ARPA Update Through April 15th

By: Russ Kamp, Managing Director, Ryan ALM, Inc.

We hope that you had a wonderful Easter or Passover celebration this past weekend. With regard to the PBGC’s latest update (as of April 15th), no new plans filed an application. The last to do so was the New York-based, Pension Plan of the Printers League – Graphic Communications International Union Local 119B, New York Pension Fund, covering 1,213 participants. This plan has filed an SFA application to receive roughly $85 million. To date, none of the Priority Group 3 members (>350,000 participants) have submitted an application with the PBGC.

We are pleased to report that two plans that had received prior notice that their applications had been approved received the payments totaling $238 million and covering 2,250 participants. This activity brings to seven the number of approved and paid SFA applications. Each of these plans filed its application under the Priority Group 1 category. As we reported last week, 36 plans have filed an application with the PBGC representing a very small percentage of the expected number of applications and $s associated with this legislation. Obviously, there is much more to come.

10 thoughts on “ARPA Update Through April 15th

  1. I think 10 funds have been approved to date.

  2. Hi Ray – I hope that you are well. Yes, 10 funds have been approved and 7 funds have received payment. About as slow a process as one can imagine!
    Russ

    • Now today, 3 more plans were approved. Bringing number to 13.

      • Hi Ray – Yes, 3 more today bringing to 36.1% approved of the 36 applications filed.

        Let’s hope that the pace accelerates.

      • On another note, I had lunch today with a PBGC lawyer, and no news yet on the Final, Final Rules. Really incredible. I’ll be having a meeting tomorrow morning with Senator Murray’s pension expert. Hopefully, they’ll have some insights into how the implementation is progressing.

  3. I believe the reason many plans have not applied is that the PBGC has not posted the final final rules !

  4. How did meeting with Senator Murphy’s pension person go? Did they explain the snails pace?

    • Good evening, Ray. I hope that you’ve had a good day. I’ve had a productive 2 days in DC. Everyone is admitting the “snail’s pace” but no one is willing to commit to a timeframe when the Final, Final Rules will be published. Senator Patty Murray’s Pension Expert is outstanding. I have a lot of confidence that if she’s given an opportunity to influence this legislation it will result in a good outcome. I just don’t know how much influence Congress has at this time since they gave responsibility to the PBGC. Some of the aspects of the legislation that I discussed seemed to reflect the original intent of the legislation which is to “secure” the promised benefits for as long as the SFA proceeds last – it won’t be close to 30-years – sorry!

  5. Most of us are concerned about the next 30 days, not 30 years. We won’t be around to see it. Fortunately, most funds are on track to be wrapped up in the next 4 months.

  6. I hear you! I hope that you have a great day.

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