[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]
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