By: Russ Kamp, Managing Director, Ryan ALM, Inc.
Despite the fact that most investors are either focused on the demise of Silicon Valley Bank (SIVB) or on filling out their NCAA tournament bracket, life goes on in the multiemployer world. In fact, last week was very busy as 9 applications for SFA funding were received by the PBGC. Of those applications submitted, one was a Priority Group 1 (PG) member, 2 were PG 2, 2 were PG 5, and 4 were PG 6. In all cases, but one, the applications for either the initial submission or a revised version. Only one of those applications was seeking supplemental funds.
Collectively, these plans are seeking >$3.9 billion in SFA for support of their nearly 339,000 participants. That equates to roughly $115,000 per participant. The Automotive Industries Pension Plan and the Southern California United Food and Commercial Workers Union and Food Employers Joint Pension Plan are each seeking more than $1 billion in SFA support. There were no applications approved or denied during the last week. There was one application withdrawn, but Local 210’s Pension Plan submitted a revised application within the same week.
As a reminder, effective March 11, 2023, more than 200 pension plans that were not placed in a priority grouping, but may still be eligible for SFA proceeds, were permitted to file. It will be quite interesting to see the pace of these submissions as we move through the upcoming weeks.