[Federal Register Volume 85, Number 82 (Tuesday, April 28, 2020)]
[Notices]
[Pages 23542-23543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09106]
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PENSION BENEFIT GUARANTY CORPORATION
Submission of Information Collection for OMB Review; Comment
Request; Multiemployer Plan Regulations
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of request for extension of OMB approval.
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SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) is requesting
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
request and solicits public comment on the collection.
DATES: Comments must be submitted by May 28, 2020.
ADDRESSES: Written comments and recommendations for the information
collections should be sent within 30 days of publication of this notice
to https://www.reginfo.gov/public/do/PRAMain. These particular
information collections may be found by selecting ``Currently under 30-
day Review--Open for Public Comments'' or by using the search function.
A copy of the request will be posted on PBGC's website at https://www.pbgc.gov/prac/laws-and-regulation/federal-register-notices-open-for-comment. Copies of the collections of information may be obtained
without charge by writing to the Disclosure Division of the Office of
the General Counsel of PBGC, 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 https://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, 202-229-3839. TTY users may call the Federal
Relay Service toll-free at 800-877-8339 and ask to be connected to 202-
229-3839.
SUPPLEMENTARY INFORMATION: OMB has approved and issued control numbers
for seven 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 August
31, 2020.
On February 11, 2020, PBGC published in the Federal Register (at 85
FR 7803) a notice informing the public of its intent to request an
extension of these collections of information. No comments were
received. PBGC is requesting that OMB extend approval of the
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.
1. Extension of Special Withdrawal Liability Rules (29 CFR Part 4203)
(OMB Control Number 1212-0023)
Sections 4203(f) and 4208(e)(3) of ERISA allow PBGC to permit a
multiemployer plan to adopt special rules for determining whether a
withdrawal from the plan has occurred, subject to PBGC approval.
The regulation specifies the information that a plan that adopts
special rules must submit to PBGC about the rules, the plan, and the
industry in which the plan operates. PBGC uses the information to
determine whether the rules are appropriate for the industry in which
the plan functions and do not pose a significant risk to the insurance
system.
PBGC estimates that at most one plan sponsor submits a request each
year under this regulation. The estimated annual burden of the
collection of information is 3 hours and $7,000.
2. Variances for Sale of Assets (29 CFR Part 4204) (OMB Control Number
1212-0021)
If an employer's covered operations or contribution obligation
under a plan ceases, the employer must generally pay withdrawal
liability to the plan. Section 4204 of ERISA provides an exception,
under certain conditions, where the cessation results from a sale of
assets. Among other things, the buyer must furnish a bond or escrow,
and the sale contract must provide for secondary liability of the
seller.
The regulation establishes general variances (rules for avoiding
the bond/escrow and sale-contract requirements) and authorizes plans to
determine whether the variances apply in particular cases. It also
allows buyers and sellers to request individual variances from PBGC.
Plans and PBGC use the information to determine whether employers
qualify for variances. PBGC estimates that each year, 100 employers
submit, and 100 plans respond to, variance requests under the
regulation, and one employer submits a variance request to PBGC. The
estimated annual burden of the collection of information is 1,050 hours
and $501,000.
3. Reduction or Waiver of Complete Withdrawal Liability (29 CFR Part
4207) (OMB Control Number 1212-0044)
Section 4207 of ERISA allows PBGC to provide for abatement of an
employer's complete withdrawal liability, and for plan adoption of
alternative abatement rules, where appropriate.
Under the regulation, an employer applies to a plan for an
abatement determination, providing information the plan needs to
determine whether withdrawal liability should be abated, and the plan
notifies the employer of its determination. The employer may, pending
plan action, furnish a bond or escrow instead of making withdrawal
liability payments, and must notify the plan if it does so. When the
plan then makes its determination, it must so notify the bonding or
escrow agent.
The regulation also permits plans to adopt their own abatement
rules and request PBGC approval. PBGC uses the information in such a
request to determine whether the amendment should be approved.
PBGC estimates that each year, at most one employer submits, and
one plan responds to, an application for abatement of complete
withdrawal liability, and no plan sponsors request approval of plan
abatement rules from
[[Page 23543]]
PBGC. The estimated annual burden of the collection of information is
0.5 hours and $450.
4. Reduction or Waiver of Partial Withdrawal Liability (29 CFR Part
4208) (OMB Control Number 1212-0039)
Section 4208 of ERISA provides for abatement, in certain
circumstances, of an employer's partial withdrawal liability and
authorizes PBGC to issue additional partial withdrawal liability
abatement rules.
Under the regulation, an employer applies to a plan for an
abatement determination, providing information the plan needs to
determine whether withdrawal liability should be abated, and the plan
notifies the employer of its determination. The employer may, pending
plan action, furnish a bond or escrow instead of making withdrawal
liability payments, and must notify the plan if it does so. When the
plan then makes its determination, it must so notify the bonding or
escrow agent.
The regulation also permits plans to adopt their own abatement
rules and request PBGC approval. PBGC uses the information in such a
request to determine whether the amendment should be approved.
PBGC estimates that each year, at most one employer submits, and
one plan responds to, an application for abatement of partial
withdrawal liability and no plan sponsors request approval of plan
abatement rules from PBGC. The estimated annual burden of the
collection of information is 0.50 hours and $450.
5. Allocating Unfunded Vested Benefits To Withdrawing Employers (29 CFR
Part 4211) (OMB Control Number 1212-0035)
Section 4211(c)(5)(A) of ERISA requires PBGC to prescribe how plans
can, with PBGC approval, change the way they allocate unfunded vested
benefits to withdrawing employers for purposes of calculating
withdrawal liability.
The regulation prescribes the information that must be submitted to
PBGC by a plan seeking such approval. PBGC uses the information to
determine how the amendment changes the way the plan allocates unfunded
vested benefits and how it will affect the risk of loss to plan
participants and PBGC.
PBGC estimates that 10 plan sponsors submit approval requests each
year under this regulation. The estimated annual burden of the
collection of information is 100 hours and $100,000.
6. Notice, Collection, and Redetermination of Withdrawal Liability (29
CFR Part 4219) (OMB Control Number 1212-0034)
Section 4219(c)(1)(D) of ERISA requires that PBGC prescribe
regulations for the allocation of a plan's total unfunded vested
benefits in the event of a ``mass withdrawal.'' ERISA section 4209(c)
deals with an employer's liability for de minimis amounts if the
employer withdraws in a ``substantial withdrawal.''
The reporting requirements in the regulation give employers notice
of a mass withdrawal or substantial withdrawal and advise them of their
rights and liabilities. They also provide notice to PBGC so that it can
monitor the plan, and they help PBGC assess the possible impact of a
withdrawal event on participants and the multiemployer plan insurance
program.
PBGC estimates that there are six mass withdrawals and three
substantial withdrawals per year. The plan sponsor of a plan subject to
a withdrawal covered by the regulation provides notices of the
withdrawal to PBGC and to employers covered by the plan, liability
assessments to the employers, and a certification to PBGC that
assessments have been made. (For a mass withdrawal, there are two
assessments and two certifications that deal with two different types
of liability. For a substantial withdrawal, there is one assessment and
one certification (combined with the withdrawal notice to PBGC).) The
estimated annual burden of the collection of information is 45 hours
and $148,500.
7. Procedures for PBGC Approval of Plan Amendments (29 CFR Part 4220)
(OMB Control Number 1212-0031)
Under section 4220 of ERISA, a plan may within certain limits adopt
special plan rules regarding when a withdrawal from the plan occurs and
how the withdrawing employer's withdrawal liability is determined. Any
such special rule is effective only if, within 90 days after receiving
notice and a copy of the rule, PBGC either approves or fails to
disapprove the rule. The regulation provides rules for requesting
PBGC's approval of an amendment. PBGC needs the required information to
identify the plan, evaluate the risk of loss, if any, posed by the plan
amendment, and determine whether to approve or disapprove the
amendment.
PBGC estimates that at most one plan sponsor submits an approval
request per year under this regulation. The estimated annual burden of
the collection of information is 2 hours and $5,000 dollars.
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit
Guaranty Corporation.
[FR Doc. 2020-09106 Filed 4-27-20; 8:45 am]
BILLING CODE 7709-02-P