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

The PBGC has just announced the following: On Friday, March 10, 2023, the priority group application period (Groups 1-6) as specified in the SFA regulation will end, and on Saturday, March 11, 2023, the application period for all SFA-eligible plans (both priority group and non-priority group plans) will begin. As we’ve been reporting, the collection of non-priority group plans dwarfs the Priority Group plans in number (218 vs. 87), if not in potentially requested SFA.

Since December 21, 2021, when Local 138 Pension Trust Fund became the first plan to receive PBGC approval for Special Financial Assistance, the PBGC has approved 41 initial/revised applications and 28 supplemental applications. These approvals amounted to a distribution of $45.8 billion in ARPA grants covering the pensions of 686,540 American workers! There are still a number of Priority Group applications to be approved by the PBGC in addition to the more than 200 potential new applications. It is going to get quite busy at the PBGC, as if it hasn’t already been the case.