By: Russ Kamp, Managing Director, Ryan ALM, Inc.
We are pleased to provide you with the latest update related to the ongoing implementation of ARPA’s pension legislation. As we’ve discussed in recent updates, we were in a quiet period as there was only 1 Priority Group 3 plans and no Priority Group 4 plans. However, relative calm is likely to end as Priority Group 5 plans will be permitted to submit initial applications beginning on November 15th. Despite the relative lull, there were two funds that submitted supplemental applications seeking additional Special Financial Assistance (SFA). Those two plans are the Freight Drivers and Helpers Local Union No. 557 Pension Plan and the Gastronomical Workers Union Local 610 and Metropolitan Hotel Association Pension Fund which are seeking $12,383,121 and $2,065,531, respectively.
We are happy to report that the PBGC didn’t reject any current applications and no submissions were withdrawn. Finally, the Bricklayers and Allied Craftsmen Local 7 Pension Plan is the only fund with an approved application that is awaiting payment of the SFA. They are expected to receive just over $34 million in SFA. To date, the PBGC has doled out just about $7.8 billion in SFA proceeds.
|SFA Application Status|
|Total Applications Expected||30||24||1||N/A||15||14||218||302|
|Expected Future Applications||4||1||0||15||14||218||252|
* Total expected count is from PBGC’s Enrolled Actuary Meeting on May 2, 2022
Note: Chart details presented by Segal’s Jason Russell at the IFEBP annual conference in Las Vegas, NV