[Federal Register Volume 62, Number 35 (Friday, February 21, 1997)]
[Notices]
[Pages 8057-8058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4306]


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PENSION BENEFIT GUARANTY CORPORATION

Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Qualified Domestic Relations Orders Submitted 
to the PBGC

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice.

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SUMMARY: The Pension Benefit Guaranty Corporation has requested that 
the Office of Management and Budget (``OMB'') extend the approval for a 
collection of information under the Paperwork Reduction Act. The 
information collection relates to model forms contained in a PBGC 
booklet (``Divorce Orders & PBGC'') providing guidance on how to submit 
a proper qualified domestic relations order to the PBGC. The effect of 
this notice is to advise the public of, and to solicit public comment 
to OMB on, the extension of approval of this collection of information.

DATE: All comments must be submitted to OMB by March 24, 1997.

ADDRESSES: All written comments should be addressed to: Office of 
Information and Regulatory Affairs, OMB, Attention: Desk Officer for 
the Pension Benefit Guaranty Corporation, 725 17th Street, NW., Room 
10235, Washington, DC 20503. A copy of the request for approval may be 
obtained by writing to the PBGC Communications and Public Affairs 
Department, suite 240, 1200 K Street, NW., Washington, DC 20005, or by 
visiting that office between the hours of 9 a.m. and 4 p.m. Copies of 
the booklet, ``Divorce Orders & PBGC,'' may be obtained by calling 
PBGC's Customer Service Center at 1-800-400-PBGC or writing to the PBGC 
QDRO Coordinator, P.O. Box 19153, Washington, DC 20036-0153. The 
booklet also is available from the PBGC Homepage on the World Wide Web, 
at http://www.pbgc.gov.

FOR FURTHER INFORMATION CONTACT: James L. Beller, Attorney, Office of 
the General Counsel, Suite 340, 1200 K Street, NW., Washington, DC 
20005, 202-326-4020, ext. 3865 (202-326-4179 for TTY and TDD). (These 
are not toll-free numbers.)

SUPPLEMENTAL INFORMATION: The Paperwork Reduction Act of 1995 (44 
U.S.C. Chapter 35) establishes policies and procedures for controlling 
the paperwork burdens imposed by Federal agencies on the public. The 
Act vests the OMB with regulatory responsibility over these burdens, 
and OMB has promulgated rules on the clearance of collections of 
information by Federal agencies.
    On September 10, 1996, the PBGC published a notice (61 FR 47774) of 
its request for approval, on an emergency basis, of a new collection of 
information relating to guidance on the submission of qualified 
domestic relations orders (``QDROs'') to the PBGC. OMB approved the 
collection of information with an expiration date of March 31, 1997. On 
November 25, 1996, the PBGC published a notice (61 FR 59917) informing 
the public of its intention to seek a three-year extension of the 
approval of this collection of information and soliciting comments. No 
comments were received.
    The PBGC is a federal agency that insures the benefits of nearly 42 
million working men and women in about 55,000 private-sector defined 
benefit pension plans. A defined benefit pension plan that does not 
have enough

[[Page 8058]]

money to pay benefits may be terminated if the employer responsible for 
the plan faces severe financial difficulty, such as bankruptcy, and is 
unable to maintain the plan. In such an event, the PBGC becomes trustee 
of the plan and pays benefits, subject to legal limits, to plan 
participants and beneficiaries.
    The benefits of a pension plan participant generally may not be 
assigned or alienated. Title I of ERISA provides an exception for 
domestic relations orders that relate to child support, alimony 
payments, or marital property rights of an alternate payee (a spouse, 
former spouse, child, or other dependent of a plan participant). The 
exception applies only if the domestic relations order meets specific 
legal requirements that make it a QDRO. The PBGC reviews submitted 
domestic relations orders to determine whether the order is qualified 
before paying benefits to an alternate payee.
    The PBGC receives many inquiries on the requirements for QDROs. 
Many domestic relations orders, both in draft and final form, do not 
meet the applicable requirements. The PBGC works with practitioners on 
a case-by-case basis to ensure that their orders are amended to meet 
applicable requirements. This process is time-consuming for 
practitioners and for the PBGC.
    To simplify the process, the PBGC has included model QDROs and 
accompanying guidance in a booklet, ``Divorce Orders & PBGC,'' that 
attorneys and other professionals who are preparing QDROs for plans 
trusteed by the PBGC may submit to the PBGC after receiving court 
approval. These models and the guidance are intended to assist parties 
by making it easier to comply with ERISA's QDRO requirements in plans 
trusteed by the PBGC.
    The requirements for submitting a QDRO are established by statute. 
The model QDROs and accompanying guidance do not create any additional 
requirements and will result in a reduction of the statutory burden. 
The PBGC estimates that it will receive 333 QDROs each year from 
prospective alternate payees; that the average burden of preparing a 
QDRO with the assistance of the guidance and model QDROs in PBGC's 
booklet will be \1/4\ hour of the alternate payee's time and $400 in 
professional fees if the alternate payee hires an attorney or other 
professional to prepare the QDRO, or 10 hours of the alternate payee's 
time if the alternate payee prepares the QDRO without hiring an 
attorney or other professional; and that the total annual burden will 
be 113 hours and $132,000.

    Issued at Washington, DC., this 14th day of February 1997.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 97-4306 Filed 2-20-97; 8:45 am]
BILLING CODE 4163-19-P