[Federal Register Volume 59, Number 148 (Wednesday, August 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18908]


[[Page Unknown]]

[Federal Register: August 3, 1994]


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PENSION BENEFIT GUARANTY CORPORATION

 

Request for Extension of Approval Under the Paperwork Reduction 
Act; Collection of Information Under 29 CFR Part 2674, Notice of 
Insolvency

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of request for extension of OMB approval.

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SUMMARY: This notice advises the public that the Pension Benefit 
Guaranty Corporation has requested extension of approval by the Office 
of Management and Budget for a currently approved collection of 
information (1212-0033) contained in its regulation on Notice of 
Insolvency (29 CFR Part 2674). The collection of information involves 
notices that must be given by the plan sponsor of a multiyear pension 
plan under certain adverse financial circumstances described in the 
regulation. Current approval of the collection of information expires 
on September 30, 1994.

ADDRESSES: All written comments (at least three copies) should be 
addressed to: Office of Management and Budget, Paperwork Reduction 
Project (1212-0031), Washington, DC 20503. The request for extension 
will be available for public inspection at the PBGC Communications and 
Public Affairs Department, Suite 240, 1200 K Street, NW., Washington, 
DC 20006, between the hours of 9:00 a.m. and 4:00 p.m. on business 
days.

FOR FURTHER INFORMATION CONTACT:
Harold J. Ashner or Deborah C. Murphy, Attorney, Office of the General 
Counsel, Suite 340, Pension Benefit Guaranty Corporation, 1200 K 
Street, NW., Washington, DC 20006, 202-326-4024 (202-326-4179 for TTY 
and TDD).

SUPPLEMENTARY INFORMATION: This collection of information is contained 
in the Pension Benefit Guaranty Corporation's (``PBGC's'') regulation 
on Notice of Insolvency (29 CFR 2674).

    Section 4245(e) of the Employee Retirement Income Security Act of 
1974 (``ERISA'') requires that the sponsor of a multiemployer pension 
plan that is in reorganization notify the Secretary of the Treasury, 
the PBGC, and certain third parties (i.e., contributing employers, 
employee organizations representing participants, and plan participants 
and beneficiaries) whenever the plan is or may become ``insolvent'' for 
a plan year (that is, unable to pay full benefits when due during that 
plan year). The plan sponsor must also notify the same parties of the 
level of benefits that will be paid during each insolvency year. 
Section 4245(e)(4) provides that these notices (except for the notices 
to the Secretary of the Treasury) are to be given in accordance with 
rules promulgated by the PBGC.
    Section 4245(e) requires two types of notice to the PBGC: a 
``notice of insolvency,'' stating the plan sponsor's determination that 
the plan is or may become insolvent, and a ``notice of insolvency 
benefit level,'' stating the level of benefits that will be paid during 
an insolvency year. (The notices also go to certain third parties.) The 
Notice of Insolvency regulation prescribes the contents of these 
notices, the manner in which they must be given, and the time limits 
for their issuance.
    The PBGC uses the information it receives to estimate cash needs 
for financial assistance to troubled plans. Without this regulation, 
the notices required by ERISA section 4245 would be inconsistently 
given and of varying quality, as plan sponsors applied their individual 
interpretations to the law. Further, PBGC financial assistance to 
troubled plans would likely be delayed by delays in notification.
    The PBGC has requested extension of approval by the Office of 
Management and Budget (OMB) for this collection of information (1212-
033), which is currently approved by OMB through September 30, 1994. 
The PBGC estimates that three plans will be affected by this regulation 
each year and that each of these plans will spend 6 hours preparing the 
required notices. This amounts to an annual burden on the public of 18 
hours.

    Issued at Washington, DC, this 28th day of July 1994.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 94-18908 Filed 8-2-94; 8:45 am]
BILLING CODE 7708-01-M