The special financial assistance (SFA) program offers an opportunity for plans in challenging situations to improve their financial position, especially now that the PBGC has clarified in its final rule that plans may invest up to 33 percent of SFA assets in certain “return-seeking investments” — publicly traded equities, equity funds and bonds.
Trustees of multiemployer pension funds that receive SFA face a key decision: how to manage the assets most effectively to maximize their value.
It’s important to balance:
To make the most of SFA, you need an investment strategy.
You also need the right investment consultant.
We have the experience, staff and knowledge to help you maximize SFA assets within the guidelines and constraints imposed by the PBGC.
You’ll work with an investment consulting firm that:
Segal Marco Advisors can help you manage SFA funds alongside pension plan assets.
As discussed in the video below, we believe these are the six components of a successful SFA investment strategy:
Importantly, when you work with us, you can also draw on the expertise of Segal’s multiemployer retirement consultants for top-quality advice to best serve your plan and help you put SFA assets to work.
To hear subject matter experts from Segal and Segal Marco Advisors speak about SFA, listen to this August 2022 webinar recording.
Segal Marco Advisors provides consulting advice on asset allocation, investment strategy, manager searches, performance measurement and related issues. The information and opinions herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. This article and the data and analysis herein is intended for general education only and not as investment advice. It is not intended for use as a basis for investment decisions, nor should it be construed as advice designed to meet the needs of any particular investor. Please contact Segal Marco Advisors or another qualified investment professional for advice regarding the evaluation of any specific information, opinion, advice, or other content. Of course, on all matters involving legal interpretations and regulatory issues, investors should consult legal counsel.
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