American Rescue Plan Act
Pension Benefit Guaranty Corporation Approves
Central States’ Application for Special Financial Assistance
On December 8, the Pension Benefit Guaranty Corporation (PBGC) approved the Central States Pension Fund’s application for Special Financial Assistance (SFA), in accordance with the provisions of the American Rescue Plan Act of 2021. The PBGC has approved approximately $35.8 billion in SFA, which the Fund received on January 12, 2023.
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 Fund benefits are secure both now, and long into the future.
Consistent with federal guidelines, Pension Fund assets will be invested very conservatively, which will allow us to maintain an extremely low risk profile while still achieving long-term financial stability.
This is wonderful news for all Central States participants. After more than a decade of work to save our Pension Fund, your voices have been heard by Congress and the Administration, to whom we are eternally grateful for their legislative rescue.
We owe profound thanks to all our participants, Local Union partners and employers who took time to engage with their fellow stakeholders, and to advocate for pension relief with their elected officials. It is because of all these efforts that the Central States Pension Fund will continue to provide a secure retirement for our active participants, retirees, and beneficiaries throughout their lifetime.
Additional information is available on the Frequently Asked Questions page.