By: Russ Kamp, CEO, Ryan ALM, Inc.

I hope that you had an enjoyable Memorial Day Weekend. Furthermore, I hope that you took a few minutes to reflect on all those that paid the ultimate sacrifice to ensure that we continue to live in freedom. May they never be forgotten!

With respect to the implementation of the ARPA legislation, the PBGC is reporting that there were no new applications received. However, there was one application for Special Financial Assistance (SFA) approved, and it was a large grant. Southern California United Food and Commercial Workers Unions and Food Employers Joint Pension Plan, a Priority Group 6 member, had its revised application approved which will provide them with nearly $1.3 billion in SFA to support 193,302 plan participants. Congrats!

In other ARPA news, there were no applications denied and no excess SFA repaid. However, there was one application withdrawn. Warehouse Employees Union Local No. 730 Pension Trust Fund, a non-priority group member, was seeking $110.9 million in SFA. There were no pension funds seeking to be added to the current waitlist, but three of the funds on that list decided to lock-in the SFA measurement date, which just happened to be 2/28/25 for each.

U.S. interest rates rose last week, and the 30-year Treasury Bond yield eclipsed 5% once again. Rates have backed off to start the week, but they remain quite robust providing plan sponsors the opportunity to secure the promised benefits at significant cost reduction. Let’s hope that they remain elevated for the 9 multiemployer plans scheduled to have action taken by the PBGC on the applications in June.