[Federal Register Volume 69, Number 248 (Tuesday, December 28, 2004)]
[Proposed Rules]
[Pages 77679-77684]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-28398]


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PENSION BENEFIT GUARANTY CORPORATION

29 CFR Parts 4000 and 4010

RIN 1212-AB01


Electronic Filing--Annual Financial and Actuarial Information

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would require that certain identifying, 
financial, and actuarial information be filed electronically in a 
standardized format. In addition, the proposed rule would require the 
filing of additional items of supporting information that are readily 
available to the filer. Finally, the proposed rule would require a 
filer for the previous year who does not believe a filing is required 
for the current year to demonstrate why there is no current filing 
requirement. The proposed rule would benefit filers by streamlining the 
filing process and would enhance the PBGC's ability to effectively 
administer the pension insurance program.

DATES: Comments must be received on or before January 27, 2005. See 
``30-day comment period'' below.

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 submitted electronically through the PBGC's Web site at 
http://www.pbgc.gov/regs, or by fax to 202-326-4112. The PBGC will make 
all comments available on its Web site, http://www.pbgc.gov. Copies of 
the comments may also 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. (TTY and TDD users may 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: Harold J. Ashner, Assistant General 
Counsel, or James L. Beller, Attorney,

[[Page 77680]]

Pension Benefit Guaranty Corporation, Office of the General Counsel, 
Suite 340, 1200 K Street, NW., Washington, DC 20005-4026, 202-326-4024. 
(For TTY/TTD users, call the Federal relay service toll-free at 1-800-
877-8339 and ask to be connected to 202-326-4024.)

SUPPLEMENTARY INFORMATION: This proposed rule is part of the Pension 
Benefit Guaranty Corporation's (PBGC's) ongoing effort to streamline 
regulation and to improve administration of the pension insurance 
program, with a focus on making pension-related data more accurate, 
complete, and--in particular--transparent. It is also part of the 
PBGC's ongoing implementation of the Government Paperwork Elimination 
Act and is consistent with the Office of Management and Budget's 
directive to remove regulatory impediments to electronic transactions. 
The rule addresses the filing of information required under part 4010 
of the PBGC's regulations (Annual Financial and Actuarial Information 
Reporting ) and builds in the flexibility needed to allow the PBGC to 
update the electronic filing process as technology advances.
    The PBGC administers the pension insurance programs under title IV 
of the Employee Retirement Income Security Act of 1974 (ERISA). In 
order to give the PBGC an opportunity to anticipate and attempt to 
minimize potential liabilities that may arise from the termination of 
significantly underfunded plans, ERISA section 4010 requires the 
reporting of actuarial and financial information by controlled groups 
with pension plans that have significant funding problems. 
Specifically, reporting is required by a controlled group if: (1) The 
aggregate unfunded vested benefits of all plans maintained by members 
of the controlled group exceed $50 million (disregarding plans with no 
unfunded vested benefits); (2) the conditions specified in section 
302(f) of ERISA and section 412(n) of the Internal Revenue Code for 
imposing a lien for missed contributions exceeding $1 million have been 
met with respect to any plan maintained by any member of the controlled 
group; or (3) the Internal Revenue Service has granted minimum funding 
waivers in excess of $1 million to any plan maintained by any member of 
the controlled group, and any portion of the waiver(s) is still 
outstanding.
    Pursuant to section 4010 of ERISA, the PBGC issued its regulation 
on Annual Financial and Actuarial Information Reporting in 1995 (29 CFR 
part 4010). The regulation specifies the items of identifying, 
financial, and actuarial information that filers must submit under 
section 4010. The PBGC reviews the information that is filed and enters 
it into an electronic data base for more detailed analysis. Computer-
assisted analysis of this information helps the PBGC to anticipate 
possible major demands on the pension insurance system and to focus 
PBGC resources on situations that pose the greatest risks to that 
system. Because other sources of information are usually not as current 
as the section 4010 information, the section 4010 filing plays a major 
role in the PBGC's ability to protect participant and premium-payer 
interests.
    The PBGC does not currently provide a form for section 4010 filings 
and thus filers provide the information in a non-standard format. This 
makes the information harder to use, restricts the PBGC's ability to 
perform electronic data analysis, and in general results in unnecessary 
delays. The PBGC's experience with section 4010 filings has led the 
PBGC to conclude that its ability to protect participant and premium-
payer interests would increase and that the filing process would work 
better if filers provided information electronically and in a 
standardized format, and is therefore proposing to require electronic 
filing of section 4010 information in a standardized format.
    The PBGC is also proposing to require the submission of certain 
additional information it needs to carry out its role protecting 
participant and premium-payer interests; to modify the rules for 
determining whether aggregate unfunded vested benefits exceed $50 
million (the $50 million section 4010 gateway test); and to remove the 
requirement that a power of attorney accompany any filing made by a 
person other than a filer.
    Standardized electronic format. This proposed rule would require 
electronic filing in a standardized format (except as otherwise 
provided by the PBGC), in accordance with instructions on the PBGC's 
Web site (http://www.PBGC.gov). This would enable the PBGC to simplify 
the reporting process and to improve the accuracy, completeness, and 
timeliness of the information it receives. The PBGC would be able to 
access the information quickly and in a complete manner from its data 
base, while imposing very little additional burden on filers. Almost 
all section 4010 filers are large corporations accustomed to submitting 
electronic filings with other government agencies, such as with the 
Securities and Exchange Commission using EDGAR.
    Additional supporting information requirements. Certain additional 
supporting information not currently required by the regulation is 
necessary for the PBGC to effectively carry out its statutory 
responsibilities. The additional information is typically already 
collected, prepared, and maintained by filers; the new requirement, 
therefore, imposes very little additional burden.
    Liability separated by participant status. Under the current 
section 4010 filing process, the information about benefit liabilities 
that the PBGC now receives under Sec.  4010.8(a)(2) does not reflect 
the breakdown of these liabilities among: (1) Retired participants and 
beneficiaries receiving payments, (2) terminated vested participants, 
and (3) active participants; nor are filers required to report the 
number of participants in each category. This breakdown is necessary to 
enable the PBGC to better estimate plan liabilities by reflecting the 
impact of the passage of time and any change in plan assumptions or 
provisions. Accordingly, the PBGC proposes to amend Sec.  4010.8(a)(2) 
to require that benefit liabilities be reported separately for these 
three categories of participants and that the number of participants in 
each category be reported.
    Actuarial valuation report. Section 4010.8(a)(3) of the current 
regulation requires filers to provide a copy of the actuarial valuation 
report (AVR) ``that contains or is supplemented by'' certain 
information, which the regulation lists. The PBGC has found that this 
listing omits certain important information that is not always included 
in the AVR. The proposed rule would add the following to the list: (1) 
The current liability, vested and nonvested, calculated pursuant to 
Internal Revenue Code Section 412 (separated into information for 
retired participants and beneficiaries receiving payments, terminated 
vested participants, and active participants); (2) the expected 
increase in current liability due to benefits accruing during the plan 
year; and (3) the expected plan disbursements for the plan year. 
Because this information has necessarily been developed to prepare the 
AVR, its submission to the PBGC should impose little additional burden.
    Specified actuarial assumptions. The PBGC has found that filers do 
not always use the mandated actuarial assumptions for purposes of 
reporting benefit liabilities under section 4010. Such a violation is 
subject to the assessment of a PBGC penalty under ERISA section 4071 of 
up to $1,100 for each day the violation continues. In order to help 
filers avoid the assessment of such a penalty and to ensure that the 
mandated assumptions are used, the proposed rule would require the 
filer to specify the actuarial assumptions for

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interest rate (i.e., the specific interest rate(s), such as 5%), 
mortality, retirement age, and loading for administrative expenses, 
used to calculate benefit liabilities under Sec.  4010.8.
    Information on exempt entities. Under the current PBGC regulations 
(see Sec. Sec.  4010.4(d), .7(a), .9(a)), filers are not required to 
include in their section 4010 reports identifying or financial 
information about ``exempt entities'' (certain small entities that are 
not contributing sponsors). The exemption was added to the original 
final rule in response to comments on the proposed rule that it would 
be unnecessarily burdensome to require filers to report on small, non-
sponsor entities. However, these entities sometimes provide a source of 
recovery for PBGC claims (should any arise) that is not available to 
other creditors. Reporting is necessary because the PBGC must be aware 
of the existence of such entities before it can assert claims. To 
minimize the additional burden on filers, the proposed rule would 
require the filer to provide initially only the identifying information 
for exempt entities. The rule would make clear that additional 
information about exempt entities must be submitted upon written 
request by the PBGC.
    In addition, exempt entities are not required to file. The PBGC 
invites comments on whether the threshold, under Sec.  4010.4(d), for 
determining what is an exempt entity is appropriate.
    Information on exempt plans. Under the current PBGC regulations 
(see Sec. Sec.  4010.7(b), .8(a), (c)), filers are required to include 
in their section 4010 reports identifying information about ``exempt 
plans'' (certain small or fully funded plans), but are not required to 
report actuarial information about them. The proposed rule would make 
clear that additional information about exempt plans must be submitted 
upon written request by the PBGC.
    Financial information on controlled group members. In the case of a 
controlled group with consolidated financial statements, the current 
regulation requires the reporting of revenue, operating income, and net 
assets only for each contributing sponsor (other than an exempt 
entity). The PBGC has found that it needs this information breakdown on 
all nonexempt entities included in the consolidated financial 
statements, not only on contributing sponsors. This information enables 
the PBGC to identify which controlled group members hold the assets of 
the consolidated group. Therefore, the proposed rule would require this 
information breakdown for all members included in the controlled 
group's consolidated financial statements (other than exempt entities). 
This information breakdown is currently maintained by controlled groups 
that file consolidated statements, and thus providing it would not be 
burdensome.
    Identification of controlled group changes. To enable the PBGC to 
keep track of controlled group members and plans, the proposed rule 
would require the filer to tell the PBGC which controlled group members 
and plans joined or left the controlled group during the information 
year.
    Frozen plan information. In order for the PBGC to assess the risk 
and exposure presented by a plan, the proposed rule would require the 
filer to identify which plans are frozen as well as the nature of the 
freeze (e.g., service is frozen but pay is not).
    Demonstration by previous filer of exemption. The proposed rule 
adds a new requirement for any filer that was required to file for the 
previous year but is not required to file for the current year. Under 
the proposed rule, these previous filers would need to demonstrate to 
the PBGC that a filing is not required for the current year. On 
occasion, when the PBGC discovers that a previous filer has not made a 
submission for the current year, the PBGC has contacted the filer to 
determine whether the filer has overlooked the current filing 
obligation. The PBGC has discovered a number of instances of such 
oversight. The new requirement would enable the PBGC to ascertain 
quickly those previous filers that do not need to file for the current 
year. In addition, it may prevent inadvertent failures to file and 
thereby prevent the assessment, or reduce the amount, of penalties. 
Because previous filers need to determine each year whether they are 
required to file, the new requirement should impose little additional 
burden.
    Modification by instructions on Web site. The proposed rule would 
allow the PBGC, through instructions on its Web site, to modify the 
format of the information and to require the submission of additional 
information relating to the specific information described in the 
regulation.
    $50 million section 4010 gateway test. The current regulation 
allows filers to determine unfunded vested benefits for purposes of the 
$50 million section 4010 gateway test using an optional assumptions 
method. In essence, under the optional method, unfunded vested benefits 
are determined by using: (1) An interest rate equal to 100% of the 
annual yield for 30-year Treasury securities, (2) fair market value of 
plan assets, and (3) specified mortality tables. The optional method 
was added when the current rule was adopted in 1995 in response to 
comments because it was expected that the optional assumptions shortly 
would become the standards that would apply for calculating the 
variable rate premium under ERISA section 4006. In fact, these 
assumptions have not become the standards. Instead, Congress has passed 
several laws that temporarily set the interest rate to be used for 
calculating the variable rate premium under ERISA section 4006. Under 
current law, for the 2004 and 2005 plan years, the interest rate is 
based upon long-term investment grade corporate bonds. Because of these 
changes and the possibility of future changes in this area, the PBGC 
proposes to eliminate the use of the optional assumptions method for 
purposes of the $50 million section 4010 gateway test. Moreover, 
reporting for this purpose is warranted if the $50 million section 4010 
gateway test is reached using the general rule under Sec.  4006.4 of 
this chapter for determining unfunded vested benefits.
    In addition, the PBGC proposes to clarify the rules governing which 
contributions may be taken into account when determining unfunded 
vested benefits for purposes of the $50 million section 4010 gateway 
test.
    Power of attorney requirement. The current rule requires the 
submission of a signed power of attorney whenever a person other than a 
filer submits the required information. The PBGC proposes to simplify 
the process by eliminating this requirement as unnecessary. The 
requirement for a certification by the enrolled actuary would remain, 
regardless of who submits the filing.
    30-day comment period. For this proposed rule, the PBGC is 
providing a 30-day comment period. The PBGC's need for more complete 
and up-to-date information under section 4010 has become acute. The 
recent increase in the number of failures of large underfunded plans, 
as most clearly evidenced by developments in the airline industry, has 
heightened the need for the PBGC to know when it must take immediate 
action to protect participant and premium-payer interests. The 
information provided by filers pursuant to section 4010 is crucial in 
allowing the PBGC to act promptly and responsibly.
    Because most filers have calendar information years, most section 
4010 filings are due on April 15 following the end of the information 
year. The final rule would need to be in effect well before April 15 to 
allow filers time to adjust to the new procedures. Were the

[[Page 77682]]

PBGC to provide the usual 60-day comment period, it would be extremely 
difficult to provide adequate notice to filers in order for them to 
prepare for the filings due April 15, 2005. The delay in applicability 
would mean that over 80% of filers (those who file on a calendar year 
basis) would not file under the new rules until April 15, 2006. This 
significant delay could seriously hamper the PBGC's ability to act 
promptly where necessary.
    Applicability. This proposed rule would apply to reporting for any 
information year ending on or after December 31, 2004.

Compliance With Rulemaking Guidelines

    The PBGC has determined, in consultation with the Office of 
Management and Budget, that this proposed rule is a ``significant 
regulatory action'' under Executive Order 12866. The Office of 
Management and Budget, therefore, has reviewed this notice under 
Executive Order 12866.
    Under section 605(b) of the Regulatory Flexibility Act, the PBGC 
certifies that the amendments in this rule would not have a significant 
economic impact on a substantial number of small entities. The tests 
for identifying filers under section 4010(b) of ERISA effectively limit 
the filing requirements to large companies and their controlled groups. 
Accordingly, as provided in section 605 of the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.), sections 603 and 604 do not apply.
    The PBGC is submitting the information requirements contained in 
this proposed rule to the Office of Management and Budget for review 
and approval under section 3507(d) of the Paperwork Reduction Act of 
1995. Persons may obtain copies of the PBGC's request free of charge by 
contacting the PBGC Communications and Public Affairs Department, suite 
240, 1200 K Street, NW., Washington, DC 20005, 202-326-4020. A summary 
of the proposed methodology for electronic submission 4010 information 
filing (including draft screen shots and instructions) is available on 
the PBGC's Web site at http://www.pbgc.gov. This proposed rule would 
modify paperwork collections under both part 4000 (approved under OMB 
control number 1212-0059; expires 10/31/06) and part 4010 (approved 
under OMB control number 1212-0049; expires 3/31/05). An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless it displays a currently valid OMB 
control number.
    The PBGC needs the information required to be submitted under part 
4010 to enable it (1) to detect and monitor financial problems with the 
contributing sponsors that maintain severely underfunded pension plans 
and their controlled group members, (2) to respond quickly when it 
learns that a controlled group with severely underfunded pension plans 
intends to engage in a transaction that may significantly reduce the 
assets available to pay plan liabilities, and (3) to take action to 
protect participant and premium-payer interests.
    The PBGC estimates that an average of 400 controlled groups per 
year respond to this collection of information. The PBGC further 
estimates that the average annual burden of this collection of 
information (including the changes in this proposed rule) is 8.7 hours 
and $13,750 per controlled group, for a total burden of 3,480 hours and 
$5,500,000.
    Comments on the paperwork provisions under this rule should be 
mailed to the Office of Information and Regulatory Affairs, Office of 
Management and Budget, Attention: Desk Officer for the Pension Benefit 
Guaranty Corporation, Washington, DC 20503. The Office of Management 
and Budget requests that comments be received on or before January 27, 
2005 to ensure their consideration.
    Comments may address (among other things)--
     Whether the proposed collection of information is needed 
for the proper performance of the PBGC's functions and will have 
practical utility;
     The accuracy of the PBGC's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used;
     Enhancement of the quality, utility, and clarity of the 
information to be collected; and
     Minimizing 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.

List of Subjects

29 CFR Part 4000

    Pension insurance, Pensions, Reporting and recordkeeping 
requirements.

29 CFR Part 4010

    Pensions, Reporting and recordkeeping requirements.

    For the reasons given above, the PBGC proposes to amend 29 CFR 
parts 4000 and 4010 as follows.

PART 4000--FILING, ISSUANCE, COMPUTATION OF TIME, AND RECORD 
RETENTION

    1. The authority citation for Part 4000 continues to read as 
follows:

    Authority: 29 U.S.C. 1082(f), 1302(b)(3).

    2. Revise paragraph Sec.  4000.3 to read as follows:


Sec.  4000.3  What Methods of Filing May I Use?

    (a) Paper filings. Except for the filings listed in paragraph (b) 
of this section, you may file any submission with us by hand, mail, or 
commercial delivery service.
    (b) Electronic filings. You must submit the information required 
under part 4010 of this chapter electronically in accordance with the 
instructions on the PBGC's Web site, except as otherwise provided by 
the PBGC.
    (c) Information on electronic filings. Current information on 
electronic filings, including permitted methods, fax numbers, and e-
mail addresses, is--
    (1) On our Web site, http://www.pbgc.gov;
    (2) In our various printed forms and instructions packages; and
    (3) Available by contacting our Customer Service Center at 1200 K 
Street, NW., Washington, DC 20005-4026; telephone 1-800-400-7242 (for 
participants), or 1-800-736-2444 (for practitioners). (TTY/TDD users 
may call the Federal relay service toll-free at 1-800-877-8339 and ask 
to be connected to the appropriate number.)
    3. Amend Sec.  4000.4 by adding two sentences to the end of the 
section to read as follows:


Sec.  4000.4  Where do I file my submission?

    * * * You do not have to address electronic submissions made 
through our Web site. We are responsible for ensuring that such 
submissions go to the proper place.
    4. Amend Sec.  4000.24 as follows:
    a. Add a sentence to the end of paragraph (a); and
    b. Add a sentence to the end of paragraph (b)(3)
    The additions read as follows:


Sec.  4000.24  What if I mail my submission or issuance using the U.S. 
Postal Service?

    * * * A submission made through our Web site is considered to have 
been sent when you perform the last act necessary to indicate that your 
submission is filed and cannot be further edited or withdrawn.

[[Page 77683]]

    (b) * * *
    (3) * * * A submission made through our Web site is considered to 
have been sent when you perform the last act necessary to indicate that 
your submission is filed and cannot be further edited or withdrawn.
* * * * *
    5. Amend Sec.  4000.29 by adding three sentences to the end of 
paragraph (a) introductory text to read as follows:


Sec.  4000.29  What if I use electronic delivery?

    (a) * * * A submission made through our Web site is considered to 
have been transmitted when you perform the last act necessary to 
indicate that your submission is filed and cannot be further edited or 
withdrawn. You do not have to address electronic submissions made 
through our Web site. We are responsible for ensuring that such 
submissions go to the proper place.
* * * * *

PART 4010--ANNUAL FINANCIAL AND ACTUARIAL INFORMATION REPORTING

    6. The authority citation for Part 4010 continues to read as 
follows:

    Authority: 29 U.S.C. 1302(b)(3), 1310.

    7. Revise Sec.  4010.3 to read as follows:


Sec.  4010.3  Filing requirement.

    (a) In general. Except as provided in Sec.  4010.8(c) (relating to 
exempt plans) and except where waivers have been granted under Sec.  
4010.11, each filer shall submit to the PBGC annually, on or before the 
due date specified in Sec.  4010.10, all information specified in Sec.  
4010.6(a) with respect to all members of a controlled group and all 
plans maintained by members of a controlled group. Under Sec.  
4000.3(b) of this chapter, except as otherwise provided by the PBGC, 
the information shall be submitted electronically in accordance with 
the instructions on the PBGC's Web site.
    (b) Single controlled group submission. Any filer or other person 
may submit the information specified in Sec.  4010.6(a) on behalf of 
one or more members of a filer's controlled group.
    8. Revise paragraphs (a)(3), (b), and (c) introductory text of 
Sec.  4010.4 to read as follows:


Sec.  4010.4  Filers.

    (a) * * *
    (3) Any plan maintained by a member of a controlled group has been 
granted one or more minimum funding waivers under section 303 of ERISA 
or section 412(d) of the Code totaling in excess of $1 million and, as 
of the end of the plan year ending within the information year, any 
portion thereof is still outstanding (determined in accordance with 
paragraph (c) of this section).
    (b) Unfunded vested benefits. (1) General. For purposes of the $50 
million test in paragraph (a)(1) of this section, the value of a plan's 
unfunded vested benefits is determined at the end of the plan year 
ending within the filer's information year in accordance with section 
4006(a)(3)(E)(iii) of ERISA and Sec.  4006.4 of this chapter (without 
reference to the exemptions and special rules under Sec.  4006.5 of 
this chapter).
    (2) Contributions. When determining the value of a plan's unfunded 
vested benefits under paragraph (b)(1) of this section--
    (i) Contributions for the plan year ending within the filer's 
information year (or for any earlier plan year) are taken into account 
only to the extent they are paid on or before the due date or, if 
earlier, the filing date under Sec.  4010.10(a) (without regard to the 
alternative due date under Sec.  4010.10(b)); and
    (ii) Contributions used to satisfy quarterly contribution 
requirements for the current plan year are not taken into account.
    (c) Outstanding waiver. Before the end of the statutory 
amortization period, a portion of a minimum funding waiver for a plan 
is considered outstanding unless--
* * * * *
    9. Revise paragraph (c)(2) of Sec.  4010.5 to read as follows:


Sec.  4010.5  Information year.

* * * * *
    (c) * * *
    (2) Example. Filers A and B are members of the same controlled 
group. Filer A has a July 1 fiscal year, and filer B has an October 1 
fiscal year. The information year is the calendar year. Filer A's 
financial information with respect to its fiscal year ending June 30, 
2004, and filer B's financial information with respect to its fiscal 
year ending September 30, 2004, must be submitted to the PBGC following 
the end of the 2004 calendar year (the calendar year in which those 
fiscal years end). If filer B were an exempt entity, the information 
year would be filer A's July 1 fiscal year.
    10. Revise paragraphs (a) and (b) of Sec.  4010.6 to read as 
follows:


Sec.  4010.6  Information to be filed.

    (a) General. (1) Current filers. A filer must submit the 
information specified in Sec.  4010.7 (identifying information), Sec.  
4010.8 (plan actuarial information) and Sec.  4010.9 (financial 
information) of this part with respect to each member of the filer's 
controlled group and each plan maintained by any member of the 
controlled group, and any other information relating to the information 
specified in Sec. Sec.  4010.7 though 4010.9, as specified in the 
instructions on the PBGC's Web site.
    (2) Previous filers. If a filer for the immediately preceding 
information year is not required to file for the current information 
year, the filer must submit information, in accordance with the 
instructions on the PBGC's Web site, demonstrating why a filing is not 
required for the current information year.
    (b) Additional information. By written notification, the PBGC may 
require any filer to submit additional actuarial or financial 
information that is necessary to determine plan assets and liabilities 
for any period through the end of the filer's information year, or the 
financial status of a filer for any period through the end of the 
filer's information year (including information on exempt entities and 
exempt plans). The information must be submitted within ten days after 
the date of the written notification or by a different time specified 
therein.
* * * * *
    11. Revise Sec.  4010.7 to read as follows:


Sec.  4010.7  Identifying information.

    (a) Filers. Each filer is required to provide, in accordance with 
the instructions on the PBGC's Web site, the following identifying 
information with respect to each member of the controlled group 
(including exempt entities)
    (1) Current members. For each entity that is a member of the 
controlled group as of the end of the filer's information year--
    (i) The name, address, and telephone number of the entity and the 
legal relationships with other members of the controlled group (for 
example, parent, subsidiary);
    (ii) The nine-digit Employer Identification Number (EIN) assigned 
by the IRS to the entity (or if there is no EIN for the entity, an 
explanation);
    (iii) If the entity became a member of the controlled group during 
the information year, the date the entity became a member of the 
controlled group; and
    (2) Former members. For any entity that ceased to be a member of 
the controlled group during the filer's information year, the date the 
entity ceased to be a member of the controlled group and the 
identifying information required by paragraph (a)(1) of this section as 
of the date immediately preceding the date the entity left the 
controlled group.

[[Page 77684]]

    (b) Plans. Each filer is required to provide, in accordance with 
the instructions on the PBGC's Web site, the following identifying 
information with respect to each plan (including exempt plans) 
maintained by any member of the controlled group (including exempt 
entities)--
    (1) Current plans. For each plan that is maintained by the 
controlled group as of the last day of the filer's information year--
    (i) The name of the plan;
    (ii) The EIN and the three-digit Plan Number (PN) assigned by the 
contributing sponsor to the plan (or if there is no EIN or PN for the 
plan, an explanation);
    (iii) If the EIN or PN of the plan has changed since the beginning 
of the filer's information year, the previous EIN or PN and an 
explanation;
    (iv) If the plan had not been maintained by the controlled group 
immediately before the filer's information year, the date the plan was 
first maintained by the controlled group during the information year; 
and
    (v) If, as of any day during the information year, the plan was 
frozen (for eligibility or benefit accrual purposes), a description of 
the date and the nature of the freeze (e.g., service is frozen but pay 
is not).
    (2) Former plans. For any plan that ceased to be maintained by the 
controlled group during the filer's information year, the date the plan 
ceased to be so maintained, identification of the controlled group 
currently maintaining the plan, and the identifying information 
required by paragraph (b)(1) of this section as of the date immediately 
preceding that date.
    12. Amend Sec.  4010.8 by revising paragraphs (a) inductory text 
and (1) through (4), (5) introductory text, (5)(iv) through (viii), 
(6), (b) introductory text, (b)(1), and (2) as follows:



Sec.  4010.8  Plan actuarial information.

    (a) Required information. For each plan (other than an exempt plan) 
maintained by any member of the filer's controlled group, each filer is 
required to provide, in accordance with the instructions on the PBGC's 
Web site, the following actuarial information--
    (1) The number of--
    (i) Retired participants and beneficiaries receiving payments;
    (ii) Terminated vested participants, and
    (iii) Active participants;
    (2) The fair market value of the plan's assets;
    (3) The value of the plan's benefit liabilities, setting forth 
separately the value of the liabilities attributable to retired 
participants and beneficiaries receiving payments, terminated vested 
participants, and active participants, determined (in accordance with 
paragraph (d) of this section) at the end of the plan year ending 
within the filer's information year;
    (4) A description of the actuarial assumptions for interest (i.e., 
the specific interest rate(s), such as 5%), mortality, retirement age, 
and loading for administrative expenses, as used to determine the 
benefit liabilities in paragraph (a)(3) of this section; and
    (5) a copy of the actuarial valuation report for the plan year 
ending within the filer's information year that contains or is 
supplemented by the following information--
    (i) * * *
    (iv) The actuarial assumptions and methods used for that plan year 
for purposes of section 302(b) and (d) of ERISA or section 412(b) and 
(l) of the Code (and any change in those assumptions and methods since 
the previous valuation and justifications for any change),
    (v) A summary of the principal eligibility and benefit provisions 
on which the valuation of the plan was based (and any changes to those 
provisions since the previous valuation), along with descriptions of 
any benefits not included in the valuation, any significant events that 
occurred during that plan year, and the plan's early retirement 
factors,
    (vi) The current liability, vested and nonvested, calculated 
pursuant to section 412 of the Code, setting forth separately the value 
of the liabilities attributable to retired participants and 
beneficiaries receiving payments, terminated vested participants, and 
active participants,
    (vii) The expected increase in current liability due to benefits 
accruing during the plan year, and
    (viii) The expected plan disbursements for the plan year; and
    (6) A written certification by an enrolled actuary that, to the 
best of his or her knowledge and belief, the actuarial information 
submitted is true, correct, and complete and conforms to all applicable 
laws and regulations, provided that this certification may be qualified 
in writing, but only to the extent the qualification(s) are permitted 
under 26 CFR 301.6059-1(d).
    (b) Alternative compliance for plan actuarial information. If any 
of the information specified in paragraph (a)(5) of this section is not 
available by the date specified in Sec.  4010.10(a), a filer may 
satisfy the requirement to provide such information by--
    (1) Including a statement, with the material that is submitted to 
the PBGC, that the filer will file the unavailable information by the 
alternative due date specified in Sec.  4010.10(b), and
    (2) Filing such information (along with a certification by an 
enrolled actuary under paragraph (a)(6) of this section) with the PBGC 
by that alternative due date.
* * * * *
    13. Revise paragraphs (a) introductory text and (b)(2) of Sec.  
4010.9 to read as follows:


Sec.  4010.9  Financial information.

    (a) General. Except as provided in this section, each filer is 
required to provide, in accordance with the instructions on the PBGC's 
Web site, the following financial information for each controlled group 
member (other than an exempt entity)--
    * * *
    (b) * * *
    (2) If audited financial statements are not available by the date 
specified in Sec.  4010.10(a), unaudited financial statements for the 
fiscal year ending within the information year; or
* * * * *

    Issued in Washington, DC, this 22nd day of December, 2004.
Bradley D. Belt,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 04-28398 Filed 12-27-04; 8:45 am]
BILLING CODE 7708-01-P