Federal Register Documents

[Federal Register: September 10, 1996 (Volume 61, Number 176)]
[Notices]
[Page 47774-47775]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
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PENSION BENEFIT GUARANTY CORPORATION
Request for a Collection of Information Under the Paperwork Reduction Act; Qualified Domestic Relations Order Submitted to the PBGC AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of request for OMB approval.

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SUMMARY: The Pension Benefit Guaranty Corporation has requested that the Office of Management and Budget approve a new collection of information under the Paperwork Reduction Act. The information collection relates to model forms contained in a PBGC booklet providing guidance on how to submit a proper qualified domestic relations order to the PBGC.
DATES: The PBGC has requested that OMB approve this request by September 10, 1996.
ADDRESSES: All written comments should be addressed to: Office of Information and Regulatory Affairs, OMB, Attention: Desk Officer for the Pension Benefit Guaranty Corporation, 725 17th Street, NW., Room 10235, Washington, DC 20503. The request for approval will be available for public inspection at the PBGC Communications and Public Affairs Department, suite 240, 1200 K Street, NW., Washington, DC 20005, between the hours of 9 a.m. and 4 p.m.
FOR FURTHER INFORMATION CONTACT: James L. Beller, Attorney, Office of the General Counsel, Suite 340, 1200 K Street, NW., Washington, DC 20005, 202-326-4024 (202-326-4179 for TTY and TDD). (These are not toll-free numbers.)
SUPPLEMENTARY INFORMATION: The Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35) establishes policies and procedures for controlling the paperwork burdens imposed by Federal agencies on the public. The Act vests the OMB with regulatory responsibility over these burdens, and OMB has promulgated rules on the clearance of collections of information by Federal agencies.
The PBGC is a federal agency that insures the benefits of nearly 42 million working men and women in about 55,000 private-sector defined benefit pension plans. A defined benefit pension plan that does not have enough money to pay benefits may be terminated if the employer responsible for the plan faces severe financial difficulty, such as bankruptcy, and is unable to maintain the plan. In such an event, the PBGC becomes trustee of the plan and pays benefits, subject to legal limits, to plan participants and beneficiaries.
The benefits of a pension plan participant generally may not be assigned or alienated. Title I of ERISA provides an exception for domestic relations orders that relate to child support, alimony payments, or marital property rights of an alternate payee (a spouse, former spouse, child, or other dependent of a plan participant). The exception applies only if the domestic relations order meets specific legal requirements that make it a qualified [[Page 47775]] domestic relations order (``QDRO''). The PBGC reviews submitted domestic relations orders to determine whether the order is qualified before paying benefits to an alternate payee.
The PBGC receives many inquiries on the requirements for QDROs. Many domestic relations orders, both in draft and final form, do not meet the applicable requirements. The PBGC works with practitioners on a case-by-case basis to ensure that their orders are amended to meet applicable requirements. This process is time-consuming for practitioners and for the PBGC.
To simplify the process, the PBGC has included model QDROs and accompanying guidance in a booklet, ``Divorce Orders & PBGC,'' that attorneys and other professionals who are preparing QDROs for plans trusteed by the PBGC may submit to the PBGC after receiving court approval. These models and the guidance are intended to assist parties by making it easier to comply with ERISA's QDRO requirements in plans trusteed by the PBGC.
The requirements for submitting a QDRO are established by statute. The model QDROs and accompanying guidance do not create any additional requirements and will result in a reduction of the statutory burden. The PBGC estimates that it will receive 333 QDROs each year from prospective alternate payees; that the average burden of preparing a QDRO with the assistance of the guidance and model QDROs in PBGC's booklet will be \1/4\ hour of the alternate payee's time and $400 in professional fees if the alternate payee hires an attorney or other professional to prepare the QDRO, or 10 hours of the alternate payee's time if the alternate payee prepares the QDRO without hiring an attorney or other professional; and that the total annual burden will be 156 hours and $132,000.
The PBGC solicits comments to: (i) Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (ii) evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (iii) enhance the quality, utility, and clarity of the information to be collected; and (iv) minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses.
The PBGC has requested that OMB approve this collection on an emergency basis by September 10, 1996 so that model QDROs can be made available to practitioners immediately. Early availability will greatly assist practitioners in preparing proper QDROs for the PBGC, thereby saving parties both time and expense.
Issued at Washington, DC, this 5th day of September 1996. Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 96-23088 Filed 9-9-96; 8:45 am]
BILLING CODE 7708-01-P