80 FR 52972 - Administration of Multiemployer Plan Participant Vote on an Approved Suspension of Benefits Under MPRA

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 80, Issue 170 (September 2, 2015)

Page Range		52972-52976
FR Document		2015-21766
The Multiemployer Pension Reform Act of 2014 (MPRA) pertains to multiemployer plans that are projected to have insufficient funds, at some point in the future, to pay the full plan benefits to which individuals will be entitled (referred to as plans in ``critical and declining status''). The sponsor of such a plan is permitted to reduce the pension benefits payable to plan participants and beneficiaries if certain conditions are satisfied (referred to as a ``suspension of benefits''). A suspension of benefits is not permitted to take effect prior to a vote of the participants of the plan with respect to the suspension. This document contains temporary regulations that provide guidance relating to the administration of that vote. These temporary regulations affect active, retired, and deferred vested participants and beneficiaries of multiemployer plans that are in critical and declining status as well as employers contributing to, and sponsors and administrators of, those plans. The text of these temporary regulations also serves as the text of the proposed regulations set forth in the notice of proposed rulemaking (REG-123640-15) on this subject in the Proposed Rules section of this issue of the Federal Register.
Federal Register, Volume 80 Issue 170 (Wednesday, September 2, 2015)
[Federal Register Volume 80, Number 170 (Wednesday, September 2, 2015)]
[Rules and Regulations]
[Pages 52972-52976]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21766]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9735]
RIN 1545-BM89


Administration of Multiemployer Plan Participant Vote on an 
Approved Suspension of Benefits Under MPRA

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary regulations.

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SUMMARY: The Multiemployer Pension Reform Act of 2014 (MPRA) pertains 
to multiemployer plans that are projected to have insufficient funds, 
at some point in the future, to pay the full plan benefits to which 
individuals will be entitled (referred to as plans in ``critical and 
declining status''). The sponsor of such a plan is permitted to reduce 
the pension benefits payable to plan participants and beneficiaries if 
certain conditions are satisfied (referred to as a ``suspension of 
benefits''). A suspension of benefits is not permitted to take effect 
prior to a vote of the participants of the

[[Page 52973]]

plan with respect to the suspension. This document contains temporary 
regulations that provide guidance relating to the administration of 
that vote. These temporary regulations affect active, retired, and 
deferred vested participants and beneficiaries of multiemployer plans 
that are in critical and declining status as well as employers 
contributing to, and sponsors and administrators of, those plans. The 
text of these temporary regulations also serves as the text of the 
proposed regulations set forth in the notice of proposed rulemaking 
(REG-123640-15) on this subject in the Proposed Rules section of this 
issue of the Federal Register.

DATES: Effective date: These temporary regulations are effective on 
September 2, 2015.
    Applicability date: These temporary regulations apply on and after 
June 17, 2015, and expire on June 15, 2018.

FOR FURTHER INFORMATION CONTACT: The Department of the Treasury MPRA 
guidance information line at (202) 622-1559 (not a toll-free number).

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    These temporary regulations are being issued without prior notice 
and public procedure pursuant to the Administrative Procedure Act (5 
U.S.C. 553). The collection of information contained in these 
regulations has been reviewed and approved by the Office of Management 
and Budget under control number 1545-2260.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid control number.
    For further information concerning this collection of information, 
and where to submit comments on the collection of information and the 
accuracy of the estimated burden, and suggestions for reducing this 
burden, please refer to the preamble to the cross-referenced notice of 
proposed rulemaking on this subject in the Proposed Rules section in 
this issue of the Federal Register.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally, tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

    Section 432(e)(9) of the Internal Revenue Code (Code), as amended 
by the Multiemployer Pension Reform Act of 2014 (MPRA), permits plan 
sponsors of certain multiemployer plans to reduce the plan benefits 
payable to participants and beneficiaries (referred to as a 
``suspension of benefits'') if specified conditions are satisfied. One 
key condition is that any such plan must be projected to have 
insufficient funds, at some point in the future, to pay the full 
benefits to which individuals will be entitled under the plan (referred 
to as a plan in ``critical and declining status'').
    Under section 432(e)(9)(H), no suspension of benefits may take 
effect prior to a vote of the participants of the plan with respect to 
the suspension. Section 432(e)(9)(H) requires that the vote be 
administered by the Secretary of the Treasury, in consultation with the 
Pension Benefit Guaranty Corporation and the Secretary of Labor 
(generally referred to in this preamble as the Treasury Department, 
PBGC, and Labor Department, respectively), within 30 days after 
approval of a suspension application. The plan sponsor is required to 
provide a ballot for a vote (subject to approval by the Treasury 
Department, in consultation with the PBGC and the Labor Department). 
The statute specifies information that the ballot must contain, 
including a statement in opposition to the proposed suspension that is 
compiled from comments received on the application.
    On June 19, 2015, the Treasury Department and the Internal Revenue 
Service published temporary regulations (TD 9723) under section 
432(e)(9) in the Federal Register (80 FR 35207) (June 2015 temporary 
regulations). The June 2015 temporary regulations provide general 
guidance regarding section 432(e)(9) and outline the requirements for a 
plan sponsor of a plan that is in critical and declining status to 
apply for a suspension of benefits and for the Treasury Department to 
begin processing such an application. A notice of proposed rulemaking 
cross-referencing the temporary regulations (REG-102648-15) was also 
published in the same issue of the Federal Register (80 FR 35262). Both 
the June 2015 temporary regulations and the related proposed 
regulations reflect consideration of comments received in response to 
the Request for Information on Suspensions of Benefits under the 
Multiemployer Pension Reform Act of 2014 published in the Federal 
Register on February 18, 2015 (80 FR 8578) (February 2015 request for 
information).
    The June 2015 temporary regulations and the related proposed 
regulations set forth many of the rules relating to the participant 
vote under section 432(e)(9)(H). However, neither the June 2015 
temporary regulations nor the related proposed regulations provide 
detailed guidance on how the Treasury Department would administer the 
vote.

Explanation of Provisions

Overview

    These temporary regulations provide guidance relating to the 
administration of the participant vote required under section 
432(e)(9)(H). These temporary regulations reflect consideration of 
comments received in response to the February 2015 request for 
information. The Treasury Department consulted with the PBGC and the 
Labor Department on these temporary regulations.
    A participant vote requires the completion of three steps. First, a 
package of ballot materials is distributed to eligible voters. Second, 
the eligible voters cast their votes and the votes are collected and 
tabulated. Third, the Treasury Department (in consultation with the 
PBGC and the Labor Department) determines whether a majority of the 
eligible voters has voted to reject the proposed suspension. The June 
2015 temporary regulations define eligible voters as all plan 
participants and all beneficiaries of deceased participants.
    Under these temporary regulations, the Treasury Department is 
permitted to designate a service provider or service providers to 
facilitate the administration of the vote. The service provider may 
assist in the steps of distributing the ballot package to eligible 
voters and collecting and tabulating the votes. These temporary 
regulations provide that if a service provider is designated to collect 
and tabulate votes, then the service provider will provide the Treasury 
Department with the report of the results of the vote, which includes a 
breakdown of the number of eligible voters who voted, the number of 
eligible voters who voted in support of and to reject the suspension, 
and certain other information. The Treasury Department will use that 
information to determine (in consultation with the PBGC and the Labor 
Department) whether a majority of eligible voters has voted to reject 
the suspension.

Distribution of the Ballot Package

    These temporary regulations provide that the ballot package sent to 
eligible voters includes the approved ballot and a unique identifier 
for each eligible voter. The unique identifier, which is assigned by 
the Treasury Department or a designated service provider, is intended 
to ensure the validity of the

[[Page 52974]]

vote while maintaining the eligible voters' privacy in the voting 
process.
    These temporary regulations provide guidance on the plan sponsor's 
statutory requirement to provide a ballot. Because the ballot for each 
eligible voter is accompanied by a unique identifier, the plan sponsor 
cannot itself distribute the ballot. Instead, the plan sponsor is 
responsible for furnishing a list of eligible voters so that the ballot 
can be distributed on the plan sponsor's behalf. The list must include 
the last known mailing address for each eligible voter (except for 
those eligible voters for whom the last known mailing address is known 
to be incorrect). The plan sponsor must also provide a list of eligible 
voters whom the plan sponsor has been unable to locate using reasonable 
efforts. In addition, the plan sponsor must furnish current electronic 
mailing addresses for certain eligible voters, who are identified 
below. The plan sponsor must also furnish the individualized estimates 
provided to eligible voters as part of the earlier notices described in 
section 432(e)(9)(F) (or, if an individualized estimate is no longer 
accurate for an eligible voter, a corrected version of that estimate) 
so that an individualized estimate can be included with the ballot for 
each eligible voter. These materials must be provided no later than 7 
days after the date the Treasury Department has approved an application 
for a suspension of benefits.
    Under these temporary regulations, the plan sponsor is responsible 
for paying all costs associated with the ballot package, including 
postage. This is because the section 432(e)(9)(H)(iii) requirement that 
the plan sponsor provide a ballot means that the plan sponsor is 
responsible for the cost of providing the ballot package to eligible 
voters, including the costs associated with printing, assembling and 
mailing those ballot packages.
    These temporary regulations provide that ballot packages will be 
distributed to eligible voters by first-class U.S. mail. A supplemental 
copy of the mailed ballot package may also be sent by an electronic 
communication to an eligible voter who has consented to receive 
electronic notifications. For example, if the ballot sent by first-
class U.S. mail is not received, a supplemental ballot may be provided 
by electronic mail.
    These temporary regulations provide additional detail on the plan 
sponsor's duty to communicate with eligible voters. As part of this 
communication requirement, these temporary regulations provide that the 
plan sponsor must notify certain eligible voters (using an electronic 
communication) that the ballot package is being mailed by first-class 
U.S. mail. The eligible voters who must be notified under this rule are 
those who received the notice of the proposed suspension under section 
432(e)(9)(F) in electronic form and those who regularly receive plan-
related electronic communications from the plan sponsor.\1\ This 
notification must be sent promptly after the plan sponsor is informed 
of the ballot distribution date. This notification in electronic form 
ensures that those eligible voters who ordinarily expect to receive 
communications from the plan sponsor in electronic form are aware that 
a ballot package will arrive via first-class U.S. mail. Under these 
temporary regulations, this notification is sent by the plan sponsor, 
rather than a service provider, so that the communication comes from a 
familiar source, which would make it less likely that the communication 
is delivered to a ``spam'' or ``junk'' mail folder.
---------------------------------------------------------------------------

    \1\ The plan sponsor is also permitted to send this notification 
to any other eligible voters for whom the plan sponsor has an 
electronic mailing address.
---------------------------------------------------------------------------

    The plan sponsor will have previously made reasonable efforts to 
contact individuals whose mailed initial notices were returned as 
undeliverable, and the mailing addresses for the ballot packages that 
are furnished by the plan sponsor will reflect updates as a result of 
those reasonable efforts. These temporary regulations require the plan 
sponsor to make similar reasonable efforts to locate eligible voters 
after being notified that their ballots were returned as undeliverable.

Voting by Eligible Voters and Collection and Tabulation of Votes

    In accordance with section 432(e)(9)(H)(ii), these temporary 
regulations require that the Treasury Department (in consultation with 
the PBGC and the Labor Department) administer the participant vote no 
later than 30 days following the date of approval of an application for 
a suspension of benefits. These temporary regulations interpret the 
term ``administer a vote'' to mean that the voting period must begin 
(but need not end) within the 30-day timeframe. As a result, these 
temporary regulations require that ballot packages be distributed no 
later than 30 days after the application has been approved and specify 
that the voting period begins on the ballot distribution date. Although 
the temporary regulations allow for distribution of ballot packages up 
to 30 days following approval of an application for suspension of 
benefits, it is generally expected that ballot packages will be 
distributed well before that deadline.
    These temporary regulations specify that the voting period 
generally will remain open until the 30th day following the date the 
Treasury Department approves the application for a suspension of 
benefits. However, the voting period will not close earlier than 21 
days after the ballot distribution date. In addition, the Treasury 
Department (in consultation with the PBGC and the Labor Department) is 
permitted to specify a later end to the voting period in appropriate 
circumstances. For example, an extension might be appropriate if, near 
the end of the original voting period, there are significant technical 
difficulties with respect to the collection of votes and those 
technical difficulties are not resolved in time to provide eligible 
voters with sufficient time to cast their votes.
    These temporary regulations specify that votes must be collected 
and tabulated using an automated voting system under which each 
eligible voter must furnish a unique identifier in order to cast a 
vote. Such a system will be designed to record votes both 
electronically (through a Web site) and telephonically (through a toll-
free number that will accommodate a touch-tone or interactive voice 
response). This will permit any voter who lacks internet access or, for 
any reason, is not comfortable voting via a Web site, to cast a vote 
using a toll-free number. It is expected that the system will provide 
reasonable support to facilitate eligible voters' use of the system's 
electronic and telephonic features. These temporary regulations clarify 
that votes are permitted to be cast using only these methods and that 
responses returned by any other means are invalid.
    The temporary regulations do not provide for the collection of 
votes using paper ballots because casting votes using a Web site or a 
telephonic system will be convenient for participants and will save 
time and money while providing reliable results. Providing a third 
voting option by also permitting votes to be cast using paper ballots 
would require additional time, in order for ballots to be returned by 
mail and authenticated and counted by hand. Voting by marking and 
mailing back paper ballots would also entail significant additional 
costs to process (such as employing additional personnel for processing 
and providing return postage and envelopes). The temporary regulations 
therefore reflect the conclusion that the most efficient and fairest 
approach to implementing the statutory provisions on

[[Page 52975]]

administration of the vote on an approved suspension of benefits is to 
provide eligible voters with sufficient time to carefully consider the 
information furnished to them before casting their votes while seeking 
to avoid unnecessary time and expense processing those votes once they 
have been cast. The automated methods of voting, collecting, and 
tabulating votes set forth in these temporary regulations also have 
been used by pension plans for other types of elections that involve 
voting by plan participants (including retirees).

Determination That a Majority of Eligible Voters Has Voted to Reject 
the Suspension

    Within 7 days after the end of the voting period, these temporary 
regulations provide that the Treasury Department (in consultation with 
the PBGC and the Labor Department) will either certify that a majority 
of all eligible voters has voted to reject the suspension or, if a 
majority of eligible voters did not vote to reject the suspension, 
issue a final authorization to suspend. These temporary regulations 
permit the Treasury Department (in consultation with the PBGC and the 
Labor Department) to establish necessary policies and procedures to 
facilitate the vote. These policies and procedures may include, but are 
not limited to, establishing a process for an eligible voter to 
challenge the vote. It is expected that the Treasury Department will 
resolve any challenges before the conclusion of the 7-day period 
following the end of the voting period.

Items Related to the Contents of the Ballot

    Under these temporary regulations, the statement in opposition to 
the proposed suspension that is compiled from comments received on the 
application will be prepared by the Labor Department. Under these 
temporary regulations, this statement in opposition must be written in 
a manner that is readily understandable to the average plan 
participant. It is intended that the statement in opposition will be 
written in a manner to ensure parity with the statement in support of 
the suspension. If there are no comments in opposition to the proposed 
suspension, then the statement in opposition will indicate that there 
were no such comments.
    These temporary regulations provide that a model ballot may be 
published in the form of a revenue procedure, notice, or other guidance 
published in the Internal Revenue Bulletin.

Effective/Applicability Date

    As with the previously published temporary regulations, these 
regulations apply on and after June 17, 2015, and expire on June 15, 
2018.

Special Analyses

    Certain IRS regulations, including this one, are exempt from the 
requirements of Executive Order 12866, as supplemented and reaffirmed 
by Executive Order 13563. Therefore, a regulatory impact assessment is 
not required. It also has been determined that section 553(b) of the 
Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to 
these regulations. For the applicability of the Regulatory Flexibility 
Act (5 U.S.C. chapter 6) please refer to the Special Analyses section 
of the preamble to the cross-referenced notice of proposed rulemaking 
published in the Proposed Rules section in this issue of the Federal 
Register. Pursuant to section 7805(f) of the Code, these regulations 
have been submitted to the Chief Counsel for Advocacy of the Small 
Business Administration for comment on their impact on small business.

Contact Information

    For general questions regarding these temporary regulations, please 
contact the Department of the Treasury MPRA guidance information line 
at (202) 622-1559 (not a toll-free number). For information regarding a 
specific application for a suspension of benefits, please contact the 
Department of the Treasury at (202) 622-1534 (not a toll-free number).

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Amendments to the Regulations

    Accordingly, 26 CFR part 1 is amended as follows:

PART 1--INCOME TAXES

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

    Authority: 26 U.S.C. 7805 * * *

0
Par. 2. Section 1.432(e)(9)-1T(h) is amended by revising paragraph 
(h)(2) and adding paragraphs (h)(3)(iv) and (v) and (h)(7) and (8) to 
read as follows:


Sec.  1.432(e)(9)-1T  Benefit suspensions for multiemployer plans in 
critical and declining status (temporary).

* * * * *
    (h) * * *
    (2) Participant vote--(i) In general. The participant vote 
described in paragraph (h)(1)(i) of this section requires completion of 
the following steps--
    (A) Distribution of the ballot package described in paragraph 
(h)(2)(iii) of this section to the eligible voters;
    (B) Voting by eligible voters and collection and tabulation of the 
votes, as described in paragraph (h)(2)(iv) of this section; and
    (C) Determination of whether a majority of the eligible voters has 
voted to reject the suspension, as described in paragraph (h)(2)(v) of 
this section.
    (ii) Designation of service provider for limited functions. The 
Secretary of the Treasury is permitted to designate one or more service 
providers to perform, under the supervision of the Secretary, any of 
the functions described in paragraphs (h)(2)(i)(A) and (B) of this 
section. If the Secretary designates a service provider to perform 
these functions then the service provider will provide the Secretary 
with a written report of the results of the vote, including (as 
applicable)--
    (A) The number of ballot packages distributed to eligible voters;
    (B) The number of eligible voters to whom ballot packages have not 
been provided (because the individuals could not be located);
    (C) The number of eligible voters who voted (specifying the number 
of affirmative votes and the number of negative votes cast); and
    (D) Any other information that the Secretary requires.
    (iii) Distribution of the ballot package to the eligible voters--
(A) Ballot package. The ballot package distributed to each eligible 
voter shall consist of--
    (1) A ballot, approved under paragraph (h)(3)(iii) of this section, 
which contains the items described in section 432(e)(9)(H)(iii) and 
paragraph (h)(3)(i) of this section; and
    (2) A unique identifier assigned to the eligible voter for use in 
voting.
    (B) Plan sponsor responsibilities--(1) In general. This paragraph 
(h)(2)(iii)(B) sets forth the responsibilities of the plan sponsor with 
respect to the distribution of the ballot package to the eligible 
voters.
    (2) Furnish information regarding eligible voters. No later than 7 
days following the date the Secretary of the Treasury has approved an 
application for a suspension of benefits under paragraph (g) of this 
section, the plan sponsor must furnish the following--
    (i) A list of all eligible voters;
    (ii) For each eligible voter, the last known mailing address (or, 
if the plan sponsor has been unable to locate that individual using the 
standards that apply for purposes of paragraph (f)(1)(i)

[[Page 52976]]

of this section, an indication that the individual could not be located 
through reasonable efforts);
    (iii) Current electronic mailing addresses for those eligible 
voters identified in paragraph (h)(2)(iii)(B)(4) of this section; and
    (iv) The individualized estimates provided to eligible voters as 
part of the earlier notices described in section 432(e)(9)(F) (or, if 
an individualized estimate is no longer accurate for an eligible voter, 
a corrected version of that estimate).
    (3) Communicate with eligible voters. In accordance with section 
432(e)(9)(H)(iv) and paragraph (h)(1)(ii) of this section, the plan 
sponsor is responsible for communicating with eligible voters, which 
includes--
    (i) Notifying the eligible voters described in paragraph 
(h)(2)(iii)(B)(4) of this section that a ballot package is being 
distributed by first-class U.S. mail; and
    (ii) Making reasonable efforts (using the standards that apply for 
purposes of paragraph (f)(1)(i) of this section) as necessary to locate 
eligible voters for whom the plan sponsor has received notification 
that the mailed ballot packages are returned as undeliverable so that 
ballot packages can be sent to those eligible voters.
    (4) Eligible voters to receive electronic notification. Those 
eligible voters whom the plan sponsor must notify electronically are--
    (i) Eligible voters who previously received the notice described in 
paragraph (f) of this section in electronic form (as permitted under 
paragraph (f)(3)(ii) of this section), and
    (ii) Any other eligible voters who regularly receive plan-related 
communications from the plan sponsor in electronic form.
    (5) Method of notifying certain eligible voters. The notification 
described in paragraph (h)(2)(iii)(B)(3)(i) of this section for an 
eligible voter must be made using the electronic form normally used to 
send plan-related communications to that voter (or the form used to 
provide the notice in paragraph (f) of this section, if different). The 
plan sponsor must send this notification promptly after being informed 
of the ballot distribution date (within the meaning of paragraph 
(h)(2)(iii)(D) of this section) and the notification must include the 
ballot distribution date.
    (6) Pay costs associated with distribution. The plan sponsor is 
responsible for paying all costs associated with printing, assembling, 
and distributing the ballot package, including postage.
    (C) Required method of distributing ballot package. Ballot packages 
must be distributed to eligible voters by first-class U.S. mail. A 
supplemental copy of the mailed ballot package may also be sent by an 
electronic communication to an eligible voter who has consented to 
receive electronic communications.
    (D) Timing. Ballot packages will be distributed to eligible voters 
no later than 30 days after the Secretary of the Treasury has approved 
an application for a suspension of benefits under paragraph (g) of this 
section. The date on which the ballot packages are mailed to the 
eligible voters is referred to as the ballot distribution date.
    (iv) Collection and tabulation of votes cast by eligible voters--
(A) Voting period. The voting period begins on the ballot distribution 
date. The voting period generally remains open until the 30th day 
following the date the Secretary of the Treasury has approved an 
application for a suspension of benefits under paragraph (g) of this 
section. However, the voting period will not close earlier than 21 days 
after the ballot distribution date. In addition, the Secretary (in 
consultation with the PBGC and the Secretary of Labor) may specify a 
later date to end the voting period in appropriate circumstances.
    (B) Required use of automated voting system. Votes must be cast 
using an automated voting system that meets the requirements of 
paragraph (h)(2)(iv)(C) of this section. Votes cast by any other method 
are invalid.
    (C) Automated voting system. An automated voting system meets the 
requirements of this paragraph (h)(2)(iv)(C) only if the system--
    (1) Collects votes cast by eligible voters both electronically 
(through a Web site) and telephonically (through a toll-free number 
using a touch-tone or interactive voice response); and
    (2) Accepts only votes cast during the voting period by an eligible 
voter who provides the eligible voter's unique identifier described in 
paragraph (h)(2)(iii)(A)(2) of this section.
    (D) Policies and procedures. The Secretary of the Treasury (in 
consultation with the PBGC and the Secretary of Labor) may establish 
such policies and procedures as may be necessary to facilitate the 
administration of the vote under this paragraph (h)(2). These policies 
and procedures may include, but are not limited to, establishing a 
process for an eligible voter to challenge the vote.
    (v) Determination of whether a majority of the eligible voters has 
voted to reject the suspension. Within 7 calendar days after the end of 
the voting period, the Secretary of the Treasury (in consultation with 
the PBGC and the Secretary of Labor) will--
    (A) Certify that a majority of all eligible voters has voted to 
reject the suspension that was approved under paragraph (g) of this 
section, or
    (B) Issue a final authorization to suspend as described in 
paragraph (h)(6) of this section.
* * * * *
    (3) * * *
    (iv) Statement in opposition to the proposed suspension. The 
statement in opposition to the proposed suspension that is prepared 
from comments received on the application, as required under section 
432(e)(9)(H)(iii)(II), will be compiled by the Secretary of Labor and 
will be written in accordance with the rules of paragraph (h)(3)(ii) of 
this section. If no comments in opposition are received, the statement 
in opposition to the proposed suspension will include a statement 
indicating that there were no such comments.
    (v) Model ballot. A model ballot may be published in the form of a 
revenue procedure, notice, or other guidance published in the Internal 
Revenue Bulletin.
* * * * *
    (7) Effective/applicability date. Paragraph (h)(2) and paragraphs 
(h)(3)(iv) and (v) of this section apply on and after June 17, 2015.
    (8) Expiration date. The applicability of paragraph (h)(2) and 
paragraphs (h)(3)(iv) and (v) of this section expires on June 15, 2018.
* * * * *

John M. Dalrymple,
Deputy Commissioner for Services and Enforcement.
    Approved: August 25, 2015.

Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2015-21766 Filed 8-31-15; 11:15 am]
 BILLING CODE 4830-01-P
52972 Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Rules and Regulations

License License Federal Register
Country Entity requirement review policy citation

RN-Yuganskneftegaz LLC, a.k.a., the For all items subject to See § 746.5(b) of the EAR 80 FR [INSERT FR PAGE
following two aliases: the EAR when used in NUMBER 9/2/2015].
—RN- Yuganskneftegaz OOO; and projects specified in
§ 746.5 of the EAR
—Yuganskneftegaz. Lenina St., 26,
Nefteyugansk, Tyumen Region,
628309, Russia
* * * * * *

Southeast Trading Oy, a.k.a., the fol- For all items subject to Presumption of denial ...... 80 FR [INSERT FR PAGE
lowing one alias: the EAR. (See § 744.11 NUMBER 9/2/2015].
of the EAR)
—Southeast Trading LTD. St. Peters-
burg, Russia (See also addresses
under Finland and Romania)
* * * * * *

SWITZERLAND Airfix Aviation Oy, Chemin des Papil- For all items subject to Presumption of denial ...... 80 FR [INSERT FR PAGE
lons 4, Geneva/Cointrin 1216 Swit- the EAR. (See § 744.11 NUMBER 9/2/2015].
zerland (See also address under Fin- of the EAR)
land)
Rosneft Trading S.A., 2, Rue Place du For all items subject to See § 746.5(b) of the EAR 80 FR [INSERT FR PAGE
Lac, 1204, Geneva, Switzerland the EAR when used in NUMBER 9/2/2015].
projects specified in
§ 746.5 of the EAR

UKRAINE ......... * * * * * *

Private Joint-Stock Company Mako For all items subject to Presumption of denial ...... 80 FR [INSERT FR PAGE
Holding, a.k.a., the following one the EAR. (See § 744.11 NUMBER 9/2/2015].
alias: of the EAR)
—Mako Holding. Bohdan
Khmelnytsky Avenue, Building 102,
Voroshilovsky District, Donetsk,
Donetsk Oblast 83015, Ukraine

* * * * * * *

UNITED KING- * * * * * *
DOM.
Southport Management Services Lim- For all items subject to Presumption of denial ...... 80 FR [INSERT FR PAGE
ited, De Castro Street 24, Akara the EAR. (See § 744.11 NUMBER 9/2/2015].
Building, Wickhams Cay 1, Road of the EAR)
Town, Tortola, Virgin Islands, British
(See also address under Cyprus).

* * * * * * *

Dated: August 25, 2015. DEPARTMENT OF THE TREASURY SUMMARY: The Multiemployer Pension
Eric L. Hirschhorn, Reform Act of 2014 (MPRA) pertains to
Under Secretary of Commerce for Industry Internal Revenue Service multiemployer plans that are projected
and Security. to have insufficient funds, at some point
[FR Doc. 2015–21682 Filed 9–1–15; 8:45 am]
26 CFR Part 1 in the future, to pay the full plan
BILLING CODE 3510–33–P [TD 9735] benefits to which individuals will be
entitled (referred to as plans in ‘‘critical
RIN 1545–BM89
and declining status’’). The sponsor of
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Administration of Multiemployer Plan such a plan is permitted to reduce the
Participant Vote on an Approved pension benefits payable to plan
Suspension of Benefits Under MPRA participants and beneficiaries if certain
conditions are satisfied (referred to as a
AGENCY: Internal Revenue Service (IRS), ‘‘suspension of benefits’’). A suspension
Treasury. of benefits is not permitted to take effect
ACTION: Temporary regulations. prior to a vote of the participants of the

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Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Rules and Regulations 52973

plan with respect to the suspension. the Multiemployer Pension Reform Act 432(e)(9)(H). However, neither the June
This document contains temporary of 2014 (MPRA), permits plan sponsors 2015 temporary regulations nor the
regulations that provide guidance of certain multiemployer plans to related proposed regulations provide
relating to the administration of that reduce the plan benefits payable to detailed guidance on how the Treasury
vote. These temporary regulations affect participants and beneficiaries (referred Department would administer the vote.
active, retired, and deferred vested to as a ‘‘suspension of benefits’’) if
specified conditions are satisfied. One Explanation of Provisions
participants and beneficiaries of
multiemployer plans that are in critical key condition is that any such plan Overview
and declining status as well as must be projected to have insufficient These temporary regulations provide
employers contributing to, and sponsors funds, at some point in the future, to
guidance relating to the administration
and administrators of, those plans. The pay the full benefits to which
of the participant vote required under
text of these temporary regulations also individuals will be entitled under the
section 432(e)(9)(H). These temporary
serves as the text of the proposed plan (referred to as a plan in ‘‘critical
regulations reflect consideration of
regulations set forth in the notice of and declining status’’).
Under section 432(e)(9)(H), no comments received in response to the
proposed rulemaking (REG–123640–15) February 2015 request for information.
on this subject in the Proposed Rules suspension of benefits may take effect
prior to a vote of the participants of the The Treasury Department consulted
section of this issue of the Federal with the PBGC and the Labor
Register. plan with respect to the suspension.
Section 432(e)(9)(H) requires that the Department on these temporary
DATES: Effective date: These temporary vote be administered by the Secretary of regulations.
regulations are effective on September 2, the Treasury, in consultation with the A participant vote requires the
2015. Pension Benefit Guaranty Corporation completion of three steps. First, a
Applicability date: These temporary and the Secretary of Labor (generally package of ballot materials is distributed
regulations apply on and after June 17, referred to in this preamble as the to eligible voters. Second, the eligible
2015, and expire on June 15, 2018. Treasury Department, PBGC, and Labor voters cast their votes and the votes are
FOR FURTHER INFORMATION CONTACT: The Department, respectively), within 30 collected and tabulated. Third, the
Department of the Treasury MPRA days after approval of a suspension Treasury Department (in consultation
guidance information line at (202) 622– application. The plan sponsor is with the PBGC and the Labor
1559 (not a toll-free number). required to provide a ballot for a vote Department) determines whether a
SUPPLEMENTARY INFORMATION: (subject to approval by the Treasury majority of the eligible voters has voted
Department, in consultation with the to reject the proposed suspension. The
Paperwork Reduction Act June 2015 temporary regulations define
PBGC and the Labor Department). The
These temporary regulations are being statute specifies information that the eligible voters as all plan participants
issued without prior notice and public ballot must contain, including a and all beneficiaries of deceased
procedure pursuant to the statement in opposition to the proposed participants.
Administrative Procedure Act (5 U.S.C. suspension that is compiled from Under these temporary regulations,
553). The collection of information comments received on the application. the Treasury Department is permitted to
contained in these regulations has been On June 19, 2015, the Treasury designate a service provider or service
reviewed and approved by the Office of Department and the Internal Revenue providers to facilitate the administration
Management and Budget under control Service published temporary regulations of the vote. The service provider may
number 1545–2260. (TD 9723) under section 432(e)(9) in the assist in the steps of distributing the
An agency may not conduct or Federal Register (80 FR 35207) (June ballot package to eligible voters and
sponsor, and a person is not required to 2015 temporary regulations). The June collecting and tabulating the votes.
respond to, a collection of information 2015 temporary regulations provide These temporary regulations provide
unless the collection of information general guidance regarding section that if a service provider is designated
displays a valid control number. 432(e)(9) and outline the requirements to collect and tabulate votes, then the
For further information concerning for a plan sponsor of a plan that is in service provider will provide the
this collection of information, and critical and declining status to apply for Treasury Department with the report of
where to submit comments on the a suspension of benefits and for the the results of the vote, which includes
collection of information and the Treasury Department to begin a breakdown of the number of eligible
accuracy of the estimated burden, and processing such an application. A notice voters who voted, the number of eligible
suggestions for reducing this burden, of proposed rulemaking cross- voters who voted in support of and to
please refer to the preamble to the cross- referencing the temporary regulations reject the suspension, and certain other
referenced notice of proposed (REG–102648–15) was also published in information. The Treasury Department
rulemaking on this subject in the the same issue of the Federal Register will use that information to determine
Proposed Rules section in this issue of (80 FR 35262). Both the June 2015 (in consultation with the PBGC and the
the Federal Register. temporary regulations and the related Labor Department) whether a majority
Books or records relating to a proposed regulations reflect of eligible voters has voted to reject the
collection of information must be consideration of comments received in suspension.
retained as long as their contents may response to the Request for Information
Distribution of the Ballot Package
become material in the administration on Suspensions of Benefits under the
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of any internal revenue law. Generally, Multiemployer Pension Reform Act of These temporary regulations provide
tax returns and tax return information 2014 published in the Federal Register that the ballot package sent to eligible
are confidential, as required by 26 on February 18, 2015 (80 FR 8578) voters includes the approved ballot and
U.S.C. 6103. (February 2015 request for information). a unique identifier for each eligible
The June 2015 temporary regulations voter. The unique identifier, which is
Background and the related proposed regulations set assigned by the Treasury Department or
Section 432(e)(9) of the Internal forth many of the rules relating to the a designated service provider, is
Revenue Code (Code), as amended by participant vote under section intended to ensure the validity of the

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Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Rules and Regulations 52975

administration of the vote on an Effective/Applicability Date paragraph (h)(1)(i) of this section
approved suspension of benefits is to As with the previously published requires completion of the following
provide eligible voters with sufficient temporary regulations, these regulations steps—
time to carefully consider the apply on and after June 17, 2015, and (A) Distribution of the ballot package
information furnished to them before expire on June 15, 2018. described in paragraph (h)(2)(iii) of this
casting their votes while seeking to section to the eligible voters;
avoid unnecessary time and expense Special Analyses (B) Voting by eligible voters and
processing those votes once they have Certain IRS regulations, including this collection and tabulation of the votes, as
been cast. The automated methods of one, are exempt from the requirements described in paragraph (h)(2)(iv) of this
voting, collecting, and tabulating votes of Executive Order 12866, as section; and
set forth in these temporary regulations supplemented and reaffirmed by (C) Determination of whether a
also have been used by pension plans Executive Order 13563. Therefore, a majority of the eligible voters has voted
for other types of elections that involve regulatory impact assessment is not to reject the suspension, as described in
voting by plan participants (including required. It also has been determined paragraph (h)(2)(v) of this section.
retirees). that section 553(b) of the Administrative (ii) Designation of service provider for
Procedure Act (5 U.S.C. chapter 5) does limited functions. The Secretary of the
Determination That a Majority of Treasury is permitted to designate one
Eligible Voters Has Voted to Reject the not apply to these regulations. For the
applicability of the Regulatory or more service providers to perform,
Suspension under the supervision of the Secretary,
Flexibility Act (5 U.S.C. chapter 6)
Within 7 days after the end of the please refer to the Special Analyses any of the functions described in
voting period, these temporary section of the preamble to the cross- paragraphs (h)(2)(i)(A) and (B) of this
regulations provide that the Treasury referenced notice of proposed section. If the Secretary designates a
Department (in consultation with the rulemaking published in the Proposed service provider to perform these
PBGC and the Labor Department) will Rules section in this issue of the Federal functions then the service provider will
either certify that a majority of all Register. Pursuant to section 7805(f) of provide the Secretary with a written
eligible voters has voted to reject the the Code, these regulations have been report of the results of the vote,
suspension or, if a majority of eligible submitted to the Chief Counsel for including (as applicable)—
voters did not vote to reject the Advocacy of the Small Business (A) The number of ballot packages
suspension, issue a final authorization Administration for comment on their distributed to eligible voters;
to suspend. These temporary regulations (B) The number of eligible voters to
impact on small business.
permit the Treasury Department (in whom ballot packages have not been
consultation with the PBGC and the Contact Information provided (because the individuals could
Labor Department) to establish For general questions regarding these not be located);
necessary policies and procedures to temporary regulations, please contact (C) The number of eligible voters who
facilitate the vote. These policies and the Department of the Treasury MPRA voted (specifying the number of
procedures may include, but are not guidance information line at (202) 622– affirmative votes and the number of
limited to, establishing a process for an 1559 (not a toll-free number). For negative votes cast); and
information regarding a specific (D) Any other information that the
eligible voter to challenge the vote. It is
application for a suspension of benefits, Secretary requires.
expected that the Treasury Department
(iii) Distribution of the ballot package
will resolve any challenges before the please contact the Department of the
to the eligible voters—(A) Ballot
conclusion of the 7-day period Treasury at (202) 622–1534 (not a toll-
package. The ballot package distributed
following the end of the voting period. free number).
to each eligible voter shall consist of—
Items Related to the Contents of the List of Subjects in 26 CFR Part 1 (1) A ballot, approved under
Ballot Income taxes, Reporting and paragraph (h)(3)(iii) of this section,
recordkeeping requirements. which contains the items described in
Under these temporary regulations, section 432(e)(9)(H)(iii) and paragraph
the statement in opposition to the Amendments to the Regulations (h)(3)(i) of this section; and
proposed suspension that is compiled (2) A unique identifier assigned to the
Accordingly, 26 CFR part 1 is
from comments received on the eligible voter for use in voting.
amended as follows:
application will be prepared by the (B) Plan sponsor responsibilities—(1)
Labor Department. Under these PART 1—INCOME TAXES In general. This paragraph (h)(2)(iii)(B)
temporary regulations, this statement in sets forth the responsibilities of the plan
opposition must be written in a manner ■ Paragraph 1. The authority citation sponsor with respect to the distribution
that is readily understandable to the for part 1 continues to read in part as of the ballot package to the eligible
average plan participant. It is intended follows: voters.
that the statement in opposition will be Authority: 26 U.S.C. 7805 * * * (2) Furnish information regarding
written in a manner to ensure parity eligible voters. No later than 7 days
with the statement in support of the ■ Par. 2. Section 1.432(e)(9)-1T(h) is
amended by revising paragraph (h)(2) following the date the Secretary of the
suspension. If there are no comments in Treasury has approved an application
opposition to the proposed suspension, and adding paragraphs (h)(3)(iv) and (v)
and (h)(7) and (8) to read as follows: for a suspension of benefits under
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then the statement in opposition will paragraph (g) of this section, the plan
indicate that there were no such § 1.432(e)(9)–1T Benefit suspensions for sponsor must furnish the following—
comments. multiemployer plans in critical and (i) A list of all eligible voters;
These temporary regulations provide declining status (temporary). (ii) For each eligible voter, the last
that a model ballot may be published in * * * * * known mailing address (or, if the plan
the form of a revenue procedure, notice, (h) * * * sponsor has been unable to locate that
or other guidance published in the (2) Participant vote—(i) In general. individual using the standards that
Internal Revenue Bulletin. The participant vote described in apply for purposes of paragraph (f)(1)(i)

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Document Created: 2018-02-26 10:10:51
Document Modified: 2018-02-26 10:10:51
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		Rules and Regulations
Action		Temporary regulations.
Dates		Effective date: These temporary regulations are effective on September 2, 2015.
Contact		The Department of the Treasury MPRA guidance information line at (202) 622-1559 (not a toll-free number).
FR Citation		80 FR 52972
RIN Number		1545-BM89
CFR Associated		Income Taxes and Reporting and Recordkeeping Requirements
80 FR 52972 - Administration of Multiemployer Plan Participant Vote on an Approved Suspension of Benefits Under MPRA

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 80, Issue 170 (September 2, 2015)

DEPARTMENT OF THE TREASURY
Internal Revenue Service
