Notice2022-04784
Proposed Submission of Information Collections for OMB Review; Comment Request; Multiemployer Plan Regulations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 8, 2022
Issuing agencies
Pension Benefit Guaranty Corporation
Abstract
The Pension Benefit Guaranty Corporation (PBGC) intends to request that the Office of Management and Budget (OMB) extend its 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.
Full Text
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<title>Federal Register, Volume 87 Issue 45 (Tuesday, March 8, 2022)</title>
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[Federal Register Volume 87, Number 45 (Tuesday, March 8, 2022)]
[Notices]
[Pages 13020-13022]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-04784]
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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 intent 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 its
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 submitted by May 9, 2022.
ADDRESSES: Comments may be submitted by any of the following methods:
<bullet> Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>.
Follow the online instructions for submitting comments.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#1f6f7e6f7a6d68706d74317c7072727a716b6c5f6f7d787c31787069"><span class="__cf_email__" data-cfemail="bfcfdecfdacdc8d0cdd491dcd0d2d2dad1cbccffcfddd8dc91d8d0c9">[email protected]</span></a>.
<bullet> Mail or Hand Delivery: Regulatory Affairs Division, Office
of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K
Street NW, Washington, DC 20005-4026.
Commenters are strongly encouraged to submit public comments
electronically. PBGC expects to have limited personnel available to
process public comments 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 the OMB control
number(s) and the specific part number(s) of the regulation(s) they
relate to. All comments received will be posted without change to
PBGC's website, <a href="http://www.pbgc.gov">http://www.pbgc.gov</a>, including any personal information
provided. Commenters should not include any information for which
disclosure is restricted by statute, such as trade secrets and
commercial or financial information (``confidential business
information''). Submission of confidential business information without
a request for protected treatment constitutes a waiver of any claims of
confidentiality.
Copies of the collections of information may be obtained by writing
to Disclosure Division, Office of the General Counsel, Pension Benefit
Guaranty Corporation, 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 (<a href="/cdn-cgi/l/email-protection#bcd0d9cad5d292d7ddced9d2fcccdedbdf92dbd3ca"><span class="__cf_email__" data-cfemail="dcb0b9aab5b2f2b7bdaeb9b29cacbebbbff2bbb3aa">[email protected]</span></a>),
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. These collections of information are described
below. OMB approvals for these collections of information expire June
30, 2022. 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--
[[Page 13021]]
<bullet> 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;
<bullet> 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;
<bullet> Enhance the quality, utility, and clarity of the
information to be collected; and
<bullet> 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.
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 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 <a href="http://www.pbgc.gov">http://www.pbgc.gov</a>. 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. Duties of Plan Sponsor of an Insolvent Plan (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
[[Page 13022]]
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.
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit
Guaranty Corporation.
[FR Doc. 2022-04784 Filed 3-7-22; 8:45 am]
BILLING CODE 7709-02-P
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