Pension funds receiving special financial assistance can invest in certain fixed income securities but can’t use employer contributions to pay health benefit costs, the federal pension insurer said in a new proposed rule.
The Pension Benefit Guaranty Corporation’s Monday proposal clarifies the scope of permissible investments for funds receiving financial aid under the American Rescue Plan, the 2021 law allowing the government’s private-sector pension insurer to use taxpayer funds to rescue severely underfunded multiemployer pension plans.
This financial aid can be invested in bonds that pay fixed interest for the entire period they’re owned, including securities issued by banks or ...