[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]
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PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 2625
Restoration of Terminating and Terminated Plans
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
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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