By: Russ Kamp, Managing Director, Ryan ALM, Inc.
Things are getting more interesting. For the first time, the PBGC has denied an application on the basis that the fund did not qualify as a Priority Group 2 plan. The Bakery Drivers Local 550 and Industry Pension Fund was seeking slightly more than $132 million for its 1,122 participants. The fund had described itself as a Critical and Declining Plan. The PBGC rejected their initial application. I don’t know if they qualify for SFA under a different priority grouping, but we will monitor this situation given this unique outcome.
In other news, two more plans had supplemental applications approved. The Pension Plan of the Printers League – Graphic Communications International Union Local 119B, New York Pension Fund and the Teamsters Local 641 Pension Plan will receive $15,928,030 and $96,092,818, respectively, for their combined 4,823 participants. The Teamsters application was a revised supplemental filing.
There were two Priority Group 2 applications filed last week. The Local 966 Pension Plan filed a supplemental application seeking an additional $8.3 million in SFA for its 2,356, while the U.T.W.A. – N.J. Union – Employer Pension Plan submitted a revised application that had only been withdrawn last week in which they sought $7.5 million for 449 plan participants. As a reminder, the PBGC has identified 14 plans that they believe qualify under Priority Group 6 (present value of financial assistance in excess of $1 billion) that may begin to file their applications beginning February 11, 2023.