PBGC Requests Extended Approval of SFA Program Application with Modifications; Comments Due June 30

Published May 31, 2023

The Pension Benefit Guaranty Corporation (PBGC) issued a notice requesting that the Office of Management and Budget (OMB) extend approval, with modifications, of information collection that is necessary for PBGC to operate the special financial assistance (SFA) program for certain financially troubled multiemployer plans. To apply for SFA, a plan sponsor must file an application with PBGC and
include information about the plan, plan documentation, and actuarial information/assumptions. PBGC needs the application information to review a plan’s eligibility for SFA and amount of requested SFA. 

In this renewal, PBGC is making the following changes:

  • Modifying the SFA application instructions to require full census data of all terminated vested participants that were included in the SFA projections. PBGC will use this information to conduct an independent death audit. 
  • Adding a new "assumptions summaries" template, and adding a cover letter that a plan, in certain circumstances, may use to withdraw a previously filed application for SFA and seek expedited review of a revised application. These two additions are intended to make PBGC’s review process more efficient.
  • Adding information for filing a "revised lock-in application." A revised lock-in application may be used by a plan that was not eligible for SFA on the filing date of the plan’s earlier lock-in application, based on the information available on that date.
  • Clarifying the types of documents to be attached to the "Annual Statement of Compliance" and adding a template that filers may use to submit the required account and investment information. 
Comments are due June 30, 2023.