[Federal Register Volume 60, Number 150 (Friday, August 4, 1995)]
[Rules and Regulations]
[Page 39848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19175]



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PENSION BENEFIT GUARANTY CORPORATION

29 CFR Parts 2606 and 2609

RIN 1212-AA72


Debt Collection Procedures--Tax Refund Offset

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Final rule.

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SUMMARY: The Pension Benefit Guaranty Corporation is adopting, as a 
final rule with change, amendments that it previously issued as an 
interim final rule. The procedures in this rule enable the PBGC to 
refer past-due, legally enforceable debts to the internal Revenue 
Service to be offset against federal tax refunds.

EFFECTIVE DATE: This rule is effective August 4, 1995.

FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, 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).

SUPPLEMENTARY INFORMATION: On December 6, 1994 (59 FR 62571), the 
Pension Benefit Guaranty Corporation published an interim final rule 
that amended its administrative review and debt collection regulations 
(29 CFR parts 2606 and 2609). As amended, the PBGC's regulations 
include the procedures required for participation in the federal tax 
refund offset program authorized by 31 U.S.C. 3720A. Section 3720A, and 
Internal Revenue Service regulations thereunder (26 CFR 301.6402-6), 
include requirements to ensure that debts referred for offset against 
amounts otherwise payable as tax refunds are past-due and legally 
enforceable and that the agency has made reasonable efforts (pursuant 
to regulations) to obtain payment.
    The one comment on the interim final rule expressed concern about 
its effects on due process of law requirements under the Fifth 
Amendment to the United States Constitution. The PBGC believes that the 
commenter's concern is unwarranted. As noted above, the pre-referral 
procedures required by IRS regulations, which are included in the 
interim final rule, provide due process protections. Among other 
things, before the PBGC refers a debt for tax refund offset, the debtor 
has at least 60 days to present evidence that all or part of the debt 
is not past-due or not legally enforceable (Sec. 2609.33(b)(2)).
    This final rule makes no changes in the rules of agency 
organization and procedure that wee prescribed by the interim final 
rule and have been in effect since January 5, 1995. Therefore, the 
Administrative Procedure Act does not require further notice and public 
procedure or a delayed effective date, and the PBGC for good cause 
finds that both such actions are unnecessary (5 U.S.C. 553 (b) and 
(d)).

E.O. 12866

    The PBGC previously determined that the interim final rule was not 
a ``significant regulatory action'' under the criteria set forth in 
Executive Order 12866.

List of Subjects

29 CFR Part 2606

    Administrative practice and procedure, Organization and functions 
(Government agencies), Pension insurance, Pensions.

29 CFR Part 2609

    Administrative practice and procedure, Claims.

    Accordingly, the interim final rule amending 29 CFR parts 2606 and 
2609 that was published at 59 FR 62571 on December 6, 1994, is adopted 
as a final rule without change.

    Issued in Washington, DC this 31st day of July, 1995.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 95-19175 Filed 8-3-95; 8:45 am]
BILLING CODE 7708-01-M