[Federal Register Volume 83, Number 130 (Friday, July 6, 2018)]
[Notices]
[Pages 31574-31575]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14491]


=======================================================================
-----------------------------------------------------------------------

PENSION BENEFIT GUARANTY CORPORATION


Proposed Submission of Information Collections for OMB Review; 
Comment Request; Multiemployer Plan Regulations

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of intention to request extension of OMB approval of 
information collections.

-----------------------------------------------------------------------

SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) intends to 
request that the Office of Management and Budget (OMB) extend approval, 
under the Paperwork Reduction Act, of collections of information in 
PBGC's regulations on multiemployer plans under the Employee Retirement 
Income Security Act of 1974 (ERISA). This notice informs the public of 
PBGC's intent and solicits public comment on the collections of 
information.

DATES: Comments must be submitted on or before September 4, 2018.

ADDRESSES: Comments may be submitted by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the online instructions for submitting comments.
     Email: [email protected].
     Mail or Hand Delivery: Regulatory Affairs Division, Office 
of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K 
Street NW, Washington, DC 20005-4026.
    All submissions received must include the agency's name (Pension 
Benefit Guaranty Corporation, or PBGC) and refer to the OMB control 
number(s) and the specific part number(s) of the regulation(s) they 
relate to. All comments received will be posted

[[Page 31575]]

without change to PBGC's website, www.pbgc.gov. Copies of the 
collections of information may also be obtained by writing to 
Disclosure Division, Office of the General Counsel, Pension Benefit 
Guaranty Corporation, 1200 K Street NW, Washington, DC 20005-4026, or 
calling 202-326-4040 during normal business hours. TTY users may call 
the Federal relay service toll-free at 800-877-8339 and ask to be 
connected to 202-326-4040. PBGC's regulations on multiemployer plans 
may be accessed on PBGC's website at www.pbgc.gov.

FOR FURTHER INFORMATION CONTACT: Hilary Duke ([email protected]), 
Assistant General Counsel for Regulatory Affairs, Office of the General 
Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW, 
Washington DC 20005-4026; 202-326-4400, extension 3839. (TTY users may 
call the Federal relay service toll-free at 800-877-8339 and ask to be 
connected to 202-326-4100, ext. 6818, or 202-326-4400, extension 3839.)

SUPPLEMENTARY INFORMATION: OMB has approved and issued control numbers 
for three collections of information in PBGC's regulations relating to 
multiemployer plans. These collections of information are described 
below. OMB approvals for these collections of information expire 
November 30, 2018. PBGC intends to request that OMB extend its approval 
of these collections of information for three years. 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. PBGC is soliciting public comments to--
     Evaluate whether the proposed collections of information 
are necessary for the proper performance of the functions of the 
agency, including whether the information will have practical utility;
     evaluate the accuracy of the agency's estimate of the 
burden of the proposed collections of information, including the 
validity of the methodologies and assumptions used;
     enhance the quality, utility, and clarity of the 
information to be collected; and
     minimize the burden of the collections 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.

1. Termination of Multiemployer Plans (29 CFR Part 4041A) (OMB Control 
Number 1212-0020) (Expires November 30, 2018)

    Section 4041A(f)(2) of ERISA authorizes PBGC to prescribe reporting 
requirements and other rules and standards for administering terminated 
multiemployer plans. Section 4041A(c) and (f)(1) of ERISA prohibit the 
payment by a mass-withdrawal-terminated plan of lump sums greater than 
$1,750 or of nonvested plan benefits unless authorized by PBGC.
    The regulation requires the plan sponsor of a terminated plan to 
submit a notice of termination to PBGC. It also requires the plan 
sponsor of a mass-withdrawal-terminated plan that is closing out to 
give notices to participants regarding the election of alternative 
forms of benefit distribution and, if the plan is not closing out, to 
obtain PBGC approval to pay lump sums greater than $1,750 or to pay 
nonvested plan benefits.
    PBGC uses the information in a notice of termination to assess the 
likelihood that PBGC financial assistance will be needed. Plan 
participants and beneficiaries use the information on alternative forms 
of benefit to make personal financial decisions. PBGC uses the 
information in an application for approval to pay lump sums greater 
than $1,750 or to pay nonvested plan benefits to determine whether such 
payments should be permitted.
    PBGC estimates that each year plan sponsors submit notices of 
termination for ten plans, distribute election notices to participants 
in three of those plans, and submit requests to pay benefits or benefit 
forms not otherwise permitted for one of those plans. The estimated 
annual burden of the collection of information is 69 hours and $50,000.

2. Notice of Insolvency (29 CFR Part 4245) (OMB Control Number 1212-
0033) (Expires November 30, 2018)

    Section 4245(e) of ERISA requires two types of notice: A ``notice 
of insolvency,'' stating a plan sponsor's determination that the plan 
is or may become insolvent, and a ``notice of insolvency benefit 
level,'' stating the level of benefits that will be paid during an 
insolvency year. The recipients of these notices are PBGC, contributing 
employers, employee organizations representing participants, and 
participants and beneficiaries.
    The regulation establishes the procedure for complying with these 
notice requirements. PBGC uses the information submitted to estimate 
cash needs for financial assistance to troubled plans. The collective 
bargaining parties use the information to decide whether additional 
plan contributions will be made to avoid the insolvency and consequent 
benefit suspensions. Plan participants and beneficiaries use the 
information in personal financial decisions.
    PBGC estimates that at most one plan sponsor of an ongoing plan 
gives notices each year under this regulation. The estimated annual 
burden of the collection of information is 20 hours and $12,000.

3. Duties of Plan Sponsor Following Mass Withdrawal (29 CFR Part 4281) 
(OMB Control Number 1212-0032) (Expires November 30, 2018)

    Section 4281 of ERISA provides rules for plans that have terminated 
by mass withdrawal. Under section 4281, if nonforfeitable benefits 
exceed plan assets, the plan sponsor must amend the plan to reduce 
benefits. If the plan nevertheless becomes insolvent, the plan sponsor 
must suspend certain benefits that cannot be paid. If available 
resources are inadequate to pay guaranteed benefits, the plan sponsor 
must request financial assistance from PBGC.
    The regulation requires a plan sponsor to give notices of benefit 
reduction, notices of insolvency, and notices of insolvency benefit 
level to PBGC and to participants and beneficiaries and, if necessary, 
to apply to PBGC for financial assistance.
    PBGC uses the information it receives to make determinations 
required by ERISA, to identify and estimate the cash needed for 
financial assistance to terminated plans, and to verify the 
appropriateness of financial assistance payments. Plan participants and 
beneficiaries use the information to make personal financial decisions.
    PBGC estimates that plan sponsors of terminated plans each year 
will give benefit reduction notices for 1 plan, notices of insolvency 
for 10 plans, and notices of insolvency benefit level for 55 plans. 
PBGC also estimates that plan sponsors each year will file initial 
requests for financial assistance for 10 plans and will submit 300 non-
initial applications for financial assistance. The estimated annual 
burden of the collection of information is 1,300 hours and $615,400.

    Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2018-14491 Filed 7-5-18; 8:45 am]
 BILLING CODE 7709-02-P