[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