[Federal Register Volume 73, Number 101 (Friday, May 23, 2008)]
[Rules and Regulations]
[Pages 29985-29987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-11667]


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PENSION BENEFIT GUARANTY CORPORATION

29 CFR Part 4002


Bylaws of the Pension Benefit Guaranty Corporation

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Final rule.

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SUMMARY: This is a final rule to amend the bylaws of Pension Benefit 
Guaranty Corporation.

DATES: Effective June 23, 2008.

FOR FURTHER INFORMATION CONTACT: Judith R. Starr, General Counsel, 
Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, 
DC 20005-4026; 202-326-4400. (TTY/TDD users may call the Federal relay 
service toll-free at 1-800-877-8339 and ask to be connected to 202-326-
4400.)

SUPPLEMENTARY INFORMATION: Pension Benefit Guaranty Corporation (PBGC) 
administers the pension plan termination insurance program under Title 
IV of the Employee Retirement Income Security Act of 1974 (ERISA). 
Section 4002(b)(3) of ERISA gives PBGC power ``to adopt, amend, and 
repeal, by the board of directors, bylaws * * *.'' Section 4002(f) of 
ERISA provides that ``[T]he board of directors may alter, supplement, 
or repeal any existing bylaw * * * and may adopt additional bylaws * * 
* from time to time as may be necessary.'' PBGC's bylaws are set forth 
in 29 CFR Part 4002.
    PBGC's Board of Directors has amended the bylaws. This rule 
replaces the old bylaws with the new bylaws.

Compliance With Rulemaking Guidelines

    As a rule of agency organization, procedure, or practice, this rule 
is exempt from notice and public comment requirements. Because no 
general notice of proposed rulemaking is required, the Regulatory 
Flexibility Act does not apply to this rule. See 5 U.S.C. 601(2), 603, 
604. PBGC has determined that this rule is not a ''significant 
regulatory action'' under Executive Order 12866, as amended.

List of Subjects in Part 4002

    Authority delegations (Government agencies), Organization and 
functions (Government agencies).


0
Accordingly, 29 CFR part 4002 is revised to read as follows:

PART 4002--BYLAWS OF THE PENSION BENEFIT GUARANTY CORPORATION

Sec.
4002.1 Name.
4002.2 Offices.
4002.3 Board of Directors, Chair, and Representatives of Board 
Members.
4002.4 Quorum.
4002.5 Meetings.
4002.6 Place of meetings; use of conference call communications 
equipment.
4002.7 Voting without a meeting.
4002.8 Conflicts of interest.
4002.9 Director of the Corporation and Senior Officers.
4002.10 Emergency Procedures.
4002.11 Seal.
4002.12 Amendments.

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


Sec.  4002.1  Name.

    The name of the Corporation is the Pension Benefit Guaranty 
Corporation.


Sec.  4002.2  Offices.

    The principal office of the Corporation is in the Metropolitan area 
of the City of Washington, District of Columbia. The Corporation may 
have additional offices at such other places as the Board of Directors 
may deem necessary or desirable to the conduct of its business.


Sec.  4002.3  Board of Directors, Chair, and Representatives of Board 
Members.

    (a)(1) The Corporation is governed by a Board of Directors which is 
composed of the Secretary of Labor, the Secretary of the Treasury, and 
the Secretary of Commerce. Members of the Board shall serve without 
compensation, but shall be reimbursed by the Corporation for travel, 
subsistence, and other necessary expenses incurred in the performance 
of their duties as Members of the Board. A person at the time of a 
meeting of the Board of Directors who is serving in an acting capacity 
as Secretary of Labor, Secretary of the Treasury, or Secretary of 
Commerce shall serve as a Member of the Board of Directors with the 
same authority and effect as the designated Secretary.
    (2) The Secretary of Labor shall be the Chair of the Board of 
Directors and shall call and preside over all Board meetings, and 
shall, on behalf of the Board, review and approve the Corporation's 
budget. The Inspector General of the Corporation shall report to the 
Board through the Chair.
    (3) The Board of Directors is responsible for establishing and 
overseeing the policies of the Corporation. The Board may delegate 
powers to the Director of the Corporation except that the following 
powers of the Board may not be delegated to the Director of the 
Corporation:
    (i) Voting on an amendment to these bylaws;
    (ii) Approval of the Annual Management Report (AMR), which includes 
the annual financial statements, management's discussion and analysis, 
annual performance report, and reports of the independent auditor;
    (iii) Approval of the Annual Report, which includes the AMR, the

[[Page 29986]]

Chairman's message, and certain statutory reporting requirements;
    (iv) Approval of the Corporation's Investment Policy Statement;
    (v) Approval of the issuance of any notes or debt instruments to 
the Secretary of the Treasury under Section 4005(c) of ERISA;
    (vi) Approval of all final nonprocedural regulations prior to 
publication in the Federal Register, except for amendments that 
establish new interest rates and factors under Parts 4044 (Appendices C 
and D) and 4281 of this chapter, which may be approved by the Director 
of the Corporation;
    (vii) Approval of all reports or recommendations to the Congress 
required by Title IV of ERISA;
    (viii) Approval of any policy matter that would have a significant 
impact on the pension insurance program or its stakeholders; and
    (ix) Review of reports from the Corporation's Inspector General 
that the Inspector General deems appropriate to deliver to the Board.
    (4) The Board shall review the Corporation's Investment Policy 
Statement at least every two years and approve the Investment Policy 
Statement at least every four years.
    (b)(1) Each Board Member shall designate in writing an official, 
not below the level of Assistant Secretary, to serve as the Board 
Member's Representative. Such designation shall be effective until 
revoked or until a date or event specified therein. A Board 
Representative may act for all purposes under these bylaws, except that 
an action of a Board Representative on a Board Member's behalf with 
respect to the powers described in paragraph (a)(3)(i) through (v) of 
this section, shall be valid only upon ratification in writing by the 
Board Member. Any Board Representative may refer for Board action any 
matter under consideration by the Board Representatives.
    (2) A Board Member may designate in writing an official, not below 
the level of Assistant Secretary, to serve as the Board Member's 
Alternate Representative at a meeting. An Alternate Representative may 
act for all purposes at that meeting, except that the Alternate 
Representative's actions shall be valid only upon ratification in 
writing by either the Board Member or the Board Representative. Any 
action of the Alternate Representative involving the powers described 
in paragraph (a)(3)(i) through (v) of this section or any matter that 
has been referred to the Board under paragraph (b)(1) of this section 
must be ratified in writing by the Board Member.
    (3) For purposes of this section, ratification shall include 
approval of the minutes of the meeting of the Board of Directors.
    (c) Final procedural regulations and all proposed regulations shall 
be approved by the Director of the Corporation prior to publication in 
the Federal Register; however, all final procedural regulations and all 
proposed regulations shall first be reviewed for comment by each Board 
Representative, except for amendments that establish new interest rates 
and factors under Parts 4044 (Appendices C and D) and 4281 of this 
chapter. A Board Representative may, within 21 days of receiving a 
final procedural regulation or proposed regulation for review, request 
that it be referred to the Board Representatives for approval.


Sec.  4002.4  Quorum.

    A majority of the Board Members shall constitute a quorum for the 
transaction of business. Any act of a majority of the Members present 
at any meeting at which there is a quorum shall be the act of the 
Board.


Sec.  4002.5  Meetings.

    Regular meetings of the Board of Directors shall be held as often 
as required to provide appropriate oversight and guidance to the 
Corporation and at such times as the Chair shall select. Special 
meetings of the Board of Directors shall be called by the Chair on the 
request of any other Board Member. Reasonable notice of any meetings 
shall be given to each Board Member. The General Counsel of the 
Corporation shall serve as Secretary to the Board of Directors and keep 
its minutes. As soon as practicable after each meeting, a draft of the 
minutes of such meeting shall be distributed to each Member of the 
Board for approval.


Sec.  4002.6  Place of meetings; use of conference call communications 
equipment.

    Meetings of the Board of Directors shall be held at the principal 
office of the Corporation unless otherwise determined by the Board of 
Directors or the Chair. Any Member may participate in a meeting of the 
Board of Directors through the use of conference call telephone or 
similar communications equipment, by means of which all persons 
participating in the meeting can speak to and hear each other. Any 
Board Member so participating in a meeting shall be deemed present for 
all purposes. Actions taken by the Board of Directors at meetings 
conducted through the use of such equipment, including the votes of 
each Member, shall be recorded in the usual manner in the minutes of 
the meetings of the Board of Directors.


Sec.  4002.7  Voting without a meeting.

    A resolution of the Board of Directors signed by each of the Board 
Members or each of the Board Representatives shall have the same effect 
as if agreed to at a meeting and shall be kept in the Corporate Minutes 
Book. A resolution for an action taken on any matter for which a Board 
Member has been disqualified under Sec.  4002.8 may be signed by the 
Board Representative of the disqualified Board Member.


Sec.  4002.8  Conflict of interest.

    Any Board Member may disqualify himself or herself from 
participation in a Board action on any matter if the Board Member may 
have or may appear to have a conflict of interest. The Board Member 
shall notify the other Board Members of a disqualification. The 
disqualified Member's Board Representative, acting independently of 
that Member, may vote on the matter in the Member's place. The 
disqualified Board Member need not and may not ratify any action taken 
on the matter giving rise to his or her disqualification.


Sec.  4002.9  Director of the Corporation and Senior Officers.

    (a) Director of the Corporation. The Corporation shall be 
administered by a Director appointed by the President with the advice 
and consent of the Senate. Subject to policies established by the 
Board, the Director shall have responsibility for the Corporation's 
management, including its personnel, organization and budget practices, 
and shall carry out the Corporation's functions under Title IV of 
ERISA. The Director shall submit the Corporation's budget to the Chair 
of the Board for review and approval.
    (b) There shall be the following senior officers of the 
Corporation, reporting directly to the Director:
    (1) Deputy Directors for Policy and Operations, who shall be first 
and second assistant, respectively;
    (2) General Counsel, who shall serve as Secretary to the Board;
    (3) Chief Financial Officer;
    (4) Chief Information Officer;
    (5) Chief Management Officer;
    (6) Chief Operating Officer; and
    (7) Chief Insurance Program Officer.
    (c) Subject to prior approval of the Board, the Director may 
establish such additional or other senior officers as necessary. Before 
making an appointment to a senior officer position,

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the Director shall consult with the Board.


Sec.  4002.10  Emergency procedures.

    (a) An emergency exists if a quorum of the Corporation's Board 
cannot readily be assembled or act through written contact because of 
the declaration of a government-wide emergency. These emergency 
procedures shall remain in effect during the emergency and upon the 
termination of the emergency shall cease to be operative unless and 
until another emergency occurs. The emergency procedures shall operate 
in conjunction with the PBGC Continuity of Operations Plan (``COOP 
Plan'') of the current year, and any government-wide COOP protocols in 
effect.
    (b) During an emergency, the business of the PBGC shall continue to 
be managed in accordance with its COOP Plan. The functions of the Board 
of Directors will be carried out by those Members of the Board of 
Directors in office at the time the emergency arises, or by persons 
designated by the agencies' COOP plans to act in place of the Board 
Members, who are available to act during the emergency. If no such 
persons are available, then the authority of the Board shall be 
transferred to the Board Representatives who are available. If no Board 
Representatives are available, then the Director of the Corporation 
shall perform essential Board functions.
    (c) During an emergency, meetings of the Board may be called by any 
available Member of the Board. The notice thereof shall specify the 
time and place of the meeting. To the extent possible, notice shall be 
given in accordance with these bylaws. Notice shall be given to those 
Board Members whom it is feasible to reach at the time of the 
emergency, and notice may be given at a time less than 24 hours before 
the meeting if deemed necessary by the person giving notice.


Sec.  4002.11  Seal.

    The seal of the Corporation shall be in such form as may be 
approved from time to time by the Board.


Sec.  4002.12  Amendments.

    These bylaws may be amended or new bylaws adopted by unanimous vote 
of the Board.

    Issued in Washington, DC, this 20th day of May, 2008.
Charles E.F. Millard,
Director, Pension Benefit Guaranty Corporation.

    Issued on the date set forth above pursuant to Resolution 2008-
09 of the Board of Directors authorizing adoption of the revised 
Bylaws contained in this final rule.
Judith R. Starr,
Secretary, Board of Directors, Pension Benefit Guaranty Corporation.
 [FR Doc. E8-11667 Filed 5-22-08; 8:45 am]
BILLING CODE 7709-01-P