Billion Dollar PBGC Bailouts

On November 15, 2022, PBGC posted a list of plans that meet the requirements for SFA application Priority Group 6 which includes plans for which PBGC projects a present value of financial assistance payments under section 4261 of ERISA that would exceed $1 billion in the absence of SFA. The application period for Priority Group 6 plans is currently scheduled to open on February 11, 2023.

PBGC lists 14 eligible plans but according to Shcedule MB data from 2016 there were 103 plans with unfunded liabilities of over $1 billion – listed below with 9 of the 14 priority Group 6 plans located with their EIN in bold.

SFA Update – 9/2/22

The PBGC Special Financial Assistance program for troubled multiemployer plans updated today with one new filer (Toledo Roofers Local No. 134 Pension Plan), one withdrawal (Bricklayers Union Local No. 1 Pension Fund) and one approval asking for more (Local Union No. 466 Painters, Decorators and Paperhangers Pension Plan). We will not be tracking these supplemental applications until I figure out what they are about but here is our updated summary of 40 plans in the system with 30 original approvals and 10 under main review.

SFA Update – One New and Approved; Two Withdrawn

The PBGC Special Financial Assistance program for troubled multiemployer plans is getting more complicated, as is my work situation until October 17, so these updates will be spread out.

Since last I looked there has been one new approval (Gastronomical Workers Union Local 610 and Metropolitan Hotel Association Pension Fund), one new filer (I.A. of M. Motor City Pension Fund) and two withdrawals (America’s Family Benefit Retirement Plan and Southern California, Arizona, Colorado & Southern Nevada Glaziers, Architectural Metal & Glass Workers Pension Plan).

Our updated summary (excluding all those supplemental filings) now shows 30 original approvals and 10 Under Main Review.

SFA Update – Common, Consequential, and Crazy

The PBGC Special Financial Assistance program for troubled multiemployer plans threw out some curve balls with today’s weekend update.

The common was a new filer (Bricklayers and Allied Craftsmen Local 5 New York Retirement Fund Pension Plan).

The consequential was Central States, Southeast & Southwest Areas Pension Plan, which was due to get approved in two weeks, withdrawing and refiling for $173 million less with the approval date moved to December 10, 2022.

The crazy was ten plans that had already been approved appearing as Under Review again, with eight apparently asking for more.

SFA Update – One Refiler; One Approval

The PBGC Special Financial Assistance program for troubled multiemployer plans weekend update showed one approval (Pension Plan of the Printers League – Graphic Communications International Union Local 119B out of East Farmingdale, NY) and a plan that withdrew their application last week (Local 966 Pension Plan out of Cresskill, NJ) is back and asking for over $8 million less.

Our updated summary now has 41 plans in the system – 29 approvals and 12 under review.

SFA Update – One Refiler; One Withdrawal

The PBGC Special Financial Assistance program for troubled multiemployer plans weekend update showed one refiler (Teamsters Local Union No. 52 Pension Fund out of Brook Park, OH) asking for $269,051 less and a plan that was at the deadline (Local 966 Pension Plan out of Cresskill, NJ) withdrawing.

Our updated summary now has 40 plans in the system – 28 approvals and 12 under review.

SFA Update – Today’s Approval

Still officially on hiatus but this PBGC Special Financial Assistance program for troubled multiemployer plans approval is easy and a big one. This brings the tally to 41 plans in the system – 28 approvals and 13 under review.

SFA Update – One Refiler

Still on hiatus which may last through the summer but the PBGC Special Financial Assistance program for troubled multiemployer plans weekend update showed a refiler of interest (New York State Teamsters Conference Pension and Retirement Fund out of Syracuse, NY) which is now asking for $117 million less.

Our updated summary now has 41 plans in the system – 27 approvals and 14 under review.

PBGC Finalizes SFA Rules

The Pension Benefit Guaranty Corporation (PBGC) today announced a final rule implementing changes to the Special Financial Assistance (SFA) Program for financially troubled multiemployer pension plans.

The final rule makes various changes that address the public comments received:

SFA Update – Two New Filers

The PBGC Special Financial Assistance program for troubled multiemployer plans weekend update showed two new bailout filings (Bricklayers and Allied Craftsmen Local 7 Pension Plan out of Akron, OH and Bricklayers Union Local No. 1 Pension Fund* out of Roanoke, VA).

Our updated summary now has 40 plans in the system – 27 approvals and 13 under review.