[Federal Register Volume 59, Number 22 (Wednesday, February 2, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2345]


[[Page Unknown]]

[Federal Register: February 2, 1994]


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PENSION BENEFIT GUARANTY CORPORATION

 

Disaster Relief

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of disaster relief in response to Los Angeles 
earthquake.

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SUMMARY: 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 and standard termination 
regulations. 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 severe earthquake in the Los Angeles area.

FOR FURTHER INFORMATION CONTACT: Harold J. Ashner, Assistant General 
Counsel, or Renae R. Hubbard, Special Counsel, Office of the General 
Counsel, suite 340, Pension Benefit Guaranty Corporation, 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 Pension Benefit Guaranty Corporation 
(``PBGC'') administers the pension plan termination insurance program 
under title IV of the Employee Retirement Income Security Act of 1974, 
as amended (``ERISA''), 29 U.S.C. 1001 et seq. Under ERISA and the 
PBGC's regulations, a number of deadlines must be met in order to avoid 
the imposition of penalties or other consequences. Four 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, and (4) 
deadlines for filing requests for reconsideration or appeals of certain 
agency determinations.
    The President of the United States has declared, under the Disaster 
Relief Act of 1974, as amended (42 U.S.C. 5121, 5122(2), 5141(b)), that 
a major disaster exists because of the severe earthquake that struck 
the Los Angeles area on January 17, 1994. At this time, three 
California counties (Los Angeles, Ventura, and Orange) are designated 
areas (within the meaning of Federal Emergency Management Agency 
(FEMA'') regulations; 44 CFR 205.2(a)(5)).
    Given the severity of this major disaster, as the Executive 
Director of the PBGC, I have decided to provide relief from certain 
PBGC deadlines and penalties. For purposes of premium penalties, 
section 4071 penalties, and standard termination 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.

Premiums

    The PBGC will waive the late payment penalty charge with respect to 
any premium payment required to be made on or after January 15, 1994, 
and before March 15, 1994, if the payment is made by March 15, 1994. 
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).)

Section 4071 Penalties

    The PBGC will not assess a section 4071 penalty for a failure to 
file any of the following notices that were, or will be, required to be 
filed with the PBGC on or after January 15, 1994, and before March 15, 
1994, if the notice is filed by March 15, 1994:
    Standard termination post-distribution certification (PBGC Form 
501; ERISA section 4041(b)(3)(B); 29 CFR 2617.28(h) (57 FR 59206, 
59233-34, December 14, 1992);
    (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, and transactions involving a change in 
contributing sponsor or controlled group (ERISA section 4043; 29 CFR 
2615.21, 2615.22, and 2615.23).
    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), and
    (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. For a notice of failure to make required 
contributions, 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. For a reportable event notice, 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. This relief applies to notices that were, or will be, 
required to be filed with the PBGC on or after January 15, 1994, and 
before March 15, 1994, provided that all supporting information and 
documentation are filed by March 15, 1994.

Standard Termination Notice and Distribution of Assets

    With respect to a standard termination for which the standard 
termination notice is required to be filed, or the distribution of plan 
assets is required to be completed, on or after January 15, 1994, the 
PBGC is extending to March 15, 1994, 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. In addition, as 
noted above, the PBGC is providing relief from penalties for late 
filing of the post-distribution certification. (On August 24, 1993, the 
PBGC published an interim rule amending 29 CFR 2617.3, 2617.25, and 
2617.28 to provide for extensions of time under the circumstances 
addressed in this notice (58 FR 44738; as corrected, 58 FR 48600, 
September 17, 1993).)

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 15, 1994, and before March 15, 1994, the PBGC 
will extend the time for filing to March 15, 1994. (On August 24, 1993, 
the PBGC published an interim rule amending 29 CFR 2606.4, 2606.33, and 
2606.53 to provide for extensions of time under the circumstances 
addressed in this notice (58 FR 44738; as corrected, 58 FR 48600, 
September 17, 1993).)

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 
``EARTHQUAKE RELIEF, County of (fill in appropriate county name and 
state)'' at the top center.

    Issued in Washington, DC this 28th day of January, 1994.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 94-2345 Filed 2-1-94; 8:45 am]
BILLING CODE 7708-01-M