By: Russ Kamp, Managing Director, Ryan ALM, Inc.
Happy to report that there was some more activity related to ARPA and the rescue of struggling multiemployer plans during the last week. As of this writing, there have been 25 ARPA SFA applications approved by the PBGC including two more last week. The newly approved applications were for the Management-Labor Pension Fund Local 1730 ILA and Iron Workers Local 17 Pension Fund which collectively covers 2,378 plan participants. The funds are seeking roughly $110 million in SFA grant money. Since the inception of the ARPA program, 13 funds have received grants totaling just under $2.4 billion.
Two more plans filed their initial SFA applications last week. There are currently 12 applications with the PBGC awaiting action. To date, none of the previous applications that have been filed were rejected. As I reported this morning, it appears that we are getting close to receiving the Final, Final Rules from the PBGC on how this legislation should be enacted. Perhaps news of that development will inspire those Priority groups, 1, 2, and 3 plans that have remained on the sidelines to finally file. More to come! Have a great week.