[Federal Register Volume 66, Number 197 (Thursday, October 11, 2001)]
[Rules and Regulations]
[Pages 51864-51867]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-25638]


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PENSION BENEFIT GUARANTY CORPORATION

29 CFR Chapter XL


Disaster Relief Relating to PBGC Deadlines in Response to 
Terrorist Attacks of September 11, 2001

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of disaster relief relating to PBGC deadlines.

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SUMMARY: The Pension Benefit Guaranty Corporation is extending 
deadlines and providing relief from penalties in response to the major 
disasters declared by the President of the United States on account of 
the terrorist attacks of September 11, 2001.

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. (For TTY and TDD, call 800-877-8339 and request connection to 
202-326-4024.)

SUPPLEMENTARY INFORMATION:

Introduction

    The Pension Benefit Guaranty Corporation administers the pension 
plan termination insurance program under Title IV of the Employee

[[Page 51865]]

Retirement Income Security Act of 1974 (ERISA). ERISA and PBGC 
regulations set deadlines of various kinds that must be met in order to 
be in compliance with the law.
    The PBGC is aware that many of its customers may face a variety of 
compliance-related problems and concerns as a result of the terrorist 
attacks of September 11, 2001. During this difficult period, the PBGC 
will work with its customers to resolve any special issues and problems 
that may arise. This notice provides relief relating to PBGC deadlines.

Persons Entitled to Relief

    This notice provides relief relating to PBGC deadlines as described 
below to Designated Persons. A ``Designated Person'' is a person 
responsible for meeting a PBGC deadline (for example, a plan 
administrator or plan sponsor) that (1) is located in a disaster area 
for which relief is provided under the Department of Labor announcement 
referenced below, or (2) cannot reasonably obtain information or other 
assistance needed to meet the deadline from a service provider, bank, 
or other person whose operations are directly affected by the disaster.
    This notice also provides relief relating to PBGC deadlines as 
described below where a plan's Form 5500 or Form 5500-EZ filing 
deadline is extended as a result of the terrorist attacks under the 
announcement issued by the Department of Labor on September 14, 2001, 
on behalf of the Pension and Welfare Benefits Administration, the 
Internal Revenue Service, and the PBGC (a ``Form 5500 Disaster 
Extension''). The Department of Labor announcement is available at 
http://www.dol.gov/dol/pwba/public/media/press/Pr091401.htm. A Form 
5500 deadline that was extended as a result of that DOL announcement is 
referred to in this notice as a ``Form 5500 Disaster Extension Date.''

Claiming Disaster Relief

    A person claiming disaster relief described in this notice for a 
filing made with the PBGC should print or type ``September 11, 2001, 
terrorist attack relief until ______'' prominently at the top of the 
filing, inserting in the blank the last date to which relief for the 
filing is provided. (On Form 1 or Form 1-EZ, also check the ``disaster 
relief'' box at the top of the form.) Similarly, if a person receives 
an inquiry or bill from the PBGC that appears not to take disaster 
relief into account, the inquiry or bill should be returned to the PBGC 
with the same wording written at the top. (The PBGC may, for example, 
generate such an inquiry or bill because it has not yet been alerted to 
the fact that the filer claims disaster relief.)

Case-by-Case Relief

    This notice does not cover every situation in which PBGC disaster 
relief may be warranted. For example:
     The definition of ``Designated Person'' does not capture 
every person that might experience difficulty in meeting a PBGC 
deadline for reasons related to the disaster.
     This notice does not grant specific disaster relief for 
all filings. For example, it does not provide relief for certain 
filings that involve particularly important or time-sensitive 
information where there may be a high risk of substantial harm to 
participants or the PBGC insurance program, i.e., notices of large 
missed contributions under section 412(n) of the Internal Revenue Code, 
advance notices of reportable events under ERISA section 4043, and 
annual financial and actuarial information reports from certain 
controlled groups under ERISA section 4010.
    Those affected by the disaster who need relief from the PBGC that 
is not covered by this notice should contact the PBGC as soon as 
reasonably possible. The PBGC will work with them in ensuring that they 
receive appropriate relief. To request case-by-case relief, contact 
Diane Morstein at the PBGC by ______.
     Calling 1-800-736-2444, extension 4136, or 202-326-4136 
(for TTY and TDD, call 800-877-8339 and request connection to 202-326-
4136);
     Sending an e-mail to [email protected]; or
     Writing to Pension Benefit Guaranty Corporation, Diane 
Morstein, Suite 610, 1200 K Street, NW., Washington, DC 20005-4026, Re: 
Disaster Relief Notice.

Premiums

Relief for Designated Persons

    The following relief applies where the plan administrator of a plan 
is a Designated Person.
    First, if the deadline for submitting a premium payment form and 
paying any related premium (making a ``premium filing'') for the plan 
falls on or after September 11, 2001, and before February 12, 2002, the 
PBGC will waive any late payment penalty (under ERISA section 4007) and 
any late filing penalty (under ERISA section 4071) for the period from 
that premium filing deadline through February 12, 2002.
    Second, if the plan has a Form 5500 Disaster Extension Date for the 
2000 plan year that is later than February 12, 2002, the PBGC will 
waive any late payment penalty and any late filing penalty for the 
period from February 12, 2002, through that Form 5500 Disaster 
Extension Date for the following premium filings:
     The plan's 2001 Form 1 (or Form 1-EZ) premium filing that 
is due late in the 2001 plan year (e.g., October 15, 2001, for calendar 
year plans), and
     The plan's 2002 flat-rate premium filing (the ``Form 1-ES 
filing'') that is due early in the 2002 plan year (e.g., February 28, 
2002, for calendar year plans) if the plan is a large plan. (Also, the 
PBGC will treat the 2002 Form 1-ES filing as timely made for purposes 
of applying the ``safe harbor'' penalty waiver rules if the filing is 
made by the 2000 Form 5500 Disaster Extension Date.)

Relief for Persons Other Than Designated Persons

    Where the plan administrator of a plan is not a Designated Person, 
the PBGC will provide penalty relief if (1) the plan has a Form 5500 
Disaster Extension Date of November 15, 2001, for the 1999 or 2000 plan 
year because of disruption of transportation and delivery of documents, 
and (2) the premium filing deadline for the plan for the following plan 
year (the 2000 or 2001 plan year, respectively) falls on or after 
September 11, 2001, and before November 15, 2001. Under this penalty 
relief, the PBGC will waive any late payment penalty (under ERISA 
section 4007) and any late filing penalty (under ERISA section 4071) 
for the period from that premium filing deadline through the November 
15, 2001, Form 5500 Disaster Extension Date.

Effect on Interest

    The relief in this notice relating to PBGC premiums does not 
include relief from late premium payment interest charges. The PBGC is 
not permitted by law to waive such charges. (ERISA section 4007(b); 29 
CFR 4007.7 and .8(b)(3)).

Effect of Short Plan Years

    This premium-related relief assumes no short plan years, but 
applies in similar fashion to short plan years. Plan administrators of 
plans with short plan years during the relevant period should contact 
the PBGC for guidance.

Examples

     Example 1. Plan A is a calendar year plan. The deadline 
for Plan A's 2001 Form 1 (or Form 1-EZ), along with the related 
premium payment, is October 15, 2001. Plan A's original 2000 Form 
5500 due date of July 31, 2001, was extended for two and a half 
months to October 15, 2001, for reasons

[[Page 51866]]

unrelated to the disaster. Plan A's plan administrator is a 
Designated Person. Under this notice, the PBGC will waive late 
payment penalties and late filing penalties for the period from 
October 15, 2001, through February 12, 2002. Because Plan A's Form 
5500 Disaster Extension Date for the 2000 Form 5500 is also February 
12, 2002, this notice does not provide additional penalty relief 
beyond February 12, 2002.
     Example 2. Plan B's plan year begins on March 1. The 
deadline for Plan B's 2001 Form 1 (or Form 1-EZ), along with the 
related premium payment, is December 17, 2001. Under Plan B's Form 
5500 Disaster Extension, the 2000 Form 5500 (which was originally 
due October 1, 2001) is due July 30, 2002. Plan B's plan 
administrator is a Designated Person. Under this notice, the PBGC 
will waive late payment penalties and late filing penalties for Plan 
B's 2001 Form 1 (or Form 1-EZ) filing for the period from December 
17, 2001, through July 30, 2002.
     Example 3. Plan B in Example 2 is a large plan required 
to pay its 2002 flat-rate premium filing (Form 1-ES filing) on April 
30, 2002. Under this notice, the PBGC will waive late payment 
penalties and late filing penalties for the period from April 30, 
2002, through July 30, 2002, for Plan B's 2002 Form 1-ES filing.
     Example 4. Plan C is a calendar year plan. The deadline 
for Plan C's 2001 Form 1 (or Form 1-EZ) is October 15, 2001. Plan 
C's original 2000 Form 5500 due date of July 31, 2001, was extended 
for two and a half months to October 15, 2001, for reasons unrelated 
to the disaster. Plan C has a Form 5500 Disaster Extension because 
the plan administrator had difficulty in meeting filing deadlines 
because of disruption of transportation and delivery of documents by 
mail or private delivery service resulting from the disasters. Plan 
C's Form 5500 Disaster Extension Date for the 2000 Form 5500 is 
November 15, 2001. Plan C's plan administrator is not a Designated 
Person. Under this notice, the PBGC will waive late payment 
penalties and late filing penalties for Plan C's 2001 Form 1 (or 
Form 1-EZ) for the period from October 15, 2001, through November 
15, 2001.

Single-Employer Plan Terminations

Standard Terminations

    If the plan administrator of a plan that is terminating in a 
standard termination is a Designated Person, any of the following plan 
termination deadlines for the plan that falls on or after September 11, 
2001, and before February 12, 2002, is extended to February 12, 2002:
     The deadline for filing the standard termination notice 
(Form 500) (29 CFR 4041.25(a)). (Note that this automatically extends 
the deadline for providing notices of plan benefits to participants and 
beneficiaries (29 CFR 4041.24(a)) because that deadline is the date 
when the standard termination notice is filed.)
     The deadline for completing the distribution of plan 
assets (29 CFR 4041.28(a)).
     The deadline for filing the post-distribution 
certification (Form 501) without penalty (29 CFR 4041.29(b)). (Note 
that this automatically extends the deadline for filing missing 
participant information and certifications without penalty and for 
paying missing participants' designated benefits to the PBGC without 
interest (29 CFR 4050.6(b)(2)).)

Distress Terminations

    If the plan administrator of a plan that is terminating in a 
distress termination is a Designated Person and the deadline for filing 
the distress termination notice (Form 601) (29 CFR 4041.45(a)) falls on 
or after September 11, 2001, and before February 12, 2002, that 
deadline is extended to February 12, 2002. (Plan administrators of 
plans in distress terminations for which the PBGC has issued a 
distribution notice should contact the PBGC for case-by-case relief. 
See ``Case-by-case relief'' above.)

Participant Notices

    A plan's deadline for providing a Participant Notice under ERISA 
section 4011 for a plan year is two months after the deadline 
(including extensions) for filing the plan's Form 5500 for the 
preceding plan year (29 CFR 4011.8). Thus, if the plan has a Form 5500 
Disaster Extension for the 2000 plan year, the deadline for providing a 
Participant Notice for the 2001 plan year is automatically extended to 
two months after the 2000 Form 5500 Disaster Extension Date.
    In addition, if the plan administrator of a plan is a Designated 
Person, any deadline for providing a Participant Notice that falls on 
or after September 11, 2001, and before February 12, 2002, is extended 
to February 12, 2002.

Reportable Events Notices

    Under the PBGC's regulation on post-event notices of reportable 
events (29 CFR part 4043, subparts A and B), the plan administrator and 
each contributing sponsor of a plan for which a reportable event occurs 
generally must notify the PBGC of the event within 30 days after the 
event occurs. In certain cases, the regulation extends the reporting 
deadline until 30 days after a plan's Form 5500 due date. (See 29 CFR 
4043.23(d)(2), .29(d)(2), .30(d)(2), .31(d)(2), and .34(d)(4).) If such 
a 30-day extension applies to a Form 5500 for which there is a Form 
5500 disaster extension, the 30-day extension period in the PBGC's 
regulation will begin to run on the Form 5500 Disaster Extension Date.
    In addition, if a Designated Person is responsible for filing a 
reportable event post-event notice for which the deadline falls on or 
after September 11, 2001, and before February 12, 2002, that person's 
deadline for filing the notice is extended to February 12, 2002.
    In the case of notices required in advance of the effective date of 
a reportable event (29 CFR part 4043, subparts A and C), the PBGC will 
grant relief where appropriate on a case-by-case basis. See ``Case-by-
case relief'' above.

Annual Employer Reporting Under ERISA Section 4010

    The PBGC's regulation on Annual Financial and Actuarial Information 
Reporting (29 CFR part 4010) requires annual financial and actuarial 
information reporting in certain cases by contributing sponsors (and 
their controlled group members) maintaining plans with large 
underfunding or certain missed contributions or funding waivers. The 
PBGC will grant relief where appropriate on a case-by-case basis for 
these reports. See ``Case-by-case relief'' above.
    However, the regulation permits the filing of certain actuarial 
information by an alternative due date, which is 15 days after a plan's 
Form 5500 due date, if certain requirements are met (29 CFR 
4010.10(b)). If such an alternative due date is based on a Form 5500 
for which there is a Form 5500 Disaster Extension, the 15-day period in 
the PBGC's regulation will be measured from the Form 5500 Disaster 
Extension Date.

Requests For Reconsideration or Appeals

    The deadline for requesting review of a PBGC determination under 
the PBGC's regulation on Rules for Administrative Review of Agency 
Decisions (29 CFR part 4003) is generally 45 days (for an appeal) or 30 
days (for a request for reconsideration) after the date of the 
determination. If a Designated Person is aggrieved by a PBGC 
determination, and the deadline for filing an appeal or a request for 
reconsideration of the determination falls on or after September 11, 
2001, and before February 12, 2002, that person's deadline for filing 
the appeal or request for reconsideration is extended to February 12, 
2002.

Multiemployer Plan Deadlines

Premium Deadlines

    The disaster relief relating to premium deadlines (discussed under 
``Premiums,'' above) also applies to multiemployer plans.

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Other Multiemployer Deadlines

    Under the PBGC's regulations governing multiemployer plans, various 
persons (e.g., the plan sponsor) are subject to deadlines for making 
filings with the PBGC, issuing notices to persons other than the PBGC, 
and taking other actions. If the person responsible for meeting the 
deadline is a Designated Person, and the deadline falls on or after 
September 11, 2001, and before February 12, 2002, the PBGC will neither 
assess a penalty under ERISA section 4302 nor take any other 
enforcement action with respect to any failure to comply with the 
deadline during the period ending on February 12, 2002.
    The PBGC recognizes that persons other than the PBGC may have 
rights to enforce some of these deadlines. The PBGC expects these 
persons to act reasonably--fully taking into account the effects of the 
recent disasters--in deciding whether and to what extent to exercise 
these rights.
    The PBGC will grant other relief where appropriate on a case-by-
case basis for deadlines relating to multiemployer plans. See ``Case-
by-case relief'' above.

    Issued in Washington, DC, this 5th day of October 2001.
John Seal,
Acting Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 01-25638 Filed 10-10-01; 8:45 am]
BILLING CODE 7708-01-P