[Federal Register Volume 84, Number 143 (Thursday, July 25, 2019)]
[Notices]
[Pages 35890-35891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15763]


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PENSION BENEFIT GUARANTY CORPORATION


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

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of request for OMB approval.

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SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) is requesting 
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

[[Page 35891]]

request and solicits public comment on the collection.

DATES: Comments must be submitted by August 26, 2019.

ADDRESSES: Comments should be sent to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Attention: Desk 
Officer for Pension Benefit Guaranty Corporation, via electronic mail 
at [email protected] or by fax to 202-395-6974.
    A copy of the request will be posted on PBGC's website at: https://www.pbgc.gov/prac/laws-and-regulations/information-collections-under-omb-review. It may also be obtained without charge by writing to the 
Disclosure Division of the Office of the General Counsel, 1200 K Street 
NW, Washington, DC 20005-4026; faxing a request to 202-326-4042; or, 
calling 202-326-4040 during normal business hours (TTY users may call 
the Federal Relay Service toll-free at 1-800-877-8339 and ask to be 
connected to 202-326-4040). The Disclosure Division will email, fax, or 
mail the information to you, as you request.

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 1-800-877-8339 
and ask to be connected to 202-326-4400, extension 6563.

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 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 additional contribution, (3) its 
failure to pay an annual additional contribution, (4) its receipt of a 
funding waiver from the Internal Revenue Service (``IRS''), and (5) the 
ending of its obligation to make annual additional contributions.
    PBGC is proposing a new form series 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 election 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 IRS, 
or is no longer obligated to pay annual additional contributions. 
Finally, an employer would file Form 4062(e)-04 to notify PBGC that it 
failed to pay an annual additional 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 annual additional contributions is fulfilling 
its payment obligations.
    On May 15, 2019, PBGC published in the Federal Register (at 84 FR 
21840) a notice informing the public of its intent to request an 
approval of the new form series. PBGC did not receive any comments 
about this collection of information.
    PBGC is requesting that OMB approve the collection 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 estimates that 70 forms (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).

    Issued in Washington, DC.

Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2019-15763 Filed 7-24-19; 8:45 am]
 BILLING CODE 7709-02-P