The IRS issued guidance on Friday, July 9, for multiemployer qualified retirement plans that receive special financial assistance from the Pension Benefit Guaranty Corporation (PBGC) and for participants and beneficiaries in those plans.
Notice 2021-38 provides guidance under provisions of the American Rescue Plan Act (ARPA) regarding special financial assistance paid by the PBGC to eligible multiemployer-defined benefit pension plans that are financially at risk. The ARPA provided $86 billion in funds for failing pension plans.
The new guidance provides direction for multiemployer plans, specifically addressing three key areas.