82 FR 18165 - Approval of Special Withdrawal Liability Rules: the Service Employees International Union Local 1 Cleveland Pension Plan
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 82, Issue 72 (April 17, 2017)
Federal Register Volume 82, Issue 72 (April 17, 2017)
| Page Range | 18165-18168 | |
| FR Document | 2017-07719 |
[Federal Register Volume 82, Number 72 (Monday, April 17, 2017)] [Notices] [Pages 18165-18168] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-07719] ======================================================================= ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION Approval of Special Withdrawal Liability Rules: the Service Employees International Union Local 1 Cleveland Pension Plan AGENCY: Pension Benefit Guaranty Corporation. ACTION: Notice of Approval. ----------------------------------------------------------------------- SUMMARY: The Service Employees International Union Local 1 Cleveland Pension Plan requested the Pension Benefit Guaranty Corporation (PBGC) to approve a plan amendment providing for special withdrawal liability rules for employers that maintain the Plan. PBGC published a Notice of Pendency of the Request for Approval of the amendment. In accordance with the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA), PBGC is now advising the public that the agency has approved the requested amendment. ADDRESSES: A copy of the plan's complete request may be requested from the Disclosure Officer, Pension Benefit Guaranty Corporation, 1200 K Street NW., Suite 11101, Washington, DC 20005 (fax 202-326-4042). FOR FURTHER INFORMATION CONTACT: Bruce Perlin, Assistant Chief Counsel ([email protected]), 202-326-4020, ext. 6818 or Jon Chatalian, Deputy Assistant Chief Counsel ([email protected]), ext. 6757, Office of the Chief Counsel, Suite 340, 1200 K Street NW., Washington, DC 20005-4026; (TTY/TDD users may call the Federal relay service toll- free at 1-800-877-8339 and ask to be connected to 202-326-4020.) SUPPLEMENTARY INFORMATION: Background The Pension Benefit Guaranty Corporation (PBGC) administers title IV of the Employee Retirement Income Security Act of 1974 (ERISA). Under section 4201 of ERISA, an employer that completely or partially withdraws from a defined benefit multiemployer pension plan becomes [[Page 18166]] liable for a proportional share of the plan's unfunded vested benefits. The statute specifies that a ``complete withdrawal'' occurs whenever an employer either permanently (1) ceases to have an obligation to contribute to the plan, or (2) ceases all operations covered under the plan. See ERISA section 4203(a). Under the first test, an employer that remains in business but no longer has an obligation to contribute to the plan will incur withdrawal liability. Under the second test, an employer that closes or sells its operations will also incur withdrawal liability. The ``partial withdrawal'' provisions of sections 4205 and 4206 impose a lesser measure of liability upon employers who reduce, but do not eliminate, the obligations or operations that generate contributions to the plan. The withdrawal liability provisions of ERISA are a critical factor in maintaining the solvency of these pension plans and reducing claims made on the multiemployer plan insurance fund maintained by PBGC. Without withdrawal liability rules, an employer that participates in an underfunded multiemployer plan would have a powerful economic incentive to reduce expenses by withdrawing from the plan. Congress nevertheless allowed for the possibility that, in certain industries, the fact that particular employers go out of business (or cease operations in a specific geographic region) might not result in permanent damage to the pension plan's contribution base. In the construction industry, for example, the funding base of a pension plan is the construction projects in the area covered by the collective bargaining agreements under which a pension plan is maintained. Even if the amount of work performed by a particular employer fluctuates markedly in any given year, individual employees will typically continue to work for other contributing employers in the same geographic area. Consequently, the withdrawal of an employer does not remove jobs from or damage the pension plan's contribution base unless the employer continues to work in the geographic area covered by collective bargaining agreement without contributing to the plan. Although the general rules on complete and partial withdrawal identify events that normally result in a diminution of the plan's contribution base, Congress recognized that, in certain industries and under certain circumstances, a complete or partial cessation of the obligation to contribute normally does not weaken the plan's contribution base. This reasoning led Congress to establish special withdrawal rules for the construction and entertainment industries. Section 4203(b)(2) of ERISA provides that a complete withdrawal occurs only if an employer ceases to have an obligation to contribute under a plan and the employer either continues to perform previously covered work in the jurisdiction of the collective bargaining agreement or resumes such work within five years without renewing the obligation to contribute. In the case of a plan terminated by mass withdrawal (within the meaning of ERISA section 4041(A)(2)), section 4203(b)(3) provides that the five-year restriction on an employer resuming covered work is reduced to three years. Section 4203(c)(1) of ERISA applies the same special definition of complete withdrawal to the entertainment industry, except that the pertinent jurisdiction is the jurisdiction of the plan rather than the jurisdiction of the collective bargaining agreement. In contrast, the general definition of complete withdrawal in section 4203(a) of ERISA includes the permanent cessation of the obligation to contribute regardless of the continued activities of the withdrawn employer. Congress also established special partial withdrawal liability rules for the construction and entertainment industries. Under section 4208(d)(1) of ERISA, ``[a]n employer to whom section 4203(b) (relating to the building and construction industry) applies is liable for a partial withdrawal only if the employer's obligation to contribute under the plan is continued for no more than an insubstantial portion of its work in the craft and area jurisdiction of the collective bargaining agreement of the type for which contributions are required.'' Under section 4208(d)(2) of ERISA, ``[a]n employer to whom section 4203(c) (relating to the entertainment industry) applies shall have no liability for a partial withdrawal except under the conditions and to the extent prescribed by the [PBGC] by regulation.'' Section 4203(f) of ERISA provides that PBGC may prescribe regulations under which plans that are not in the construction industry may be amended to use special withdrawal liability rules similar to those that apply to construction plans. Under the statute, the regulations shall permit the use of special withdrawal liability rules only in industries that PBGC determines have characteristics that would make use of the special withdrawal liability rules appropriate. ERISA section 4203(f)(2)(A). In addition, each plan application must show that the special rule will not pose a significant risk to the PBGC. ERISA section 4203(f)(2)(B). Section 4208(e)(3) of ERISA provides that a plan may adopt rules for the reduction or elimination of partial withdrawal liability--under regulations prescribed by PBGC--subject to PBGC's determination that such rules are consistent with the purpose of ERISA. PBGC's regulation on Extension of Special Withdrawal Liability Rules (29 CFR part 4203) prescribes the procedures a multiemployer plan must follow to request PBGC approval of a plan amendment that establishes special complete or partial withdrawal liability rules. The regulation may be accessed on PBGC's Web site (http://www.pbgc.gov). Under 29 CFR 4203.3(a), a complete withdrawal rule must be similar to the statutory provision that applies to construction industry plans under section 4203(b) of ERISA. Any special rule for partial withdrawals must be consistent with the construction industry partial withdrawal provisions. Each request for approval of a plan amendment establishing special withdrawal liability rules must provide PBGC with detailed financial and actuarial data about the plan. In addition, the applicant must provide PBGC with information about the effects of withdrawals on the plan's contribution base. As a practical matter, the plan must show that the characteristics of employment and labor relations in its industry are sufficiently similar to those in the construction industry that use of the construction rule would be appropriate. Relevant factors include the mobility of the employees, the intermittent nature of the employment, the project-by-project nature of the work, extreme fluctuations in the level of an employer's covered work under the plan, the existence of a consistent pattern of entry and withdrawal by employers, and the local nature of the work performed. PBGC will approve a special withdrawal liability rule only if a review of the record shows that: (1) The industry has characteristics that would make use of the special construction withdrawal rules appropriate; and (2) The adoption of the special rule will not pose a significant risk to the PBGC. After review of the application and all public comments, PBGC may approve the amendment in the form proposed by the plan, approve the application subject to conditions or revisions, or deny the application. [[Page 18167]] The Request PBGC received a request, dated September 16, 2011, from the Service Employees International Union Local 1 Cleveland Pension Plan (the ``Plan''), for approval of a plan amendment providing for special withdrawal liability rules. Subsequently, the Plan requested that PBGC suspend review of the amendment. On January 24, 2014, the Plan requested that PBGC again consider the amendment and provided updated actuarial information. PBGC published a Notice of Pendency of the Request for Approval of the amendment on August 19, 2015 (80 FR 50339). PBGC's summary of the actuarial reports provided by the Plan may be accessed on PBGC's Web site (https://www.pbgc.gov/prac/pg/other/guidance/multiemployer-notices.html). The Plan is a multiemployer pension plan covering the commercial building cleaning and security industries in the greater Cleveland, Ohio area. The Plan represents in its submission that the industry for which the rule is requested--the commercial building cleaning industry--has characteristics similar to those of the construction industry. According to the Plan's submission, the principal similarity is that when a contributing employer's contract to clean a building expires, the cleaning work will generally continue to be performed by employees covered by the Plan, irrespective of the employer retained to perform the cleaning services. Under the proposed amendment, a complete withdrawal of an employer whose employees perform substantially all work in the commercial building cleaning industry will occur only when: (a) The employer ceases to have an obligation to contribute under the Plan and (b) the employer continues to perform work in the jurisdiction of the Plan of the type for which contributions were previously required or resumes such work within five years after the date on which the obligation to contribute under the plan ceases and does not renew the obligation at the time of the resumption. Additionally, the proposed amendment provides that a withdrawal from the Plan occurs if an employer sells or otherwise transfers a substantial portion of its business or assets to another individual or entity that performs work in the jurisdiction of the Plan of the type for which contributions are required without having an obligation to make contributions to the Plan. In the case of termination by mass withdrawal (within the meaning of ERISA section 4041A(a)(2)), the proposed amendment provides that section 4203(b)(3), permitting a construction employer to resume covered work after three years of withdrawal instead of the standard five-year restriction, is not applicable to withdrawing commercial building cleaning industry employers. Therefore, in the event of a mass withdrawal, there is still a five-year restriction on resuming covered work in the jurisdiction of the Plan. The request includes the actuarial data on which the Plan relies to support its contention that the amendment will not pose a significant risk to the insurance system under Title IV of ERISA. The Plan submitted actuarial valuation reports for Plan years 2007-2014. Although the Plan's financial condition deteriorated after the 2007- 2008 financial crisis, the Plan immediately took action to increase employer contributions, by diverting contributions allocated to other employee benefit plans.\1\ In 2011, the Plan's funding percentage and other tests of financial health placed the Plan in the Green zone (strongest category) and the Plan has been in the Green zone since.\2\ Although the number of active participants in the Plan dropped 19% between 2007 and 2013 (while retirees decreased 6%), contributions increased 13% over the same time period.\3\ To date, the Plan's active participant base remains solid--about 36% of the participant population--and contributions remain steady. --------------------------------------------------------------------------- \1\ Under the Pension Protection Act of 2006 (PPA), the Plan would have certified as in critical status (Red zone) in 2009, but instead elected to freeze its 2008 Green zone status for one year pursuant to the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA). \2\ Updated actuarial information became available after the Notice of Pendency, and PBGC reviewed 5500s and Actuarial Valuation Reports for Plan years 2015-2016, which confirmed the Plan was still in the Green zone. \3\ During Plan years 2014-2016, active participants decreased by another 5% (while retirees decreased 6%). The number of separated vested participants increased in recent years, but the average monthly benefit of these participants is less than the average monthly benefit of the current retiree population. Additionally, the updated actuarial information demonstrates a commitment to sustained contributions, as evidenced by a 5% increase in the average employer contribution rate between 2013 and 2015. --------------------------------------------------------------------------- Decision on the Proposed Amendment The statute and the implementing regulation state that PBGC must make two factual determinations before it approves a request for an amendment that adopts a special withdrawal liability rule. ERISA section 4203(f); 29 CFR 4203.5(a). First, on the basis of a showing by the plan, PBGC must determine that the amendment will apply to an industry that has characteristics that would make use of the special rules appropriate. Second, PBGC must determine that the plan amendment will not pose a significant risk to the insurance system. PBGC's discussion on each of those issues follows. After review of the record submitted by the Plan, and having received no public comments, PBGC has entered the following determinations. 1. What is the nature of the industry? In determining whether an industry has the characteristics that would make an amendment to special rules appropriate, an important line of inquiry is the extent to which the Plan's contribution base resembles that found in the construction industry. This threshold question requires consideration of the effect of employer withdrawals on the Plan's contribution base. As the Plan has asserted, covered work must be performed at a commercial building located in the Cleveland, Ohio region. The work is local in nature and generally continues to be covered by the Plan regardless of the employer retained to do those services. An employer ceases to have an obligation to contribute when it loses a cleaning or security contract because the building owner outsources the work or retains a different service provider, or when the employer closes its business due to bankruptcy, retirement, or business relocation. Over the past 10 years, cessation of contributions by any individual employer has not had an adverse impact on the Plan's contribution base. Most of the employers that have ceased to contribute have been replaced by another employer who begins contributions for the same employees at the same location for the same work. The Plan presented historical data supporting the notion that building contract employer withdrawals have not negatively affected the Plan's contribution base. 2. What is the exposure and risk of loss to PBGC and participants? Exposure. Although the Plan's financial condition deteriorated as a result of the 2007-2008 financial crisis, the Plan sponsor took assertive actions to help the Plan recover, significantly increasing contributions in Plan years 2010 and 2011. As a result, in 2011 the Plan's actuary determined that the Plan's financial health placed it in the Green zone and the Plan continues to be in the Green zone to date. Active participants in the Plan decreased by 19% from 2007 to 2013 (and retirees decreased by 6%), but contributions increased by 13% over the same time [[Page 18168]] period. Thus, the parties have worked to preserve an adequate cushion against market downturns. Risk of loss. The record shows that the Plan presents a low risk of loss to PBGC's multiemployer insurance program. The Plan and the covered industry have unique characteristics that suggest that the Plan's contribution base is likely to remain stable. Contributions to the Plan are made with respect to commercial buildings in the greater Cleveland area. Plan representatives presented data demonstrating that building cleaning contracts for covered employment under the collective bargaining agreement have changed hands approximately 20-25 times during the past 18 years, and the rate at which a new signatory employer has assumed a prior signatory employer's building contract and has hired the prior employer's employees to clean the same building is 90-92%. Accordingly, the data substantiates the Plan's assertion that the contribution base is secure and the departure of one employer from the Plan is not likely to have an adverse effect on the contribution base so long as the number of buildings covered does not decline. Conclusion Based on the Plan's submissions and the representations and statements made in connection with the request for approval, PBGC has determined that the plan amendment adopting the special withdrawal liability rules (1) will apply only to an industry that has characteristics that would make the use of special withdrawal liability rules appropriate, and (2) will not pose a significant risk to the insurance system. Therefore, PBGC hereby grants the Plan's request for approval of a plan amendment providing special withdrawal liability rules, as set forth herein. Should the Plan wish to amend these rules at any time, PBGC approval of the amendment will be required. W. Thomas Reeder, Director, Pension Benefit Guaranty Corporation. [FR Doc. 2017-07719 Filed 4-14-17; 8:45 am] BILLING CODE 7709-01-P
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Document ADAMS accession No./web link
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SECY–14–0087, ‘‘Qualitative Consideration of Factors in the Development of Regulatory ML14127A458 (Package).
Analyses and Backfit Analyses,’’ September 11, 2014.
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tices,’’ December 16, 2014.
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latory Framework,’’ August 14, 2012.
SRM for SECY–12–0110, ‘‘Consideration of Economic Consequences within the U.S. NRC’s ML13079A055.
Regulatory Framework,’’ March 20, 2013.
SRM for SECY–14–0087, ’’Qualitative Consideration of Factors in the Development of Regu- ML15063A568.
latory Analyses and Backfit Analyses,’’ March 4, 2015.
NUREG–1409, ‘‘Backftting Guidelines’’ ....................................................................................... ML032230247.
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GAO–09–3SP, ‘‘GAO Cost Estimating and Assessment Guide’’ ................................................ http://www.gao.gov/new.items/d093sp.pdf.
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Systems for Boiling Water Reactors with Mark I and Mark II Containments,’’ March 12,
2013.
Dated at Rockville, Maryland, this 11th day Register. The following executives have SUMMARY: The Service Employees
of April 2017. been designated as members of the International Union Local 1 Cleveland
For the Nuclear Regulatory Commission. Performance Review Board for the U.S. Pension Plan requested the Pension
Anita L. Lund, Nuclear Waste Technical Review Board: Benefit Guaranty Corporation (PBGC) to
Director, Division of Policy and Rulemaking, Steven M. Becker, Board Member, U.S. approve a plan amendment providing
Office of Nuclear Reactor Regulation. Nuclear Waste Technical Review for special withdrawal liability rules for
[FR Doc. 2017–07623 Filed 4–14–17; 8:45 am] Board employers that maintain the Plan. PBGC
BILLING CODE 7590–01–P Linda K. Nozick, Board Member, U.S. published a Notice of Pendency of the
Nuclear Waste Technical Review Request for Approval of the amendment.
Board In accordance with the provisions of the
NUCLEAR WASTE TECHNICAL Paul J. Turinsky, Board Member, U.S. Employee Retirement Income Security
REVIEW BOARD Nuclear Waste Technical Review Act of 1974, as amended (ERISA), PBGC
Board is now advising the public that the
Formation of SES Performance Review Katherine R. Herrera, Deputy General agency has approved the requested
Board Manager, Defense Nuclear Facilities amendment.
Safety Board ADDRESSES: A copy of the plan’s
AGENCY: Nuclear Waste Technical Timothy J. Dwyer, Member, Technical complete request may be requested from
Review Board. Staff, Defense Nuclear Facilities the Disclosure Officer, Pension Benefit
ACTION: Notice. Safety Board Guaranty Corporation, 1200 K Street
Richard E. Tontodonato, Deputy NW., Suite 11101, Washington, DC
SUMMARY: The Nuclear Waste Technical
Technical Director, Defense Nuclear 20005 (fax 202–326–4042).
Review Board is announcing the
Facilities Safety Board FOR FURTHER INFORMATION CONTACT:
members Performance Review Board.
DATES: Effectively immediately and
Authority: 42 U.S.C. 10262. Bruce Perlin, Assistant Chief Counsel
until April 30, 2018. Dated: April 4, 2017. (Perlin.Bruce@PBGC.gov), 202–326–
Debra L. Dickson,
4020, ext. 6818 or Jon Chatalian, Deputy
FOR FURTHER INFORMATION CONTACT: For Assistant Chief Counsel (Chatalian.Jon@
further information about the formation Director of Administration, U.S. Nuclear
Waste Technical Review Board.
PBGC.gov), ext. 6757, Office of the Chief
of the U.S. Nuclear Waste Technical Counsel, Suite 340, 1200 K Street NW.,
Review Board’s Performance Review [FR Doc. 2017–06998 Filed 4–14–17; 8:45 am]
Washington, DC 20005–4026; (TTY/
Board, please contact Debra L. Dickson BILLING CODE P
TDD users may call the Federal relay
at 703.235.4480 or via email at dickson@ service toll-free at 1–800–877–8339 and
nwtrb.gov, or via mail at 2300 Clarendon ask to be connected to 202–326–4020.)
Blvd., Suite 1300, Arlington, VA 22201 PENSION BENEFIT GUARANTY SUPPLEMENTARY INFORMATION:
SUPPLEMENTARY INFORMATION: Section CORPORATION
4314(c)(1) through (5) of Title 5 of the Background
United States Code, requires each Approval of Special Withdrawal The Pension Benefit Guaranty
mstockstill on DSK30JT082PROD with NOTICES
agency to establish, in accordance with Liability Rules: the Service Employees Corporation (PBGC) administers title IV
regulations prescribed by the Office of International Union Local 1 Cleveland of the Employee Retirement Income
Personnel Management, one or more Pension Plan Security Act of 1974 (ERISA).
SES Performance Review Boards. AGENCY: Pension Benefit Guaranty Under section 4201 of ERISA, an
Section 4314(c)(4) of Title 5 requires Corporation. employer that completely or partially
that notice of appointment of board withdraws from a defined benefit
ACTION: Notice of Approval.
members be published in the Federal multiemployer pension plan becomes
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![18166 Federal Register / Vol. 82, No. 72 / Monday, April 17, 2017 / Notices
liable for a proportional share of the rules for the construction and the PBGC. ERISA section 4203(f)(2)(B).
plan’s unfunded vested benefits. The entertainment industries. Section 4208(e)(3) of ERISA provides
statute specifies that a ‘‘complete Section 4203(b)(2) of ERISA provides that a plan may adopt rules for the
withdrawal’’ occurs whenever an that a complete withdrawal occurs only reduction or elimination of partial
employer either permanently (1) ceases if an employer ceases to have an withdrawal liability—under regulations
to have an obligation to contribute to the obligation to contribute under a plan prescribed by PBGC—subject to PBGC’s
plan, or (2) ceases all operations covered and the employer either continues to determination that such rules are
under the plan. See ERISA section perform previously covered work in the consistent with the purpose of ERISA.
4203(a). Under the first test, an jurisdiction of the collective bargaining
PBGC’s regulation on Extension of
employer that remains in business but agreement or resumes such work within
five years without renewing the Special Withdrawal Liability Rules (29
no longer has an obligation to contribute
obligation to contribute. In the case of CFR part 4203) prescribes the
to the plan will incur withdrawal
a plan terminated by mass withdrawal procedures a multiemployer plan must
liability. Under the second test, an
employer that closes or sells its (within the meaning of ERISA section follow to request PBGC approval of a
operations will also incur withdrawal 4041(A)(2)), section 4203(b)(3) provides plan amendment that establishes special
liability. The ‘‘partial withdrawal’’ that the five-year restriction on an complete or partial withdrawal liability
provisions of sections 4205 and 4206 employer resuming covered work is rules. The regulation may be accessed
impose a lesser measure of liability reduced to three years. Section on PBGC’s Web site (http://
upon employers who reduce, but do not 4203(c)(1) of ERISA applies the same www.pbgc.gov). Under 29 CFR
eliminate, the obligations or operations special definition of complete 4203.3(a), a complete withdrawal rule
that generate contributions to the plan. withdrawal to the entertainment must be similar to the statutory
The withdrawal liability provisions of industry, except that the pertinent provision that applies to construction
ERISA are a critical factor in jurisdiction is the jurisdiction of the industry plans under section 4203(b) of
maintaining the solvency of these plan rather than the jurisdiction of the ERISA. Any special rule for partial
pension plans and reducing claims collective bargaining agreement. In withdrawals must be consistent with the
made on the multiemployer plan contrast, the general definition of construction industry partial
insurance fund maintained by PBGC. complete withdrawal in section 4203(a) withdrawal provisions.
Without withdrawal liability rules, an of ERISA includes the permanent Each request for approval of a plan
employer that participates in an cessation of the obligation to contribute amendment establishing special
underfunded multiemployer plan would regardless of the continued activities of withdrawal liability rules must provide
have a powerful economic incentive to the withdrawn employer. PBGC with detailed financial and
reduce expenses by withdrawing from Congress also established special actuarial data about the plan. In
the plan. partial withdrawal liability rules for the addition, the applicant must provide
Congress nevertheless allowed for the construction and entertainment PBGC with information about the effects
possibility that, in certain industries, industries. Under section 4208(d)(1) of of withdrawals on the plan’s
the fact that particular employers go out ERISA, ‘‘[a]n employer to whom section contribution base. As a practical matter,
of business (or cease operations in a 4203(b) (relating to the building and
the plan must show that the
specific geographic region) might not construction industry) applies is liable
characteristics of employment and labor
result in permanent damage to the for a partial withdrawal only if the
relations in its industry are sufficiently
pension plan’s contribution base. In the employer’s obligation to contribute
similar to those in the construction
construction industry, for example, the under the plan is continued for no more
than an insubstantial portion of its work industry that use of the construction
funding base of a pension plan is the
in the craft and area jurisdiction of the rule would be appropriate. Relevant
construction projects in the area covered
collective bargaining agreement of the factors include the mobility of the
by the collective bargaining agreements
type for which contributions are employees, the intermittent nature of
under which a pension plan is
maintained. Even if the amount of work required.’’ Under section 4208(d)(2) of the employment, the project-by-project
performed by a particular employer ERISA, ‘‘[a]n employer to whom section nature of the work, extreme fluctuations
fluctuates markedly in any given year, 4203(c) (relating to the entertainment in the level of an employer’s covered
individual employees will typically industry) applies shall have no liability work under the plan, the existence of a
continue to work for other contributing for a partial withdrawal except under consistent pattern of entry and
employers in the same geographic area. the conditions and to the extent withdrawal by employers, and the local
Consequently, the withdrawal of an prescribed by the [PBGC] by nature of the work performed. PBGC
employer does not remove jobs from or regulation.’’ will approve a special withdrawal
damage the pension plan’s contribution Section 4203(f) of ERISA provides liability rule only if a review of the
base unless the employer continues to that PBGC may prescribe regulations record shows that:
work in the geographic area covered by under which plans that are not in the (1) The industry has characteristics
collective bargaining agreement without construction industry may be amended that would make use of the special
contributing to the plan. to use special withdrawal liability rules construction withdrawal rules
Although the general rules on similar to those that apply to appropriate; and
complete and partial withdrawal construction plans. Under the statute,
the regulations shall permit the use of (2) The adoption of the special rule
identify events that normally result in a
diminution of the plan’s contribution special withdrawal liability rules only will not pose a significant risk to the
mstockstill on DSK30JT082PROD with NOTICES
base, Congress recognized that, in in industries that PBGC determines have PBGC.
certain industries and under certain characteristics that would make use of After review of the application and all
circumstances, a complete or partial the special withdrawal liability rules public comments, PBGC may approve
cessation of the obligation to contribute appropriate. ERISA section the amendment in the form proposed by
normally does not weaken the plan’s 4203(f)(2)(A). In addition, each plan the plan, approve the application
contribution base. This reasoning led application must show that the special subject to conditions or revisions, or
Congress to establish special withdrawal rule will not pose a significant risk to deny the application.
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period. Thus, the parties have worked to Commission’s consideration concerning U.S.C. 3642, 39 CFR part 3010, and 39
preserve an adequate cushion against a negotiated service agreement. This CFR part 3020, subpart B. For request(s)
market downturns. notice informs the public of the filing, that the Postal Service states concern
Risk of loss. The record shows that the invites public comment, and takes other competitive product(s), applicable
Plan presents a low risk of loss to administrative steps. statutory and regulatory requirements
PBGC’s multiemployer insurance DATES: Comments are due: April 19, include 39 U.S.C. 3632, 39 U.S.C. 3633,
program. The Plan and the covered 2017. 39 U.S.C. 3642, 39 CFR part 3015, and
industry have unique characteristics 39 CFR part 3020, subpart B. Comment
that suggest that the Plan’s contribution ADDRESSES: Submit comments deadline(s) for each request appear in
base is likely to remain stable. electronically via the Commission’s section II.
Contributions to the Plan are made with Filing Online system at http://
respect to commercial buildings in the www.prc.gov. Those who cannot submit II. Docketed Proceeding(s)
greater Cleveland area. Plan comments electronically should contact
the person identified in the FOR FURTHER 1. Docket No(s).: CP2017–162; Filing
representatives presented data Title: Notice of United States Postal
INFORMATION CONTACT section by
demonstrating that building cleaning Service of Filing a Functionally
contracts for covered employment under telephone for advice on filing
alternatives. Equivalent Global Expedited Package
the collective bargaining agreement Services 7 Negotiated Service
have changed hands approximately 20– FOR FURTHER INFORMATION CONTACT: Agreement and Application for Non-
25 times during the past 18 years, and David A. Trissell, General Counsel, at Public Treatment of Materials Filed
the rate at which a new signatory 202–789–6820. Under Seal; Filing Acceptance Date:
employer has assumed a prior signatory SUPPLEMENTARY INFORMATION: April 11, 2017; Filing Authority: 39 CFR
employer’s building contract and has 3015.5; Public Representative: Curtis E.
hired the prior employer’s employees to Table of Contents
Kidd; Comments Due: April 19, 2017.
clean the same building is 90–92%. I. Introduction This notice will be published in the
Accordingly, the data substantiates the II. Docketed Proceeding(s)
Federal Register.
Plan’s assertion that the contribution
base is secure and the departure of one I. Introduction Stacy L. Ruble,
employer from the Plan is not likely to The Commission gives notice that the Secretary.
have an adverse effect on the Postal Service filed request(s) for the [FR Doc. 2017–07706 Filed 4–14–17; 8:45 am]
contribution base so long as the number Commission to consider matters related BILLING CODE 7710–FW–P
of buildings covered does not decline. to negotiated service agreement(s). The
Conclusion request(s) may propose the addition or
removal of a negotiated service
Based on the Plan’s submissions and agreement from the market dominant or POSTAL SERVICE
the representations and statements the competitive product list, or the
made in connection with the request for modification of an existing product Product Change—Priority Mail
approval, PBGC has determined that the currently appearing on the market Negotiated Service Agreement
plan amendment adopting the special dominant or the competitive product
withdrawal liability rules (1) will apply AGENCY: Postal ServiceTM.
list.
only to an industry that has Section II identifies the docket ACTION: Notice.
characteristics that would make the use number(s) associated with each Postal
of special withdrawal liability rules Service request, the title of each Postal SUMMARY: The Postal Service gives
appropriate, and (2) will not pose a Service request, the request’s acceptance notice of filing a request with the Postal
significant risk to the insurance system. date, and the authority cited by the Regulatory Commission to add a
Therefore, PBGC hereby grants the Postal Service for each request. For each domestic shipping services contract to
Plan’s request for approval of a plan request, the Commission appoints an the list of Negotiated Service
amendment providing special officer of the Commission to represent Agreements in the Mail Classification
withdrawal liability rules, as set forth the interests of the general public in the Schedule’s Competitive Products List.
herein. Should the Plan wish to amend proceeding, pursuant to 39 U.S.C. 505
these rules at any time, PBGC approval DATES: Effective date: April 17, 2017.
(Public Representative). Section II also
of the amendment will be required. establishes comment deadline(s) FOR FURTHER INFORMATION CONTACT:
W. Thomas Reeder, pertaining to each request. Elizabeth A. Reed, 202–268–3179.
Director, Pension Benefit Guaranty The public portions of the Postal SUPPLEMENTARY INFORMATION: The
Corporation. Service’s request(s) can be accessed via United States Postal Service® hereby
[FR Doc. 2017–07719 Filed 4–14–17; 8:45 am] the Commission’s Web site (http:// gives notice that, pursuant to 39 U.S.C.
BILLING CODE 7709–01–P www.prc.gov). Non-public portions of 3642 and 3632(b)(3), on April 10, 2017,
the Postal Service’s request(s), if any, it filed with the Postal Regulatory
can be accessed through compliance Commission a Request of the United
POSTAL REGULATORY COMMISSION with the requirements of 39 CFR States Postal Service to Add Priority
3007.40. Mail Contract 306 to Competitive
[Docket No. CP2017–162] The Commission invites comments on Product List. Documents are available at
mstockstill on DSK30JT082PROD with NOTICES
whether the Postal Service’s request(s) www.prc.gov, Docket Nos. MC2017–111,
New Postal Products in the captioned docket(s) are consistent CP2017–159.
AGENCY: Postal Regulatory Commission. with the policies of title 39. For
request(s) that the Postal Service states Stanley F. Mires,
ACTION: Notice.
concern market dominant product(s), Attorney, Federal Compliance.
SUMMARY: The Commission is noticing a applicable statutory and regulatory [FR Doc. 2017–07630 Filed 4–14–17; 8:45 am]
recent Postal Service filing for the requirements include 39 U.S.C. 3622, 39 BILLING CODE 7710–12–P
VerDate Sep<11>2014 17:14 Apr 14, 2017 Jkt 241001 PO 00000 Frm 00070 Fmt 4703 Sfmt 9990 E:\FR\FM\17APN1.SGM 17APN1](https://thefederalregister.org/doc/82_FR_18237/page/4.svg)
Document Created: 2018-08-25 11:27:49
Document Modified: 2018-08-25 11:27:49
| 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 | Notices | |
| Action | Notice of Approval. | |
| Contact | Bruce Perlin, Assistant Chief Counsel ([email protected]), 202-326-4020, ext. 6818 or Jon Chatalian, Deputy Assistant Chief Counsel ([email protected]), ext. 6757, Office of the Chief Counsel, Suite 340, 1200 K Street NW., Washington, DC 20005-4026; (TTY/TDD users may call the Federal relay service toll- free at 1-800-877-8339 and ask to be connected to 202-326-4020.) | |
| FR Citation | 82 FR 18165 |
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