Archived Insight | 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
  • TJ Kistner, VP, Head of Discretionary Portfolio Management & Solutions

Get the Slides

Don’t have time to watch a video right now? No worries. Here is a copy of the slides.

Download Now

See our insights

Male Therapist Encourages Distressed Male Veteran

MHPAEA Litigation and Enforcement News

See the Mental Health Parity and Addiction Equity Act (MHPAEA) litigation on hold and enforcement considerations, plus next steps for plan sponsors.

Health, Compliance, Multiemployer Plans, Public Sector, Healthcare Industry, Architecture Engineering & Construction, Higher Education, Mental Health

Read Full Insight

Worried Mature Man Calculating Domestic Bills At Home

Most Plans Remain Green as 2025 Brings Market Uncertainty

How did multiemployer pension plans perform in 2024? Find out in our infographic illustrating key data from Segal’s survey of 181 calendar-year plans.

Retirement, Multiemployer Plans

Read Full Insight

Businesswoman Reviewing Finance Charts In The Office

Model Pension Plan's Funded Status Decreases by 3 Points

In Q1 2025, the funded status of our model private sector single-employer pension plan fell 3 points to 107%. Learn why in the latest Prism.

Retirement, Investment, Corporate

Read Full Insight

This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.