80 FR 8578 - Request for Information on Suspensions of Benefits Under the Multiemployer Pension Reform Act of 2014
DEPARTMENT OF THE TREASURY
Internal Revenue Service Federal Register Volume 80, Issue 32 (February 18, 2015)
Internal Revenue Service
Federal Register Volume 80, Issue 32 (February 18, 2015)
| Page Range | 8578-8580 | |
| FR Document | 2015-03290 |
[Federal Register Volume 80, Number 32 (Wednesday, February 18, 2015)] [Proposed Rules] [Pages 8578-8580] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-03290] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [REG-102648-15] RIN 1545-BM66 Request for Information on Suspensions of Benefits Under the Multiemployer Pension Reform Act of 2014 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Request for information. ----------------------------------------------------------------------- SUMMARY: The Department of the Treasury invites public comments with regard to future guidance required to implement provisions of the Multiemployer Pension Reform Act of 2014, Division O of the Consolidated and Further Continuing Appropriations Act, 2015, Public Law 113-235 (MPRA). MPRA generally permits a sponsor of a multiemployer defined benefit plan that is in critical and declining status to suspend certain benefits following the provision of specified notice, consideration of public comments, approval of an application for suspension, and satisfaction of other specified conditions (including a participant vote). DATES: Comments must be received by April 6, 2015. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-102648-15), Room 5205, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG- 102648-15), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., [[Page 8579]] Washington, DC, or sent electronically via the Federal eRulemaking Portal at http://www.regulations.gov (IRS REG-102648-15). All materials submitted will be shared with the Department of Labor and the Pension Benefit Guaranty Corporation, and will be available for public inspection and copying. FOR FURTHER INFORMATION CONTACT: Concerning the request for information, Jamie Dvoretzky at (202) 317-4102; concerning submission of comments, Regina Johnson at (202) 317-6901 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background Section 212 of the Pension Protection Act of 2006, Public Law 109- 280 (120 Stat. 780 (2006)) (PPA '06) added section 432 of the Internal Revenue Code (Code), which prescribes funding rules for certain multiemployer defined benefit plans in endangered and critical status and permits plans in critical status to be amended to reduce certain otherwise protected benefits (referred to as ``adjustable benefits''). Section 202 of PPA '06 amended section 305 of the Employee Retirement Income Security Act of 1974, Public Law 93-406 (88 Stat. 829 (1974)), as amended (ERISA), to prescribe parallel rules. PPA '06 provided that section 432 and ERISA section 305 would sunset for plan years beginning after December 31, 2014. However, section 101 of MPRA made them permanent, with certain modifications. Section 201 of MPRA amended Code section 432 to add a new status, called ``critical and declining status,'' for multiemployer defined benefit plans. Section 432(b)(6) provides that a plan in critical status is treated as being in critical and declining status if the plan satisfies the criteria for critical status, and in addition is projected to become insolvent within the meaning of section 418E during the current plan year or any of the 14 succeeding plan years (or 19 succeeding plan years if the plan has a ratio of inactive participants to active participants that exceeds two to one or if the funded percentage of the plan is less than 80 percent).\1\ --------------------------------------------------------------------------- \1\ Section 201(a) of MPRA makes parallel amendments to section 305 of ERISA. Under section 101 of Reorganization Plan No. 4 of 1978 (43 FR 47713), the Department of the Treasury has interpretive jurisdiction over the subject matter of this document for purposes of ERISA as well as the Code. --------------------------------------------------------------------------- Section 201 of MPRA also amended section 432(e)(9) to prescribe benefit suspension rules for multiemployer defined benefit plans in critical and declining status. Section 432(e)(9)(A) provides that notwithstanding section 411(d)(6) and subject to the requirements of section 432(e)(9)(B) through (I), the plan sponsor of a plan in critical and declining status may, by plan amendment, suspend benefits that the sponsor deems appropriate. Section 432(e)(9)(B) defines ``suspension of benefits'' as the temporary or permanent reduction of any current or future payment obligation of the plan to any participant or beneficiary under the plan, whether or not in pay status at the time of the suspension of benefits, and sets forth other rules relating to suspensions. In the case of plans with 10,000 or more participants, section 432(e)(9)(B) requires the plan sponsor to select a plan participant in pay status (who may also be a plan trustee) to act as a retiree representative throughout the suspension approval process. Section 432(e)(9)(C) prescribes the conditions that must be satisfied before a plan sponsor may suspend benefits. For example, section 432(e)(9)(C)(i) provides that the plan actuary must certify, taking into account the proposed suspensions of benefits (and, if applicable, a proposed partition of the plan under section 4233 of ERISA), that the plan is projected to avoid insolvency within the meaning of section 418E, assuming the suspensions of benefits continue until the suspensions of benefits expire by their own terms or, if no such expiration is set, indefinitely. Section 432(e)(9)(D) contains limitations on the benefits that may be suspended. For example, section 432(e)(9)(D)(ii) limits the applicability of a suspension in the case of a participant or beneficiary who has attained age 75 as of the effective date of the suspension and section 432(e)(9)(D)(iii) provides that no benefits based on disability (as defined under the plan) may be suspended. Section 432(e)(9)(E) prescribes rules relating to possible benefit improvements while a suspension of benefits is in effect. Section 432(e)(9)(F) contains notice requirements associated with a suspension of benefits. These include the requirement under section 432(e)(9)(F)(i) that no suspension of benefits may be made unless notice to specified parties of the proposed suspension has been given by the plan sponsor (in the form and manner to be prescribed in guidance) concurrently with an application for approval of the suspension. Section 432(e)(9)(G) describes the process for approval or rejection of a plan sponsor's application for a suspension of benefits, including that the Treasury Secretary, in consultation with the Pension Benefit Guaranty Corporation (PBGC) and the Secretary of Labor, shall approve an application upon finding that the plan is eligible for the suspension and has satisfied the criteria of section 432(e)(9)(C), (D), (E), and (F). As part of this process, section 432(e)(9)(G)(ii) requires the publication of a request for comments within 30 days after receipt of an application for suspension of benefits, and section 432(e)(9)(G)(iii), (iv) and (v) prescribes rules for agency action and review of the application. Section 432(e)(9)(H) contains rules relating to the participant vote that is required before any suspension of benefits may take effect, with special rules for systemically important plans. The special rules include an opportunity for the Participant and Plan Sponsor Advocate selected under section 4004 of ERISA to submit recommendations with respect to a suspension in certain circumstances. Section 432(e)(9)(I) contains provisions relating to judicial review. An application for approval of a plan amendment to suspend benefits may be made in combination with an application to the PBGC for a partition of the plan, and a plan sponsor also may ask the PBGC for technical or financial assistance with a merger. The PBGC is issuing its own request for information to seek comment on the processes associated with applying for partition or merger assistance, including how such processes should be coordinated with the benefit suspension process. The agencies will coordinate on the development of processes that will apply to applications falling within their respective jurisdictions. Request for Information Comments are requested on matters that may be addressed in future guidance implementing section 432(e)(9), and in particular on the following: 1. How should future guidance address actuarial and other issues, including duration, related to the following certifications and determinations: a. The actuary's certification under section 432(b)(3) that a multiemployer plan is in critical and declining status; b. The actuary's section 432(e)(9)(C)(i) projection of continued solvency (taking into account the proposed suspension and, if applicable, a proposed partition under section 4233 of ERISA); and c. The plan sponsor's section 432(e)(9)(C)(ii) determination that the plan is projected to become insolvent unless benefits are suspended? 2. For purposes of the section 432(e)(9)(D)(iii) limitation that a suspension is not permitted to apply to benefits based on disability (as defined [[Page 8580]] under the plan), how can a plan sponsor identify which benefits are based on disability? 3. For participants who have not yet retired: a. What practical issues should be considered as a result of the fact that their benefits are not yet fixed (for example, their benefits could vary as a result of future accruals, when they decide to retire and which optional form of benefit they select)? b. What practical issues should be considered in the case of a suspension of benefits that is combined with a reduction of future accruals or a reduction of section 432(e)(8) adjustable benefits (such as subsidized early retirement factors) under a rehabilitation plan? 4. For participants who have retired, what practical issues should be considered regarding the section 432(e)(9)(D)(ii) age limitations on suspensions, the application of the section 432(e)(9)(E) rules on benefit improvements, or other provisions? 5. With respect to the section 432(e)(9)(F) requirement to provide notice of the proposed suspension to plan participants and beneficiaries concurrently with the submission of the application for approval: a. What suggestions do commenters have for the steps that are needed to satisfy the requirement to provide notice to the plan participants and beneficiaries ``who may be contacted by reasonable efforts,'' including the application of that requirement to terminated vested participants? b. What practical issues do plan sponsors anticipate in providing individual estimates of the effect of the proposed suspensions on each participant and beneficiary? c. If the suspension is combined with other reductions as described in request number 3.b, how will the notice of proposed suspension interact with the notices required for those other reductions? d. What issues arise in coordinating benefit protections that are measured as of the date of suspension (such as the restriction on suspensions that apply to a participant or beneficiary who has attained age 75 as of the effective date of the suspension) with the timing of the application, notice, and voting process? 6. With respect to item 5, please provide any examples of notices of proposed suspension that commenters would like to be considered in the development of a model notice. 7. What issues arise in connection with the section 432(e)(9)(G)(ii) requirement to solicit comments on an application for suspension of benefits? a. Should the comments received from contributing employers, employee organizations, participants and beneficiaries, and other interested parties be made available to the public? b. How long should the comment period last? 8. With respect to the section 432(e)(9)(H) participant vote, what issues arise in connection with: a. Preparing the ballot, including developing a statement in opposition to the suspension compiled from comments and obtaining approval of the ballot within the statutory time constraints for conducting a vote; and b. Conducting the vote and obtaining certification of the results of the vote? 9. What other practical issues do commenters anticipate will arise in the course of implementing these provisions? Timing of Applications and Notices Section 201(b)(7) of MPRA provides that, not later than 180 days after the date of the enactment of this Act, the Treasury Secretary, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall publish appropriate guidance to implement section 432(e)(9). In addition, section 432(e)(9)(F)(i) provides that no suspension of benefits may be made unless notice of the proposed suspension has been given by the plan sponsor concurrently with an application for approval of the suspension, and section 432(e)(9)(F)(iii)(I) provides that notice must be ``provided in a form and manner prescribed in guidance.'' Section 432(e)(9)(G)(i) provides that the Treasury Secretary, in consultation with the Pension Benefit Guaranty Corporation and the Secretary of Labor, shall approve an application for suspension upon finding that the plan has satisfied the criteria of section 432(e)(9)(C), (D), (E), and (F). Because appropriate guidance is required to implement section 432(e)(9), including the procedures for the plan sponsor to submit an application for approval of a suspension of benefits and provide concurrent notice, a plan sponsor should not submit an application for a suspension of benefits until a date specified in that future guidance. Dated: February 11, 2015. David G. Clunie, Executive Secretary, Department of the Treasury. [FR Doc. 2015-03290 Filed 2-13-15; 11:15 am] BILLING CODE 4830-01-P
![8578 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules
(Pub. L. 113–235), supported a listening time that each oral presentation is VI. Reference
meeting between FDA and the regulated scheduled to begin. After reviewing the The following reference has been
industries to consider alternative presentation requests, FDA will notify placed on display in the Division of
solutions to the proposed rule on safety each participant before the meeting of Dockets Management (see ADDRESSES),
labeling that will meet all public health the amount of time available and the and may be seen by interested persons
goals relating to multisource drugs (see approximate time their presentation is between 9 a.m. and 4 p.m., Monday
https://www.congress.gov/ scheduled to begin. If time permits, through Friday.
congressional-record/2014/12/11/house- individuals or organizations that did not 1. Letter dated November 14, 2014,
section/article/H9307-1) (FDA has register in advance may be granted the from Mr. Neas (GPhA) and Mr.
verified the Web site address, but FDA opportunity to make a presentation. An Castellani (PhRMA) to Dr. Hamburg
is not responsible for any subsequent agenda will be posted on the FDA Web (FDA) regarding request for listening
changes to the Web site after this site at http://www.fda.gov/Drugs/ meeting on Expedited Agency Review
document publishes in the Federal NewsEvents/ucm431265.htm prior to proposal.
Register). the meeting. Presenters are encouraged
In view of these requests and to to submit a copy of their presentation Dated: February 11, 2015.
promote transparency, FDA will hold a and related written material to the Leslie Kux,
public meeting at which any docket (see ‘‘Comments’’) in advance of Associate Commissioner for Policy.
stakeholders may present or comment the public meeting. [FR Doc. 2015–03211 Filed 2–17–15; 8:45 am]
on the proposed rule or any alternative If you need special accommodations BILLING CODE 4164–01–P
proposals intended to improve because of a disability, please contact
communication of important newly Ellen Molinaro (see FOR FURTHER
acquired drug safety information to INFORMATION CONTACT) at least 7 days in DEPARTMENT OF THE TREASURY
health care professionals and the public. advance.
In addition, FDA is reopening the Internal Revenue Service
comment period for the proposed rule III. Streaming Webcast of the Public
(78 FR 67985) until April 27, 2015, to Meeting
26 CFR Part 1
receive submissions of additional This public meeting will also be
written comments on the proposed rule Webcast. Information about how to view [REG–102648–15]
as well as alternative proposals the live Webcast of this meeting will be RIN 1545–BM66
presented during the public meeting. posted on the FDA Web site at http://
www.fda.gov/Drugs/NewsEvents/ Request for Information on
II. Registration and Requests for Oral
ucm431265.htm prior to the meeting. Suspensions of Benefits Under the
Presentations
Multiemployer Pension Reform Act of
If you would like to attend the public IV. Comments 2014
meeting, please register for the meeting Interested persons may submit either
by email to electronic comments regarding AGENCY: Internal Revenue Service (IRS),
CBESupplements.PublicMeeting@ proposed alternatives to the proposed Treasury.
fda.hhs.gov by March 20, 2015. The rule to http://www.regulations.gov or ACTION: Request for information.
email should contain complete contact written comments to the Division of
information for each attendee (including SUMMARY: The Department of the
Dockets Management (see ADDRESSES). It Treasury invites public comments with
name, title, firm name or affiliation, is only necessary to send one set of
address, email, telephone and fax regard to future guidance required to
comments. Identify comments with the implement provisions of the
numbers). Those without email access docket number found in brackets in the
can register by contacting Ellen Multiemployer Pension Reform Act of
heading of this document. Received 2014, Division O of the Consolidated
Molinaro (see FOR FURTHER INFORMATION comments may be seen in the Division
CONTACT) by March 20, 2015. There is
and Further Continuing Appropriations
of Dockets Management between 9 a.m. Act, 2015, Public Law 113–235 (MPRA).
no fee to register for the meeting, and and 4 p.m., Monday through Friday, and
registration will be on a first-come, first- MPRA generally permits a sponsor of a
will be posted to the docket at http:// multiemployer defined benefit plan that
served basis. Early registration is www.regulations.gov.
recommended because seating is is in critical and declining status to
Electronic or written comments will
limited. Onsite registration on the day of suspend certain benefits following the
be accepted after the public meeting
the meeting also will be permitted on a provision of specified notice,
until April 27, 2015.
space-available basis beginning at 7:30 consideration of public comments,
a.m. V. Transcripts approval of an application for
Individuals who wish to present at Please be advised that as soon as suspension, and satisfaction of other
the public meeting must register on or possible after a transcript of the public specified conditions (including a
before March 16, 2015, and provide meeting is available, it will be accessible participant vote).
complete contact information, including at http://www.regulations.gov. It may be DATES: Comments must be received by
name, title, firm name or affiliation, viewed at the Division of Dockets April 6, 2015.
address, email, telephone and fax Management (see ADDRESSES). A ADDRESSES: Send submissions to:
numbers. You should provide a brief transcript will also be available in either CC:PA:LPD:PR (REG–102648–15), Room
mstockstill on DSK4VPTVN1PROD with PROPOSALS
description of your presentation, and hardcopy or on CD–ROM, after 5205, Internal Revenue Service, PO Box
indicate the approximate desired length submission of a Freedom of Information 7604, Ben Franklin Station, Washington,
of your presentation, so that FDA can request. Written requests are to be sent DC 20044. Submissions may be hand-
consider these in organizing the to the Division of Freedom of delivered Monday through Friday
presentations. FDA will do its best to Information (ELEM–1029), Food and between the hours of 8 a.m. and 4 p.m.
accommodate requests to speak and will Drug Administration, 12420 Parklawn to: CC:PA:LPD:PR (REG–102648–15),
determine the amount of time allotted to Dr., Element Bldg., Rockville, MD Courier’s Desk, Internal Revenue
each presenter and the approximate 20857. Service, 1111 Constitution Avenue NW.,
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![8580 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules
under the plan), how can a plan sponsor a. Should the comments received DEPARTMENT OF JUSTICE
identify which benefits are based on from contributing employers, employee
disability? organizations, participants and Office of the Attorney General
3. For participants who have not yet beneficiaries, and other interested
retired: parties be made available to the public? 28 CFR Part 11
a. What practical issues should be
b. How long should the comment [JMD Docket No. 152; A.G. Order No. 3493–
considered as a result of the fact that
period last? 2015]
their benefits are not yet fixed (for
example, their benefits could vary as a 8. With respect to the section RIN 1105–NYD
result of future accruals, when they 432(e)(9)(H) participant vote, what
decide to retire and which optional form issues arise in connection with: Department of Justice Debt Collection
of benefit they select)? a. Preparing the ballot, including Regulations
b. What practical issues should be developing a statement in opposition to AGENCY: Department of Justice.
considered in the case of a suspension the suspension compiled from
of benefits that is combined with a ACTION: Notice of proposed rulemaking.
comments and obtaining approval of the
reduction of future accruals or a ballot within the statutory time SUMMARY: This rule proposes to amend
reduction of section 432(e)(8) adjustable constraints for conducting a vote; and the regulations that govern debt
benefits (such as subsidized early collection at the Department of Justice
retirement factors) under a b. Conducting the vote and obtaining
certification of the results of the vote? (Department) to bring the regulations
rehabilitation plan? into conformity with government-wide
4. For participants who have retired, 9. What other practical issues do
standards, to update or delete obsolete
what practical issues should be commenters anticipate will arise in the
references, and to make other clarifying
considered regarding the section course of implementing these
or technical changes.
432(e)(9)(D)(ii) age limitations on provisions?
suspensions, the application of the DATES: Written comments must be
section 432(e)(9)(E) rules on benefit Timing of Applications and Notices postmarked and electronic comments
improvements, or other provisions? must be submitted on or before April 20,
Section 201(b)(7) of MPRA provides 2015. Comments received by mail will
5. With respect to the section that, not later than 180 days after the
432(e)(9)(F) requirement to provide be considered timely if they are
date of the enactment of this Act, the postmarked on or before that date. The
notice of the proposed suspension to
Treasury Secretary, in consultation with electronic Federal Docket Management
plan participants and beneficiaries
the Pension Benefit Guaranty System (FDMS) will accept comments
concurrently with the submission of the
Corporation and the Secretary of Labor, until Midnight Eastern Time at the end
application for approval:
a. What suggestions do commenters shall publish appropriate guidance to of that day.
have for the steps that are needed to implement section 432(e)(9). In
ADDRESSES: The Department encourages
satisfy the requirement to provide notice addition, section 432(e)(9)(F)(i) provides
that all comments be submitted
to the plan participants and that no suspension of benefits may be
electronically through http://
beneficiaries ‘‘who may be contacted by made unless notice of the proposed
www.regulations.gov using the
reasonable efforts,’’ including the suspension has been given by the plan electronic comment form provided on
application of that requirement to sponsor concurrently with an that site. An electronic copy of this
terminated vested participants? application for approval of the document is also available at the
b. What practical issues do plan suspension, and section http://www.regulations.gov Web site for
sponsors anticipate in providing 432(e)(9)(F)(iii)(I) provides that notice easy reference. Paper comments that
individual estimates of the effect of the must be ‘‘provided in a form and duplicate the electronic submission are
proposed suspensions on each manner prescribed in guidance.’’ not necessary as all comments
participant and beneficiary? Section 432(e)(9)(G)(i) provides that the submitted to http://www.regulations.gov
c. If the suspension is combined with Treasury Secretary, in consultation with will be posted for public review and are
other reductions as described in request the Pension Benefit Guaranty part of the official docket record. Should
number 3.b, how will the notice of Corporation and the Secretary of Labor, you wish to submit written comments
proposed suspension interact with the shall approve an application for via regular or express mail, however,
notices required for those other suspension upon finding that the plan they should be sent to: Dennis Dauphin,
reductions? has satisfied the criteria of section Director, Debt Collection Management
d. What issues arise in coordinating 432(e)(9)(C), (D), (E), and (F). Because Staff, Justice Management Division, U.S.
benefit protections that are measured as appropriate guidance is required to Department of Justice, Washington, DC
of the date of suspension (such as the implement section 432(e)(9), including 20530.
restriction on suspensions that apply to the procedures for the plan sponsor to
FOR FURTHER INFORMATION CONTACT:
a participant or beneficiary who has submit an application for approval of a
Dennis Dauphin, Director, Debt
attained age 75 as of the effective date suspension of benefits and provide
Collection Management Staff, or Morton
of the suspension) with the timing of the concurrent notice, a plan sponsor
J. Posner, Assistant General Counsel,
application, notice, and voting process? should not submit an application for a
Justice Management Division, U.S.
6. With respect to item 5, please suspension of benefits until a date
mstockstill on DSK4VPTVN1PROD with PROPOSALS
Department of Justice, Washington, DC
provide any examples of notices of specified in that future guidance.
20530, (202) 514–5343 or (202) 514–
proposed suspension that commenters Dated: February 11, 2015. 3452.
would like to be considered in the
David G. Clunie, SUPPLEMENTARY INFORMATION: This rule
development of a model notice.
7. What issues arise in connection Executive Secretary, Department of the updates the Department’s debt
with the section 432(e)(9)(G)(ii) Treasury. collection regulations at 28 CFR part 11,
requirement to solicit comments on an [FR Doc. 2015–03290 Filed 2–13–15; 11:15 am] subpart A—Retention of Private Counsel
application for suspension of benefits? BILLING CODE 4830–01–P for Debt Collection, Subpart B—
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Document Created: 2018-02-16 11:10:52
Document Modified: 2018-02-16 11:10:52
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Request for information. | |
| Dates | Comments must be received by April 6, 2015. | |
| Contact | Concerning the request for information, Jamie Dvoretzky at (202) 317-4102; concerning submission of comments, Regina Johnson at (202) 317-6901 (not toll-free numbers). | |
| FR Citation | 80 FR 8578 | |
| RIN Number | 1545-BM66 |
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