[Federal Register Volume 83, Number 127 (Monday, July 2, 2018)]
[Notices]
[Pages 30991-30993]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14125]


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PENSION BENEFIT GUARANTY CORPORATION


Pension Benefit Guaranty Corporation Disaster Relief

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice.

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SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) is changing 
how it announces relief from filing deadlines and penalties when a 
disaster occurs. Under an Announcement made today, PBGC's disaster 
relief will be available at the same time the Internal Revenue Service 
issues disaster relief for taxpayers that includes filing extensions 
for the Form 5500 series. Filers will not have to wait for PBGC to 
issue a separate announcement. For premium filings, PBGC is changing 
its practice so that in addition to no late payment penalty charges, no 
late payment interest charges will be assessed for the disaster relief 
period.

DATES: The Disaster Relief Announcement in this notice is effective for 
disasters for which the Internal Revenue Service has issued a disaster 
relief news release on or after July 2, 2018.

FOR FURTHER INFORMATION CONTACT: Stephanie Cibinic, Deputy Assistant 
General Counsel for Regulatory Affairs, Office of the General Counsel, 
Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 
20005-4026; pbgc.gov">cibinic.stephanie@pbgc.gov; 202-326-4400 extension 6352. 
TTY users may call the Federal relay service toll-free at 800-877-8339 
and ask to be connected to 202-326-4400 extension 6352.

SUPPLEMENTARY INFORMATION:

Background

    When there is a disaster covered by Internal Revenue Code section 
1033(h)(3), Employee Retirement Income Security Act (ERISA) section 
4002(i) gives the Pension Benefit Guaranty Corporation (PBGC) authority 
to extend deadlines by notice or otherwise. PBGC has followed a 
practice of posting a disaster relief announcement on its website each 
time the Internal Revenue Service (IRS) posts a disaster relief news 
release that includes filing extensions for the Annual Return/Report of 
Employee Benefit Plan Form 5500 Series. Each PBGC disaster relief 
announcement copies the disaster, disaster area, and relief period from 
the IRS news release on which it is based. Except for these types of 
fields, the text in PBGC disaster relief announcements is boilerplate 
that is repeated in every announcement.
    IRS issues a separate disaster relief news release for each state 
affected by a disaster. Each news release lists the names of counties 
in the state that are covered by the relief. IRS may add newly affected 
counties to an existing news release. PBGC filers have to rely on a 
statement in each PBGC announcement that the corresponding IRS news 
release should be checked for other counties that IRS might have added. 
Because PBGC's announcements rely on data from IRS news releases, 
PBGC's announcements are always issued later than IRS' news releases. 
PBGC filers have to wait for PBGC to respond to each IRS disaster 
relief news release before they can be certain that PBGC is providing 
disaster relief.
    PBGC is changing its practice to simplify how it announces disaster 
relief by referring PBGC filers directly to IRS' disaster relief news 
releases. Filers will no longer have to wait for PBGC to act, because 
PBGC's disaster relief will be keyed to IRS' news releases. Instead of 
multiple disaster relief announcements, all explaining disaster relief 
in the same repetitive language, PBGC will have one simple announcement 
that clearly explains how PBGC disaster relief is keyed to IRS relief, 
what circumstances generally lead to relief, and the nature of relief 
generally granted.
    The qualifications for disaster relief and relief granted will be 
simpler and easier to apply. Formerly, relief was described separately 
for premiums, single-employer plan terminations, reportable events 
notices, annual employer reporting, administrative review, and 
multiemployer plan filings. This detail is unnecessary because, no 
matter the type of PBGC filing or whether the plan is a multiemployer 
or single-employer plan, the deadline extension is simply the end of 
the IRS relief period for due dates that fall within that period.
    As with the current practice, there are exceptions to this general 
``IRS-based'' relief, which are listed in the Announcement. Filers 
would still be able to request relief on a case-by-case basis for the 
excepted filings or other actions not covered by the general relief.
    PBGC also makes the following changes and clarifications in the 
Announcement, which are designed to be helpful to plan sponsors:
     Formerly, a late premium payment eligible for disaster 
relief and paid by the end of the relief period was treated as timely 
for purposes of assessing the late payment penalty, but not the 
applicable interest charge. Under PBGC's new practice, the premium 
payment due date is extended so that no late payment penalty or 
interest charges will be assessed for the disaster relief period.
     Formerly, premium filers had to submit the premium form 
and payment owed (``the premium filing'') by the end of the relief 
period for disaster relief to apply. Under PBGC's new practice,

[[Page 30992]]

where a filer is unable to submit, or anticipates difficulty in 
submitting, a premium filing by the end of the relief period, the filer 
would simply notify PBGC by the end of the period of the filer's 
eligibility for disaster relief to apply. For example, if a premium 
filer notifies PBGC by the end of the relief period that the filer is 
eligible for disaster relief but is unable to submit the premium filing 
by that time, late payment penalty and interest charges would not begin 
to accrue until after the end of the relief period, i.e., the extended 
due date for the payment. This same method of notification is available 
for filings other than premium filings covered by the general disaster 
relief.
     Formerly, filers would need to apply for case-by-case 
disaster relief for late annual financial and actuarial information 
reporting under ERISA section 4010. PBGC believes these filings more 
appropriately fall under general relief.
     Formerly, post-event notices of reportable events under 
ERISA section 4043 fell under general relief. Because certain of these 
filings involve time-sensitive information where there may be a high 
risk of substantial harm to participants or PBGC's insurance program, 
PBGC believes five post-event filings are more appropriate for case-by-
case relief. Those five events are identified in the exceptions list in 
the Announcement.
     Formerly, where disaster relief is founded on problems 
getting information or assistance from a service provider, the 
provider's operations must be ``directly affected'' by the disaster. 
This vague standard is replaced with a clear standard that the service 
provider be located in the disaster area. This is the same objective 
condition as for the person required to file.
    PBGC's Announcement of disaster relief is set forth below and 
posted on the ``Disaster Relief'' web page of pbgc.gov.

Announcement of Pension Benefit Guaranty Corporation Disaster Relief

    When a disaster causes a delay in making a required filing or in 
taking some other required action, the Pension Benefit Guaranty 
Corporation (PBGC) generally grants relief by extending the time to 
act. PBGC's relief relies on data from Internal Revenue Service (IRS) 
announcements, so historically PBGC has followed IRS' lead when 
announcing relief. With this Announcement, unless a filing is on the 
``Exceptions List'' below, filers can be assured that PBGC grants 
disaster relief when, where, and for the same relief period that IRS 
grants relief for taxpayers affected by a disaster. Filers will not 
have to wait for PBGC to issue a separate announcement.
    PBGC also may grant case-by-case relief for filings and actions on 
the Exceptions List. See ``Requesting Case-by-Case Relief'' below for 
how to request such relief.

Disasters Covered

    Except for filings and actions on the Exceptions List, PBGC 
provides relief where there is a disaster for which the IRS announces 
that tax relief is being granted for affected taxpayers that includes 
filing extensions for the Form 5500 series returns. The IRS announces 
tax relief for a disaster in a news release that states:
     The identifying number of the announcement.
     The disaster for which relief is granted.
     The disaster area covered by the announcement (typically 
counties within a state).
     The starting and ending dates of the relief period covered 
by the announcement.
    Each news release may be updated periodically by the IRS to broaden 
the disaster area to include places subsequently affected by the same 
disaster and covered by the relief.
    IRS news releases announcing tax relief for disasters are listed on 
IRS' website. Select the applicable news release on the list to see the 
text of the announcement.

Requirements for Disaster Relief

    The disaster relief in this Announcement applies only if all of the 
following requirements are met:
     The person responsible for a filing, payment, or other 
action under PBGC regulations, e.g., a plan administrator or 
contributing sponsor, is located in the disaster area. Or, a person 
responsible for providing information or other assistance needed for 
the filing, payment, or other action, e.g., a service provider (such as 
the plan's enrolled actuary) or bank, is located in the disaster area.
     The due date of the filing, payment, or other action falls 
within the relief period.
     The filer notifies PBGC of the filer's eligibility for 
disaster relief on or before the last day of the relief period. See 
``Notifying PBGC of Your Eligibility for Disaster Relief'' below.
     The filing or action is not described in the Exceptions 
List below.

Relief Granted

    If the requirements for relief listed above are met, the due date 
for the filing, payment, or other action is extended to the last day of 
the relief period. Accordingly--
     A filing will not be subject to a late filing penalty 
under section 4071 or 4302 of the Employee Retirement Income Security 
Act of 1974 (ERISA) for the relief period.
     A premium payment will not be subject to late payment 
penalty or interest charges under section 4007 of ERISA for the relief 
period.
     The extended due date for a filing or other action will 
apply for purposes of calculating any other due date that is based on 
the due date of the filing or other action. For instance, if a plan is 
filing certain actuarial information by an alternative due date that is 
15 days after a plan's Form 5500 due date (29 CFR 4010.10(b)), and the 
deadline to file a Form 5500 is extended because of a disaster, then 
the 15-day period in PBGC's regulation is automatically measured from 
the last day of the Form 5500 disaster relief period.

Example of How Disaster Relief Works

    Plan A is a calendar year plan. Absent disaster relief, Plan A 
would be required to submit the 2018 Comprehensive Premium Filing (CPF) 
and pay its 2018 premium by October 15, 2018. IRS issues a news release 
providing disaster relief for tax payers in a specified disaster area 
for the period September 4, 2018 through January 31, 2019. Plan A's 
plan administrator is located in the disaster area covered by the IRS 
disaster relief news release. Plan A notifies PBGC that it is eligible 
for disaster relief on or before January 31, 2019 (either by submitting 
a CPF in which such eligibility is reported or by sending an email to 
PBGC). If Plan A pays its 2018 premium:
     On or before January 31, 2019, no late payment charges 
(interest or penalties) will be assessed.
     After January 31, 2019, late payment charges will begin 
accruing on February 1, 2019.

Exceptions List

    The following filings and actions are not covered by the disaster 
relief described above. These are filings that involve particularly 
important or time-sensitive information where there may be a high risk 
of substantial harm to participants or PBGC's insurance program. To 
request case-by-case relief for these filings see ``Requesting Case-by-
Case Relief'' below.
     Advance notices of reportable events under ERISA section 
4043 (Form 10-Advance).

[[Page 30993]]

     Notices of large missed contributions under ERISA section 
303(k) (Form 200).
     Post-event notices for the following five reportable 
events under ERISA section 4043:

--Failure to make required contributions under $1 million.
--Inability to pay benefits when due.
--Liquidation.
--Loan default.
--Insolvency or similar settlement.
     Actions related to distress terminations for which PBGC 
has issued a distribution notice.

Notifying PBGC of Your Eligibility for Disaster Relief

    Premium filings: Notify us by providing certain information as part 
of the Comprehensive Premium Filing. See the Filing Instructions for 
the applicable plan year for details. We also encourage filers to 
notify us by email to pbgc.gov">premiums@pbgc.gov as soon as reasonably possible 
that you are eligible for disaster relief. The email should contain the 
following identifying information: (1) The number of the applicable IRS 
News Release, (2) plan information, i.e., plan name, EIN, plan number, 
and, (3) the name and address of the person affected by the disaster. 
Item (3) may be omitted if the plan administrator's address reported in 
the most recently submitted premium filing is in the applicable 
disaster area.
    In situations where a filer is unable to submit, or anticipates 
difficulty in submitting, the Comprehensive Premium Filing by the end 
of the relief period, the filer should notify us by sending an email 
with the same information and to the same address noted above.
    All other filings or actions: Notify us by following the disaster 
relief instructions (if any) for the particular filing. If there are no 
such instructions, filers should notify us of their eligibility for 
relief by sending an email by the end of the relief period to the email 
address included in the instructions for the particular filing, or on a 
PBGC web page listing applicable contact information, such as PBGC's 
Contact Information for Practitioners page. The email should contain 
relevant identifying information, such as: (1) The number of the 
applicable IRS News Release, (2) plan information, i.e., plan name, 
EIN, plan number, and, (3) the name and address of the person affected 
by the disaster. We encourage filers to notify us as soon as reasonably 
possible.

Requesting Case-by-Case Relief

    Follow the instructions for requesting a waiver or extension in the 
regulations or instructions for completing the particular filing. For 
example, for a reportable events filing on the Exceptions List, follow 
the provision for waivers and extensions in PBGC's reportable events 
regulation at 29 CFR 4043.4. That provision explains that a request for 
a waiver or extension must be filed with PBGC in writing (which may be 
in electronic form) and must state the facts and circumstances on which 
the request is based.
    If there is no such guidance, contact PBGC as soon as reasonably 
possible using the phone number or email address in the instructions 
for the particular filing, or on a PBGC web page listing applicable 
contact information, such as PBGC's Contact Information for 
Practitioners page.
    Otherwise, contact PBGC's Practitioner Problem Resolution Officer 
by--
     Email at pbgc.gov">practitioner.pro@pbgc.gov.
     Telephone at 800-736-2444 extension 4136 or 202-326-4136. 
(For TTY users, call 800-877-8339 and request connection to 202-326-
4136.)
     U.S. mail at Practitioner Problem Resolution Officer, 
Pension Benefit Guaranty Corporation, 1200 K Street NW, Suite 610, 
Washington, DC 20005-4026.
    For general information on PBGC disaster relief, please call our 
toll-free practitioner number, 800-736-2444.

    Issued in Washington, DC.
William Reeder,
Director, Pension Benefit Guaranty Corporation.
[FR Doc. 2018-14125 Filed 6-29-18; 8:45 am]
BILLING CODE 7709-02-P