) of ERISA provides that a plan receiving SFA may not subsequently apply to suspend benefits under section 305(e)(9) of ERISA in the future even if the plan is in critical and declining status and otherwise meets the requirements for suspension. May the annual funding notice of a plan that received SFA include a statement describing the prohibition against such future suspensions? Yes."

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

56 pages. "Consistent with the [American Rescue Plan] inducing moral hazard, [the authors] find that [multiemployer pension plans (MEPPs)] increase risk taking in investment allocations, increase benefit payments, and increase administrative fees relative to single-employer pension plans which did not receive bailout funds. The economic magnitudes ... are significant, with MEPPs collectively increasing their holdings of high-risk assets by at least $10.1 billion. [The authors find] evidence consistent with MEPPs deploying opportunistic actuarial assumptions to increase the likelihood of qualifying for bailout relief."

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"

"Significant investment losses during 2022 resulted in an aggregate funded percentage for all multiemployer plans of 79% as of December 31, 2022, down from 91% at the end of 2021.... As of December 31, 2022, 35 plans have received $9 billion in special financial assistance (SFA) ... which added 1% to the aggregate funded percentage. An additional $37 billion of SFA was paid in January 2023. If those amounts had been paid by December 31, 2022, the aggregate funded percentage would have been 84%."