[Federal Register Volume 65, Number 61 (Wednesday, March 29, 2000)]
[Notices]
[Pages 16672-16673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-7713]


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PENSION BENEFIT GUARANTY CORPORATION


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

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of intention to request extension of OMB approval.

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SUMMARY: The Pension Benefit Guaranty Corporation (``PBGC'') intends to 
request that the Office of Management and Budget (``OMB'') extend 
approval, under the Paperwork Reduction Act, of an information 
collection (OMB control number 1212-0054; expires July 31, 2000) 
relating to model forms contained in the PBGC booklet, Divorce Orders & 
PBGC. The booklet provides guidance on how to submit a proper qualified 
domestic relations order (a ``QDRO'') to the PBGC. This notice informs 
the

[[Page 16673]]

public of the PBGC's intent and solicits public comment on the 
collection of information.

DATES: Comments should be submitted by May 30, 2000.

ADDRESSES: Comments may be mailed to the Office of the General Counsel, 
suite 340, Pension Benefit Guaranty Corporation, 1200 K Street, NW., 
Washington, DC 20005-4026, or delivered to that address between 9 a.m. 
and 4 p.m. on business days. Written comments will be available for 
public inspection at the PBGC's Communications and Public Affairs 
Department, suite 240 at the same address, between 9 a.m. and 4 p.m. on 
business days.
    Copies of the collection of information may be obtained without 
charge by writing to the PBGC's Communications and Public Affairs 
Department at the address given above or calling 202-326-4040. (For TTY 
and TDD users, call the Federal relay service toll-free at 1-800-877-
8339 and ask to be connected to 202-326-4040.)

FOR FURTHER INFORMATION CONTACT: James L. Beller, Attorney, Office of 
the General Counsel, Pension Benefit Guaranty Corporation, 1200 K 
Street, NW., Washington, DC 20005-4026, 202-326-4024. (For TTY and TDD 
users, call the Federal relay service toll-free at 1-800-877-8339 and 
ask to be connected to 202-326-4040.)

SUPPLEMENTARY INFORMATION: The PBGC intends to request a three-year 
extension of the paperwork approval relating to model forms contained 
in the PBGC booklet, Divorce Orders & PBGC. The collection of 
information has been approved through July 31, 2000, by OMB under 
control number 1212-0054.
    A defined benefit pension plan that does not have enough 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 qualified domestic relations order.
    When the PBGC is trustee of a plan, it reviews submitted domestic 
relations orders to determine whether the order is qualified before 
paying benefits to an alternate payee. For several years the PBGC has 
provided the public with model QDROs (and accompanying guidance) in the 
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. The models and the guidance 
assist parties by making it easier to comply with ERISA's QDRO 
requirements in plans trusteed by the PBGC.
    Before providing the model forms and the QDRO booklet, the PBGC 
received many inquiries on the requirements for QDROs. Furthermore, 
many domestic relations orders, both in draft and final form, did not 
meet the applicable requirements. The PBGC worked with practitioners on 
a case-by-case basis to ensure that their orders were amended to meet 
applicable requirements. This process was time-consuming for 
practitioners and for the PBGC.
    Since making the booklet and the model forms available, the PBGC 
has experienced a decrease in (1) the number of inquiries about QDRO 
requirements, (2) the number of orders that do not meet the applicable 
requirements, and (3) the amount of time practitioners and the PBGC 
need to spend to ensure that the orders meet the applicable 
requirements.
    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 300 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 104.25 hours and $118,800.
    The PBGC is soliciting public comments to--
     Evaluate whether the collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
     Evaluate the accuracy of the agency's estimate of the 
burden of the collection of information, including the validity of the 
methodology and assumptions used;
     Enhance the quality, utility, and clarity of the 
information to be collected; and
     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 23rd day of March, 2000.
Stuart Sirkin,
Director, Corporate Policy and Research Department, Pension Benefit 
Guaranty Corporation.
[FR Doc. 00-7713 Filed 3-28-00; 8:45 am]
BILLING CODE 7708-01-P