By: Russ Kamp, Managing Director, Ryan ALM, Inc.
It must have been Spring Break for the members of the PBGC this past week, as there is nothing to update as it relates to the filing of applications or approval/payment of the Special Financial Assistance (SFA). There remain only five approved applications to date and each plan has received the SFA payment. As a reminder, the PBGC has handed out $1.1 billion in SFA to date covering 8,117 plan participants.
There are currently 27 applications from Priority Group one and two plans that have yet to be approved. The applications have filed for an estimated $7.1 billion in SFA and cover roughly 163,000 plan participants. Effective April 1, 2022 plans that have >350,000 plan participants are eligible to file their applications.
We continue to wait on the PBGC’s Final, Final Rules regarding elements of the ARPA legislation. What is likely to happen first, Congress’s approval of permanent Daylight Savings Time (which would become effective in November 2023) or the PBGC’s final guidance on the ARPA legislation? Perhaps the added daylight might contribute to some additional activity.