![]() What follows is a list of some of the more important retirement plan requirements to help employers in implementing practices, procedures and internal controls to monitor plan operations. Your plan may have other operational requirements that need to be monitored. The IRS administers a determination letter program that enables plan sponsors to get advance assurance as to the form of their retirement plan document. Employers should establish practices and procedures to ensure the plan is operated in accordance with the plan document so participants and beneficiaries receive their proper retirement benefits. Be aware that the law and regulations in the retirement plans area frequently change. Make sure your plan document and determination letter, if applicable, are up to date. That means that the provisions in the plan document must satisfy the requirements of the Code and that those plan provisions must be followed. The SFA Program operates under a final rule, published in the Federal Register on July 8, 2022, which became effective August 8, 2022, and was amended effective January 26, 2023.A qualified plan must satisfy the Internal Revenue Code in both form and operation. PBGC is authorized to conduct periodic audits of multiemployer plans that receive SFA.Īs of February 17, 2023, PBGC has approved over $45.8 billion in SFA to plans that cover over 553,000 workers, retirees, and beneficiaries. Plans receiving SFA are also subject to certain terms, conditions and reporting requirements, including an annual statement documenting compliance with the terms and conditions. Plans are not obligated to repay SFA to PBGC. SFA and earnings thereon must be segregated from other plan assets and may be used only to pay plan benefits and administrative expenses. The SFA Program requires plans to demonstrate eligibility for SFA and to calculate the amount of assistance pursuant to ARP and PBGC’s regulations. The program provides funding to severely underfunded multiemployer pension plans and will ensure that millions of America’s workers, retirees, and their families receive the pension benefits they earned. The SFA Program was enacted as part of the American Rescue Plan (ARP) Act of 2021. ![]() “Through no fault of their own, these workers faced diminished pensions, but will now receive the secure retirement they were promised in exchange for many years of work.” About the Special Financial Assistance Program ![]() “Today’s approval of supplemental Special Financial Assistance, funded by President Biden’s American Rescue Plan, in conjunction with the previously approved Special Financial Assistance, means the Local 1482 Plan will be able to provide the retirement promised to its 152 manufacturing industry workers,” said Secretary of Labor Marty Walsh, Chair of the Pension Benefit Guaranty Corporation’s Board of Directors. SFA will better ensure that the plan can continue to pay retirement benefits without reduction for many years into the future. The Local 1482 Plan will receive approximately $1.8 million in supplemented SFA, which is in addition to $12.9 million in SFA approved for the plan in April 2022 under the interim final rule. Plans that applied for and received SFA under the interim final SFA rule issued in July 2021 are permitted to supplement their applications under the provisions of the final SFA rule issued in July 2022. The plan, based in the New York Metropolitan Area, covers 152 participants in the manufacturing industry. The Pension Benefit Guaranty Corporation (PBGC) announced today that it has approved the supplemented application submitted to the Special Financial Assistance (SFA) Program by the Retirement Plan of Local 1482 – Paint and Allied Products Manufacturers Retirement Fund (Local 1482 Plan). ![]()
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