Two of Zenith’s Plans Approved for Special Financial Assistance Under the American Recovery Plan Act of 2021
Recently two of the Pension Plans that Zenith administers were part of the first wave approved by the PBGC (Pension Benefit Guaranty Corporation) for special financial relief under ARPA ’21.
Last March’s second Covid relief bill included significant financial assistance for certain underfunded multiemployer Defined Benefit Plans.
For more on this, please see Zenith’s blog page:
And the House of Representative’s Education & Labor Committee site on this:
In late April, a pension fund that Zenith administers, covering about 400 members, received over $45 Million in special relief. Zenith will be immediately restoring full benefits for 230 participants of that pension fund who are already in pay status but with reduced benefits. Recently a second client pension fund was approved for over $200 Million in special relief, and expects to receive that relief in early June. That client fund covers 3,700 members and the relief will allow the fund to restore benefits to over 2,500 retired members.
Dave Leonardo oversees Zenith’s relationship for both Unions. Under the program, the PBGC is giving highest priority to plans that have already cut back (suspended) benefits being paid to retirees. As part of accepting the special financial assistance, these plans must quickly restore any benefits that had been suspended including past cutbacks.
Zenith American Solutions will keep monitoring the results of this important legislation and are fully prepared to help our impacted clients. For more information on how we can help, please feel free to contact your Zenith Client Services team.
Additionally, as always, feel free to reach out to your plan’s actuary and/or fund counsel.
