PBGC Finally Publishes Final Rule On Special Financial Assistance Program

Seyfarth Synopsis: On July 8, 2022, the Pension Benefit Guaranty Corporation ("PBGC") published its final rule ("Final Rule") on the Special Financial Assistance ("SFA") Program established under the American Rescue Plan Act of 2021 ("ARPA"). The Final Rule contains a number of significant developments and amendments from the interim final rule ("IFR"), including for example, expanding investment options for SFA assets, providing for separate interest rate assumptions for SFA versus non-SFA assets, loosening restrictions for benefit increases, and adding a new condition for phased recognition of SFA assets in calculating withdrawal liability. The Final Rule becomes effective on August 8, 2022. There is a thirty (30) day public comment period solely on the new phase-in condition for withdrawal liability starting from the Final Rule publication date.