[Federal Register Volume 62, Number 124 (Friday, June 27, 1997)]
[Notices]
[Pages 34721-34722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-17005]


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PENSION BENEFIT GUARANTY CORPORATION


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Firms With Significant Pension Plan 
Underfunding

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of request for extension of OMB approval.

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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 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. This notice informs the public of the PBGC's request and 
solicits public comment on the collection of information.

DATES: Comments should be submitted by July 28, 1997.

ADDRESSES: Comments should be mailed to the Office of Information and 
Regulatory Affairs of the Office of Management and Budget, Attention: 
Desk Officer for Pension Benefit Guaranty Corporation, Washington, DC 
20503. Requests for information, including copies of the proposed 
collection and supporting documentation, should be sent to the PBGC's 
Communication and Public Affairs Department, Suite 240, 1200 K Street, 
NW, Washington, DC 20005-4026. The request for extension will be 
available for public inspection at that same address, between 9 a.m. 
and 4 p.m. on business days.


[[Page 34722]]


FOR FURTHER INFORMATION CONTACT: James L. Beller, Attorney, office of 
the General Counsel, Pension Benefit Guaranty Corporation, Suite 340, 
1200 K Street, NW., Washington, DC 20005-4026, 202-326-4024. (Hearing 
impaired persons may telephone 1-800-877-8330 and give the 
communications assistant the above number.)

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 burden that will result from this collection is 1,440 hours and 
that the total annual cost burden is $216,000.

    Issued in Washington, DC, this 25th day of June, 1997.
John Seal,
Acting Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 97-17005 Filed 6-26-97; 8:45 am]
BILLING CODE 7708-01-P