[Federal Register Volume 59, Number 36 (Wednesday, February 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4065]


[[Page Unknown]]

[Federal Register: February 23, 1994]


=======================================================================
-----------------------------------------------------------------------

PENSION BENEFIT GUARANTY CORPORATION

29 CFR Part 2625

 

Restoration of Terminating and Terminated Plans

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Pension Benefit Guaranty Corporation is amending its 
regulations regarding plan restoration obligations and procedures to 
reflect a change in the Treasury regulations that are referenced 
therein and to make several corrections.

EFFECTIVE DATE: February 23, 1994.

FOR FURTHER INFORMATION CONTACT:Judith Neibrief, Attorney, Office of 
the General Counsel, Pension Benefit Guaranty Corporation, 1200 K 
Street NW., Washington, DC 20005-4026, 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. 1301 et seq.). Part 2625 of its 
regulations (29 CFR part 2625), along with Treasury regulations under 
section 412 of the Internal Revenue Code (26 U.S.C. 412, minimum 
funding standards), describes certain legal obligations that arise 
incidental to a plan restoration under section 4047 of ERISA (29 U.S.C. 
1347) and establishes procedures with respect to these obligations.
    Provisions of part 2625 currently reference temporary Treasury 
regulations for applying the minimum funding requirements to 
terminating or terminated single-employer plans restored by the PBGC 
(26 CFR 1.412(c)(1)-3T). The Internal Revenue Service (``IRS'') has now 
issued final regulations (26 CFR 1.412(c)(1)-3, TD 8494, 58 FR 54489, 
October 22, 1993). (The provisions of the final regulations on the 
restoration funding method differ from those referenced in part 2625 
only in minor clarifications made by the IRS in response to comments.) 
The PBGC is amending Secs. 2625.1(a) and 2625.2 (b) through (d) to 
reflect that action by substituting the final Treasury regulations for 
the temporary regulations.
    This rule also corrects the spelling of two words in Sec. 2625.2(b) 
(``amortization'' and ``restoration'') and adds language erroneously 
omitted from Sec. 2625.3(c) (``following a plan year''). (As worded, 
Sec. 2625.3(c) states that a restored plan may not use the alternative 
calculation method in Sec. 2610.23(c) of the premium regulation for any 
plan year for which Form 5500, Schedule B was not filed because the 
plan was terminated. However, as indicated in the premium regulation, 
the alternative calculation method requires use of a plan's Schedule B 
for the preceding plan year. Hence, this method is not available for a 
plan year that follows a plan year for which Schedule B was not filed, 
rather than for that plan year.)
    Because these amendments only reflect a change in the pertinent 
Treasury regulations (which were the subject of notice and comment 
rulemaking) and make corrections, the PBGC has for good cause found 
advance notice and public procedure thereon and a delayed effective 
date to be unnecessary (5 U.S.C. 553 (b)(B) and (d)(3)), and it is 
issuing these amendments as a final rule, effective immediately.

E.O. 12866

    The PBGC has determined that this action is not a ``significant 
regulatory action'' under the criteria set forth in Executive Order 
12866 because it will not have an annual effect on the economy of $100 
million or more or adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency; materially 
alter the budgetary impact of entitlements, grants, user fees, or loan 
programs or the rights and obligations of recipients thereof; or raise 
novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in Executive Order 
12866.

List of Subjects in 29 CFR Part 2625

    Employee pension plans, Pension insurance, Pensions.

    For the reasons set forth above, the PBGC is amending 29 CFR part 
2625 as follows:

PART 2625--RESTORATION OF TERMINATING AND TERMINATED PLANS

    1. The authority citation for part 2625 is revised to read as 
follows:

    Authority: 29 U.S.C. 1302(b)(3), 1347.


Sec. 2625.1 and Sec. 2625.2  [Amended]

    2. Paragraph (a) of Sec. 2625.1 and paragraphs (b), (c), and (d) of 
Sec. 2625.2 are amended by removing ``26 CFR 1.412(c)(1)-3T'' each time 
it appears and adding, in its place, ``26 CFR 1.412(c)(1)-3''.


Sec. 2625.2  [Amended]

    3. Paragraph (b) of Sec. 2625.2 is amended by removing 
``amoratization'' and adding, in its place, ``amortization'' in the 
first sentence and by removing ``restorative'' and adding, in its 
place, ``restoration'' in the second sentence.


Sec. 2625.3  [Amended]

    4. Paragraph (c) of Sec. 2625.3 is amended by adding ``following a 
plan year'' after ``for any plan year''.

    Issued in Washington, DC, this 17th day of February 1994.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 94-4065 Filed 2-22-94; 8:45 am]
BILLING CODE 7708-01-M