The PACE Industry Plan will receive approximately $1.3 billion in special financial assistance, including interest to the expected date of payment to the plan. The plan was projected to run out of money in 2034. Without the SFA Program, the PACE Industry Plan would have been required to reduce participants’ benefits to the PBGC guarantee levels upon plan insolvency, which is roughly 20 percent below the benefits payable under the terms of the plan. SFA will enable the plan to continue to pay retirement benefits without reduction for many years into the future.
“This Special Financial Assistance means nearly 64,522 manufacturing workers, retirees and their families will receive the retirement they earned, that they were promised and that they deserve,” said Assistant Secretary of Labor for Employee Benefits Security Lisa M. Gomez. “With federal financial assistance funded by the Biden-Harris administration’s American Rescue Plan, participants in the PACE Industry Plan will continue to have secure and dignified retirements for many years to come.”
