As we reported in the December 2023 issue of Pension Fund Notes (PFN), there has been a slowdown in the PBGC's review process for all applications, including ours, due to a new application requirement that was added by the PBGC. We continue to follow the process we outlined in the December PFN (see the
December 2023 Pension Fund Notes for more information). As we explained then, we would need to submit an updated application because of this new PBGC requirement. As expected, we withdrew our application so that we could resubmit it in the coming weeks.
The PBGC's new requirement had nothing to do with the content or quality of our application and is the result of issues with other funds' applications that have been previously filed. The PBGC took longer than anticipated to update its internal procedures to address these issues. The resubmission is happening later than we anticipated as a result and, therefore, we expect that the approval will happen in the summer of 2024.
The new PBGC procedures are now in place, and we are working with PBGC to finalize some details of our revised application prior to resubmission. We will be refiling our revised application as soon as possible.
The Fund remains eligible for financial assistance under ARPA – it's only a matter of how much and when it will be received. The revisions to our application will not have a material effect on the amount of financial assistance that the Fund receives. Once in hand, the financial assistance is expected to provide additional security that all benefits will be paid for decades to come.
The wait is frustrating for everyone involved. However, it is important to keep in mind that when the Special Financial Assistance is paid to the Fund, interest from December 31, 2022 to the payment date will be added to the total.
The Fund has not issued a Pension Fund Notes since December 2023 because the situation has not substantively changed since this last notice. We continue to provide updates through Pension Fund Notes when there is new, substantive information to share.