ARPA update as of March 25th

Here’s the latest from the PBGC through March 25th. Last week witnessed zero new applications, zero new approvals, zero disbursements of the SFA, and zero applications withdrawn. So much for progress! But who can blame the PBGC, as March Madness has clearly gripped everyone? Perhaps the folks at the PBGC are a bunch of St. Peter’s alum?

So, we remain at seven approved applications with five having received their SFA ($1.1 B). Total applications still in review remain at 26, with U.T.W.A. – N.J. Union – Employer Pension Plan having been the last application submitted on March 16th. As a reminder, the big boys, those plans with >350,000 participants, are eligible to begin filing under Priority Group 3 status beginning April 1st.

There have been only four of the 18 MPRA suspension plans filing an application for the SFA. Priority Group 2 candidates became eligible on December 31, 2021. Are they waiting for the “Final, Final Rules” from the PBGC, or are there other extenuating circumstances that have created this delay? Only time will tell, but I can only imagine the angst that this further delay is giving to participants in those plans. Stay tuned!

5 thoughts on “ARPA update as of March 25th

  1. Here we are a year later and no final final rule ! 4 out of 18 approved of group 1 Jan 2022 group 2 April 2022 group 3 ! What a freaking joke why even open up group 2 or 3 until a final final rule ? At this rate it will be years before we see any money . Would you buy a new car without knowing the price / interest rate or payment amount NO !!! Why no final final rule ? Our government in action if a business ran their business like our government that company would be bankrupt . PITIFUL !!!!

    • Hi Len – It certainly is pitiful. I don’t understand the delay in getting “final, final rules” approved and introduced to the pension community. It makes no sense to me why it has taken this long. Interim rules were shared in July 2021. More than 30+ pension systems have filed an application and five have received the SFA. How should they invest those proceeds? Your frustration is palpable and rightly so.

  2. I believe the PBGC has not posted the final final rules is to stifle the applications coming in to slow down the process so that the PBGC is not overwhelmed with applications that they have 120 day’s to approve or deny ! You would think the PBGC would have a computer software program by now to put the numbers in and make a decision . At the rate the PBGC is approving applications it may be years before many pension plans will ever be able to restore pensions !!! I think our government should have slow down and got the rules established for this program before the bill was signed in law .

    • Hi Len – I hope that you are doing well today. I agree that the process is moving at a snail’s pace. Not sure why. It is frustrating to all involved, but especially the plan participant. Have a great day and I’ll let you and your fellow pensioners know any details that I glean. Russ

    • Good morning, Len. I agree that the PBGC seems to be overwhelmed with the application process. Good news: they approved another plan yesterday. That makes 8 plans that are getting SFA. Let’s hope that this action opens the floodgates. Have a great day.

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