ARPA Update as of December 22, 2022

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

Christmas came a few days early for a couple of multiemployer plans and their participants, as the PBGC approved the initial application for two MPRA Suspension plans, the International Association of Machinists Motor City Pension Plan and the Toledo Roofers Local No. 134 Pension Plan. As a reminder, participants in these two MPRA plans have been living with reduced benefits. The approval of the Special Financial Assistance (SFA) is the first step in seeing the original benefits restored and the participants made whole. It has been a long and arduous process for these folks. In total, these two plans have 1,384 participants and they will be receiving a total of $85.1 million in SFA.

In addition to approving the initial applications for the funds above, the PBGC also approved the supplemental applications for another four plans, including the Local 365 UAW Pension Trust Fund, the Management-Labor Pension Fund Local1730 ILA, the Local 408 International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America Pension Plan, and the Idaho Signatory Employers-Laborers Pension Plan. They will receive roughly $32.6 million for their nearly 6,000 plan participants.

The Retirement Plan of the Retirement Fund of Local 305 CIO’s Pension Fund, a Priority Group 5 plan, filed its initial application on December 20, 2022, and the PBGC has until April 19, 2023, to act on the application. This plan is seeking $34.7 million for its 918 members. The PBGC has 25 applications to review at this time, including 13 initial or revised submissions and 12 supplemental filings. There were no applications either rejected or withdrawn during the prior week.

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