[Federal Register Volume 60, Number 155 (Friday, August 11, 1995)]
[Proposed Rules]
[Pages 41033-41034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19929]
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PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 2615
RIN 1212-AA77
Reportable Events
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of intent to form a negotiated rulemaking advisory
committee.
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SUMMARY: The Pension Benefit Guaranty Corporation intends to form a
negotiated rulemaking advisory committee under the Negotiated
Rulemaking Act of 1990. The committee will develop proposed amendments
to the PBGC's regulations governing reportable events, i.e., events
that may be indicative of a need to terminate a pension plan. These
amendments will, among other things, implement recent amendments
contained in the Retirement Protection Act of 1994.
DATES: Comments and applications or nominations for membership must be
received on or before September 15, 1995.
ADDRESSES: Comments and nominations or applications for membership may
be mailed to the Office of the General Counsel, Pension Benefit
Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005-4026, or
delivered to Suite 340 at the above address. Comments, nominations, and
applications will be available for public inspection at the PBGC's
Communications and Public Affairs Department, Suite 240.
FOR FURTHER INFORMATION CONTACT: Harold J. Ashner, Assistant General
Counsel, or James L. Beller, Attorney, Office of the General Counsel,
PBGC, 1200 K Street, NW., Washington, DC 20005-4026, 202-326-4024 (202-
326-4179 for TTY and TDD).
SUPPLEMENTARY INFORMATION:
Background
Section 4043 of the Employee Retirement Income Security Act of
1974, as amended by the Retirement Protection Act of 1994, requires the
reporting to the PBGC of certain events (``reportable events'') that
may be indicative of a need to terminate the plan. The PBGC's existing
regulations on reportable events (29 CFR part 2615, subpart A) specify
the events that must be reported, the circumstances under which
reporting is waived, and the information that must be included in a
reportable event filing.
RPA amended section 4043 of ERISA by (1) establishing the reporting
obligation, which was previously placed solely on plan administrators,
on contributing sponsors as well; (2) adding four new reportable
events; (3) establishing a new obligation on contributing sponsors of
certain underfunded plans to provide 30 days' advance notice of certain
reportable events; and (4) protecting reportable event filings from
public disclosure.
The PBGC intends to publish a proposed rule that would amend its
existing regulations on reportable events to reflect RPA and to make
other appropriate changes. Two major issues the PBGC intends to address
in these regulations are: (1) The conditions under which the
regulations should provide for waivers of reporting requirements (based
on, e.g., the size or funding status of the plan); and (2) the
information the regulations should require as part of the reportable
event filing (including, e.g., plan actuarial and employer financial
information). Other issues may be addressed as well.
The PBGC intends to use the negotiated rulemaking procedure in
accordance with the Negotiated Rulemaking Act of 1990. The PBGC will
form an advisory committee consisting of representatives of the
affected interests and the agency for the purpose of reaching a
consensus on the text of a proposed rule.
A number of interests (including employers, service providers, and
participants) are likely to be significantly affected by new
regulations on reportable events. The effect of the regulations is
likely to vary, depending primarily on the size and funding status of
the plan and the size, corporate structure, and financial condition of
the employer.
Regulatory Negotiation
Negotiated rulemaking is a consensus-based approach to the
development of agency rules, in which representatives of affected
interests work together to reach consensus on the content of a proposed
rule. The PBGC believes that these proposed regulations are appropriate
for regulatory negotiation because of the various interests likely to
be significantly affected and the complexity of the subject matter.
Formation of the committee is in the public interest in connection
with developing rules concerning reportable events. The PBGC hopes to
be able to use the consensus of the committee as the basis for the
proposed rule.
The PBGC invites comments on the appropriateness of regulatory
negotiation for these proposed regulations.
Committee Membership
The PBGC tentatively has identified the following interests and
list of possible committee members:
Employer Representatives:
Association of Private Pension and Welfare Plans
Chamber of Commerce of the United States of America
The ERISA Industry Committee
Financial Executives Institute
Service Provider Representatives:
American Academy of Actuaries
American Bar Association
American Institute of Certified Public Accountants
American Society of Pension Actuaries
Participant Representatives:
Air Line Pilots Association
American Association of Retired Persons
American Federation of Labor-Council of Industrial Organizations
International Union, United Automobile, Aerospace & Implement
Workers of America
United Steelworkers of America
Pension Benefit Guaranty Corporation:
Ellen A. Hennessy, Deputy Executive Director and Chief Negotiator
William Posner, Deputy Executive
[[Page 41034]]
Director and Chief Operating Officer
Stuart A. Sirkin, Director, Corporate Policy and Research
Department
Andrea E. Schneider, Director, Corporate Finance and Negotiations
Department
James J. Keightley, General Counsel
The PBGC will use a neutral facilitator for the committee. The
facilitator's role is to chair negotiating sessions and to help
committee members define and reach consensus. The PBGC will nominate
for the committee's consideration Kate Blunt, Special Assistant to the
Deputy Executive Director and Chief Management Officer, to serve as the
facilitator of the committee. Ms. Blunt has extensive experience in
facilitating meetings, conducting focus groups, and mediating disputes.
She will perform her duties as facilitator in an impartial manner.
All committee meetings will be open to the public.
Requests for Representation
Persons who will be significantly affected by the planned proposed
rule on reportable events and who believe that their interests will not
be adequately represented by the persons identified above may apply, or
nominate another person, for membership on the committee to represent
their interests. Each application or nomination must include: (1) The
name of the applicant or nominee and a description of the interests
that person will represent; (2) evidence that the applicant or nominee
is authorized to represent parties related to the interests the person
proposes to represent; (3) a written commitment that the applicant or
nominee will actively participate in good faith in the development of
proposed regulations; and (4) the reasons that the persons identified
above do not adequately represent the interests of the person
submitting the application or nomination.
Committee Expenses and Administrative Support
In most cases, committee members are responsible for their own
expenses of participation. The PBGC may pay for certain expenses, in
accordance with section 7(d) of the Federal Advisory Committee Act, if
(1) a member certifies a lack of adequate financial resources to
participate in the committee; and (2) the PBGC determines that such
member's participation in the committee is necessary to assure adequate
representation of the member's interest.
The PBGC will provide logistical, administrative, and management
support to the committee. All meetings will be held at the PBGC's
offices in Washington, D.C.
Proposed Agenda and Schedule
The proposed agenda and schedule for the committee's activities
will be determined by the committee at the first meeting, which the
PBGC anticipates will be held in October of 1995.
The PBGC's goal is to issue a proposed rule on reportable events by
the spring of 1996. If it appears that the committee is unable to reach
consensus in time to meet this goal, the PBGC may proceed with
rulemaking based in part on information gained through the negotiated
rulemaking process.
Notice of Establishment of Committee
After reviewing any comments on this Notice of Intent and any
requests for representation, the PBGC will issue a notice announcing
the establishment of a negotiated rulemaking advisory committee and the
date of the first meeting, unless the PBGC decides, based on comments
and other relevant considerations, that establishment of the committee
is inappropriate. Notice of future meetings will be published in the
Federal Register.
Issued in Washington, D.C., this 8th day of August, 1995.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 95-19929 Filed 8-10-95; 8:45 am]
BILLING CODE 7708-01-P