ARPA Update as of July 24, 2026

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

I hope that you are enjoying a wonderful summer weekend. I'm currently writing this post from an Amtrak train on my way to the Opal Public Fund Forum in Newport, RI. What a beautiful day for a train ride.

There is some very exciting news to report in this week's update following several ho hum weeks with little to disclose. I'm pleased to report that a "Plan Terminated by Mass Withdrawal before 2020 Plan Year" has been invited to submit an application seeking Special Financial Assistance (SFA). As a reminder, there are 80 such plans on the "waitlist". Could this be the crack in the dam that opens the flood gates?

Retirement Plan of Local 1102 Retirement Fund, the first mass withdrawal applicant, is seeking just over $3.7 million for 220 plan participants. I'll be following this story closely and reporting as information becomes available. In addition to 1102, four other pension funds were permitted to submit revised applications, including America's Family Benefit Retirement Plan, a Priority Group 1 member. They are one of just three members from that cohort that have not yet received SFA. They are hoping to secure $186.7 million for its 3,109 members.

The other three plans resubmitting applications are UFCW, Local 23 and Giant Eagle Pension Plan, Plasterers Local #1 Pension Plan, and Colorado Cement Masons Pension Trust Fund, who collectively are trying to secure $37.1 million for just under 7.5k plan members.

There is little to report this week beside the activity associate with the resubmission of four applications and the one initial application, as there were no applications approved, denied, or withdrawn.

U.S. interest rates (based on the Treasury yield curve) continued to rise last week as inflationary concerns escalated primarily due to uncertainty in the Middle East and its impact on the price of oil. Given the higher rates, new and future SFA recipients will be able secure those future benefits at a reduced cost. We're pleased to provide you with a free analysis on just what those cost savings could be and how far into the future those benefits could be secured.

A "Joe Friday" Moment

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

Jack Webb, who portrayed Joe Friday in the 1950s crime drama "Dragnet", was famous for saying in season two “all we want are the facts, ma’am.” The catchphrase eventually morphed into a shorter phrase with the help of comedian, Stan Freberg, who released his parody “St. George and the Dragonet" in which he stated, "just the facts, Ma'am". That phrase has been carried forward in Dragnet remakes. But, I digress.

Today, I present to you a Joe Friday moment. Here are the facts: Oil prices have risen by 27% since July 6th. U.S. Treasury yields are rising across the yield curve, and the 30-year Treasury yield is within 6 bps of this cycle's high of 5.2%. The 10-year Treasury yield is currently 4.66% as of 10:24 am on 7/22/26. Investment grade corporate bond spreads have finally started to widen although slowly. According to Morgan Stanley, the "average" yield on a BBB+ corporate is 6.23% or roughly 1.1% higher than the yield on the comparable 30-year Treasury bond. Inflation, which moderated in June, is likely to spike higher given the current direction of activity in the Middle East and its impact on shipping lanes.

These are the facts. They suggest to me, and hopefully you, that the current U.S. interest rate environment is ripe for de-risking activities through cash flow matching (CFM). Why continue to live with the uncertainty surrounding oil, inflation, rates, etc., when you can SECURE your fund's promises in the near-term?

I wish that I had a crystal ball to help me forecast the future but alas I don't, and I suspect that you don't either. Given the lack of clarity related to future events, I suggest that we live in the moment. We have an environment in which the cost of those future promises (benefit payments) can be cut dramatically. An environment that brings an element of certainty to a very uncertain process. An environment in which U.S. interest rates are providing plan sponsors with a significant portion of the annual return on investment target.

We've seen this scenario before. At the start of the 2000s, we had pension plans extremely well-funded and contribution expenses well-controlled. That opportunity went unheeded. The result of that inaction proved to be disastrous as we saw DB pension funding get pounded by two major equity market corrections. Are you confident that another major correction isn't around the corner?

Like Joe Friday, I rely on the facts, which I've now presented to you. Ignore them at your peril.

Important NIRS Statement related to Alaska

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

I recently published a post highlighting how powerful public pension funds are as an economic force. Despite DB pension fund demise in the private sector, they remain widely used to support hiring and retention of critical public servants. However, there are gaps in their usage and significant attempts have been made to shift the burden for a dignified retirement from the employer to the employee through DC offerings.

Recently, there was a bipartisan attempt by the Alaska legislation to reintroduce defined benefit plans to public sector workers, which were shuttered to new employees back in the early 2000s. Unfortunately, the bill was vetoed by Governor Dunleavy. The following text is a statement from Dan Doonan, Executive Director, National Institute on Retirement Security related to the Alaska situation. It is excellent!

Statement on Efforts in Alaska to Restore Pension Benefits to Address Grave Workforce Shortage

WASHINGTON, D.C., May 19, 2026 – In response to the veto of bipartisan legislation passed by the Alaska legislature to provide defined benefit pensions to Alaska’s public employees, the National Institute on Retirement Security (NIRS) issued the following statement today from Dan Doonan, NIRS executive director:

“Alaska’s effort to restore a pension plan for public workers represents meaningful progress in addressing one of the state’s most pressing challenges: attracting and retaining a stable, experienced public workforce. While Governor Dunleavy has vetoed the legislation, the fact that the measure passed both the House and Senate demonstrates a growing recognition that retirement benefits are not just about retirement security — they also are an essential workforce management tool.

For years, Alaska has faced deep and growing staffing shortages and retention problems across the public sector after closing its pension plans, especially in education and public safety. Pensions are a proven tool for helping employers recruit qualified workers, reduce costly turnover, and retain experienced employees who provide continuity and institutional knowledge. Too often, Alaska has served as a training ground where workers gain experience and then leave for other states that provide pension benefits and offer public employees financial security after careers serving their communities.

Research delivered by NIRS to the Alaska Department of Education found that Alaska’s shift away from pensions contributed to higher turnover among public education employees. Alaska is a rare example in which data was available to compare the behavior of workers in the same jobs and communities, with the same employers, but with different benefit offerings. That increased worker turnover in Alaska carries real costs for employers, taxpayers, and communities alike.

Importantly, the new pension tier approved by the legislature offered an innovative middle-ground design approach to protect taxpayer interests, with both risk- and cost-sharing features.

Despite the veto, the legislation is an important step forward because policymakers from both parties acknowledge that retirement plan design directly affects workforce stability and the quality of public services. Supporters rightly argued that offering a redesigned, innovative pension plan with taxpayers' protections would help address chronic vacancies and improve retention in critical public-sector jobs.

We hope Alaska lawmakers continue this conversation and make another run at restoring a pension option in the future. States across the country increasingly recognize that pensions remain one of the most cost-effective tools available to build and sustain a strong workforce capable of delivering essential public services.”

The National Institute on Retirement Security is a non-profit, non-partisan organization established to contribute to informed policymaking by fostering a deep understanding of the value of retirement security to employees, employers, and the economy as a whole. Located in Washington, D.C., NIRS membership includes financial services firms, employee benefit plans, trade associations, and other retirement service providers. More information is available at www.nirsonline.org.

Thanks, Dan and NIRS, for your continuing advocacy for DB pension plans.