Biden to Unveil Bailout Plan for Multiemployer Pension Funds (1)

The federal government’s private-sector pension insurer is expected to soon unveil a permanent rule detailing its long-term strategy for bailing out severely underfunded multiemployer pension plans.

Congress approved $94 billion for union-brokered pension plans as part of President Joe Biden‘s 2021 Covid-19 recovery plan, but the law gave the Pension Benefit Guaranty Corporation discretion to set the parameters by which plans would receive federal stimulus dollars and for how long that money would last. The assistance is known as the Special Financial Assistance (SFA) Program.

PBGC published an interim final rule last July that set strict limits on the ...