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

Diverse Businesswomen Collaborating On Laptop

From Insights to Impact: Improving Retirement Readiness Through Data and Communications

See how data can reveal retirement readiness gaps and inform strategies that drive engagement, improve savings behavior and deliver better outcomes.

Benefits Administration, Retirement, Communications, Consulting Innovation, Benefits Technology, Technology

Register for the webinar

Female Radiologist Examining Spine MRI On Computer Screen

Q3 2026 Trends Focus: Stop-Loss Insurance

Learn how high-cost claims and stop-loss trends are affecting plan costs — and what health plan sponsors should do to manage risk and coverage.

Health, Multiemployer Plans, Public Sector, Healthcare Industry, Higher Education, Corporate

Read Full Insight

Mid Adult Businessman Having A Discussion With His Colleague In The Office

Benchmarking Multiemployer Annuity Fund Administrative Fees

Benchmarking data shows how annuity fund fees vary by size, region and design — and what trustees can do to lower administrative costs.

Retirement, Benefits Administration, Multiemployer Plans, Consulting Innovation

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.