Events and Webinars | August 9, 2022

SFA: Solvency Through 2051?

The multiemployer Special Financial Assistance (SFA) program, which was part of the American Rescue Plan Act passed by Congress in March 2021, is intended to enable eligible deeply troubled plans to pay all benefits and expenses due through 2051. Interim PBGC rules drew considerable criticism from a wide variety of stakeholders. Final regulations recently issued by PBGC respond to those concerns. Although the final rules primarily affect eligible plans that apply for SFA, there are also implications for some plans that may have not considered SFA.

SFA: Solvency Through 2051

On August 9, our actuarial, compliance and investment advisory experts discussed the considerations for plan sponsors resulting from the PBGC’s final rule, including:

  • Changes to calculating the amount of SFA: impact of a dual interest rate approach
  • Special consideration of plans that suspended benefits under the Multiemployer Pension Reform Act of 2014
  • Application timing: changes to and “locking in” of the measurement date; filing of a supplemental application
  • Restrictions imposed on plans that receive SFA: mergers, withdrawal liability, contribution rates, benefit improvements
  • Expansion of permissible investments; implications for asset mix and solvency
  • Review of the limitations for both the return seeking assets and remaining SFA assets

Watch the Replay

 

 

Presenters

Moderator: Eli Greenblum, SVP and Chief Actuary

Panelists:

  • Susan Boyle, SVP, Actuary and Multiemployer Retirement Practice Leader
  • Beth Bangert, SVP, National Retirement Compliance

 

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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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