[Federal Register Volume 88, Number 57 (Friday, March 24, 2023)]
[Notices]
[Pages 17879-17881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06073]


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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 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 collections of information.

DATES: Comments must be received on or before April 24, 2023.

ADDRESSES: Written comments and recommendations for the proposed 
information collections should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/PRAMain. Find these particular 
information collections by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function. All 
comments received will be posted without change to PBGC's website, 
http://www.pbgc.gov, including any personal information provided. Do 
not submit comments that include any personally identifiable 
information or confidential business information.
    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, 445 
12th Street SW, Washington, DC 20024-2101, or, calling 202-229-4040 
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. On January 5, 2023, PBGC published in the Federal Register 
(at 88 FR 888) 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 its approval of these 
collections

[[Page 17880]]

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.

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 1 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 1 employer submits and 1 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 1 employer submits and 1 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.

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 6 mass withdrawals and 3 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

[[Page 17881]]

mass withdrawal, there are 2 assessments and 2 certifications that deal 
with 2 different types of liability. For a substantial withdrawal, 
there is 1 assessment and 1 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 1 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. 2023-06073 Filed 3-23-23; 8:45 am]
BILLING CODE 7709-02-P