[Federal Register Volume 68, Number 50 (Friday, March 14, 2003)]
[Notices]
[Pages 12389-12391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-6271]


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PENSION BENEFIT GUARANTY CORPORATION


Privacy Act of 1974; System of Records

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of a new routine use of records for PBGC-6, Plan 
Participant and Beneficiary Data--PBGC.

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SUMMARY: The Pension Benefit Guaranty Corporation is proposing to add a 
routine use of records for a system of records maintained pursuant to 
the Privacy Act of 1974, as amended, entitled PBGC-6, Plan Participant 
and Beneficiary Data--PBGC. The new routine use permits PBGC to 
disclose to a state workforce agency the names of and certain 
identifying information about PBGC pension recipients residing in the 
state who may be eligible for health insurance coverage assistance from 
the state workforce agency under the Trade Act of 2002. Participating 
state workforce agencies are authorized to provide health insurance 
coverage assistance to eligible PBGC pension recipients until a Federal 
income tax credit advance payment program becomes effective in August 
2003.

DATES: Comments on the new routine use must be received by April 14, 
2003. The new routine use will become effective April 15, 2003, without 
further notice, unless comments result in a contrary determination and 
a notice is published to that effect.

ADDRESSES: Comments may be mailed to the Office of the General Counsel, 
Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, 
DC 20005-4026, or delivered to Suite 340 at the above address. Comments 
also may be sent by Internet e-mail to [email protected]. Copies of 
comments may be obtained by writing to the PBGC's Communications and 
Public Affairs Department at Suite 240 at the above address or by 
visiting that office or calling 202-326-4040 during normal business 
hours.

FOR FURTHER INFORMATION CONTACT: D. Bruce Campbell, Attorney, Office of 
the General Counsel, Pension Benefit Guaranty Corporation, 1200 K 
Street, NW., Washington, DC 20005-4016, 202-326-4020 (extension 3672). 
(TTY/TDD users may call the Federal relay service toll-free at 1-800-
877-8339 and ask to be connected to 202-326-4024.)

SUPPLEMENTARY INFORMATION: The Trade Act of 2002 amended the Internal 
Revenue Code to create an income tax credit for health insurance costs 
of eligible individuals. Public Law 107-210, sec. 201, 116 Stat. 933, 
954 (Aug. 6, 2002) (to be codified at 26 U.S.C. 35). The legislation 
requires the Department of Treasury to establish a program for making 
advance payments to eligible individuals of the income tax credit. 
Public Law 107-210, sec. 202, 116 Stat. at 960 (to be codified at 26 
U.S.C. 7527). The tax credit is to be made available on an advance 
payment basis by August 1, 2003.
    The income tax credit and advance payment program are open to, 
among others, any individual who is an ``eligible PBGC pension 
recipient.'' 26 U.S.C. 35(c) and 26 U.S.C. 7527(d)(2). An eligible PBGC 
pension recipient is defined to mean, with respect to any month, an 
individual ``who has attained age 55 as the first day of such month, 
and * * * is receiving a benefit for such month any portion of which is 
paid by the (PBGC).'' 26 U.S.C. 35(c)(4).
    The income tax credit and advance payment program are also open to 
any individual who is an ``eligible TAA recipient'' 26 U.S.C. 35(c) and 
26 U.S.C. 7527(d)(2). The term eligible TAA recipient is defined to 
include, for any month, an individual who is receiving ``a trade 
readjustment allowance under * * * the Trade Act of 1974.'' The 
Department of Labor, with the states, is responsible for implementing 
the trade readjustment assistance program for eligible workers. 19 
U.S.C. 2271-2296.
    The Trade Act of 2002 also amended the Workforce Investment Act of 
1988 to permit states to use National Emergency Grant funds from the 
Department of Labor to pay the cost of qualified health insurance 
coverage for eligible individuals during the initial start up period 
from September 1, 2002, (the first full month beginning after the date 
of enactment) until such time as the advance payment program is 
implemented. Public Law 107-210, sec. 203, 116 Stat. 933, 963 (to be 
codified at 29 U.S.C. 2918(a) and (f)). The new routine use permits the 
PBGC to disclose the names, addresses, social security numbers, and 
dates of birth of eligible PBGC pension recipients residing in a state 
to the state's workforce agency if the agency received a grant to 
provide health insurance coverage assistance and support services for 
state residents under section 203 of the Trade Act of 2002.
    For the convenience of the public, PBGC-6, as amended, is published 
in full below with new routine use 15 italicized.

    Issued in Washington, DC, this 11th day of March, 2003.
Steven A. Kandarian,
Executive Director, Pension Benefit Guaranty Corporation.
PBGC-6

System name:
    Plan Participant and Beneficiary Data--PBGC.

Security classification:
    Not applicable.

[[Page 12390]]

System location:
    Pension Benefit Guaranty Corporation, 1200 K Street, NW., 
Washington, DC 20005-4026 and/or field benefit administrator, plan 
administrator, and paying agent worksites.

Categories of individuals covered by the system:
    Participants and beneficiaries in terminating and terminated 
pension plans covered by Title IV of the Employee Retirement Income 
Security Act of 1974, as amended (``ERISA'').

Categories of records in the system:
    Names, addresses, telephone numbers, sex, social security numbers 
and other Social Security Administration information, dates of birth, 
dates of hire, salary, marital status, domestic relations orders, time 
of plan participation, eligibility status, pay status, benefit data, 
health-related information, insurance information where plan benefits 
are provided by private insurers, initial and final PBGC determinations 
(29 CFR 4003.21 and 4003.59). The records listed herein are included 
only as pertinent or applicable to the individual plan participant or 
beneficiary.

Authority for maintenance of the system:
    29 U.S.C. 1055, 1056(d)(3), 1302, 1321, 1322, 1322a, 1341, 1342 and 
1350.

Purpose(s):
    This system of records is maintained for use in determining whether 
participants and beneficiaries are eligible for benefits under plans 
covered by Title IV of ERISA, the amounts of benefits to be paid, 
making benefit payments, and collecting benefit overpayments. Names, 
addresses, and telephone numbers are used to survey customers to 
measure their satisfaction with the PBGC's benefit payment services and 
to track (for follow up) those who do not respond to surveys.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    1. A record from this system of records may be disclosed to third 
parties, such as banks, insurance companies, or trustees, to make 
benefit payments to plan participants and beneficiaries.
    2. A record from this system of records may be disclosed, in 
furtherance of proceedings under Title IV of ERISA, to a contributing 
sponsor (or other employer who maintained the plan), including any 
predecessor or successor, and any member of the same controlled group.
    3. A record from this system of records may be disclosed, upon 
request for a purpose authorized under Title IV of ERISA, to an 
official of a labor organization recognized as the collective 
bargaining representative of the individual about whom a request is 
made.
    4. Names, addresses, and telephone numbers of participants and 
beneficiaries and information pertaining to debts owed by such 
participants and beneficiaries to the PBGC may be disclosed to a debt 
collection agency or firm to collect a claim. Disclosure shall be made 
only under a contract that binds any such contractor or employee of 
such contractor to the criminal penalties of the Privacy Act. The 
information so disclosed shall be used exclusively pursuant to the 
terms and conditions of such contract and shall be used solely for the 
purposes prescribed therein. The contract shall provide that the 
information so disclosed shall be returned at the conclusion of the 
debt collection effort.
    5. The name and social security number of a participant employed or 
formerly employed as a pilot by a commercial airline may be disclosed 
to the Federal Aviation Administration (``FAA'') to obtain information 
relevant to the participant's eligibility or continued eligibility for 
disability benefits.
    6. Names and social security numbers of plan participants and 
beneficiaries may be disclosed to the Internal Revenue Service 
(``IRS'') to obtain current addresses from tax return information and 
to the Social Security Administration (``SSA'') to obtain current 
addresses. Such information will be disclosed only if the PBGC has no 
address for an individual or if mail sent to the individual at the last 
known address is returned as undeliverable.
    7. Names and last known addresses may be disclosed to an official 
of a labor organization recognized as the collective bargaining 
representative of participants for posting in union halls or for other 
means of publication to obtain current addresses of participants and 
beneficiaries. Such information will be disclosed only if the PBGC has 
no address for an individual or if mail sent to the individual at the 
last known address is returned as undeliverable.
    8. Names, social security numbers, last known addresses, and dates 
of birth and death may be disclosed to private firms and agencies that 
provide locator services, including credit reporting agencies and debt 
collection firms or agencies, to locate participants and beneficiaries. 
Such information will be disclosed only if the PBGC has no address for 
an individual or if mail sent to the individual at the last known 
address is returned as undeliverable. Disclosure shall be made only 
under a contract that binds the firm or agency providing the service 
and its employees to the criminal penalties of the Privacy Act. The 
information so disclosed shall be used exclusively pursuant to the 
terms and conditions of such contract and shall be used solely for the 
purposes prescribed therein. The contract shall provide that the 
information so disclosed shall be returned at the conclusion of the 
locating effort.
    9. Names and last known addresses may be disclosed to licensees of 
the United States Postal Service (``USPS'') to obtain current addresses 
under the USPS's National Change of Address Program. Such information 
will be disclosed only if the PBGC has no address for an individual or 
if mail sent to the individual at the last known address is returned as 
undeliverable. Disclosure shall be made only under a contract that 
binds the licensee of the Postal Service and its employees to the 
criminal penalties of the Privacy Act. The information so disclosed 
shall be used exclusively pursuant to the terms and conditions of such 
contract and shall be used solely for the purposes prescribed therein. 
The contract shall provide that the information so disclosed shall be 
returned at the conclusion of the locating effort.
    10. Names and last known addresses may be disclosed to other 
participants in, and beneficiaries under, a pension plan to obtain the 
current addresses of individuals. Such information will be disclosed 
only if the PBGC has no address for an individual or if mail sent to 
the individual at the last known address is returned as undeliverable.
    11. Names and last known addresses of participants and 
beneficiaries, and the names and addresses of participants' former 
employers, may be disclosed to the public to obtain current addresses 
of the individuals. Such information will be disclosed to the public 
only if the PBGC is unable to make benefit payments to the participants 
and beneficiaries because the address it has does not appear to be 
current or correct.
    12. The name of a participant's pension plan, the actual or 
estimated amount of a participant's benefit under Title IV of ERISA, 
the form(s) in which the benefit is payable, and whether the 
participant is currently receiving benefit payments under the plan or 
(if not) the earliest date(s) such payments could commence may be 
disclosed to the participant's spouse, former spouse, child, or other 
dependent solely to

[[Page 12391]]

obtain a qualified domestic relations order under 29 U.S.C. 1056(d) and 
26 U.S.C. 414(p). The PBGC will disclose the information only upon the 
receipt of a notarized, written request by a prospective alternate 
payee that describes the requester's relationship to the participant 
and states that the information will be used solely to obtain a 
qualified domestic relations order under state domestic relations law. 
The PBGC will notify the participant of any information disclosed to a 
prospective alternate payee under this routine use. Any person who 
knowingly and willfully requests or obtains any record concerning an 
individual under false pretenses is subject to a criminal penalty under 
5 U.S.C. 552a(i)(3).
    13. Information from a participant's initial determination under 29 
CFR 4003.1(b) (excluding the participant's address, telephone number, 
social security number, and any sensitive medical information) may be 
disclosed to a participant's spouse, former spouse, child, or other 
dependent who is an alternate payee under a qualified domestic 
relations order issued pursuant to 29 U.S.C. 1056(d) and 26 U.S.C. 
414(p) to explain how the PBGC determined the benefit due the alternate 
payee so that the alternate payee can pursue an administrative appeal 
of the benefit determination under 29 CFR 4003.51. The PBGC will notify 
the participant of the information disclosed to an alternate payee 
under this routine use.
    14. The names, addresses, social security numbers, and dates of 
birth of eligible PBGC pension recipients may be disclosed to the 
Department of Treasury and the Department of Labor to implement the 
income tax credit for health insurance costs under 26 U.S.C. 35 and the 
program for advance payment of the tax credit under 26 U.S.C. 7527.
    15. The names, addresses, social security numbers, and dates of 
birth of eligible PBGC pension recipients residing in a particular 
state may be disclosed to the state's workforce agency if the agency 
received a National Emergency Grant from the Department of Labor under 
the Workforce Investment Act of 1988 to provide health insurance 
coverage assistance and support services for state residents under 29 
U.S.C. 2918(a) and (f).
    General Routine Uses G1 and G4 through G7 (see Prefatory Statement 
of General Routine Uses) apply to this system of records.

Disclosure to consumer reporting agencies:
    Information may be disclosed to a consumer reporting agency in 
accordance with 31 U.S.C. 3711(f) (5 U.S.C. 552a(b)(12)).

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Records are maintained in paper and electronic form.

Retrievability:
    Records are indexed by plan and participant and/or beneficiary 
name. Customer satisfaction survey responses are aggregated for 
statistical purposes after they have been received by the PBGC and are 
not retrievable by a participant or beneficiary's name or other 
assigned identifier.

Safeguards:
    Paper records are kept in file folders in areas of restricted 
access that are locked after office hours. Electronic records are 
stored on computer networks and protected by assigning user 
identification numbers to individuals needing access to the records and 
by passwords set by authorized users that must be changed periodically.

Retention and disposal:
    Records for plan participants are transferred to the Washington 
National Federal Records Center 6 months after either the final payment 
to a participant and/or beneficiary or the PBGC's final determination 
that a participant or beneficiary is not entitled to any benefits and 
are destroyed 7 years after such payment or determination.

System manager(s) and address:
    Director, Insurance Operations Department, Pension Benefit Guaranty 
Corporation, 1200 K Street, NW., Washington, DC 20005-4026.

Notification procedure:
    Procedures are detailed in the PBGC's regulations: 29 CFR part 
4902.

Record access procedures:
    Same as notification procedure.

Contesting records procedure:
    Same as notification procedure.

Record source categories:
    Plan administrators, participants and beneficiaries, the FAA, the 
SSA, labor organization officials, firms or agencies providing locator 
services, and USPS licensees.

Exemptions claimed for the system:
    None.
[FR Doc. 03-6271 Filed 3-13-03; 8:45 am]
BILLING CODE 7708-01-P