[Federal Register Volume 62, Number 74 (Thursday, April 17, 1997)]
[Notices]
[Pages 18826-18827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9929]
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PENSION BENEFIT GUARANTY CORPORATION
Agency Information Collection Activities: Proposed Collection;
Comment Request; Firms with Significant Pension Plan Underfunding
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice.
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SUMMARY: The Pension Benefit Guaranty Corporation intends to request
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 the opportunity the PBGC gives
companies maintaining single-employer pension plans with significant
underfunding to correct data that the PBGC has on their plans'
underfunding. The effect of this notice is to solicit public comment on
this collection of information prior to the PBGC's request for an
extension of approval.
DATES: Comments should be submitted to the PBGC by June 16, 1997.
ADDRESSES: All written comments should be addressed to: The Office of
the General Counsel, Pension Benefit Guaranty Corporation, Suite 340,
1200 K Street, NW., Washington, DC 20005. The comments will be
available for public inspection at the PBGC Communications and Public
Affairs Department, Suite 240, 1200 K Street, NW., Washington, DC
20005, between the hours of 9 a.m. and 4 p.m. Copies of the materials
may be obtained free of charge by writing to the PBGC Communications
and Public Affairs Department at the above address.
FOR FURTHER INFORMATION CONTACT: James L. Beller, Attorney, Office of
the General Counsel, Suite 340, 1200 K Street, NW., Washington, DC
20005, 202-326-4024 (202-326-4179 for TTY and TDD). (These are not
toll-free numbers.)
SUPPLEMENTARY INFORMATION: The PBGC administers the pension plan
termination insurance programs under Title IV of the Employee
Retirement Income Security Act of 1974 (``ERISA'') (29 U.S.C. 1001 et
seq.). To address concerns about the potential vulnerability of the
single-employer insurance program to large claims, the PBGC needs
current information on the funded status of plans with large amounts of
underfunding. Information otherwise available to the PBGC is either not
current enough (Form 5500 filings), not complete enough (PBGC Form 1
filings), or not public (filings under ERISA section 4010).
Since 1990, the PBGC has collected information on the companies
whose underfunded plans present the largest potential claims against
the PBGC by taking data from public corporate annual reports and the
PBGC premium filings and adjusting that information to a standard
interest rate and mortality table. Because the annual report data often
includes foreign and other non-PBGC covered plans and the premium
filings are not complete enough for this purpose, companies (and the
PBGC) were concerned about the accuracy and completeness of the data.
After the first public use of this data, companies suggested that the
PBGC give them a chance to review the data.
As a result, the PBGC now annually contacts companies with the
largest underfunding and requests that they verify (or correct) and, if
they wish, supplement PBGC information on the amount of accumulated and
vested benefits, the amount of plan assets, and the interest and
mortality assumptions they used to value benefits in their covered
plans. Respondents also may choose to recalculate accumulated, vested,
and guaranteed benefits, and administrative expense loading charges, as
well as to provide information on additional contributions made to the
plans. The PBGC provides two simple response forms (which are not
required to be used). In response to requests from companies, the PBGC
also provides sample enrolled actuary certifications. These
certifications are required for companies that elect to recalculate
benefits or administrative expenses.
The PBGC uses the responses to improve the accuracy, timeliness,
and completeness of information obtained from other sources. The data
is used in various agency efforts, including estimating the potential
exposure of the single-employer termination insurance program,
legislative and other policy analyses, selecting plans for monitoring,
responding to congressional requests for information on companies whose
plans are significantly underfunded, and identifying for the public
those companies with large levels of underfunding (including the amount
of underfunding by company) or poor funding ratios.
The PBGC expects to contact about 400 companies annually (more if
the interest rate is low; fewer if the interest rate is high) whose
underfunding for vested benefits is greater than $25 million. Based on
prior experience, the PBGC assumes that 90% of those contacted (360
responses) will choose to respond (even though this collection of
information is voluntary). The PBGC estimates that the total annual
hour
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burden that will result from this collection is 1,440 hours and that
the total annual cost burden is $216,000.
The PBGC is soliciting public comments to:
(i) Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility;
(ii) Evaluate the accuracy of the agency's estimate of the burden
of the proposed collection of information, including the validity of
the methodology and assumptions used;
(iii) Enhance the quality, utility, and clarity of the information
to be collected; and
(iv) Minimize the burden of the collection of information on those
who are to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses.
Issued in Washington, DC this 14th day of April, 1997.
John Seal,
Acting Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 97-9929 Filed 4-16-97; 8:45 am]
BILLING CODE 7708-01-P]