80_FR_8610 80 FR 8578 - Request for Information on Suspensions of Benefits Under the Multiemployer Pension Reform Act of 2014

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)

Page Range8578-8580
FR Document2015-03290

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).

Federal Register, Volume 80 Issue 32 (Wednesday, February 18, 2015)
[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]


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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.

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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
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                                                    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.,


                                               VerDate Sep<11>2014   17:51 Feb 17, 2015   Jkt 235001   PO 00000   Frm 00018   Fmt 4702   Sfmt 4702   E:\FR\FM\18FEP1.SGM   18FEP1


                                                                        Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules                                             8579

                                                    Washington, DC, or sent electronically                  411(d)(6) and subject to the                          application upon finding that the plan
                                                    via the Federal eRulemaking Portal at                   requirements of section 432(e)(9)(B)                  is eligible for the suspension and has
                                                    http://www.regulations.gov (IRS REG–                    through (I), the plan sponsor of a plan               satisfied the criteria of section
                                                    102648–15). All materials submitted                     in critical and declining status may, by              432(e)(9)(C), (D), (E), and (F). As part of
                                                    will be shared with the Department of                   plan amendment, suspend benefits that                 this process, section 432(e)(9)(G)(ii)
                                                    Labor and the Pension Benefit Guaranty                  the sponsor deems appropriate. Section                requires the publication of a request for
                                                    Corporation, and will be available for                  432(e)(9)(B) defines ‘‘suspension of                  comments within 30 days after receipt
                                                    public inspection and copying.                          benefits’’ as the temporary or permanent              of an application for suspension of
                                                    FOR FURTHER INFORMATION CONTACT:                        reduction of any current or future                    benefits, and section 432(e)(9)(G)(iii),
                                                    Concerning the request for information,                 payment obligation of the plan to any                 (iv) and (v) prescribes rules for agency
                                                    Jamie Dvoretzky at (202) 317–4102;                      participant or beneficiary under the                  action and review of the application.
                                                    concerning submission of comments,                      plan, whether or not in pay status at the                Section 432(e)(9)(H) contains rules
                                                    Regina Johnson at (202) 317–6901 (not                   time of the suspension of benefits, and               relating to the participant vote that is
                                                    toll-free numbers).                                     sets forth other rules relating to                    required before any suspension of
                                                    SUPPLEMENTARY INFORMATION:                              suspensions. In the case of plans with                benefits may take effect, with special
                                                                                                            10,000 or more participants, section                  rules for systemically important plans.
                                                    Background                                              432(e)(9)(B) requires the plan sponsor to             The special rules include an
                                                       Section 212 of the Pension Protection                select a plan participant in pay status               opportunity for the Participant and Plan
                                                    Act of 2006, Public Law 109–280 (120                    (who may also be a plan trustee) to act               Sponsor Advocate selected under
                                                    Stat. 780 (2006)) (PPA ’06) added                       as a retiree representative throughout                section 4004 of ERISA to submit
                                                    section 432 of the Internal Revenue                     the suspension approval process.                      recommendations with respect to a
                                                    Code (Code), which prescribes funding                     Section 432(e)(9)(C) prescribes the                 suspension in certain circumstances.
                                                    rules for certain multiemployer defined                 conditions that must be satisfied before              Section 432(e)(9)(I) contains provisions
                                                    benefit plans in endangered and critical                a plan sponsor may suspend benefits.                  relating to judicial review.
                                                    status and permits plans in critical                    For example, section 432(e)(9)(C)(i)                     An application for approval of a plan
                                                    status to be amended to reduce certain                  provides that the plan actuary must                   amendment to suspend benefits may be
                                                    otherwise protected benefits (referred to               certify, taking into account the proposed             made in combination with an
                                                    as ‘‘adjustable benefits’’). Section 202 of             suspensions of benefits (and, if                      application to the PBGC for a partition
                                                    PPA ’06 amended section 305 of the                      applicable, a proposed partition of the               of the plan, and a plan sponsor also may
                                                    Employee Retirement Income Security                     plan under section 4233 of ERISA), that               ask the PBGC for technical or financial
                                                    Act of 1974, Public Law 93–406 (88 Stat.                the plan is projected to avoid insolvency             assistance with a merger. The PBGC is
                                                    829 (1974)), as amended (ERISA), to                     within the meaning of section 418E,                   issuing its own request for information
                                                    prescribe parallel rules. PPA ’06                       assuming the suspensions of benefits                  to seek comment on the processes
                                                    provided that section 432 and ERISA                     continue until the suspensions of                     associated with applying for partition or
                                                    section 305 would sunset for plan years                 benefits expire by their own terms or, if             merger assistance, including how such
                                                    beginning after December 31, 2014.                      no such expiration is set, indefinitely.              processes should be coordinated with
                                                    However, section 101 of MPRA made                       Section 432(e)(9)(D) contains limitations             the benefit suspension process. The
                                                    them permanent, with certain                            on the benefits that may be suspended.                agencies will coordinate on the
                                                    modifications.                                          For example, section 432(e)(9)(D)(ii)                 development of processes that will
                                                       Section 201 of MPRA amended Code                     limits the applicability of a suspension              apply to applications falling within
                                                    section 432 to add a new status, called                 in the case of a participant or                       their respective jurisdictions.
                                                    ‘‘critical and declining status,’’ for                  beneficiary who has attained age 75 as
                                                    multiemployer defined benefit plans.                    of the effective date of the suspension               Request for Information
                                                    Section 432(b)(6) provides that a plan in               and section 432(e)(9)(D)(iii) provides                  Comments are requested on matters
                                                    critical status is treated as being in                  that no benefits based on disability (as              that may be addressed in future
                                                    critical and declining status if the plan               defined under the plan) may be                        guidance implementing section
                                                    satisfies the criteria for critical status,             suspended.                                            432(e)(9), and in particular on the
                                                    and in addition is projected to become                    Section 432(e)(9)(E) prescribes rules               following:
                                                    insolvent within the meaning of section                 relating to possible benefit                            1. How should future guidance
                                                    418E during the current plan year or any                improvements while a suspension of                    address actuarial and other issues,
                                                    of the 14 succeeding plan years (or 19                  benefits is in effect. Section 432(e)(9)(F)           including duration, related to the
                                                    succeeding plan years if the plan has a                 contains notice requirements associated               following certifications and
                                                    ratio of inactive participants to active                with a suspension of benefits. These                  determinations:
                                                    participants that exceeds two to one or                 include the requirement under section                   a. The actuary’s certification under
                                                    if the funded percentage of the plan is                 432(e)(9)(F)(i) that no suspension of                 section 432(b)(3) that a multiemployer
                                                    less than 80 percent).1                                 benefits may be made unless notice to                 plan is in critical and declining status;
                                                       Section 201 of MPRA also amended                     specified parties of the proposed                       b. The actuary’s section 432(e)(9)(C)(i)
                                                    section 432(e)(9) to prescribe benefit                  suspension has been given by the plan                 projection of continued solvency (taking
                                                    suspension rules for multiemployer                      sponsor (in the form and manner to be                 into account the proposed suspension
                                                    defined benefit plans in critical and                   prescribed in guidance) concurrently                  and, if applicable, a proposed partition
                                                                                                            with an application for approval of the
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                                                    declining status. Section 432(e)(9)(A)                                                                        under section 4233 of ERISA); and
                                                    provides that notwithstanding section                   suspension. Section 432(e)(9)(G)                        c. The plan sponsor’s section
                                                                                                            describes the process for approval or                 432(e)(9)(C)(ii) determination that the
                                                      1 Section 201(a) of MPRA makes parallel               rejection of a plan sponsor’s application             plan is projected to become insolvent
                                                    amendments to section 305 of ERISA. Under section       for a suspension of benefits, including               unless benefits are suspended?
                                                    101 of Reorganization Plan No. 4 of 1978 (43 FR         that the Treasury Secretary, in                         2. For purposes of the section
                                                    47713), the Department of the Treasury has
                                                    interpretive jurisdiction over the subject matter of
                                                                                                            consultation with the Pension Benefit                 432(e)(9)(D)(iii) limitation that a
                                                    this document for purposes of ERISA as well as the      Guaranty Corporation (PBGC) and the                   suspension is not permitted to apply to
                                                    Code.                                                   Secretary of Labor, shall approve an                  benefits based on disability (as defined


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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
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionRequest for information.
DatesComments must be received by April 6, 2015.
ContactConcerning 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 Citation80 FR 8578 
RIN Number1545-BM66

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