Frequently Asked Questions
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The SFA program (sometimes referred to as the “Butch Lewis Act”) was enacted into law under ARPA in March 2021. The program provides financial relief through a grant made in an up‐front single payment from the Pension Benefit Guaranty Corporation to financially distressed multiemployer pension plans that qualify and apply for SFA funding, including Central States.
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Yes. Central States received the Special Financial Assistance on January 12, 2023.
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Consistent with federal guidelines, Special Financial Assistance assets will be invested very conservatively, which will allow us to maintain an extremely low risk profile, while still achieving long‐term financial stability.
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No. There is no action required on your part.
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The Pension Benefit Guaranty Corporation approved approximately $35.8 billion in Special Financial Assistance.
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Yes. The SFA funding will allow the Central States Pension Fund to avoid insolvency in 2025 and to make a full recovery – reaching full funding over time. Thanks to this development, Central States pension benefits are secure and can be relied upon throughout the lifetime of our active participants, retirees and beneficiaries.
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Yes. Under the American Rescue Plan Act and based on the PBGC’s regulations, Central States is not permitted to increase participants’ benefit accrual rate unless the increase is forward‐looking and fully paid with contribution increases agreed to in the future. A plan that receives SFA will also not be permitted to reduce employer contributions.
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Yes, Central States continues to have the same Reemployment Restrictions that were in effect before the enactment of ARPA.
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No, ARPA does not change established plan rules for JSO elections. Under plan rules, a JSO election becomes permanent and irrevocable 90 days after the initial payment of the retirement benefit. Thereafter, a JSO election can only be changed pursuant to a judgment or order entered by a court as part of a divorce proceeding.
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Yes. Benefit improvements based upon past service are not permitted under the American Rescue Plan Act and the Pension Benefit Guaranty Corporation’s regulations.
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No. Such benefit improvements based upon past service are not permitted under the American Rescue Plan Act and the Pension Benefit Guaranty Corporation’s regulations.
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The amount of the monthly retirement benefit is primarily determined by the amount of contributions paid. If rate increases are bargained for, the monthly benefit payable will increase by 1% of additional contributions paid.