[Federal Register Volume 84, Number 241 (Monday, December 16, 2019)]
[Notices]
[Pages 68494-68495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26951]
=======================================================================
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
Proposed Submission of Information Collections for OMB Review;
Comment Request; Payment of Premiums; Termination Premium
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of intent to request extension of OMB approval of
collection of information.
-----------------------------------------------------------------------
SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) intends to
request the Office of Management and Budget (OMB) to extend approval,
under the Paperwork Reduction Act, of a collection of information for
the termination premium under its regulation on Payment of Premiums (29
CFR part 4007) (OMB control number 1212-0064; expires May 31, 2020),
without change. 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 February 14, 2020 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 termination premium
information collection. 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; 202-229-6563. (TTY users
may call the Federal Relay Service toll-free at 800-877-8339 and ask to
be connected to 202-229-6563.)
SUPPLEMENTARY INFORMATION: The Pension Benefit Guaranty Corporation
(PBGC) administers the pension plan termination insurance program under
title IV of the Employee Retirement Income Security Act of 1974
(ERISA). Section 4006(a)(7) of ERISA provides for a ``termination
premium'' (in addition to the flat-rate and variable-rate premiums
under section 4006(a)(3) and (8) of ERISA) that is payable for three
years following certain distress and involuntary plan terminations.
PBGC's regulations on Premium Rates (29 CFR part 4006) and Payment of
Premiums (29 CFR part 4007) implement the termination premium. Sections
4007.3 and 4007.13(b) of the premium payment regulation require the
filing of termination premium information and payments with PBGC. PBGC
has promulgated Form T and instructions for paying the termination
premium.
In general, the termination premium applies where a single-employer
plan terminates in a distress termination under ERISA section 4041(c)
(unless contributing sponsors and controlled group members meet the
bankruptcy liquidation requirements of ERISA section 4041(c)(2)(B)(i))
or in an involuntary termination under ERISA section 4042, and the
termination date under section 4048 of ERISA is after 2005. The
termination premium does not apply in certain cases where termination
occurs during a bankruptcy proceeding filed before October 18, 2005.
The termination premium is payable for three years. The same amount
is payable each year. The amount of each payment is based on the number
of participants in the plan as of the day before the termination date.
In general, the amount of each payment is equal to $1,250 times the
number of participants. However, the rate is increased from $1,250 to
$2,500 in certain cases involving commercial airline or airline
catering service plans. The termination premium is due on the 30th day
of each of three consecutive 12-month periods. The first 12-month
period generally begins shortly after the termination date or after the
conclusion of bankruptcy proceedings in certain cases.
The termination premium and related information must be filed by a
person liable for the termination premium. The persons liable for the
termination premium are contributing sponsors and members of their
controlled groups, determined on the day before the plan termination
date. Interest on late termination premiums is charged at the rate
imposed under section 6601(a) of the Internal Revenue Code, compounded
daily, from the due date to the payment date. Penalties based on facts
and circumstances may be assessed both for failure to timely pay the
termination premium and for failure to timely file required related
information and may be waived in appropriate circumstances. A penalty
for late payment will not exceed the amount of termination premium paid
late. Section 4007.10 of the premium payment regulation requires the
retention of records supporting or validating the computation of
premiums paid and requires that the records be made available to PBGC.
OMB has approved the termination premium collection of information
(Form T and instructions) under control number 1212-0064 through May
31, 2020. PBGC intends to request that OMB extend approval of this
collection of information for three years, without change. 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 it will each year receive an average of about
one filing for the first year a termination premium is due, one filing
for the second year a termination premium is due, and one filing for
the third year a termination premium is due, from a total of about 3
respondents. PBGC estimates that the total annual burden of--the
collection of information will be about 15 minutes and $200.
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;
[[Page 68495]]
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.
Stephanie Cibinic,
Deputy Assistant General Counsel for Regulatory Affairs, Pension
Benefit Guaranty Corporation.
[FR Doc. 2019-26951 Filed 12-13-19; 8:45 am]
BILLING CODE 7709-02-P