PLANADVISER - July/August 2021 - 6

compliance news //
Legislative and Judicial Actions
Financial Assistance
For Multiemployer Plans
The American Rescue Plan Act (ARPA),
signed into law earlier this year, allows
multiemployer plans that are in critical
and declining status to receive a
lump sum of money to help keep the
plan operating for the next 30 years-
i.e., through 2051. Plans may use the
money to make benefit payments and
pay plan expenses. They must track
the money they receive and earnings
on that money separately from
other funds. Unlike under the previously
introduced Butch Lewis Act, the
payment under the ARPA is not a loan,
so it need not be repaid.
The Pension Benefit Guaranty
Corporation (PBGC) has issued an
interim final rule that lays out the
requirements
for
special
financial
assistance (SFA) applications and
related restrictions and conditions.
PBGC Director Gordon Hartogensis
said the legislation and related regulations
also address the solvency of
the agency's multiemployer program,
which was projected to become insolvent
in 2026. He said the agency
expects that more than 200 plans will
likely be eligible for SFA, affecting
over 3 million participants. An estimated
$94 billion in assistance will be
provided to those eligible plans.
Faith-Based Entities May Now
Benefit From the Public Student
Loan Forgiveness Program
In response to the U.S. Supreme Court
decision in Trinity Lutheran Church of
Columbia Inc. v. Comer, the Department
of Education has amended regulations
regarding the eligibility of faithbased
entities to participate in the
Federal Student Aid programs. Eligible
students may now obtain certain benefits
through these programs, which
were originally authorized under Title
IV of the Higher Education Act (HEA)
of 1965. Due to the ruling, as of July
1, employees at nonprofit organizations
affiliated with religious entities
qualify for the federal public service
loan forgiveness (PSLF) program.
The Supreme Court case referenced
in the Department of Education's
new regulations involved a licensed
preschool and day care center that was
initially opened as a nonprofit corporation
but merged with Trinity Lutheran
Church of Columbia, Missouri, in 1985.
The preschool applied for a Playground
Scrap Tire Surface Material Grant
offered by the Missouri Department
of Natural Resources but was denied
because of a section of the Missouri
Constitution that states, " No money
shall ever be taken from the public
treasury, directly or indirectly, in aid
of any church, section or denomination
of religion. "
Trinity
sued,
arguing
that
the
denial of its application violated the
equal protection clause of the 14th
Amendment as well as the First
Amendment's protections of freedom
of religion and speech, according to
LexisNexis. Lower courts ruled in favor
of the Missouri department. However,
the Supreme Court held that the
department violated a church's rights
6 | planadviser.com July-August 2021 Art by James Yang
http://www.planadviser.com
PLANADVISER - July/August 2021

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