By: Russ Kamp, Managing Director, Ryan ALM, Inc.
A trip to visit my daughter in Copenhagen, Denmark kept me away from providing an update last week. I would highly recommend that you visit that city/country if you can as it provided myriad positive experiences. As you will soon read, you didn’t miss much while I was out of the office galivanting.
To the update, according to the PBGC’s website, there were no new applications filed, but the Retirement Plan of Local 1482 – Paint and Allied Products Manufacturers Retirement Fund submitted a supplemental application for additional SFA. They received approval for the initial application in December 2021. Fortunately, there were no applications rejected or withdrawn during the last couple of weeks. Lastly, Freight Drivers and Helpers Local Union No. 557 Pension Plan received their SFA of $192.8 million on November 3rd.
As we recently reported, Priority Group 5 plans, those funds that are projected to become insolvent before 3/11/2026, can begin filing an initial application starting on November 15th. It is estimated by the PBGC that 15 funds fall within this priority grouping.
| SFA Application Status | ||||||||
| Priority Group | 1 | 2 | 3 | 4 | 5 | 6 | None | Total |
| Total Applications Expected | 30 | 24 | 1 | N/A | 15 | 14 | 218 | 302 |
| Approved | 23 | 9 | 0 | 0 | 0 | 0 | 32 | |
| Under Review | 0 | 14 | 1 | 0 | 0 | 0 | 15 | |
| Withdrawn | 3 | 0 | 0 | 0 | 0 | 0 | 3 | |
| Denied | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Expected Future Applications | 4 | 1 | 0 | 15 | 14 | 218 | 252 |
It will be interesting to see if the PBGC’s estimate of application filings (218) for pension funds that don’t fall into one of the 6 priority groupings comes to be. If so, we will have a lot of fun trying to stay on top of the comings and goings of that cluster of plans.
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