{"id":2214,"date":"2022-08-25T14:41:17","date_gmt":"2022-08-25T14:41:17","guid":{"rendered":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/?p=2214"},"modified":"2022-08-25T14:41:22","modified_gmt":"2022-08-25T14:41:22","slug":"american-rescue-plan-providing-relief-for-union-workers-and-retirees","status":"publish","type":"post","link":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/american-rescue-plan-providing-relief-for-union-workers-and-retirees\/","title":{"rendered":"American Rescue Plan Providing Relief for Union Workers and Retirees"},"content":{"rendered":"
\"Constructions<\/figure>\n

On July 6, 2022, President Biden met with union workers and retirees in Cleveland, Ohio where he announced the final rule in the implementation of the American Rescue Plan\u2019s Special Financial Assistance<\/em> Program<\/em>.  Under the American Rescue Plan<\/em>, critical financial assistance is provided to working families in order to boost the economic recovery, re-open schools, and create over 8 million jobs. More specifically, the Special Financial Assistance Program<\/em> is intended to protect workers in multiemployer pension plans who are facing major cuts to their benefits.<\/p>\n

The Pension Benefit Guaranty Corporation\u2019s Role<\/h2>\n

Before the American Rescue Plan <\/em>was created, millions of workers and retirees in over 200 multiemployer pension plans were facing the possibility of not receiving the full benefits they earned, which they need to support themselves and their families in retirement. This was despite the fact that the Pension Benefit Guaranty Corporation (PBGC) already provides partial protection of these benefits for an estimated 10.9 million workers and retirees in approximately 1,400 private-sector multiemployer, union-connected plans. The PBGC insures these plans; however, prior to the American Rescue Plan,<\/em> its multiemployer pension insurance program was facing insolvency by 2026.  The Special Financial Assistance<\/em> Program <\/em>has now addressed this problem.<\/p>\n

Relief on the Way<\/h2>\n

The Special Financial Assistance<\/em> Program <\/em>is enabling financially struggling multiemployer pension plans to apply to the PBGC for financial assistance. The Final Rule to the program does include some changes from the previously noted interim final rule. Specifically, they include:<\/p>\n