Pension Reform in our Time? What Butch Lewis Means for Multiemployer Plans and Participating Employers

Link: https://www.seyfarth.com/dir_docs/publications/Webinar-Deck-Pension-Reform-Butch-Lewis-032421.pdf

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Excerpt:

Conditions on Relief
• Special Financial Assistance funds (and earnings thereon) can be used to make
benefit payments and pay plan expenses
• Must be segregated from other plan assets; invested only in investment-grade
bonds or other investments as permitted by PBGC
• Deemed to be in critical status until the last plan year ending in 2051
• Plans that become insolvent after receiving relief subject to rules for insolvent
plans
• Must reinstate any previously suspended benefits under the MPRA
– Either as lump sum within 3 months or monthly equal installments over 5 years (to
begin within 3 months)
• Not eligible to apply for a new suspension of benefits under the MPRA

Author(s): Alan Cabral, Jim Hlawek, Seong Kim, Ron Kramer

Publication Date: 24 March 2021

Publication Site: Seyfarth

Pension and Executive Compensation Provisions in the American Rescue Plan Act

Link: https://www.seyfarth.com/news-insights/pension-and-executive-compensation-provisions-in-the-american-rescue-plan-act.html

Excerpt:

Seyfarth Synopsis: On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (“ARPA”), the $1.9 trillion COVID-19 relief bill.  ARPA includes various forms of multiemployer and single employer pension plan relief, as well as certain executive compensation changes under Section 162(m) of the Internal Revenue Code (“Code”), which are discussed further below. Please see our companion Client Alert on the other employee benefit items of interest in ARPA here.

Author(s): Seong Kim, Christina M. Cerasale, Kaley M. Ventura, Alan B. Cabral

Publication Date: 11 March 2021

Publication Site: Seyfarth