[Federal Register Volume 84, Number 94 (Wednesday, May 15, 2019)]
[Notices]
[Pages 21840-21841]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09989]


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PENSION BENEFIT GUARANTY CORPORATION


Proposed Submission of Information Collection for OMB Review; 
Comment Request; Notices Under Section 4062(e) of ERISA

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of intent to request OMB approval of information 
collection.

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SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) intends to 
request that the Office of Management and Budget (OMB) approve under 
the Paperwork Reduction Act a collection of information that is 
necessary to fulfill various reporting obligations following a 
cessation of operations at a facility. This notice informs the public 
of PBGC's intent and solicits public comment on the collection of 
information.

DATES: Comments must be received on or before July 15, 2019 to be 
assured of consideration.

ADDRESSES: Comments may be submitted by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the 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 Notices Under 
Section 4062(e) of ERISA. All comments received will be posted without 
change to PBGC's website, http://www.pbgc.gov, including any personal 
information provided.
    Copies of the collection of information may 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.

FOR FURTHER INFORMATION CONTACT: Melissa Rifkin 
([email protected]), Attorney, Regulatory Affairs Division, 
Office of the General Counsel, Pension Benefit Guaranty Corporation, 
1200 K Street NW, Washington, DC 20005-4026; 202-326-4400, extension 
6563; or Erika E. Barnes ([email protected]), Assistant General 
Counsel, Bankruptcy, Transactions, and Terminations Department, Office 
of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K 
Street NW, Washington, DC 20005-4026; 202-326-4400, extension 3460. 
(TTY users may call the Federal Relay Service toll-free at 800-877-8339 
and ask to be connected to 202-326-4400, extension 6563 or extension 
3460.)

SUPPLEMENTARY INFORMATION: Section 4062(e) of the Employee Retirement 
Income Security Act of 1974 (ERISA) imposes reporting obligations in 
the event of a ``substantial cessation of operations.'' A substantial 
cessation of operations occurs when a permanent cessation at a facility 
causes a separation from employment of more than 15 percent of all 
``eligible employees.'' ``Eligible employees'' are employees eligible 
to participate in any of the facility's employer's employee pension 
benefit plans. Following a substantial cessation of operations, the 
facility's employer is treated, with respect to its single employer 
pension plans covered by title IV of ERISA that are covering 
participants at the facility, as if the employer were a withdrawing 
substantial employer under a multiple-employer plan. Under section 
4063(a) of ERISA, the Pension Benefit Guaranty Corporation (PBGC) must 
receive notice

[[Page 21841]]

of the substantial cessation of operations and a request to determine 
the employer's resulting liability.
    To fulfill such resulting liability, the employer may elect, under 
section 4062(e)(4)(A), to make additional contributions annually for 
seven years to plans covering participants at the facility where the 
substantial cessation of operations took place. Under sections 
4062(e)(4)(E)(i)(I) (II), (III), (IV), and (V) respectively, an 
employer that is making the election for annual additional 
contributions must give notice to PBGC of: (1) Its decision to make the 
election, (2) its payment of an annual contribution, (3) its failure to 
pay an annual contribution, (4) its receipt of a funding waiver from 
the Internal Revenue Service, and (5) the ending of its obligation to 
make additional annual contributions.
    PBGC is proposing a new form series, consisting of Form 4062(e)-01, 
Form 4062(e)-02, Form 4062(e)-03, and Form 4062(e)-04, that would be 
used to fulfill these reporting obligations. An employer or a plan 
administrator would file Form 4062(e)-01 to notify PBGC of the 
occurrence of a substantial cessation of operations and request a 
determination of the employer's liability. An employer would file Form 
4062(e)-02 to notify PBGC that it made the elections to pay annual 
additional contributions to a plan. An employer would file Form 
4062(e)-03 to notify PBGC that it paid an annual additional 
contribution, received a funding waiver from the Internal Revenue 
Service, or is no longer obligated to pay additional annual 
contributions. Finally, an employer would file Form 4062(e)-04 to 
notify PBGC that it failed to pay an additional annual contribution to 
the plan.
    PBGC needs the requested information in the forms and notification 
(1) to determine an employer's liability to a plan following a 
substantial cessation of operations and (2) to ensure that an employer 
that made the election of additional annual contributions is fulfilling 
its payment obligations.
    PBGC estimates that 70 forms/notifications (10 Forms 4062(e)-01, 10 
Forms 4062(e)-02, 49 Forms 4062(e)-03, and one Form 4062(e)-04) would 
be submitted each year. PBGC estimates that these forms would be 
completed by a combination of plan office staff and outside 
professionals (attorneys and actuaries). PBGC estimates a total annual 
hour burden of 315 hours (based on plan office time). The estimated 
dollar equivalent of this hour burden, based on an assumed hourly rate 
of $75 for administrative, clerical, and supervisory time is $23,625. 
PBGC estimates a total annual cost burden of $92,750 (based on 265 
professional hours assuming an average hourly rate of $350).
    PBGC intends to request that OMB approve PBGC's use of this form 
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 collection of information is 
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 collection 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 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.

    Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2019-09989 Filed 5-14-19; 8:45 am]
 BILLING CODE 7709-02-P