[Federal Register Volume 60, Number 108 (Tuesday, June 6, 1995)]
[Notices]
[Pages 29902-29903]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13808]



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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 2648, Redetermination 
of Withdrawal Liability Upon Mass Withdrawal

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 (1212-0034) contained in its regulation on Redetermination 
of Withdrawal Liability Upon Mass Withdrawal (29 CFR part 2648). 
Current approval of the collection of information expires on July 31, 
1995.

ADDRESSES: All written comments 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 20005-4026, 
between the hours of 9 a.m. and 4 p.m..

FOR FURTHER INFORMATION CONTACT: [[Page 29903]] 
Deborah C. Murphy, Attorney, Office of the General Counsel, Suite 340, 
Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 
20005-4026, 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 Redetermination of Withdrawal Liability Upon Mass Withdrawal (29 CFR 
Part 2648).
    Section 4219(c)(1)(D) of the Employee Retirement Income Security 
Act of 1974 (``ERISA'') requires that the PBGC prescribe regulations 
for the allocation of a multiemployer plan's total unfunded vested 
benefits in the event of a ``mass withdrawal,'' i.e., either (1) A plan 
termination due to the withdrawal of every employer or (2) a withdrawal 
of substantially all employers pursuant to an agreement or arrangement 
to withdraw. The regulation on Redetermination of Withdrawal Liability 
Upon Mass Withdrawal is issued pursuant to this statutory requirement. 
The regulation also provides rules under ERISA section 4209(c), dealing 
with an employer's liability for de minimis amounts if the employer 
withdraws in a ``substantial withdrawal,'' i.e., a withdrawal of 
substantially all employers within one year (without regard to whether 
there is an agreement or arrangement to withdraw).
    The purpose of the regulation is to protect plan participants and 
beneficiaries against loss of non-guaranteed vested benefits, and the 
multiemployer plan insurance program against large claims, by requiring 
that all unfunded vested benefits be allocated to withdrawing 
employers. In a non-termination mass withdrawal case, the full 
allocation of unfunded vested benefits to withdrawing employers also 
reduces the burden on employers that remain in the plan, thus 
encouraging continuation of the plan. The reporting requirements in the 
regulation further these purposes by providing information to the PBGC 
so that it can monitor the plan.
    The reports to the PBGC required by the regulation identify the 
reporting plan as having experienced a ``mass withdrawal'' or 
``substantial withdrawal'' and provide certifications that the plan has 
determined and assessed mass withdrawal liability or liability for de 
minimis amounts, as appropriate. This enables the PBGC to monitor the 
plan's compliance with the relevant provisions of ERISA and the 
regulation. By assuring compliance with these rules, the PBGC guards 
against the increased risk of plan insolvency (with resulting benefit 
losses to participants and claims against the insurance program) cause 
by the ``mass withdrawal'' or ``substantial withdrawal.''
    For purposes of estimating the burden of reporting under the 
regulation, the PBGC assumes that there is one ``mass withdrawal'' and 
one ``substantial withdrawal'' subject to the regulation each year. 
(Such events are actually experienced less frequently.) For each ``mass 
withdrawal'' subject to the regulation, a plan must send to the PBGC a 
notice of mass withdrawal (requiring about 40 minutes to prepare) and 
two certifications that liability has been determined and assessed as 
required by the regulation (requiring about 30 minutes each to 
prepare). For each substantial withdrawal subject to the regulation, a 
plan must sent to the PBGC a combined notice and certification 
(requiring about 1 hour to prepare). Accordingly, the PBGC estimates 
that the total annual burden of reporting under the regulation is 2 
hours and 40 minutes.

    Issued at Washington, DC, this 1st day of June 1995.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 95-13808 Filed 6-5-95; 8:45 am]
BILLING CODE 7708-01-M