SFA Winding 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 either $4 million more or $12 million less depending on whether you go with the SFA summary page or Sheet 4-3 from their application.

They are not alone as seven of the twenty plans that have applied show differences between what they have on their 4-3 sheets and what the PBGC summarizes as what they are requesting.

Local 707 originally asked for $706,400,534 using the 5.32% interest rate. Their amended application changed the interest rate to 5.38% but it also assumed lower future contributions and benefit payouts plus slight changes in plan expenses, all items that should not be impacted by a change in the interest rate, in theory. Local 707 is now requesting $694,848,726 if you believe their Sheet 4-3 or $710,402,487 if you believe the PBGC summary.

One response to this post.

  1. Posted by Ray Shorter on November 24, 2021 at 5:49 pm

    I thought Pbgc was supposed to offer assistance, why is this so hard, and why the changes so late in the ball game? For them to start some priority 2 groups in December, they must be anticipating smooth sailing. This whole process seems embarrassing.

    Reply

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