[Federal Register Volume 87, Number 134 (Thursday, July 14, 2022)]
[Notices]
[Pages 42215-42216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15094]


-----------------------------------------------------------------------

PENSION BENEFIT GUARANTY CORPORATION


Submission of Information Collection for OMB Review; Comment 
Request; Notices Following a Substantial Cessation of Operations

AGENCY: Pension Benefit Guaranty Corporation.

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

-----------------------------------------------------------------------

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 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 request and solicits public comment on the collection of 
information.

DATES: Comments must be submitted on or before August 15, 2022.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection 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: 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. If you are 
deaf, hard of hearing, or have a speech disability, please dial 7-1-1 
to access telecommunications relay services.

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 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 requesting that OMB extend approval of a form series, 
consisting of Form 4062(e)-01, Form 4062(e)-02, Form 4062(e)-03, and 
Form 4062(e)-04, that is used to fulfill these reporting obligations. 
An employer or a plan administrator files 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 files 
Form 4062(e)-02 to notify PBGC that it made the elections to pay annual 
additional contributions to a plan. An employer files 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 
files Form 4062(e)-04 to notify PBGC that it failed to pay an 
additional annual contribution to the plan.
    PBGC needs the information requested 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 is proposing a modification to the wording of question 3 in 
Form 4062(e)-02 and adding an explanation to page 7 of the 
instructions. These modifications are intended for purposes of clarity, 
and they will not affect burden.
    The collection of information has been approved by OMB under 
control number 1212-0073 (expires August 31, 2022). On May 9, 2022, 
PBGC published in the Federal Register (at 87 FR 27666) a notice 
informing the public of its intent to request an extension of this 
collection of information. No comments were received. PBGC is 
requesting that OMB extend its approval for another 3 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, over the next 3 years, 5 forms in this series 
will be submitted each year. PBGC estimates

[[Page 42216]]

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 38.5 hours. PBGC estimates a 
total annual cost burden of $39,415.

    Issued in Washington, DC.
Stephanie Cibinic,
Deputy Assistant General Counsel for Regulatory Affairs, Pension 
Benefit Guaranty Corporation.
[FR Doc. 2022-15094 Filed 7-13-22; 8:45 am]
BILLING CODE 7709-02-P