82 FR 8882 - Submission of Information Collections for OMB Review; Comment Request; Payment of Premiums; Termination Premium

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 82, Issue 19 (January 31, 2017)

The Pension Benefit Guaranty Corporation (PBGC) is requesting that the Office of Management and Budget (OMB) extend approval, under the Paperwork Reduction Act, of the collection of information for the termination premium under its regulation on Payment of Premiums (29 CFR part 4007) (OMB control number 1212-0064; expires February 28, 2017), without changes. This notice informs the public of PBGC's request and solicits public comment on the collection of information.

[Federal Register Volume 82, Number 19 (Tuesday, January 31, 2017)]
[Notices]
[Pages 8882-8883]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02018]


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PENSION BENEFIT GUARANTY CORPORATION


Submission of Information Collections for OMB Review; Comment 
Request; Payment of Premiums; Termination Premium

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of request for extension of OMB approval of collection 
of information.

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SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) is requesting 
that the Office of Management and Budget (OMB) extend approval, under 
the Paperwork Reduction Act, of the collection of information for the 
termination premium under its regulation on Payment of Premiums (29 CFR 
part 4007) (OMB control number 1212-0064; expires February 28, 2017), 
without changes. This notice informs the public of PBGC's request and 
solicits public comment on the collection of information.

DATES: Comments should be submitted by March 2, 2017.

ADDRESSES: Comments should be sent to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Attention: Desk 
Officer for Pension Benefit Guaranty Corporation, via electronic mail 
at [email protected] or by fax to 202-395-6974.
    The currently approved collection of information (Form T and 
instructions) and PBGC's premium payment regulation may be found on 
PBGC's Web site at http://www.pbgc.gov/prac/prem/termination-premiums.html. Copies of the proposed collection of information and 
PBGC's request will be posted at http://www.pbgc.gov/res/laws-and-

[[Page 8883]]

regulations/information-collections-under-omb-review.html. They may 
also be obtained without charge by writing to the Disclosure Division 
of the Office of the General Counsel of PBGC, 1200 K Street NW., 
Washington, DC 20005, or by calling 202-326-4040 during normal business 
hours. (TTY and TDD users may call the Federal relay service toll-free 
at 800-877-8339 and ask to be connected to 202-326-4040.)

FOR FURTHER INFORMATION CONTACT: Deborah C. Murphy, Assistant General 
Counsel for Regulatory Affairs, Office of the General Counsel, Pension 
Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005-
4026, 202-326-4400 ext.3451 or [email protected]. (TTY and TDD 
users may call the Federal relay service toll-free at 800-877-8339 and 
ask to be connected to 202-326-4400 ext 3451.)

SUPPLEMENTARY INFORMATION: The Pension Benefit Guaranty Corporation 
(PBGC) administers the pension plan termination insurance program under 
title IV of the Employee Retirement Income Security Act of 1974 
(ERISA). Section 4006(a)(7) of ERISA provides for a ``termination 
premium'' (in addition to the flat-rate and variable-rate premiums 
under section 4006(a)(3) and (8) of ERISA) that is payable for three 
years following certain distress and involuntary plan terminations. 
PBGC's regulations on Premium Rates (29 CFR part 4006) and Payment of 
Premiums (29 CFR part 4007) implement the termination premium. Sections 
4007.3 and 4007.13(b) of the premium payment regulation require the 
filing of termination premium information and payments with PBGC. PBGC 
has promulgated Form T and instructions for paying the termination 
premium.
    In general, the termination premium applies where a single-employer 
plan terminates in a distress termination under ERISA section 4041(c) 
(unless contributing sponsors and controlled group members meet the 
bankruptcy liquidation requirements of ERISA section 4041(c)(2)(B)(i)) 
or in an involuntary termination under ERISA section 4042, and the 
termination date under section 4048 of ERISA is after 2005. The 
termination premium does not apply in certain cases where termination 
occurs during a bankruptcy proceeding filed before October 18, 2005.
    The termination premium is payable for three years. The same amount 
is payable each year. The amount of each payment is based on the number 
of participants in the plan as of the day before the termination date. 
In general, the amount of each payment is equal to $1,250 times the 
number of participants. However, the rate is increased from $1,250 to 
$2,500 in certain cases involving commercial airline or airline 
catering service plans. The termination premium is due on the 30th day 
of each of three consecutive 12-month periods. The first 12-month 
period generally begins shortly after the termination date or after the 
conclusion of bankruptcy proceedings in certain cases.
    The termination premium and related information must be filed by a 
person liable for the termination premium. The persons liable for the 
termination premium are contributing sponsors and members of their 
controlled groups, determined on the day before the plan termination 
date. Interest on late termination premiums is charged at the rate 
imposed under section 6601(a) of the Internal Revenue Code, compounded 
daily, from the due date to the payment date. Penalties based on facts 
and circumstances may be assessed both for failure to timely pay the 
termination premium and for failure to timely file required related 
information and may be waived in appropriate circumstances. A penalty 
for late payment will not exceed the amount of termination premium paid 
late. Section 4007.10 of the premium payment regulation requires the 
retention of records supporting or validating the computation of 
premiums paid and requires that the records be made available to PBGC.
    OMB has approved the termination premium collection of information 
(Form T and instructions) under control number 1212-0064 through 
February 28, 2017. PBGC is requesting that OMB extend approval of this 
collection of information for three years, without changes. An agency 
may not conduct or sponsor, and a person is not required to respond to, 
a collection of information unless it displays a currently valid OMB 
control number.
    PBGC estimates that it will each year receive an average of about 1 
filing for the first year a termination premium is due, 1 filing for 
the second year a termination premium is due, and 1 filing for the 
third year a termination premium is due, from a total of about 3 
respondents. PBGC estimates that the total annual burden of the 
collection of information will be about 15 minutes and $200.

Deborah Chase Murphy,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2017-02018 Filed 1-30-17; 8:45 am]
 BILLING CODE 7709-02-P