80 FR 55742 - Multiemployer Plans; Electronic Filing Requirements
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 80, Issue 180 (September 17, 2015)
Federal Register Volume 80, Issue 180 (September 17, 2015)
| Page Range | 55742-55745 | |
| FR Document | 2015-23361 |
[Federal Register Volume 80, Number 180 (Thursday, September 17, 2015)] [Rules and Regulations] [Pages 55742-55745] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-23361] ======================================================================= ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION 29 CFR Parts 4000, 4041A, and 4281 RIN 1212-AB28 Multiemployer Plans; Electronic Filing Requirements AGENCY: Pension Benefit Guaranty Corporation. [[Page 55743]] ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule amends Pension Benefit Guaranty Corporation's (PBGC) regulations to require electronic filing of certain multiemployer notices. These changes make the provision of information to PBGC more efficient and effective. DATES: Effective October 19, 2015. See Applicability in SUPPLEMENTARY INFORMATION. FOR FURTHER INFORMATION CONTACT: Catherine B. Klion (klion.catherine@pbgc.gov), Assistant General Counsel for Regulatory Affairs, or Donald McCabe (mccabe.donald@pbgc.gov), 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 final 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 rule 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. Major Provisions of the Regulatory Action This final rule requires 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. This final rule does not involve any conforming amendments reflecting the Multiemployer Pension Reform Act of 2014 (MPRA).\1\ The rule affects only notices to PBGC (not notices to participants or other parties). --------------------------------------------------------------------------- \1\ Division O of the Consolidated and Further Continuing Appropriations Act, 2015, Public Law 113-235, enacted December 16, 2014. On June 19, 2015, (at 80 FR 35220), PBGC published an interim final rule on Partitions of Eligible Multiemployer Plans under MPRA, http://www.pbgc.gov/documents/2015-14930.pdf. PBGC expects to publish further guidance under MPRA. --------------------------------------------------------------------------- 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 plan 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. 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. Multiemployer Plan Notices 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 notices:Notice of insolvency, which states a plan sponsor's determination that the plan is or may become insolvent. 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; Current Requirements Section 4000.3 of PBGC's regulation on Filing, Issuance, Computation of Time, and Record Retention (29 CFR part 4000) requires electronic filing of premium declarations under part 4007 (Payment of Premiums) and information required under part 4010 (Annual Financial and Actuarial Information Reporting). [[Page 55744]] Regulatory Review On January 18, 2011, the President issued Executive Order 13563 ``Improving Regulation and Regulatory Review,'' to ensure that Federal regulations seek more affordable, less intrusive means to achieve policy goals, and that agencies give careful consideration to the benefits and costs of those regulations. PBGC's Plan for Regulatory Review,\2\ identifies several regulatory areas for review, including the multiemployer regulations referred to above. PBGC will continue to review its regulations with a view to developing more ideas for improvement. --------------------------------------------------------------------------- \2\ http://www.pbgc.gov/documents/plan-for-regulatory-review.pdf. --------------------------------------------------------------------------- Proposed Rule On April 3, 2015 (at 80 FR 18172), PBGC published a proposed rule to amend parts 4000, 4041A, and 4281 to require electronic filing of certain multiemployer notices.\3\ PBGC received no comments on the proposed rule. The final regulation is unchanged from the proposed regulation. --------------------------------------------------------------------------- \3\ http://www.thefederalregister.org/fdsys/pkg/FR-2015-04-03/pdf/2015-07602.pdf. --------------------------------------------------------------------------- Regulatory Changes The final regulation requires electronic filing with PBGC 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 will 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 will result in benefits for both the public and the government. Electronic filing will simplify the filing process for the public by building in all required and optional fields and including readily accessible guidance in the application. Electronic filing is expected to reduce the need to contact PBGC for assistance. PBGC estimates that the amendments in the rule will result in a total savings in administrative burdens for the public of 25 percent (about 22 hours and $99,000 annually). Electronic filing will also result in greater efficiencies for the government. Up to now, documents submitted by filers needed to be manually uploaded to electronic depositories. With electronic filing, those documents will be automatically uploaded. Electronic filing will also save the government time by reducing the need to provide assistance to filers. It will 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 did not propose 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 in this final rule will 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 that this final 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 final 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 final 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 a regulatory flexibility analysis at the time of the publication of the final 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 final 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. Thus, PBGC believes that assessing the impact of the rule 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 CFR 121.201) pursuant to the Small Business Act. Therefore, in the proposed rule, PBGC requested comments on the appropriateness of the size standard used in evaluating the impact on small entities of the amendments to the benefit payments regulation. No comments were received on this point. On the basis of its 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 will not have a significant economic impact on a substantial number of small entities. Very few multiemployer plans are [[Page 55745]] small.\4\ And, as discussed above, the amendments will 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 will not apply. --------------------------------------------------------------------------- \4\ 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. --------------------------------------------------------------------------- Paperwork Reduction Act PBGC is submitting the information requirements under this final 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). List of Subjects 29 CFR Part 4000 Pension insurance, Pensions, Reporting and recordkeeping requirements. 29 CFR Parts 4041A and 4281 Employee benefit plans, Pension insurance, Reporting and recordkeeping requirements. For the reasons given above, the PBGC is amending 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, revise 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 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: 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 14 day of September, 2015. Alice C. Maroni, Acting Director, Pension Benefit Guaranty Corporation. [FR Doc. 2015-23361 Filed 9-16-15; 8:45 am] BILLING CODE 7709-02-P
![55742 Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Rules and Regulations
Issued in Seattle, Washington, on addresses Local Airport Advisory Anniston Metropolitan Airport (ANB),
September 08, 2015. (LAA), Remote Airport Advisory (RAA) Anniston, Alabama;
Christopher Ramirez, and Remote Airport Information Service Casper-Natrona County International Airport
Manager, Operations Support Group, Western (RAIS). Section (b) of that paragraph (CPR), Casper, Wyoming;
Service Center. Gainesville Regional Airport (GNV),
requires, in part, that Flight Service Gainesville, Florida;
[FR Doc. 2015–23271 Filed 9–16–15; 8:45 am] Stations provide RAA when the Grand Forks International Airport (GFK),
BILLING CODE 4910–13–P employee productivity factor is high Grand Forks, North Dakota;
enough to justify the cost of providing Greenwood-Leflore Airport (GWO),
the service.1 Greenwood, Mississippi;
DEPARTMENT OF TRANSPORTATION Currently, Lockheed Martin provides Louisville-Bowman Field Airport (LOU),
RAA services at 19 locations. At 18 of Louisville, Kentucky;
Federal Aviation Administration the 19 locations, a sample of historical Millville Municipal Airport (MIV), Millville,
New Jersey;
data reflects that pilots contact the RAA
14 CFR Chapter I Prescott-Ernest A. Love Field Airport (PRC),
service an average of less than 1 time Prescott, Arizona;
[Docket No.: FAA–2015–1006] per day. At Millville Municipal Airport St. Louis-Spirit of St. Louis Airport (SUS), St.
in Millville, NJ, pilots contact the RAA Louis, Missouri;
Discontinuation of Airport Advisory service an average of 14 times per day.2 St. Petersburg-Clearwater International
Service in the Contiguous United The frequency of RAA service use no Airport (PIE), St. Petersburg, Florida; and
States, Puerto Rico, and Hawaii longer justifies the continuation of the Miami-Kendall-Tamiami Executive Airport
service due to the lack of productivity. (TMB), Miami, Florida.
AGENCY: Federal Aviation
Administration (FAA), DOT. The FAA will discontinue the II. Additional Information
requirement for FSSs to provide AA
ACTION: Notice of policy. A. Availability of Documents
services in the contiguous United States,
SUMMARY: This action discontinues the Puerto Rico, and Hawaii effective An electronic copy of rulemaking
availability Airport Advisory services October 1, 2015, resulting in services no documents may be obtained from the
within the contiguous United States, longer being available at the 19 Internet by—
Puerto Rico, and Hawaii. The FAA is locations. The AA services in the state 1. Searching the Federal eRulemaking
taking this action because the frequency of Alaska will not be affected by this Portal (http://www.regulations.gov);
of Remote Airport Advisories service change, and will remain due to the 2. Visiting the FAA’s Regulations and
use at the 19 locations within the unique challenges presented by the Policies Web page at http://
contiguous United States, Puerto Rico, remote mountainous terrain and www.faa.gov/regulations_policies or
and Hawaii, no longer justifies the weather conditions across the state. 3. Accessing the Government Printing
continuation of the service due to the Office’s Web page at http://
Applicability www.gpo.gov/fdsys/.
lack of productivity.
DATES: Effective date October 1, 2015. The FAA will revise the criteria set Copies may also be obtained by
forth in FAA Order 7110.10, Chapter 4, sending a request to the Federal
FOR FURTHER INFORMATION CONTACT:
Section 4; and FAA Order 7210.3, Aviation Administration, Office of
Alan Wilkes, Manager, Flight Service
paragraph 13–4–5 to only be applicable Rulemaking, ARM–1, 800 Independence
NAS Initiative Operations/
to the State of Alaska, and AA services Avenue SW., Washington, DC 20591, or
Implementation, Federal Aviation
will be discontinued at locations within by calling (202) 267–9680. Commenters
Administration, 800 Independence
the CONUS, Puerto Rico, and Hawaii. must identify the docket or amendment
Avenue SW., Washington, DC 20591;
Due to the policy change, RAA service number of this notice.
telephone 202–267–7771; Fax (202)
would no longer be provided at the All documents the FAA considered in
267–6310; email Alan.Wilkes@faa.gov.
following airports: developing this notice, including
SUPPLEMENTARY INFORMATION: economic analyses and technical
Altoona-Blair County Airport (AOO),
History Altoona, Pennsylvania; reports, may be accessed from the
Columbia Regional Airport (COU), Columbia, Internet through the Federal
On June 30, 2015, the FAA published
Missouri; eRulemaking Portal referenced in item
in the Federal Register (80 FR 37356–
Elkins-Randolph Airport (EKN), Elkins, West (1) above.
37358) a notice of proposed policy to Virginia;
inform the public regarding proposed Issued in Washington, DC, on August 25,
Huron Regional Airport (HON), Huron, South
revisions to the criteria set forth in FAA 2015.
Dakota;
Order 7110.10, Flight Services, Chapter Jackson-McKellar-Sipes Regional Airport Jeanne Giering,
4, Section 4; and FAA Order 7210.3, (MKL), Jackson, Tennessee; Director of Flight Services.
Facility Operation and Administration, Jonesboro Municipal Airport (JBR), [FR Doc. 2015–21784 Filed 9–16–15; 8:45 am]
paragraph 13–4–5, so that the policy Jonesboro, Arkansas; BILLING CODE 4910–13–P
would apply to the State of Alaska only. Macon-Middle Georgia Regional Airport
Interested parties were invited to (MCN), Macon, Georgia;
Anderson Regional Airport (AND), Anderson,
participate in this policy change by South Carolina; PENSION BENEFIT GUARANTY
submitting written comments of the CORPORATION
proposal. No comments were received. 1 The facility’s productivity factor is determined
by dividing the annual RAA service count by 29 CFR Parts 4000, 4041A, and 4281
Background
tkelley on DSK3SPTVN1PROD with RULES
16,000. The productivity factor is compared to the RIN 1212–AB28
The criteria for providing Airport number of employees used to provide the service
Advisory (AA) services at Flight Service and must be equal to or greater than the number of
Multiemployer Plans; Electronic Filing
Stations (FSS) is provided in FAA Order employees needed to provide the service. Normally
about 2.5 employees are factored annually to Requirements
7210.3, and specifies the criteria for provide 10 hours of service per day.
providing Airport Advisory (AA) 2 Lockheed Martin contact history daily averages, AGENCY: Pension Benefit Guaranty
services; specifically, paragraph 13–4–5, July 12–26 and October 1–15, 2014. Corporation.
VerDate Sep<11>2014 16:04 Sep 16, 2015 Jkt 235001 PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 E:\FR\FM\17SER1.SGM 17SER1](https://thefederalregister.org/doc/80_FR_55922/page/1.svg)
![55744 Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Rules and Regulations
Regulatory Review Up to now, documents submitted by not cross the $100 million threshold for
On January 18, 2011, the President filers needed to be manually uploaded economic significance and is not
issued Executive Order 13563 to electronic depositories. With otherwise economically significant (see
‘‘Improving Regulation and Regulatory electronic filing, those documents will discussion above).
Review,’’ to ensure that Federal be automatically uploaded. Electronic
Regulatory Flexibility Act
regulations seek more affordable, less filing will also save the government
intrusive means to achieve policy goals, time by reducing the need to provide The Regulatory Flexibility Act
and that agencies give careful assistance to filers. It will also improve imposes certain requirements with
consideration to the benefits and costs the government’s recordkeeping, records respect to rules that are subject to the
of those regulations. PBGC’s Plan for retrieval, and records archiving process notice and comment requirements of
Regulatory Review,2 identifies several by eliminating the possibility of missing section 553(b) of the Administrative
regulatory areas for review, including or lost paper files due to human error. Procedure Act and that are likely to
the multiemployer regulations referred Moreover, the PBGC expects have a significant economic impact on
to above. PBGC will continue to review electronic filing will improve the a substantial number of small entities.
its regulations with a view to government’s ability to protect potential Unless an agency determines that a final
developing more ideas for improvement. personally identifiable information (PII), rule is not likely to have a significant
or otherwise sensitive information, economic impact on a substantial
Proposed Rule since only pre-approved personnel will number of small entities, section 603 of
On April 3, 2015 (at 80 FR 18172), have access to PBGC’s electronic records the Regulatory Flexibility Act requires
PBGC published a proposed rule to systems, and limited access will be that the agency present a regulatory
amend parts 4000, 4041A, and 4281 to approved for officials of pension plans. flexibility analysis at the time of the
require electronic filing of certain PBGC did not propose to require publication of the final rule describing
multiemployer notices.3 PBGC received electronic filing of notices of benefit the impact of the rule on small entities
no comments on the proposed rule. The reduction and of restoration of benefits and seeking public comment on such
final regulation is unchanged from the under part 4281. PBGC may in the impact. Small entities include small
proposed regulation. future require that other multiemployer businesses, organizations and
Regulatory Changes filings also be made electronically. governmental jurisdictions.
The final regulation requires Applicability For purposes of the Regulatory
electronic filing with PBGC of the The amendments in this final rule Flexibility Act requirements with
following multiemployer plan filings: will be applicable for filings made on or respect to this final rule, PBGC
• Notices of termination under part after January 1, 2016. considers a small entity to be a plan
4041A. with fewer than 100 participants. This
• Notices of insolvency and of Compliance With Rulemaking is the same criterion PBGC uses in other
insolvency benefit level under part Requirements aspects of its regulations involving
4245. Executive Order 12866 ‘‘Regulatory small plans, and is consistent with
• Notices of insolvency and of Planning and Review’’ and Executive certain requirements in Title I of ERISA
insolvency benefit level under part 4281 Order 13563 ‘‘Improving Regulation and and the Internal Revenue Code, as well
(following mass withdrawal). Regulatory Review’’ as the definition of a small entity that
• Applications for financial the Department of Labor (DOL) has used
assistance under part 4281 (following PBGC has determined that this final for purposes of the Regulatory
mass withdrawal). rule is not a ‘‘significant regulatory Flexibility Act.
PBGC will grant case-by-case action’’ under Executive Order 12866.
Thus, PBGC believes that assessing
exemptions to the electronic filing Executive Orders 12866 and 13563
the impact of the rule on small plans is
requirement in appropriate direct agencies to assess all costs and
an appropriate substitute for evaluating
circumstances for filers that benefits of available regulatory
the effect on small entities. The
demonstrate good cause for exemption. alternatives and, if regulation is
PBGC believes that requiring electronic definition of small entity considered
necessary, to select regulatory
filing for these notices will result in appropriate for this purpose differs,
approaches that maximize net benefits
benefits for both the public and the however, from a definition of small
(including potential economic,
government. business based on size standards
environmental, public health and safety
Electronic filing will simplify the promulgated by the Small Business
effects, distributive impacts, and
filing process for the public by building Administration (13 CFR 121.201)
equity). Executive Order 13563
in all required and optional fields and pursuant to the Small Business Act.
emphasizes the importance of
including readily accessible guidance in Therefore, in the proposed rule, PBGC
quantifying both costs and benefits, of
the application. Electronic filing is requested comments on the
reducing costs, of harmonizing rules,
expected to reduce the need to contact appropriateness of the size standard
and of promoting flexibility.
PBGC for assistance. PBGC estimates used in evaluating the impact on small
Under Section 3(f)(1) of Executive
that the amendments in the rule will entities of the amendments to the
Order 12866, a regulatory action is
result in a total savings in benefit payments regulation. No
economically significant if ‘‘it is likely
administrative burdens for the public of comments were received on this point.
to result in a rule that may . . . [h]ave
25 percent (about 22 hours and $99,000 an annual effect on the economy of $100 On the basis of its definition of small
annually). million or more or adversely affect in a entity, PBGC certifies under section
tkelley on DSK3SPTVN1PROD with RULES
Electronic filing will also result in material way the economy, a sector of 605(b) of the Regulatory Flexibility Act
greater efficiencies for the government. the economy, productivity, competition, (5 U.S.C. 601 et seq.) that the
jobs, the environment, public health or amendments in this rule will not have
2 http://www.pbgc.gov/documents/plan-for-
safety, or State, local, or tribal a significant economic impact on a
regulatory-review.pdf.
3 http://www.gpo.gov/fdsys/pkg/FR–2015–04–03/ governments or communities.’’ PBGC substantial number of small entities.
pdf/2015–07602.pdf. has determined that this final rule does Very few multiemployer plans are
VerDate Sep<11>2014 16:04 Sep 16, 2015 Jkt 235001 PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 E:\FR\FM\17SER1.SGM 17SER1](https://thefederalregister.org/doc/80_FR_55922/page/3.svg)
![Federal Register / Vol. 80, No. 180 / Thursday, September 17, 2015 / Rules and Regulations 55745
small.4 And, as discussed above, the PART 4000—FILING, ISSUANCE, insolvency, and § 4281.45(c) for notices
amendments will not have a significant COMPUTATION OF TIME, AND of insolvency benefit level.
economic impact on entities of any size. RECORD RETENTION * * * * *
Accordingly, as provided in section 605
of the Regulatory Flexibility Act (5 ■ 1. The authority citation for part 4000 ■ 8. In § 4281.43, revise paragraph (a) to
U.S.C. 601 et seq.), sections 603 and 604 continues to read as follows: read as follows:
will not apply. Authority: 29 U.S.C. 1082(f), 1302(b)(3). § 4281.43 Notices of insolvency.
Paperwork Reduction Act ■ 2. In § 4000.3, revise paragraph (b)(3) (a) Requirement of notices of
to read as follows: insolvency. A plan sponsor that
PBGC is submitting the information
requirements under this final rule to the § 4000.3 What methods of filing may I use? determines that the plan is, or is
Office of Management and Budget * * * * * expected to be, insolvent for a plan year
(OMB) for review and approval under (b) * * * shall file with the PBGC and issue to
the Paperwork Reduction Act. An (3) When making filings to PBGC plan participants and beneficiaries
agency may not conduct or sponsor, and under parts 4041A, 4245, and 4281 of notices of insolvency. Once notices of
a person is not required to respond to, this chapter (except for notices of insolvency have been filed with the
a collection of information unless it benefit reductions and notices of PBGC and issued to plan participants
displays a currently valid OMB control restoration of benefits under part 4281), and beneficiaries, no notice of
number. you must submit the information insolvency needs to be issued for
The collection of information in part required under these parts electronically subsequent insolvency years. Notices
4041A is approved under control in accordance with the instructions on shall be delivered in the manner and
number 1212–0020 (expires June 30, the PBGC’s Web site, except as within the time prescribed in this
2017). PBGC estimates that there will be otherwise provided by the PBGC. section and shall contain the
10 respondents each year and that the * * * * * information described in § 4281.44.
total annual burden of the collection of * * * * *
information will be about 17 hours and PART 4041A—TERMINATION OF
$3,850.00 (about 2 hours and $385 per MULTIEMPLOYER PLANS ■ 9. In § 4281.47, revise paragraph (b) to
respondent). read as follows:
■ 3. The authority citation for part
The collection of information in part 4041A continues to read as follows: § 4281.47 Application for financial
4245 is approved under control number assistance.
Authority: 29 U.S.C. 1302(b)(3), 1341a,
1212–0033 (expires June 30, 2017). 1441. * * * * *
PBGC estimates that there will be one
■ 4. In § 4041A.11, add paragraph (d) to (b) When, how, and where to apply.
respondent each year and that the total
read as follows: When the plan sponsor determines a
annual burden of the collection of
information will be about $1,550. resource benefit level that is less than
§ 4041A.11 Requirement of notice. guaranteed benefits, it shall apply for
The collection of information in part * * * * * financial assistance at the same time
4281 is approved under control number (d) How and where to file. Filings to that it submits its notice of insolvency
1212–0032 (expires July 31, 2017). PBGC under this subpart must be benefit level pursuant to § 4281.45.
PBGC estimates that there will be 324 submitted in accordance with the rules When the plan sponsor determines an
respondents each year and that the total in subpart A of part 4000 of this chapter. inability to pay guaranteed benefits for
annual burden of the collection of See § 4000.4 of this chapter for any month, it shall apply for financial
information will be about 61 hours and information on where to file. assistance within 15 days after making
$309,000 (about $950 per respondent).
§ 4041A.25 [Amended] that determination. Application to the
List of Subjects PBGC for financial assistance shall be
■ 5. In § 4041A.25, amend paragraph (d) made in accordance with the rules in
29 CFR Part 4000 by removing the words ‘‘of the PBGC’’ subpart A of part 4000 of this chapter.
and adding in their place ‘‘to the See § 4000.4 of this chapter for
Pension insurance, Pensions, PBGC’’.
Reporting and recordkeeping information on where to apply.
requirements. PART 4281—DUTIES OF PLAN * * * * *
29 CFR Parts 4041A and 4281 SPONSOR FOLLOWING MASS Issued in Washington, DC, this 14 day of
WITHDRAWAL September, 2015.
Employee benefit plans, Pension Alice C. Maroni,
insurance, Reporting and recordkeeping ■ 6. The authority citation for part 4281
continues to read as follows: Acting Director, Pension Benefit Guaranty
requirements.
Corporation.
Authority: 29 U.S.C. 1302(b)(3), 1341a,
For the reasons given above, the PBGC 1399(c)(1)(D), and 1441. [FR Doc. 2015–23361 Filed 9–16–15; 8:45 am]
is amending 29 CFR parts 4000, 4041A, BILLING CODE 7709–02–P
and 4281 as follows. ■ 7. In § 4281.3, revise paragraph (b) to
read as follows:
tkelley on DSK3SPTVN1PROD with RULES
4 According to data from 2012 5500 filings, only
§ 4281.3 Filing and issuance rules.
32 of 1,407 active plans have fewer than 100
participants. Further, PBGC is not aware of a * * * * *
multiemployer plan that was established and (b) Method of issuance. For rules on
covered by ERISA that was not initially a large plan.
Generally it is only after a plan terminates and
method of issuance to interested parties,
employers withdraw from the plan that a plan see § 4281.32(c) for notices of benefit
might reduce in size to fewer than 100 participants. reductions, § 4281.43(e) for notices of
VerDate Sep<11>2014 16:04 Sep 16, 2015 Jkt 235001 PO 00000 Frm 00025 Fmt 4700 Sfmt 9990 E:\FR\FM\17SER1.SGM 17SER1](https://thefederalregister.org/doc/80_FR_55922/page/4.svg)
Document Created: 2015-12-15 09:34:20
Document Modified: 2015-12-15 09:34:20
| 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 | Final rule. | |
| Dates | Effective October 19, 2015. See Applicability in SUPPLEMENTARY 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.) | |
| FR Citation | 80 FR 55742 | |
| 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 |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR