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

I don’t know if the historic rainfall registered on the east coast last week had anything to do with activity levels at the PBGC, but we witnessed very little tangible output as it related to the implementation of ARPA and the Special Financial Assistance (SFA). I can report that one fund, UFCW Regional Pension Fund, a non-Priority plan, has had its application placed under review. This fund is seeking $52.4 million for the 4,605 plan participants.

As a reminder, there are 110 funds on the “Waiting List”. These are all non-priority group plans that may prove to be eligible for SFA grants. Of these 110, 17 applications have been submitted with two already approved for more than $323 million.

US interest rates continue to march higher providing recipients of the SFA assets an opportunity to lock in benefit payments (and expenses) for a longer coverage period as the present value of those future payments continues to fall. It is great news and should encourage plans and their advisors to forego return-seeking assets in the SFA bucket. Seek risk within the legacy portfolio.