[Federal Register Volume 87, Number 95 (Tuesday, May 17, 2022)]
[Notices]
[Pages 29889-29890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10580]


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PENSION BENEFIT GUARANTY CORPORATION


Submission of Information Collections for OMB Review; Comment 
Request; Multiemployer Plan Regulations

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of request for extension of OMB approval of information 
collections.

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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. This notice informs the public of 
PBGC's request and solicits public comment on the collections of 
information.

DATES: Comments must be submitted by June 16, 2022.

ADDRESSES: Written comments for the proposed information collections 
should be sent within 30 days of publication of this notice to 
www.reginfo.gov/PRAMain. Find these particular collections of 
information 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. It may 
also 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 202-229-4040 during normal 
business hours. If you are deaf, hard of hearing, or have a speech 
disability, please dial 7-1-1 to access telecommunications relay 
services.

FOR FURTHER INFORMATION CONTACT: Karen Levin ([email protected]), 
Attorney, Regulatory Affairs Division, Office of the General Counsel, 
Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 
20005-4026, 202-229-3559. If you are deaf, hard of hearing, or have a 
speech disability, please dial 7-1-1 to access telecommunications relay 
services.

SUPPLEMENTARY INFORMATION: OMB has approved and issued control numbers 
for three collections of information in PBGC's regulations relating to 
multiemployer plans under the Employee Retirement Income Security Act 
of 1974 (ERISA). These collections of information are described below. 
OMB approvals for these collections of information expire June 30, 
2022. On March 8, 2022, PBGC published (at 87 FR 13020) a notice of its 
intent to request that OMB extend approval of these collections of 
information. No comments were received. PBGC is requesting that OMB 
extend its approval of these 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. Termination of Multiemployer Plans (29 CFR Part 4041A) (OMB Control 
Number 1212-0020) (Expires June 30, 2022)

    Section 4041A(f)(2) of ERISA authorizes PBGC to prescribe reporting 
requirements and other rules and standards for administering terminated 
multiemployer plans. Section 4041A(c) and (f)(1) of ERISA prohibit the 
payment by a mass-withdrawal-terminated plan of lump sums greater than 
$1,750 or of nonvested plan benefits unless authorized by PBGC.
    The regulation requires the plan sponsor of a terminated plan to 
file a

[[Page 29890]]

notice of termination with PBGC. The notice of termination must contain 
the information and certification specified in the instructions for the 
notice of termination on http://www.pbgc.gov. The regulation also 
requires the plan sponsor of a mass-withdrawal-terminated plan that is 
closing out to give notices to participants regarding the election of 
alternative forms of benefit distribution and, if the plan is not 
closing out, to obtain PBGC approval to pay lump sums greater than 
$1,750 or to pay nonvested plan benefits.
    PBGC uses the information in a notice of termination to assess the 
likelihood that PBGC financial assistance will be needed. Plan 
participants and beneficiaries use the information on alternative forms 
of benefit to make personal financial decisions. PBGC uses the 
information in an application for approval to pay lump sums greater 
than $1,750 or to pay nonvested plan benefits to determine whether such 
payments should be permitted.
    The regulation also requires plans terminated by mass withdrawal, 
plans terminated by plan amendment that are expected to become 
insolvent, and insolvent plans under part 4245 receiving financial 
assistance from PBGC (whether terminated or not terminated) to file 
with PBGC withdrawal liability information and actuarial valuations or, 
for smaller plans receiving financial assistance where the present 
value of the plan's nonforfeitable benefits is $50 million or less, 
alternative information. PBGC uses the withdrawal liability and 
actuarial valuation information to estimate PBGC's multiemployer 
liabilities for purposes of its financial statements and to provide 
financial assistance to plans that become insolvent.
    PBGC estimates that each year, plan sponsors submit notices of 
termination for five plans, distribute election notices to participants 
in one of those plans and submit requests to pay benefits or benefit 
forms not otherwise permitted for one of those plans. The estimated 
annual burden of this part of this collection of information is 25 
hours and $25,000.
    Furthermore, PBGC estimates that each year, plan sponsors file 
actuarial valuations electronically for 100 plans that are terminated 
or insolvent, and that only 1 smaller plan will file alternative 
information. The estimated annual burden of this part of the collection 
of information is 26 hours and $10,400.
    PBGC estimates that each year plan sponsors file withdrawal 
liability payment information from approximately 10 plans. The 
estimated annual burden of this part of the collection of information 
is 10 hours and $4,000.
    The estimated total hour burden is 61 hours (25 + 26 + 10). The 
estimated annual burden of the collection of information is estimated 
to be $39,400 ($25,000 + $4,000 + $10,400).

2. Notice of Insolvency (29 CFR Part 4245) (OMB Control Number 1212-
0033) (Expires June 30, 2022)

    Section 4245(e) of ERISA requires two types of notice: A ``notice 
of insolvency,'' stating a plan sponsor's determination that the plan 
is or may become insolvent, and a ``notice of insolvency benefit 
level,'' stating the level of benefits that will be paid during an 
insolvency year. The recipients of these notices are PBGC, contributing 
employers, employee organizations representing participants, and 
participants and beneficiaries.
    The regulation establishes the procedure for complying with these 
notice requirements. It allows a plan sponsor to combine the notice of 
insolvency and notice of insolvency benefit level. In addition, the 
regulation only requires a plan sponsor to provide an updated notice to 
participants and beneficiaries if there is a change in the amount of 
benefits paid to participants and beneficiaries. PBGC uses the 
information submitted to estimate cash needs for financial assistance 
to troubled plans. The collective bargaining parties use the 
information to decide whether additional plan contributions will be 
made to avoid the insolvency and consequent benefit suspensions. Plan 
participants and beneficiaries use the information in personal 
financial decisions.
    PBGC estimates that at most one plan sponsor of an ongoing plan 
gives notices each year under section 4245. The estimated annual burden 
of the collection of information is 16 hours and $10,000.

3. Duties of Plan Sponsor Following Mass Withdrawal (29 CFR Part 4281) 
(OMB Control Number 1212-0032) (Expires June 30, 2022)

    Section 4281 of ERISA provides rules for plans that have terminated 
by mass withdrawal. Under section 4281, if nonforfeitable benefits 
exceed plan assets, the plan sponsor must amend the plan to reduce 
benefits. If the plan nevertheless becomes insolvent, the plan sponsor 
must suspend certain benefits that cannot be paid. If available 
resources are inadequate to pay guaranteed benefits, the plan sponsor 
must request financial assistance from PBGC.
    The regulation requires a plan sponsor to give notices of benefit 
reduction, notices of insolvency, and notices of insolvency benefit 
level to PBGC and to participants and beneficiaries and, if necessary, 
to apply to PBGC for financial assistance. A plan sponsor can combine 
the notice of insolvency and the notice of insolvency benefit level.
    PBGC uses the information it receives to make determinations 
required by ERISA, to identify and estimate the cash needed for 
financial assistance to terminated plans, and to verify the 
appropriateness of financial assistance payments. Plan participants and 
beneficiaries use the information to make personal financial decisions.
    PBGC estimates that plan sponsors of terminated plans each year 
will file with PBGC 1 notice of benefit reduction, 7 notices of 
insolvency, 3 combined notices of insolvency and insolvency benefit 
level, and 5 notices of insolvency benefit level. PBGC also estimates 
that plan sponsors each year will file initial requests for financial 
assistance for 10 plans and will submit 425 non-initial applications 
for financial assistance. The estimated annual burden of the collection 
of information is 241 hours and $420,400.

Stephanie Cibinic,
Deputy Assistant General Counsel for Regulatory Affairs, Pension 
Benefit Guaranty Corporation.
[FR Doc. 2022-10580 Filed 5-16-22; 8:45 am]
BILLING CODE 7709-02-P