By: Russ Kamp, Managing Director, Ryan ALM, Inc.
We are pleased to provide you with our weekly update on the PBGC’s activity as it relates to the processing of applications for Special Financial Assistance (SFA) under the ARPA legislation. As we discussed in last week’s update, this legislative effort has moved onto a new phase. That isn’t to say that the original Priority Groups (1-6) aren’t still occupying the PBGC’s time -they certainly are! To that point, there remain 36 initial or revised applications for SFA waiting to be approved. These 36 applications will all have to be reviewed and decisions rendered within the next 3 1/2 months (by July 8th). In addition, there are 100 multiemployer plans that currently sit on a waitlist to have their applications submitted and reviewed. They will have 7 days to file once they are notified that the application portal is open.
Last week we mentioned that there were 15 plans that had indicated that they wanted to “lock in” a valuation date once their application window was opened. We need to add 9 more to that list. Each of these new lock-in candidates chose 12/31/22 as the valuation date for determining eligibility and potential grants. There were no new names added to the waitlist which is somewhat surprising as early indications were that 218 plans might qualify for SFA that weren’t part of the initial Priority Groupings.
With regard to the original Priority Group filings, 4 plans received their supplemental SFA payouts. In total, these four plans received an additional $26.7 million for just under 6,700 plan participants. Pleased to report that there were no applications denied or withdrawn. Clearly, there is much more to report on and we will continue to provide weekly updates until the ARPA/PBGC process has run its course.