707 Back On SFA Road

The Road Carriers Local 707 Pension Fund , which became the first plan to seek bailout money under the PBGC Special Financial Assistance program for troubled multiemployer plans as well as the first plan to withdraw their application, probably due to the use of 5.32% as the SFA Interest rate instead of 5.38%, have refiled and are now asking for $4 million more.

The revised application is not online yet but my calculation of the original application amount does tie into $706,400,534 using the 5.32% interest rate. Changing the interest rate to 5.38% should lower the amount by about $2 million yet the revised amount that Local 707 wants is $710,402,487 which implies that other assumptions would have changed in addition to the interest rate. If so, other applicants might want to consider withdrawing and refiling.

Plans that applied so far:

Plan Name: Road Carriers Local 707 Pension Fund
EIN/PN: 51-6106510/001
Total participants @ 1/31/21 4,099 including:
Retirees: 2,690
Separated but entitled to benefits: 689
Still working: 720

Asset Value (Market) @ 2/1/20: $4,892,825
Value of liabilities using RPA rate (2.92%) @ 2/1/20: $861,245,225 including:
Retirees: $592,331,400
Separated but entitled to benefits: $100,512,473
Still working: $168,401,352

Funded ratio: 0.57%
Unfunded Liabilities as of 2/1/20: $856,353,400

Asset Value (Market) as of 1/31/21: $4,681,425
Contributions(H): $4,421,857 Contributions (SB): $20,156,913 Payouts: $19,478,811
Expenses: $888,503

2 responses to this post.

  1. Posted by Ray Shorter on November 23, 2021 at 3:57 pm

    Are they first or last on approval list? You would think that if the other funds are going to withdraw their application, why wouldn’t they do it now?

    Reply

  2. Posted by Ray Shorter on November 24, 2021 at 9:51 am

    Which priority 2 groups are these? Beginning December 27th can file application.

    Reply

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