By: Russ Kamp, Managing Director, Ryan ALM, Inc.
Welcome to the second week of September. I don’t know about you, but 2022 is flying along. That said, there really isn’t much to report on this week as no pension systems filed an application new or revised. No applications were approved, and only one plan that has received approval is left to be paid – Gastronomical Workers Union Local 610 and Metropolitan Hotel Association Pension Fund. They are waiting on a tidy morsel of $31.1 million for its 2,624 participants.
As a reminder, the window for Priority Group 4 plans, those projected to become insolvent before 3/11/2023, has been open since July 1st. However, no Group 4 applications have been filed as of yet. Priority Group 5 and 6 funds will be permitted to file effective February 11, 2023. Perhaps the pace of new applications will quicken as we move through the balance of 2022 into 2023.
Lastly, a big thanks to the PBGC for continuing to provide weekly updates on their website.
Is there an end date for when any eligible funds can file? If so, do you know what it is? Thanks!
From the ARPA legistation:
APPLICATION DEADLINE.—Any application by a plan for
special financial assistance under this section shall be submitted to the corporation (and, in the case of a plan to which section 432(k)(1)(D) of the Internal Revenue Code of 1986 applies, to the Secretary of the Treasury) no later than December 31, 2025, and any revised application for special financial assistance shall be
submitted no later than December 31, 2026.