[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