By: Russ Kamp, Managing Director, Ryan ALM, Inc.
The PBGC was flooded with applications for Special Financial Assistance (SFA) last week with the submission of 13 filings, including 8 Priority Group 5 initial applications, 3 Priority Group 2 (PG2) initial applications, 1 PG2 revised filing, and 1 PG2 supplemental application. Of the 5 Priority Group 2 plans, 3 were MPRA Suspension plans, while the other 2 were designated as Critical and Declining. In total, these 13 multiemployer funds were seeking SFA in the amount of $2.2 billion.
There were no applications approved, denied, or withdrawn last week. There was a resubmission of one withdrawn application. The United Furniture Workers Pension Fund A had withdrawn its initial application on 12/22 and resubmitted a revised filing on 12/29. They are seeking financial assistance of $214 million for its 11,302 participants. As the chart below highlights, only about 21% of the potential 304 applications have been filed. Once the last priority group (6) files (2/11/23), the remaining roughly 220 plans can begin to submit applications for SFA. It might very well become a free-for-all.