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The Pension Benefit Guaranty Corporation is waiving penalties for certain late payments of premiums, is forgoing assessment of penalties for failure to comply with certain information submission requirements, and is extending the deadlines for complying with certain requirements of its administrative review, standard and distress termination, and disclosure to participants regulations.

WHO IS ELIGIBLE: This relief is generally available to persons residing in, or whose principal place of business is within, an area designated by the Federal Emergency Management Agency as affected by the major disaster declared by the President of the United States on account of the Blizzard of '96.

DATE COMPLIANCE IS REQUIRED: The waivers of penalties and deadlines discussed below are conditional on compliance by January 31, 1996.

ELIGIBLE LOCATIONS: For purposes of premium penalties, section 4071 penalties, standard and distress termination deadlines, and Participant Notice deadlines, this notice is applicable with respect to plans whose administrators' or sponsors' principal place of business, or for which the office of a service provider, bank, insurance company, or other person maintaining information necessary to meet the applicable deadlines, is located in a designated disaster area. For purposes of filing requests for reconsideration or appeals, this notice is applicable to any aggrieved person who is residing in, or whose principal place of business is within, a designated disaster area, or with respect to whom the office of the service provider, bank, insurance company, or other person maintaining the information necessary to file the request for reconsideration or appeal is within such an area.

WAIVER OF PENALTIES AND DEADLINES: Six areas in which the PBGC is providing relief are:

(1) penalties for late payment of premiums due the PBGC,

(2) ERISA section 4071 penalties for failure to provide required notices or other material information by the applicable time limit,

(3) deadlines for filing a standard termination notice and distributing plan assets in a standard termination,

(4) deadlines for filing a distress termination notice and, in the case of a plan that is sufficient for guaranteed benefits, issuing notices of benefit distribution and completing the distribution of plan assets,

(5) deadlines for filing requests for reconsideration or appeals of certain agency determinations, and

(6) deadlines for issuing Participant Notices under ERISA section 4011.

Premiums: The PBGC will waive the late payment penalty charge with respect to any premium payment required to be made on or after January 6, 1996, and before January 31, 1996, if the payment is made by January 31, 1996. The PBGC is not permitted by law to waive late payment interest charges. (ERISA section 4007(b); 29 CFR 2610.7 and 2610.8(b)(3).)

Failure to File:

The PBGC will not assess a section 4071 penalty for a failure to file any of the following notices required to be filed with the PBGC on or after January 6, 1996, and before January 31, 1996, if the notice is filed by January 31, 1996:

(1) Postdistribution certification for a singleemployer plan termination (PBGC Form 501 or 602; ERISA section 4041(b)(3)(B) or (c)(3)(B); 29 CFR 2617.28(h) or 2616.29(b)),

(2) Notice of termination for multiemployer plans (ERISA section 4041A; 29 CFR 2673.2),

(3) Notice of plan amendments increasing benefits by more than $10 million (ERISA section 307(e)), and

(4) Reportable event notice, except for reportable events related to bankruptcy or insolvency (or similar proceeding or settlement), liquidation or dissolution, or transactions involving a change in contributing sponsor or controlled group (29 CFR 2615.21, 2615.22, and 2615.23), or for reportable events described in amended ERISA section 4043(c)(9) (12). Subsection (b) of section 4043 was redesignated as subsection (c) and amended, in part, with the addition of new reportable events in paragraphs (9) through (12) by the Retirement Protection Act of 1994 ("RPA amendments").

Failure to Provide Supporting Documentation: The PBGC will not assess a section 4071 penalty for a failure to provide certain supporting information and documentation when any of the following notices is timely filed:

(1) Notice of failure to make required contributions totaling more than $1 million (including interest) (PBGC Form 200; ERISA section 302(f)(4); 29 CFR 2615.30). The timely filed notice must include at least items 1 through 7 and items 11 and 12 of Form 200; the responses to items 8 through 10, with the certifications in items 11 and 12, may be filed late.

(2) Notice of a reportable event related to bankruptcy or insolvency (or similar proceeding or settlement), liquidation or dissolution, or a transaction involving a change in contributing sponsor or controlled group. The timely filed notice must include at least the information specified in 29 CFR 2615.3(b)(1) through (5); the information that may be filed late is that specified in 29 CFR 2615.3(b)(6) through (9) and 2615.3(c)(5) and (6), as applicable.

(3) Notice of a reportable event described in the RPA amendments for which notice is required no later than 30 days after the event occurs.

(A) If the event is reportable under both the RPA amendments and 29 CFR 2615, the notice will be considered timely filed if the notice satisfies the requirements described in paragraph (2) above.

(B) If the event is reportable only under the RPA amendments, the notice will be considered timely filed if the notice includes at least the information specified in 29 CFR 2615.3(b)(1) through (5); the information that may be filed late is that specified in 29 CFR 2615.3(b)(6) through (9).

(4) Notice of a reportable event described in the RPA amendments for which notice is required at least 30 days before the event occurs. The notice will be considered timely filed if the filer makes a good faith effort to include with the notice at least the information specified in 29 CFR 2615.3(b)(1) through (5); the information specified in 29 CFR 2615.3(b)(6) through (9) and 2615.3(c)(5) and (6), as applicable, may be filed late and should be filed as soon thereafter as it is available.

This relief applies to notices required to be filed with the PBGC on or after January 6, 1996, and before January 31, 1996, provided that all supporting information and documentation are filed by January 31, 1996.

Standard And Distress termination notices and distribution of assets:

With respect to a standard termination for which the standard termination notice is required to be filed, orthe distribution of plan assets is required to be completed, on or after January 6, 1996, and before January 31, 1996, the PBGC is (pursuant to 29 CFR 2617.25(a)(2) and 2617.28(f)(4)) extending to January 31, 1996, the time within which the standard termination notice must be filed (and, thus, the time within which notices of plan benefits must be provided) and the time within which the distribution of plan assets must be completed. With respect to a distress termination for which the distress termination notice is required to be filed or, in the case of a plan that is sufficient for guaranteed benefits, other actions must be taken on or after January 6, 1996, and before January 31, 1996, the PBGC is (pursuant to 29 CFR 2616.10(a) and 2616.24(d)) extending to January 31, 1996, the time within which the termination notice must be filed and, in the case of a plan that is sufficient for guaranteed benefits, notices of benefit distribution must be provided and plan assets must be distributed. In addition, as noted above, the PBGC is providing relief from penalties for late filing of the postdistribution certification.

Requests for reconsideration or appeals:

For persons who are aggrieved by certain agency determinations and for whom a request for reconsideration or an appeal is required to be filed on or after January 6, 1996, and before January 31, 1996, the PBGC is (pursuant to 29 CFR 2606.4(b)) extending the time for filing to January 31, 1996.

PARTICIPANT NOTICES: For Participant Notices that are required to be issued on or after January 6, 1996, and before January 31, 1996, the PBGC is (pursuant to 29 CFR § 2627.8) extending the due date to January 31, 1996.

Applying for waivers/extensions: A submission to the PBGC to which a waiver or an extension is applicable under this notice should be marked in bold print "BLIZZARD OF '96, State of (fill in appropriate state)" at the top center.