Biden Administration’s rule will strengthen program, encourage more plans to seek relief, save even more workers’ benefits
Provision passed by Senator Murray has already saved pensions for over 120,000 workers and retirees
President Biden to speak about the pension relief program later today
Murray: “As families deal with rising costs and the fallout of this pandemic, the last thing anyone needs is to have their finances turned upside down and the pension they worked so hard to earn ripped away—through no fault of their own.”
Washington, D.C. – Today, Senate Health, Education, Labor, and Pensions (HELP) Committee Chair Senator Patty Murray (D-WA) released the following statement on the final rule from the Department of Labor regarding the implementation of the Special Financial Assistance (SFA) program for multiemployer pensions within the Pension Benefit Guaranty Corporation (PBGC).
“As families deal with rising costs and the fallout of this pandemic, the last thing anyone needs is to have their finances turned upside down and the pension they worked so hard to earn ripped away—through no fault of their own. That’s why I fought to pass pension relief that has already saved the benefits of over a hundred thousand workers and retirees. Today’s announcement from the Biden Administration will ensure we continue to build on that progress so this program can serve even more struggling pensions, help all plans by getting the entire multiemployer pension system on stronger footing, and protect even more workers from having their hard earned benefits cut at the worst possible time,” said Senator Murray.
“We need to continue doing everything we can to take stress off families’ shoulders and put people on solid financial footing. Which is why I’m going to continue pushing for additional steps to bring down costs for essentials like child care, health care, and more. And I’m working to pass my legislation to strengthen everyone’s retirement and emergency savings—which passed out of Committee with broad bipartisan support—into law.”
Senator Murray fought for the American Rescue Plan to provide relief for struggling pension plans across the country by creating the SFA program for multiemployer pensions within the PBGC. According to the Multiemployer Pension Rescue Tracker launched by the House Education and Labor Committee earlier this year, the SFA program has already saved over 127,000 pensions and protected an estimated 562 businesses.
The rule from the Biden Administration
- Provides plans with flexibility in calculating projections and use of special financial assistance assets;
- Ensures that eligible plans would survive at least 30 years;
- Ensures that plans that cut benefits under the Multiemployer Pension Relief Act of 2014 remain solvent indefinitely;
- Proposes a rule relating to the implications of special financial assistance on withdrawal liability;
- Clarifies the treatment of mergers between plans taking SFA and non-SFA plans.
For more information, see the Biden Administration’s Fact Sheet HERE.
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