[Federal Register Volume 90, Number 66 (Tuesday, April 8, 2025)]
[Notices]
[Pages 15164-15165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-06011]
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PENSION BENEFIT GUARANTY CORPORATION
Proposed Submission of Information Collection for OMB Review;
Comment Request; Notices Following a Substantial Cessation of
Operations
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of intent to request extension of OMB approval of
information collection.
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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 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 intent and solicits public comment on the collection of
information.
DATES: Comments must be submitted on or before June 9, 2025.
ADDRESSES: Comments may be submitted by any of the following methods:
[[Page 15165]]
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments.
Email: [email protected]. Refer to OMB control
number 1212-0073 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. Commenters who submit comments on paper by mail should
allow sufficient time for mailed comments to be received before the
close of the comment period.
All submissions received must include the agency's name (Pension
Benefit Guaranty Corporation, or PBGC) and refer to OMB control number
1212-0073. All comments received will be posted without change to
PBGC's website, www.pbgc.gov, including any personal information
provided. Do not submit comments that include any personally
identifiable information or confidential business information.
Copies of the collection of information may be obtained without
charge by writing to Disclosure Division ([email protected]), Office
of the General Counsel, Pension Benefit Guaranty Corporation, 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: Monica O'Donnell
([email protected]), Attorney, Regulatory Affairs Division,
Office of the General Counsel, Pension Benefit Guaranty Corporation,
445 12th Street SW, Washington, DC 20024-2101; 202-229-8706. 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: 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.
The collection of information has been approved by OMB under
control number 1212-0073 (expires August 31, 2025). PBGC intends to
request 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, it will receive 3 forms
in this series each year. PBGC estimates that these forms will be
completed by a combination of plan office staff and outside
professionals: attorneys and actuaries. PBGC further estimates that the
average burden of this information collection will be 8 hours per
filer, with a total burden of 24 hours (8 hours x 3 filers). PBGC also
estimates that each filer will spend an average of $8,000 in contractor
costs, for an estimated total annual cost burden of $24,000 ($8,000 x 3
filers).
PBGC is soliciting public comments to--
Evaluate whether the proposed collection of information is
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 collection 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 collection 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.
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit
Guaranty Corporation.
[FR Doc. 2025-06011 Filed 4-7-25; 8:45 am]
BILLING CODE 7709-02-P