[Federal Register Volume 88, Number 3 (Thursday, January 5, 2023)]
[Notices]
[Pages 888-890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-28609]


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PENSION BENEFIT GUARANTY CORPORATION


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

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of intention to request extension of OMB approval of 
information collections.

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SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) intends to 
request 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 intent and solicits public comment on the collections of 
information.

DATES: Comments must be received on or before March 6, 2023.

ADDRESSES: Comments may be submitted by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
(Follow the online instructions for submitting comments.)
     Email: [email protected]. Refer to refer to 
multiemployer information collection in the subject line.
     Mail or Hand Delivery: Regulatory Affairs Division, Office 
of the General Counsel, Pension Benefit Guaranty Corporation, 445 12th 
Street SW, Washington, DC 20024-2101.
    Commenters are strongly encouraged to submit public comments 
electronically. PBGC expects to have limited personnel available to 
process comment that are submitted on paper through mail. Until further 
notice, any comments submitted on paper will be considered to the 
extent practicable.
    All submissions received must include the agency's name (Pension 
Benefit Guaranty Corporation, or PBGC) and refer to multiemployer 
information collection. All comments received will be posted without 
change to PBGC's website at https://www.pbgc.gov, including any 
personal information

[[Page 889]]

provided. Do not submit comments that include any personally 
identifiable information or confidential business information.
    Copies of the collections of information may also be obtained by 
writing to Disclosure Division, Office of the General Counsel, Pension 
Benefit Guaranty Corporation, 445 12th Street SW, Washington, DC 20024-
2101, or calling 202-326-4040 during normal business hours. If you are 
deaf or hard of hearing, or have a speech disability, please dial 7-1-1 
to access telecommunications relay services.

FOR FURTHER INFORMATION CONTACT: Hilary Duke ([email protected]), 
Assistant General Counsel for Regulatory Affairs, Office of the General 
Counsel, Pension Benefit Guaranty Corporation, 445 12th Street SW, 
Washington, DC 20024-2101; 202-229-3839. If you are deaf or 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 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 June 
30, 2023. PBGC intends to request that OMB extend its approval of these 
collections of information for 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 is soliciting public comments to--
     Evaluate whether the proposed collections of information 
are 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 collections of information, including the 
validity of the methodologies and assumptions used;
     Enhance the quality, utility, and clarity of the 
information to be collected; and
     Minimize the burden of the collections 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.
    Comments should identify the specific part number(s) of the 
regulation(s) to which they relate.

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 4 hours and $10,000.

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 a plan to adopt its 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 PBGC. The estimated annual burden of the collection of 
information is 0.5 hours and $1,000.

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 a plan to adopt its 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 $1,000.

[[Page 890]]

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 the amendment 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 200 hours and $200,000.

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.'' Section 4209(c) of 
ERISA 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 15 hours 
and $49,500.

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 $7,000 dollars.

    Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2022-28609 Filed 1-4-23; 8:45 am]
BILLING CODE 7709-02-P