[Federal Register Volume 62, Number 101 (Tuesday, May 27, 1997)]
[Rules and Regulations]
[Pages 28631-28632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13844]
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PENSION BENEFIT GUARANTY CORPORATION
29 CFR Parts 4003, 4007, 4011, 4041, 4041A, 4043, and 4050
Disaster Relief in Response to Severe Weather and Flooding in the
Upper Midwest
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of disaster relief; waiver of certain penalties and
extension of certain deadlines.
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SUMMARY: The Pension Benefit Guaranty Corporation is waiving certain
penalties and extending certain deadlines in response to the major
disasters declared by the President of the United States on account of
severe weather and flooding in the Upper Midwest.
FOR FURTHER INFORMATION CONTACT: Harold J. Ashner, Assistant General
Counsel, Office of the General Counsel, Suite 340, Pension Benefit
Guaranty Corporation, 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 Pension Benefit Guaranty Corporation
administers the pension plan termination insurance program under title
IV of the Employee Retirement Income Security Act of 1974, as amended
(29 U.S.C. 1001 et seq.). Under ERISA and the PBGC's regulations, a
number of deadlines must be met in order to avoid the imposition of
penalties or other consequences.
In April 1997, the President of the United States issued
declarations, under the Disaster Relief Act of 1974, as amended (42
U.S.C. 5121 et seq.), that major disasters exist because of recent
severe weather and flooding in the Upper Midwest. When this document
was prepared, the following counties had been designated by the Federal
Emergency Management Agency (pursuant to 44 CFR 206.40(b)) as areas
affected by these disasters:
In the state of South Dakota: all counties;
In the state of North Dakota: all counties;
In the state of Minnesota: Aitkin, Anoka, Becker,
Beltrami, Benton, Big Stone, Blue Earth, Brown, Carver, Cass, Chippewa,
Clay, Clearwater, Dakota, Douglas, Goodhue, Grant, Hennepin, Houston,
Hubbard, Kandiyohi, Kittson, Lac Qui Parle, Lake of the Woods, Le
Sueur, Lincoln, Lion, Mahnomen, Marshall, McLeod, Morrison, Nicollet,
Norman, Otter Tail, Pennington, Polk, Pope, Ramsey, Red Lake, Redwood,
Renville, Roseau, Scott, Sherburne, Sibley, Stearns, Stevens, St.
Louis, Swift, Todd, Traverse, Wabasha, Wadena, Washington, Wilkin,
Winona, Wright, and Yellow Medicine.
The PBGC is providing relief from certain deadlines and penalties.
In general, this relief is applicable with respect to plans for which
the administrator's or sponsor's principal place of business, or the
office of a service provider, bank, insurance company, or other person
maintaining information necessary to meet the applicable deadlines, is
located in an area that has been or is hereafter designated a major
disaster area on account of severe weather and flooding in the Upper
Midwest occurring on or after April 15 and before June 30, 1997 (a
``designated disaster area''). However, the extension (discussed below)
for filing requests for reconsideration or appeals is applicable to any
aggrieved person who is residing in, or whose principal place of
business is within, a designated disaster area, or with respect to whom
the office of the service provider, bank, insurance company, or other
person maintaining the information necessary to file the request for
reconsideration or appeal is within such an area.
Premiums
The PBGC will waive the late payment penalty charge with respect to
any premium payment required to be made on or after April 15, 1997, and
before June 30, 1997, if the payment is made by June 30, 1997. The PBGC
is not permitted by law to waive late payment interest charges. (ERISA
section 4007(b); 29 CFR 4007.7 and 4007.8(b)(3).)
Section 4071 Penalties
For any of the following notices that is required to be filed with
the PBGC on or after April 15, 1997, and before June 30, 1997, in order
to avoid the assessment of section 4071 penalties, the PBGC will not
assess a section 4071 penalty if the notice is filed by June 30, 1997:
(1) Post-distribution certification for single-employer plans (PBGC
Form 501 or 602; ERISA section 4041 (b)(3)(B) or (c)(3)(B); 29 CFR
4041.27(h) or 4041.48(b)),
(2) Notice of termination for multiemployer plans (ERISA section
4041A; 29 CFR 4041A.11),
(3) Notice of plan amendments increasing benefits by more than $10
million (ERISA section 307(e)),
(4) Missing participants information for single-employer plans
(Schedule MP (including Attachments A and B) to PBGC Forms 501 and 602;
ERISA section 4050; 29 CFR 4050.6), and
(5) Premium declarations (PBGC Forms 1 (including Schedule A) and
1-ES; ERISA section 4007; 29 CFR 4007.3).
The PBGC will not assess a section 4071 penalty for a failure to
provide certain supporting information and documentation when a notice
of failure to make required contributions totaling more than $1 million
(including interest) is timely filed, if the timely filed notice
includes at least items 1 through 7 and items 11 and 12 of Form 200;
the responses to items 8 through 10, with the certifications in items
11 and 12, may be filed late (PBGC Form 200; ERISA section 302(f)(4);
29 CFR 4043.81). This relief applies to notices required to be filed
with the PBGC on or after April 15, 1997, and before June 30, 1997,
provided that all supporting information and documentation are filed by
June 30, 1997.
The PBGC is not automatically forgoing assessment of penalties
under section 4071 for failure to comply with
[[Page 28632]]
other information submission requirements, but relief may be granted in
individual cases. For example, 29 CFR 4010.11 provides for waivers and
extensions for financial and actuarial information reporting under 29
CFR Part 4010.
Reportable Events Notices
With respect to a reportable event for which a post-event notice is
required to be filed under subpart B of the PBGC's regulation on
Reportable Events (29 CFR 4043.20 through 4043.35) on or after April
15, 1997, and before June 30, 1997, the PBGC is (pursuant to 29 CFR
4043.4(d)) extending to June 30, 1997, the time within which to provide
certain supporting information and documentation when a notice of the
reportable event is timely filed, if the timely filed notice includes
at least the information specified on the front of PBGC Form 10 or, if
Form 10 is not filed, the information specified in 29 CFR 4043.3(b) (1)
through (5); the extension applies to the information specified on the
back of Form 10 or, if Form 10 is not filed, the information specified
in 29 CFR 4043.3(b) (6) through (8) and in paragraph (b) of the
regulation section that describes the event.
The PBGC is not providing automatic extensions for advance notices
of reportable events described in subpart C of the Reportable Events
regulation (29 CFR 4043.61 through 4043.68), but waivers and extensions
for such notices may be granted individually pursuant to 29 CFR
4043.4(d).
Standard and Distress Termination Notices and Distribution of
Assets
With respect to a standard termination for which the standard
termination notice is required to be filed, or the distribution of plan
assets is required to be completed, on or after April 15, 1997, and
before June 30, 1997, the PBGC is (pursuant to 29 CFR 4041.8) extending
to June 30, 1997, the time within which the standard termination notice
must be filed (and, thus, the time within which notices of plan
benefits must be provided) and the time within which the distribution
of plan assets must be completed.
With respect to a distress termination for which the distress
termination notice is required to be filed on or after April 15, 1997,
and before June 30, 1997, the PBGC is (pursuant to 29 CFR 4041.8)
extending to June 30, 1997, the time within which the termination
notice must be filed. With respect to a distress termination for which
notices of benefit distribution must be provided or plan assets must be
distributed on or after April 15, 1997, and before June 30, 1997, as a
result of the PBGC's issuance of a distribution notice, the PBGC is
(pursuant to 29 CFR 4041.8 and 4041.43(d)) extending to June 30, 1997,
the time within which such actions must be taken. In addition, as noted
above, the PBGC is providing relief from penalties for late filing of
the post-distribution certification.
Participant Notices
For Participant Notices that are required to be issued on or after
April 15, 1997, and before June 30, 1997, the PBGC is (pursuant to 29
CFR 4011.8) extending the due date to June 30, 1997.
Requests for Reconsideration or Appeals
For persons who are aggrieved by certain agency determinations and
for whom a request for reconsideration or an appeal is required to be
filed on or after April 15, 1997, and before June 30, 1997, the PBGC is
(pursuant to 29 CFR 4003.4(b)) extending the time for filing to June
30, 1997.
Applying for Waivers/Extensions
A submission to the PBGC to which a waiver or an extension is
applicable under this notice should be marked in bold print ``FLOODS 5/
97, [name of county], [name of state]'' at the top center.
Issued in Washington, D.C., this 21st day of May, 1997.
John Seal,
Acting Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 97-13844 Filed 5-21-97; 4:05 pm]
BILLING CODE 7708-01-P