[Federal Register Volume 79, Number 53 (Wednesday, March 19, 2014)]
[Notices]
[Pages 15361-15363]
From the Federal Register Online via the Government Printing Office [http://www.gpo.gov/]
[FR Doc No: 2014-06051]
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PENSION BENEFIT GUARANTY CORPORATION
Submission of Information Collections for OMB Review; Comment
Request; Multiemployer Plan Regulations
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of request for extension of OMB approval.
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SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) is requesting
that the Office of Management and Budget (OMB) extend approval, under
the Paperwork Reduction Act, of certain collections of information
under its regulations on multiemployer plans under the Employee
Retirement Income Security Act of 1974 (ERISA). This notice informs the
public of PBGC's request and solicits public comment on the collections
of information.
DATES: Comments should be submitted by April 18, 2014.
ADDRESSES: Comments should be sent to the Office of Information and
Regulatory Affairs, Office of Management and Budget, Attention: Desk
Officer for Pension Benefit Guaranty Corporation, via electronic mail
at OIRA_DOCKET@omb.eop.gov or by fax to 202-395-6974. A copy of PBGC's
request may be obtained without charge by writing to the Disclosure
Division of the Office of the General Counsel, 1200 K St. NW.,
Washington, DC 20005-4026, or by visiting that office or calling 202-
326-4040 during normal business hours. (TTY and TDD users may call the
Federal relay service toll free at 1-800-877-8339 and ask to be
connected to 202-326-4040.) The request is also available at http://www.reginfo.gov/.
FOR FURTHER INFORMATION CONTACT: Donald F. McCabe, Attorney, Regulatory
Affairs Group, Office of the General Counsel, or Catherine B. Klion,
Assistant General Counsel, Pension Benefit Guaranty Corporation, 1200 K
Street NW., Washington, DC 20005-4026, 202-326-4024. (For TTY and TDD,
call 1-800-877-8339 and request connection to 202-326-4024.)
SUPPLEMENTARY INFORMATION: An agency may not conduct or sponsor, and a
person is not required to respond to, a collection of information
unless it displays a currently valid OMB control number. OMB has
approved and issued control numbers for the collections of information,
described below, in PBGC's regulations relating to multiemployer plans
(OMB approvals expire March 31, 2014, April 30, 2014, or July 31, 2014
(as specified below).\1\
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\1\ This notice does not cover Mergers and Transfers Between
Multiemployer Plans (OMB Control Number 1212-0022, expires March 31,
2014) or Duties of Plan Sponsor Following Mass Withdrawal (OMB
Control Number 1212-0032, expires May 31, 2014). Those information
collections, which were included in PBGC's related ``60-day notice''
(78 FR 72128, Dec. 2, 2013), would be affected by PBGC's recent
proposed rule on Multiemployer Plans; Valuation and Notice
Requirements, 79 FR 4642 (Jan. 29, 2014). The proposed rule changes
to those information collections are currently under review by OMB.
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The collections of information for which PBGC is requesting
extension of OMB approval are as follows:
1. Termination of Multiemployer Plans (29 CFR Part 4041A) (OMB Control
Number 1212-0020) (Expires March 31, 2014)
Section 4041A(f)(2) of ERISA authorizes PBGC to prescribe reporting
requirements for and other ``rules and standards for the administration
of'' terminated multiemployer plans. Section 4041A(c) and (f)(1) of
ERISA prohibit the payment by a mass-withdrawal-terminated plan of lump
sums greater than $1,750 or of nonvested plan benefits unless
authorized by PBGC.
The regulation requires the plan sponsor of a terminated plan to
submit a notice of termination to PBGC. It also requires the plan
sponsor of a mass-withdrawal-terminated plan that is closing out to
give notices to participants regarding the election of alternative
forms of benefit distribution and, if the plan is not closing out, to
obtain PBGC approval to pay lump sums greater than $1,750 or to pay
nonvested plan benefits.\2\
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\2\ Although the regulation would be affected by the recent
proposed rule (see footnote 1), the proposal would not affect the
information collection.
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PBGC uses the information in a notice of termination to assess the
likelihood that PBGC financial assistance will be needed. Plan
participants and beneficiaries use the information on alternative forms
of benefit to make
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personal financial decisions. PBGC uses the information in an
application for approval to pay lump sums greater than $1,750 or to pay
nonvested plan benefits to determine whether such payments should be
permitted.
PBGC estimates that plan sponsors each year (1) submit notices of
termination for 10 plans, (2) distribute election notices to
participants in 5 of those plans, and (3) submit requests to pay
benefits or benefit forms not otherwise permitted for one of those
plans. The estimated annual burden of the collection of information is
19.2 hours and $18,436.50.
2. Extension of Special Withdrawal Liability Rules (29 CFR Part 4203)
(OMB Control Number 1212-0023) (Expires March 31, 2014)
Sections 4203(f) and 4208(e)(3) of ERISA allow PBGC to permit a
multiemployer plan to adopt special rules for determining whether a
withdrawal from the plan has occurred, subject to PBGC approval.
The regulation specifies the information that a plan that adopts
special rules must submit to PBGC about the rules, the plan, and the
industry in which the plan operates. PBGC uses the information to
determine whether the rules are appropriate for the industry in which
the plan functions and do not pose a significant risk to the insurance
system.
PBGC estimates that at most one plan sponsor submits a request each
year under this regulation. The estimated annual burden of the
collection of information is one hour and $5,600.
3. Variances for Sale of Assets (29 CFR Part 4204) (OMB Control Number
1212-0021) (Expires March 31, 2014)
If an employer's covered operations or contribution obligation
under a plan ceases, the employer must generally pay withdrawal
liability to the plan. Section 4204 of ERISA provides an exception,
under certain conditions, where the cessation results from a sale of
assets. Among other things, the buyer must furnish a bond or escrow,
and the sale contract must provide for secondary liability of the
seller.
The regulation establishes general variances (rules for avoiding
the bond/escrow and sale-contract requirements) and authorizes plans to
determine whether the variances apply in particular cases. It also
allows buyers and sellers to request individual variances from PBGC.
Plans and PBGC use the information to determine whether employers
qualify for variances.
PBGC estimates that each year, 11 employers submit, and 11 plans
respond to, variance requests under the regulation, and one employer
submits a variance request to PBGC. The estimated annual burden of the
collection of information is 2.75 hours and $5,513.
4. Reduction or Waiver of Complete Withdrawal Liability (29 CFR Part
4207) (OMB Control Number 1212-0044) (Expires March 31, 2014)
Section 4207 of ERISA allows PBGC to provide for abatement of an
employer's complete withdrawal liability, and for plan adoption of
alternative abatement rules, where appropriate.
Under the regulation, an employer applies to a plan for an
abatement determination, providing information the plan needs to
determine whether withdrawal liability should be abated, and the plan
notifies the employer of its determination. The employer may, pending
plan action, furnish a bond or escrow instead of making withdrawal
liability payments, and must notify the plan if it does so. When the
plan then makes its determination, it must so notify the bonding or
escrow agent.
The regulation also permits plans to adopt their own abatement
rules and request PBGC approval. PBGC uses the information in such a
request to determine whether the amendment should be approved.
PBGC estimates that each year, 100 employers submit, and 100 plans
respond to, applications for abatement of complete withdrawal
liability, and one plan sponsor requests approval of plan abatement
rules from PBGC. The estimated annual burden of the collection of
information is 25.5 hours and $35,000.
5. Reduction or Waiver of Partial Withdrawal Liability (29 CFR Part
4208) (OMB Control Number 1212-0039) (Expires July 31, 2014)
Section 4208 of ERISA provides for abatement, in certain
circumstances, of an employer's partial withdrawal liability and
authorizes PBGC to issue additional partial withdrawal liability
abatement rules.
Under the regulation, an employer applies to a plan for an
abatement determination, providing information the plan needs to
determine whether withdrawal liability should be abated, and the plan
notifies the employer of its determination. The employer may, pending
plan action, furnish a bond or escrow instead of making withdrawal
liability payments, and must notify the plan if it does so. When the
plan then makes its determination, it must so notify the bonding or
escrow agent.
The regulation also permits plans to adopt their own abatement
rules and request PBGC approval. PBGC uses the information in such a
request to determine whether the amendment should be approved.
PBGC estimates that each year, 1,000 employers submit, and 1,000
plans respond to, applications for abatement of partial withdrawal
liability and one plan sponsor requests approval of plan abatement
rules from PBGC. The estimated annual burden of the collection of
information is 250.5 hours and $350,000.
6. Allocating Unfunded Vested Benefits to Withdrawing Employers (29 CFR
Part 4211) (OMB Control Number 1212-0035) (Expires April 30, 2014)
Section 4211(c)(5)(A) of ERISA requires PBGC to prescribe how plans
can, with PBGC approval, change the way they allocate unfunded vested
benefits to withdrawing employers for purposes of calculating
withdrawal liability.
The regulation prescribes the information that must be submitted to
PBGC by a plan seeking such approval. PBGC uses the information to
determine how the amendment changes the way the plan allocates unfunded
vested benefits and how it will affect the risk of loss to plan
participants and PBGC.
PBGC estimates that 10 plan sponsors submit approval requests each
year under this regulation. The estimated annual burden of the
collection of information is 20 hours and $0.
7. Notice, Collection, and Redetermination of Withdrawal Liability (29
CFR Part 4219) (OMB Control Number 1212-0034) (Expires April 30, 2014)
Section 4219(c)(1)(D) of ERISA requires that PBGC prescribe
regulations for the allocation of a plan's total unfunded vested
benefits in the event of a ``mass withdrawal.'' ERISA section 4209(c)
deals with an employer's liability for de minimis amounts if the
employer withdraws in a ``substantial withdrawal.''
The reporting requirements in the regulation give employers notice
of a mass withdrawal or substantial withdrawal and advise them of their
rights and liabilities. They also provide notice to PBGC so that it can
monitor the plan, and they help PBGC assess the possible impact of a
withdrawal event on participants and the multiemployer plan insurance
program.
PBGC estimates that there are six mass withdrawals and three
substantial
[[Page 15363]]
withdrawals per year. The plan sponsor of a plan subject to a
withdrawal covered by the regulation provides notices of the withdrawal
to PBGC and to employers covered by the plan, liability assessments to
the employers, and a certification to PBGC that assessments have been
made. (For a mass withdrawal, there are two assessments and two
certifications that deal with two different types of liability. For a
substantial withdrawal, there is one assessment and one certification
(combined with the withdrawal notice to PBGC).) The estimated annual
burden of the collection of information is 18.43 hours and $50,744.95.
8. Procedures for PBGC Approval of Plan Amendments (29 CFR Part 4220)
(OMB Control Number 1212-0031) (Expires March 31, 2014)
Under section 4220 of ERISA, a plan may within certain limits adopt
special plan rules regarding when a withdrawal from the plan occurs and
how the withdrawing employer's withdrawal liability is determined. Any
such special rule is effective only if, within 90 days after receiving
notice and a copy of the rule, PBGC either approves or fails to
disapprove the rule.
The regulation provides rules for requesting PBGC's approval of an
amendment. PBGC needs the required information to identify the plan,
evaluate the risk of loss, if any, posed by the plan amendment, and
determine whether to approve or disapprove the amendment.
PBGC estimates that at most one plan sponsor submits an approval
request per year under this regulation. The estimated annual burden of
the collection of information is 0.5 hours and $0.
9. Notice of Insolvency (29 CFR Part 4245) (OMB Control Number 1212-
0033) (Expires April 30, 2014)
If the plan sponsor of a plan in reorganization under ERISA section
4241 determines that the plan may become insolvent, ERISA section
4245(e) requires the plan sponsor to give a ``notice of insolvency'' to
PBGC, contributing employers, and plan participants and their unions in
accordance with PBGC rules.
For each insolvency year under ERISA section 4245(b)(4), ERISA
section 4245(e) also requires the plan sponsor to give a ``notice of
insolvency benefit level'' to the same parties.
This regulation establishes the procedure for giving these notices.
PBGC uses the information submitted to estimate cash needs for
financial assistance to troubled plans. Employers and unions use the
information to decide whether additional plan contributions will be
made to avoid the insolvency and consequent benefit suspensions. Plan
participants and beneficiaries use the information in personal
financial decisions.
PBGC estimates that at most one plan sponsor of an ongoing plan
gives notices each year under this regulation. The estimated annual
burden of the collection of information is one hour and $2,734.
Issued in Washington, DC, this 13th day of March, 2014.
Judith R. Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2014-06051 Filed 3-18-14; 8:45 am]
BILLING CODE 7709-02-P