80 FR 18172 - Multiemployer Plans; Electronic Filing Requirements

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 80, Issue 64 (April 3, 2015)

Page Range		18172-18175
FR Document		2015-07602
The Pension Benefit Guaranty Corporation (PBGC) is proposing to amend its regulations to require electronic filing of certain multiemployer notices. These changes would make the provision of information to PBGC more efficient and effective.
Federal Register, Volume 80 Issue 64 (Friday, April 3, 2015)
[Federal Register Volume 80, Number 64 (Friday, April 3, 2015)]
[Proposed Rules]
[Pages 18172-18175]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07602]


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PENSION BENEFIT GUARANTY CORPORATION

29 CFR Parts 4000, 4041A, and 4281

RIN 1212-AB28


Multiemployer Plans; Electronic Filing Requirements

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Proposed rule.

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SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) is proposing 
to amend its regulations to require electronic filing of certain 
multiemployer notices. These changes would make the provision of 
information to PBGC more efficient and effective.

DATES: Comments must be submitted on or before June 2, 2015.

ADDRESSES: Comments, identified by Regulation Identifier Number (RIN) 
1212-AB28, may be submitted by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the Web site instructions for submitting comments.
     Email: [email protected].
     Fax: 202-326-4112.
     Mail or Hand Delivery: Regulatory Affairs Group, Office of 
the General Counsel, Pension Benefit Guaranty Corporation, 1200 K 
Street NW., Washington, DC 20005-4026.

All submissions must include the Regulation Identifier Number for this 
rulemaking (RIN 1212-AB28). Comments received, including personal 
information provided, will be posted to www.pbgc.gov. Copies of 
comments may also 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 202-326-4040 during 
normal business hours. (TTY and TDD users may call the Federal relay 
service toll-free at 1-800-877-8339 and ask to be connected to 202-326-
4040.)

FOR FURTHER INFORMATION CONTACT: Catherine B. Klion 
([email protected]), Assistant General Counsel for Regulatory 
Affairs, or Donald McCabe ([email protected]), Attorney, Office of 
the General Counsel, Pension Benefit Guaranty Corporation, 1200 K 
Street NW., Washington, DC 20005-4026; 202-326-4024. (TTY/TDD users may 
call the Federal relay service toll-free at 1-800-877-8339 and ask to 
be connected to 202-326-4024.)

SUPPLEMENTARY INFORMATION:

Executive Summary

Purpose of the Regulatory Action

    This proposed rule is part of PBGC's ongoing implementation of the 
Government Paperwork Elimination Act and is consistent with the Office 
of Management and Budget's directive to remove regulatory impediments 
to electronic transactions. The proposal builds in flexibility to allow 
PBGC to update the electronic filing process as technology advances.
    PBGC's legal authority for this regulatory action comes from 
section 4002(b)(3) of the Employee Retirement Income Security Act of 
1974 (ERISA), which authorizes PBGC to issue regulations to carry out 
the purposes of title IV of ERISA; section 4041A(f)(2), which gives 
PBGC authority to prescribe reporting requirements for terminated 
plans; section 4245(e)(4), which authorizes PBGC to issue regulations 
on notices related to insolvency and resource benefit levels; and 
section 4281(d), which directs PBGC to prescribe by regulation the 
notice requirements to plan participants and beneficiaries in the event 
of a benefit suspension under an insolvent plan.
    This proposed rule does not involve any conforming amendments 
reflecting the Multiemployer Pension Reform Act of 2014 (MPRA).\1\ PBGC 
expects to address such changes in a future rulemaking.
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    \1\ Division O of the Consolidated and Further Continuing 
Appropriations Act, 2015, Public Law No. 113-235, enacted December 
16, 2014.
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Major Provisions of the Regulatory Action

    This proposed rule would require the following notices to be filed 
electronically with PBGC: notices of termination under part 4041A, 
notices of insolvency and of insolvency benefit level under parts 4245 
and 4281, and applications for financial assistance under part 4281.

Background

    The Pension Benefit Guaranty Corporation (PBGC) is a federal 
corporation created under the Employee Retirement Income Security Act 
of 1974 (ERISA) to guarantee the payment of pension benefits earned by 
more than 41 million American workers and retirees in nearly 24,000 
private-sector defined benefit pension plans. PBGC administers two 
insurance programs--one for single-employer defined benefit pension 
plans and a second for multiemployer defined benefit pension plans.
    The multiemployer program protects benefits of approximately 10 
million workers and retirees in approximately 1,400 plans. A 
multiemployer plan is a collectively bargained pension arrangement 
involving two or more unrelated employers, usually in a common industry 
such as construction or trucking, where workers move from employer to 
employer on a regular basis. Under PBGC's multiemployer program, when a 
plan becomes insolvent, PBGC provides financial assistance directly to 
the insolvent plan sufficient to pay guaranteed benefits to 
participants and beneficiaries, and the reasonable and necessary 
administrative expenses of the insolvent plan.

Multiemployer Plan Notices

    ERISA section 4041A provides for two types of multiemployer plan 
terminations: mass withdrawal and plan amendment. A mass withdrawal 
termination occurs when all employers withdraw or cease to be obligated 
to contribute to the plan. A plan amendment termination occurs when the 
plan adopts an amendment that provides that participants will receive 
no credit for service with any employer after a specified date, or an 
amendment that makes it no longer a covered plan. Unlike terminated 
single-employer plans, terminated multiemployer plans generally 
continue to pay all vested benefits out of existing plan assets and 
withdrawal liability payments. PBGC's regulation on Termination of 
Multiemployer Plans (29 CFR part 4041A) implements these provisions, 
among other things by requiring the plan sponsor of a terminated 
multiemployer plan to file with PBGC a notice of termination containing 
basic information necessary to alert PBGC to possible demands on the 
multiemployer insurance program.
    ERISA section 4245(e) requires two types of notice:
     Notice of insolvency, which states a plan sponsor's 
determination that the plan is or may become insolvent.

[[Page 18173]]

     Notice of insolvency benefit level, which states the level 
of benefits that will be paid during an insolvency year.

Section 4245(e)(4) provides that these notices are to be given in 
accordance with rules promulgated by PBGC. PBGC's regulation on Notice 
of Insolvency, 29 CFR part 4245, establishes the procedure for 
complying with these notice requirements. The regulation allows a 
single notice of insolvency to cover more than one plan year, thereby 
generally permitting plan sponsors to file only a single notice (a 
notice of insolvency benefit level) for any future year. The regulation 
also prescribes, among other things, the manner in which the notices 
must be given. The recipients of these notices include PBGC, in 
addition to other parties.
    PBGC's regulation on Duties of Plan Sponsor Following Mass 
Withdrawal (29 CFR part 4281) implements the requirements of ERISA 
section 4281. The regulation prescribes rules under which plan sponsors 
must:
     Provide notices to PBGC and to participants and 
beneficiaries that a plan is, or will be, insolvent (Sec. Sec.  4281.43 
and 4281.44).
     Provide notices of insolvency benefit level to PBGC and to 
participants and beneficiaries who are in pay status or may reasonably 
be expected to enter pay status during the year (Sec. Sec.  4281.45 and 
4281.46).
     Submit an application to PBGC for financial assistance if 
a plan is, or will be, unable to pay guaranteed benefits when due 
(Sec.  4281.47).

Mandatory Electronic Filing

    Section 4000.3 of PBGC's regulation on Filing, Issuance, 
Computation of Time, and Record Retention (29 CFR part 4000) already 
requires electronic filing of premium declarations under part 4007 
(Payment of Premiums) and information required under part 4010 (Annual 
Financial and Actuarial Information Reporting).

Proposed Regulatory Changes

    PBGC is proposing to require electronic filing of the following 
multiemployer plan filings:
     Notices of termination under part 4041A.
     Notices of insolvency and of insolvency benefit level 
under part 4245.
     Notices of insolvency and of insolvency benefit level 
under part 4281 (following mass withdrawal).
     Applications for financial assistance under part 4281 
(following mass withdrawal).

PBGC would grant case-by-case exemptions to the electronic filing 
requirement in appropriate circumstances for filers that demonstrate 
good cause for exemption. PBGC believes that requiring electronic 
filing for these notices would result in benefits for both the public 
and the government.
    Electronic filing would simplify the filing process for the public 
by building in all required and optional fields and including readily 
accessible guidance in the application. This is expected to reduce the 
need to contact PBGC for assistance. PBGC estimates that the amendments 
in the proposed rule would result in a total savings in administrative 
burdens for the public of 25 percent (about 22 hours and $99,000 
annually).
    Electronic filing would also result in greater efficiencies for the 
government. Currently, documents submitted by filers need to be 
manually uploaded to electronic depositories. With electronic filing, 
those documents would be automatically uploaded. Electronic filing 
would also save the government time by reducing the need to provide 
assistance to filers. It would also improve the government's 
recordkeeping, records retrieval, and records archiving process by 
eliminating the possibility of missing or lost paper files due to human 
error.
    Moreover, the PBGC expects electronic filing will improve the 
government's ability to protect potential personally identifiable 
information (PII), or otherwise sensitive information, since only pre-
approved personnel will have access to PBGC's electronic records 
systems, and limited access will be approved for officials of pension 
plans.
    PBGC is not proposing at this time to require electronic filing of 
notices of benefit reduction and of restoration of benefits under part 
4281. PBGC may in the future require that other multiemployer filings 
also be made electronically.

Applicability

    The amendments to all these regulations would be applicable for 
filings made on or after January 1, 2016.

Compliance With Rulemaking Requirements

Executive Order 12866 ``Regulatory Planning and Review'' and Executive 
Order 13563 ``Improving Regulation and Regulatory Review''

    PBGC has determined in consultation with the Office of Management 
and Budget that this rule is not a ``significant regulatory action'' 
under Executive Order 12866. Executive Orders 12866 and 13563 direct 
agencies to assess all costs and benefits of available regulatory 
alternatives and, if regulation is necessary, to select regulatory 
approaches that maximize net benefits (including potential economic, 
environmental, public health and safety effects, distributive impacts, 
and equity). Executive Order 13563 emphasizes the importance of 
quantifying both costs and benefits, of reducing costs, of harmonizing 
rules, and of promoting flexibility.
    Under Section 3(f)(1) of Executive Order 12866, a regulatory action 
is economically significant if ``it is likely to result in a rule that 
may . . . [h]ave an annual effect on the economy of $100 million or 
more or adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities.'' PBGC has determined that this proposed rule does not 
cross the $100 million threshold for economic significance and is not 
otherwise economically significant (see discussion above).

Regulatory Flexibility Act

    The Regulatory Flexibility Act imposes certain requirements with 
respect to rules that are subject to the notice and comment 
requirements of section 553(b) of the Administrative Procedure Act and 
that are likely to have a significant economic impact on a substantial 
number of small entities. Unless an agency determines that a proposed 
rule is not likely to have a significant economic impact on a 
substantial number of small entities, section 603 of the Regulatory 
Flexibility Act requires that the agency present an initial regulatory 
flexibility analysis at the time of the publication of the proposed 
rule describing the impact of the rule on small entities and seeking 
public comment on such impact. Small entities include small businesses, 
organizations and governmental jurisdictions.
    For purposes of the Regulatory Flexibility Act requirements with 
respect to this proposed rule, PBGC considers a small entity to be a 
plan with fewer than 100 participants. This is the same criterion PBGC 
uses in other aspects of its regulations involving small plans, and is 
consistent with certain requirements in Title I of ERISA and the 
Internal Revenue Code, as well as the definition of a small entity that 
the Department of Labor (DOL) has used for purposes of the Regulatory 
Flexibility Act.

[[Page 18174]]

    Thus, PBGC believes that assessing the impact of the proposal on 
small plans is an appropriate substitute for evaluating the effect on 
small entities. The definition of small entity considered appropriate 
for this purpose differs, however, from a definition of small business 
based on size standards promulgated by the Small Business 
Administration (13 Sec.  CFR 121.201) pursuant to the Small Business 
Act. PBGC therefore requests comments on the appropriateness of the 
size standard used in evaluating the impact on small entities of the 
proposed amendments to the reportable events regulation.
    On the basis of its proposed definition of small entity, PBGC 
certifies under section 605(b) of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.) that the amendments in this rule would not have a 
significant economic impact on a substantial number of small entities. 
Very few multiemployer plans are small.\2\ And, as discussed above, the 
amendments would not have a significant economic impact on entities of 
any size. Accordingly, as provided in section 605 of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.), sections 603 and 604 would not 
apply. PBGC invites public comment on this burden estimate.
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    \2\ According to data from 2012 5500 filings, only 32 of 1,407 
active plans have fewer than 100 participants. Further, PBGC is not 
aware of a multiemployer plan that was established and covered by 
ERISA that was not initially a large plan. Generally it is only 
after a plan terminates and employers withdraw from the plan that a 
plan might reduce in size to fewer than 100 participants.
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Paperwork Reduction Act

    PBGC is submitting the information requirements under this proposed 
rule to the Office of Management and Budget (OMB) for review and 
approval under the Paperwork Reduction Act. 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.
    The collection of information in Part 4041A is approved under 
control number 1212-0020 (expires June 30, 2017). PBGC estimates that 
there will be 10 respondents each year and that the total annual burden 
of the collection of information will be about 17 hours and $3,850.00 
(about 2 hours and $385 per respondent).
    The collection of information in Part 4245 is approved under 
control number 1212-0033 (expires June 30, 2017). PBGC estimates that 
there will be one respondent each year and that the total annual burden 
of the collection of information will be about $1,550.
    The collection of information in Part 4281 is approved under 
control number 1212-0032 (expires July 31, 2017). PBGC estimates that 
there will be 324 respondents each year and that the total annual 
burden of the collection of information will be about 61 hours and 
$309,000 (about $950 per respondent).
    Copies of PBGC's requests will be posted at http://www.pbgc.gov/res/laws-and-regulations/information-collections-under-omb-review.html 
and may also be obtained free of charge by contacting the Disclosure 
Division of the Office of the General Counsel of PBGC, 1200 K Street 
NW., Washington, DC 20005, 202-326-4040. PBGC is proposing to make 
changes for the following information collections: notices of 
termination; notices of insolvency; notices of insolvency benefit 
level; and applications for financial assistance.
    Comments on the paperwork provisions under this proposed rule 
should be sent to the Office of Information and Regulatory Affairs, 
Office of Management and Budget, Attention: Desk Officer for Pension 
Benefit Guaranty Corporation, via electronic mail at 
[email protected] or by fax to (202) 395-6974. Although comments 
may be submitted through June 2, 2015, the Office of Management and 
Budget requests that comments be received on or before May 4, 2015 to 
ensure their consideration. Comments may address (among other things)--
     Whether each proposed collection of information is needed 
for the proper performance of PBGC's functions and will have practical 
utility;
     The accuracy of PBGC's estimate of the burden of each 
proposed collection of information, including the validity of the 
methodology and assumptions used;
     Enhancement of the quality, utility, and clarity of the 
information to be collected; and
     Minimizing the burden of each 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.

List of Subjects

29 CFR Part 4000

    Pension insurance, Pensions, Reporting and recordkeeping 
requirements.

29 CFR Part 4041A

    Employee benefit plans, Pension insurance, Reporting and 
recordkeeping requirements.

29 CFR Part 4281

    Employee benefit plans, Pension insurance, Reporting and 
recordkeeping requirements.

    For the reasons given above, the PBGC is proposing to amend 29 CFR 
parts 4000, 4041A, and 4281 as follows.

PART 4000--FILING, ISSUANCE, COMPUTATION OF TIME, AND RECORD 
RETENTION

0
1. The authority citation for part 4000 continues to read as follows:

    Authority: 29 U.S.C. 1082(f), 1302(b)(3).

0
2. In Sec.  4000.3, add paragraph (b)(3) to read as follows:


Sec.  4000.3  What methods of filing may I use?

* * * * *
    (b) * * *
    (3) When making filings to PBGC under parts 4041A, 4245, and 4281 
of this chapter (except for notices of benefit reductions and notices 
of restoration of benefits under part 4281), you must submit the 
information required under these parts electronically in accordance 
with the instructions on the PBGC's Web site, except as otherwise 
provided by the PBGC.
* * * * *

PART 4041A--TERMINATION OF MULTIEMPLOYER PLANS

0
3. The authority citation for part 4041A continues to read as follows:

    Authority: 29 U.S.C. 1302(b)(3), 1341a, 1441.

0
4. In Sec.  4041A.11, add new paragraph (d) to read as follows:


Sec.  4041A.11  Requirement of notice.

    (d) How and where to file. Filings to PBGC under this subpart must 
be submitted in accordance with the rules in subpart A of part 4000 of 
this chapter. See Sec.  4000.4 of this chapter for information on where 
to file.


Sec.  4041A.25  [Amended]

0
5. In Sec.  4041A.25, amend paragraph (d) by removing the words ``of 
the PBGC'' and adding in their place ``to the PBGC''.

PART 4281--DUTIES OF PLAN SPONSOR FOLLOWING MASS WITHDRAWAL

0
6. The authority citation for part 4281 continues to read as follows:


[[Page 18175]]


     Authority: 29 U.S.C. 1302(b)(3), 1341a, 1399(c)(1)(D) and 1441.

0
7. In Sec.  4281.3, revise paragraph (b) to read as follows:


Sec.  4281.3  Filing and issuance rules.

* * * * *
    (b) Method of issuance. For rules on method of issuance to 
interested parties, see Sec.  4281.32(c) for notices of benefit 
reductions, Sec.  4281.43(e) for notices of insolvency, and Sec.  
4281.45(c) for notices of insolvency benefit level.
* * * * *
0
8. In Sec.  4281.43, revise paragraph (a) to read as follows:


Sec.  4281.43  Notices of insolvency.

    (a) Requirement of notices of insolvency. A plan sponsor that 
determines that the plan is, or is expected to be, insolvent for a plan 
year shall file with the PBGC and issue to plan participants and 
beneficiaries notices of insolvency. Once notices of insolvency have 
been filed with the PBGC and issued to plan participants and 
beneficiaries, no notice of insolvency needs to be issued for 
subsequent insolvency years. Notices shall be delivered in the manner 
and within the time prescribed in this section and shall contain the 
information described in Sec.  4281.44.
* * * * *
0
9. In Sec.  4281.47, revise paragraph (b) to read as follows:


Sec.  4281.47  Application for financial assistance.

* * * * *
    (b) When, how, and where to apply. When the plan sponsor determines 
a resource benefit level that is less than guaranteed benefits, it 
shall apply for financial assistance at the same time that it submits 
its notice of insolvency benefit level pursuant to Sec.  4281.45. When 
the plan sponsor determines an inability to pay guaranteed benefits for 
any month, it shall apply for financial assistance within 15 days after 
making that determination. Application to the PBGC for financial 
assistance shall be made in accordance with the rules in subpart A of 
part 4000 of this chapter. See Sec.  4000.4 of this chapter for 
information on where to apply.
* * * * *

    Issued in Washington, DC, this 30th day of March 2015.
Judith R. Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2015-07602 Filed 4-2-15; 8:45 am]
 BILLING CODE 7709-02-P
18172 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Proposed Rules

of § 1.45G–1T published elsewhere in business hours. (TTY and TDD users Background
this issue of the Federal Register]. may call the Federal relay service toll- The Pension Benefit Guaranty
■ Par. 4. Section 1.280C–4 is amended free at 1–800–877–8339 and ask to be Corporation (PBGC) is a federal
to read as follows. connected to 202–326–4040.) corporation created under the Employee
FOR FURTHER INFORMATION CONTACT: Retirement Income Security Act of 1974
§ 1.280C–4. Credit for increasing research
activities. Catherine B. Klion (klion.catherine@ (ERISA) to guarantee the payment of
pbgc.gov), Assistant General Counsel for pension benefits earned by more than 41
[The text of the amendments to this Regulatory Affairs, or Donald McCabe
proposed section is the same as the text million American workers and retirees
(mccabe.donald@pbgc.gov), Attorney, in nearly 24,000 private-sector defined
of § 1.280C–4T published elsewhere in Office of the General Counsel, Pension
this issue of the Federal Register]. benefit pension plans. PBGC
Benefit Guaranty Corporation, 1200 K administers two insurance programs—
John M. Dalrymple, Street NW., Washington, DC 20005– one for single-employer defined benefit
Deputy Commissioner for Services and 4026; 202–326–4024. (TTY/TDD users pension plans and a second for
Enforcement. may call the Federal relay service toll- multiemployer defined benefit pension
[FR Doc. 2015–07380 Filed 4–2–15; 8:45 am] free at 1–800–877–8339 and ask to be plans.
BILLING CODE 4830–01–P
connected to 202–326–4024.) The multiemployer program protects
SUPPLEMENTARY INFORMATION: benefits of approximately 10 million
Executive Summary workers and retirees in approximately
PENSION BENEFIT GUARANTY 1,400 plans. A multiemployer plan is a
CORPORATION Purpose of the Regulatory Action collectively bargained pension
This proposed rule is part of PBGC’s arrangement involving two or more
29 CFR Parts 4000, 4041A, and 4281 ongoing implementation of the unrelated employers, usually in a
RIN 1212–AB28 Government Paperwork Elimination Act common industry such as construction
and is consistent with the Office of or trucking, where workers move from
Multiemployer Plans; Electronic Filing Management and Budget’s directive to employer to employer on a regular basis.
Requirements remove regulatory impediments to Under PBGC’s multiemployer program,
electronic transactions. The proposal when a plan becomes insolvent, PBGC
AGENCY: Pension Benefit Guaranty builds in flexibility to allow PBGC to provides financial assistance directly to
Corporation. update the electronic filing process as the insolvent plan sufficient to pay
ACTION: Proposed rule. technology advances. guaranteed benefits to participants and
PBGC’s legal authority for this beneficiaries, and the reasonable and
SUMMARY: The Pension Benefit Guaranty regulatory action comes from section necessary administrative expenses of
Corporation (PBGC) is proposing to 4002(b)(3) of the Employee Retirement the insolvent plan.
amend its regulations to require Income Security Act of 1974 (ERISA),
electronic filing of certain which authorizes PBGC to issue Multiemployer Plan Notices
multiemployer notices. These changes regulations to carry out the purposes of ERISA section 4041A provides for two
would make the provision of title IV of ERISA; section 4041A(f)(2), types of multiemployer plan
information to PBGC more efficient and which gives PBGC authority to prescribe terminations: mass withdrawal and plan
effective. reporting requirements for terminated amendment. A mass withdrawal
DATES: Comments must be submitted on plans; section 4245(e)(4), which termination occurs when all employers
or before June 2, 2015. authorizes PBGC to issue regulations on withdraw or cease to be obligated to
ADDRESSES: Comments, identified by notices related to insolvency and contribute to the plan. A plan
Regulation Identifier Number (RIN) resource benefit levels; and section amendment termination occurs when
1212–AB28, may be submitted by any of 4281(d), which directs PBGC to the plan adopts an amendment that
the following methods: prescribe by regulation the notice provides that participants will receive
• Federal eRulemaking Portal: http:// requirements to plan participants and no credit for service with any employer
www.regulations.gov. Follow the Web beneficiaries in the event of a benefit after a specified date, or an amendment
site instructions for submitting suspension under an insolvent plan. that makes it no longer a covered plan.
comments. This proposed rule does not involve Unlike terminated single-employer
• Email: reg.comments@pbgc.gov. any conforming amendments reflecting plans, terminated multiemployer plans
• Fax: 202–326–4112. the Multiemployer Pension Reform Act generally continue to pay all vested
• Mail or Hand Delivery: Regulatory of 2014 (MPRA).1 PBGC expects to benefits out of existing plan assets and
Affairs Group, Office of the General address such changes in a future withdrawal liability payments. PBGC’s
Counsel, Pension Benefit Guaranty rulemaking. regulation on Termination of
Corporation, 1200 K Street NW., Major Provisions of the Regulatory Multiemployer Plans (29 CFR part
Washington, DC 20005–4026. Action 4041A) implements these provisions,
All submissions must include the among other things by requiring the
This proposed rule would require the
Regulation Identifier Number for this plan sponsor of a terminated
following notices to be filed
rulemaking (RIN 1212–AB28). multiemployer plan to file with PBGC a
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS

electronically with PBGC: notices of
Comments received, including personal notice of termination containing basic
termination under part 4041A, notices
information provided, will be posted to information necessary to alert PBGC to
of insolvency and of insolvency benefit
www.pbgc.gov. Copies of comments may possible demands on the multiemployer
level under parts 4245 and 4281, and
also be obtained by writing to insurance program.
applications for financial assistance
Disclosure Division, Office of the ERISA section 4245(e) requires two
under part 4281.
General Counsel, Pension Benefit types of notice:
Guaranty Corporation, 1200 K Street 1 Division O of the Consolidated and Further • Notice of insolvency, which states a
NW., Washington DC 20005–4026, or Continuing Appropriations Act, 2015, Public Law plan sponsor’s determination that the
calling 202–326–4040 during normal No. 113–235, enacted December 16, 2014. plan is or may become insolvent.

VerDate Sep<11>2014 17:20 Apr 02, 2015 Jkt 235001 PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 E:\FR\FM\03APP1.SGM 03APP1
Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Proposed Rules 18173

• Notice of insolvency benefit level, PBGC would grant case-by-case Order 12866. Executive Orders 12866
which states the level of benefits that exemptions to the electronic filing and 13563 direct agencies to assess all
will be paid during an insolvency year. requirement in appropriate costs and benefits of available regulatory
Section 4245(e)(4) provides that these circumstances for filers that alternatives and, if regulation is
notices are to be given in accordance demonstrate good cause for exemption. necessary, to select regulatory
with rules promulgated by PBGC. PBGC believes that requiring electronic approaches that maximize net benefits
PBGC’s regulation on Notice of filing for these notices would result in (including potential economic,
Insolvency, 29 CFR part 4245, benefits for both the public and the environmental, public health and safety
establishes the procedure for complying government. effects, distributive impacts, and
with these notice requirements. The Electronic filing would simplify the equity). Executive Order 13563
regulation allows a single notice of filing process for the public by building emphasizes the importance of
insolvency to cover more than one plan in all required and optional fields and quantifying both costs and benefits, of
year, thereby generally permitting plan including readily accessible guidance in reducing costs, of harmonizing rules,
sponsors to file only a single notice (a the application. This is expected to and of promoting flexibility.
notice of insolvency benefit level) for reduce the need to contact PBGC for Under Section 3(f)(1) of Executive
any future year. The regulation also assistance. PBGC estimates that the Order 12866, a regulatory action is
prescribes, among other things, the amendments in the proposed rule economically significant if ‘‘it is likely
manner in which the notices must be would result in a total savings in to result in a rule that may . . . [h]ave
given. The recipients of these notices administrative burdens for the public of an annual effect on the economy of $100
include PBGC, in addition to other 25 percent (about 22 hours and $99,000 million or more or adversely affect in a
parties. annually). material way the economy, a sector of
PBGC’s regulation on Duties of Plan Electronic filing would also result in the economy, productivity, competition,
Sponsor Following Mass Withdrawal greater efficiencies for the government. jobs, the environment, public health or
(29 CFR part 4281) implements the Currently, documents submitted by safety, or State, local, or tribal
requirements of ERISA section 4281. filers need to be manually uploaded to governments or communities.’’ PBGC
The regulation prescribes rules under electronic depositories. With electronic has determined that this proposed rule
which plan sponsors must: filing, those documents would be does not cross the $100 million
• Provide notices to PBGC and to automatically uploaded. Electronic threshold for economic significance and
participants and beneficiaries that a filing would also save the government is not otherwise economically
plan is, or will be, insolvent (§§ 4281.43 time by reducing the need to provide significant (see discussion above).
and 4281.44). assistance to filers. It would also
improve the government’s Regulatory Flexibility Act
• Provide notices of insolvency
benefit level to PBGC and to recordkeeping, records retrieval, and The Regulatory Flexibility Act
participants and beneficiaries who are records archiving process by eliminating imposes certain requirements with
in pay status or may reasonably be the possibility of missing or lost paper respect to rules that are subject to the
expected to enter pay status during the files due to human error. notice and comment requirements of
year (§§ 4281.45 and 4281.46). Moreover, the PBGC expects section 553(b) of the Administrative
• Submit an application to PBGC for electronic filing will improve the Procedure Act and that are likely to
financial assistance if a plan is, or will government’s ability to protect potential have a significant economic impact on
be, unable to pay guaranteed benefits personally identifiable information (PII), a substantial number of small entities.
when due (§ 4281.47). or otherwise sensitive information, Unless an agency determines that a
since only pre-approved personnel will proposed rule is not likely to have a
Mandatory Electronic Filing have access to PBGC’s electronic records significant economic impact on a
Section 4000.3 of PBGC’s regulation systems, and limited access will be substantial number of small entities,
on Filing, Issuance, Computation of approved for officials of pension plans. section 603 of the Regulatory Flexibility
Time, and Record Retention (29 CFR PBGC is not proposing at this time to Act requires that the agency present an
part 4000) already requires electronic require electronic filing of notices of initial regulatory flexibility analysis at
filing of premium declarations under benefit reduction and of restoration of the time of the publication of the
part 4007 (Payment of Premiums) and benefits under part 4281. PBGC may in proposed rule describing the impact of
information required under part 4010 the future require that other the rule on small entities and seeking
(Annual Financial and Actuarial multiemployer filings also be made public comment on such impact. Small
Information Reporting). electronically. entities include small businesses,
Applicability organizations and governmental
Proposed Regulatory Changes jurisdictions.
PBGC is proposing to require The amendments to all these For purposes of the Regulatory
electronic filing of the following regulations would be applicable for Flexibility Act requirements with
multiemployer plan filings: filings made on or after January 1, 2016. respect to this proposed rule, PBGC
• Notices of termination under part Compliance With Rulemaking considers a small entity to be a plan
4041A. Requirements with fewer than 100 participants. This
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• Notices of insolvency and of is the same criterion PBGC uses in other
insolvency benefit level under part Executive Order 12866 ‘‘Regulatory aspects of its regulations involving
4245. Planning and Review’’ and Executive small plans, and is consistent with
• Notices of insolvency and of Order 13563 ‘‘Improving Regulation and certain requirements in Title I of ERISA
insolvency benefit level under part 4281 Regulatory Review’’ and the Internal Revenue Code, as well
(following mass withdrawal). PBGC has determined in consultation as the definition of a small entity that
• Applications for financial with the Office of Management and the Department of Labor (DOL) has used
assistance under part 4281 (following Budget that this rule is not a ‘‘significant for purposes of the Regulatory
mass withdrawal). regulatory action’’ under Executive Flexibility Act.

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18174 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Proposed Rules

Thus, PBGC believes that assessing The collection of information in Part 29 CFR Part 4041A
the impact of the proposal on small 4281 is approved under control number Employee benefit plans, Pension
plans is an appropriate substitute for 1212–0032 (expires July 31, 2017). insurance, Reporting and recordkeeping
evaluating the effect on small entities. PBGC estimates that there will be 324 requirements.
The definition of small entity respondents each year and that the total
considered appropriate for this purpose annual burden of the collection of 29 CFR Part 4281
differs, however, from a definition of information will be about 61 hours and Employee benefit plans, Pension
small business based on size standards $309,000 (about $950 per respondent). insurance, Reporting and recordkeeping
promulgated by the Small Business Copies of PBGC’s requests will be requirements.
Administration (13 § CFR 121.201) posted at http://www.pbgc.gov/res/laws-
pursuant to the Small Business Act. For the reasons given above, the PBGC
and-regulations/information- is proposing to amend 29 CFR parts
PBGC therefore requests comments on collections-under-omb-review.html and
the appropriateness of the size standard 4000, 4041A, and 4281 as follows.
may also be obtained free of charge by
used in evaluating the impact on small contacting the Disclosure Division of the PART 4000—FILING, ISSUANCE,
entities of the proposed amendments to Office of the General Counsel of PBGC, COMPUTATION OF TIME, AND
the reportable events regulation. RECORD RETENTION
1200 K Street NW., Washington, DC
On the basis of its proposed definition
20005, 202–326–4040. PBGC is
of small entity, PBGC certifies under ■ 1. The authority citation for part 4000
proposing to make changes for the
section 605(b) of the Regulatory continues to read as follows:
Flexibility Act (5 U.S.C. 601 et seq.) that following information collections:
the amendments in this rule would not notices of termination; notices of Authority: 29 U.S.C. 1082(f), 1302(b)(3).
have a significant economic impact on insolvency; notices of insolvency
■ 2. In § 4000.3, add paragraph (b)(3) to
a substantial number of small entities. benefit level; and applications for
read as follows:
Very few multiemployer plans are financial assistance.
small.2 And, as discussed above, the Comments on the paperwork § 4000.3 What methods of filing may I use?
amendments would not have a provisions under this proposed rule * * * * *
significant economic impact on entities should be sent to the Office of (b) * * *
of any size. Accordingly, as provided in Information and Regulatory Affairs, (3) When making filings to PBGC
section 605 of the Regulatory Flexibility Office of Management and Budget, under parts 4041A, 4245, and 4281 of
Act (5 U.S.C. 601 et seq.), sections 603 Attention: Desk Officer for Pension this chapter (except for notices of
and 604 would not apply. PBGC invites Benefit Guaranty Corporation, via benefit reductions and notices of
public comment on this burden electronic mail at OIRA_DOCKET@ restoration of benefits under part 4281),
estimate. omb.eop.gov or by fax to (202) 395– you must submit the information
6974. Although comments may be required under these parts electronically
Paperwork Reduction Act in accordance with the instructions on
submitted through June 2, 2015, the
PBGC is submitting the information Office of Management and Budget the PBGC’s Web site, except as
requirements under this proposed rule requests that comments be received on otherwise provided by the PBGC.
to the Office of Management and Budget or before May 4, 2015 to ensure their * * * * *
(OMB) for review and approval under consideration. Comments may address
the Paperwork Reduction Act. An (among other things)— PART 4041A—TERMINATION OF
agency may not conduct or sponsor, and MULTIEMPLOYER PLANS
• Whether each proposed collection
a person is not required to respond to,
a collection of information unless it of information is needed for the proper ■ 3. The authority citation for part
displays a currently valid OMB control performance of PBGC’s functions and 4041A continues to read as follows:
number. will have practical utility; Authority: 29 U.S.C. 1302(b)(3), 1341a,
The collection of information in Part • The accuracy of PBGC’s estimate of 1441.
4041A is approved under control the burden of each proposed collection ■ 4. In § 4041A.11, add new paragraph
number 1212–0020 (expires June 30, of information, including the validity of (d) to read as follows:
2017). PBGC estimates that there will be the methodology and assumptions used;
10 respondents each year and that the • Enhancement of the quality, utility, § 4041A.11 Requirement of notice.
total annual burden of the collection of and clarity of the information to be (d) How and where to file. Filings to
information will be about 17 hours and collected; and PBGC under this subpart must be
$3,850.00 (about 2 hours and $385 per submitted in accordance with the rules
respondent). • Minimizing the burden of each
collection of information on those who in subpart A of part 4000 of this chapter.
The collection of information in Part See § 4000.4 of this chapter for
4245 is approved under control number are to respond, including through the
use of appropriate automated, information on where to file.
1212–0033 (expires June 30, 2017).
PBGC estimates that there will be one electronic, mechanical, or other § 4041A.25 [Amended]
respondent each year and that the total technological collection techniques or
■ 5. In § 4041A.25, amend paragraph (d)
other forms of information technology,
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annual burden of the collection of by removing the words ‘‘of the PBGC’’
information will be about $1,550. e.g., permitting electronic submission of
and adding in their place ‘‘to the
responses.
PBGC’’.
2 According to data from 2012 5500 filings, only
List of Subjects
32 of 1,407 active plans have fewer than 100 PART 4281—DUTIES OF PLAN
participants. Further, PBGC is not aware of a 29 CFR Part 4000
multiemployer plan that was established and
SPONSOR FOLLOWING MASS
covered by ERISA that was not initially a large plan. WITHDRAWAL
Generally it is only after a plan terminates and
Pension insurance, Pensions,
employers withdraw from the plan that a plan Reporting and recordkeeping ■ 6. The authority citation for part 4281
might reduce in size to fewer than 100 participants. requirements. continues to read as follows:

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Document Created: 2015-12-18 15:28:28
Document Modified: 2015-12-18 15:28:28
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule.
Dates		Comments must be submitted on or before June 2, 2015.
Contact		Catherine B. Klion ([email protected]), Assistant General Counsel for Regulatory Affairs, or Donald McCabe ([email protected]), Attorney, Office of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005-4026; 202-326-4024. (TTY/TDD users may call the Federal relay service toll-free at 1-800-877-8339 and ask to be connected to 202-326-4024.)
FR Citation		80 FR 18172
RIN Number		1212-AB28
CFR Citation		29 CFR 4000 29 CFR 4041
CFR Associated		Pension Insurance; Pensions; Reporting and Recordkeeping Requirements and Employee Benefit Plans