83 FR 26119 - Pendency for Request for Approval of Special Withdrawal Liability Rules: Alaska Electrical Pension Plan of the Alaska Electrical Pension Fund
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 83, Issue 108 (June 5, 2018)
Federal Register Volume 83, Issue 108 (June 5, 2018)
| Page Range | 26119-26121 | |
| FR Document | 2018-12035 |
[Federal Register Volume 83, Number 108 (Tuesday, June 5, 2018)] [Notices] [Pages 26119-26121] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-12035] ======================================================================= ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION Pendency for Request for Approval of Special Withdrawal Liability Rules: Alaska Electrical Pension Plan of the Alaska Electrical Pension Fund AGENCY: Pension Benefit Guaranty Corporation. ACTION: Notice of pendency of request. ----------------------------------------------------------------------- SUMMARY: This notice advises interested persons that the Pension Benefit Guaranty Corporation (PBGC) has received a request from the Alaska Electrical Pension Plan of the Alaska Electrical Pension Fund for approval of a plan amendment providing for special withdrawal liability rules. Under PBGC's regulation on Extension of Special Withdrawal Liability Rules, a multiemployer pension plan may, with PBGC approval, be amended to provide for special withdrawal liability rules similar to those that apply to the construction and entertainment industries. Such approval is granted only if PBGC determines that the rules apply to an industry with characteristics that make use of the special rules appropriate and that the rules will not pose a significant risk to the pension insurance system. Before granting an approval, PBGC's regulations require PBGC to give interested persons an opportunity to comment on the request. The purpose of this notice is to advise interested persons of the request and to solicit their views on it. DATES: Comments must be submitted on or before July 20, 2018. ADDRESSES: Comments may be submitted by any of the following methods:Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. Email: reg.comments@pbgc.gov. Refer to the Alaska Plan in the subject line. Mail or Hand Delivery: Regulatory Affairs Division, Office of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 20005-4026. All submissions received must include the agency's name (Pension Benefit Guaranty Corporation, or PBGC) and refer to the Alaska Plan. All comments received will be posted without change to PBGC's website, http://www.pbgc.gov, including any personal information provided. Copies of comments may also be obtained by writing to Disclosure Division, Office of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 20005-4026 or calling 202-326-4040 during normal business hours. (TTY users may call the Federal relay service toll-free at 1-800-877-8339 and ask to be connected to 202-326-4040.) FOR FURTHER INFORMATION CONTACT: Jon Chatalian, ext. 6757, Acting Assistant General Counsel (Chatalian.Jon@PBGC.gov), 202-326-4020, ext. 6757, Office of the Chief Counsel, Suite 340, 1200 K Street NW, Washington, DC 20005-4026. (TTY 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 Section 4203(a) of the Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980 (ERISA), provides that a complete withdrawal from a multiemployer plan generally occurs when an employer permanently ceases to have an obligation to contribute under the plan or permanently ceases all covered operations under the plan. Under section 4205 of ERISA, a partial withdrawal generally occurs when an employer: (1) Reduces its contribution base units by seventy percent in each of three consecutive years; or (2) permanently ceases to have an obligation under one or more but fewer than all collective bargaining agreements under which the employer has been obligated to contribute under the plan, while continuing to perform work in the jurisdiction of the collective bargaining agreement of the type for which contributions were previously required or transfers such work to another location or to an entity or entities owned or controlled by the employer; or (3) permanently ceases to have an obligation to contribute under the plan for work performed at one or more but fewer than all of its facilities, while continuing to perform work at the facility of the type for which the obligation to contribute ceased. 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. For that reason, Congress established special withdrawal rules for the construction and entertainment industries. For construction industry plans and employers, section 4203(b)(2) of ERISA provides that a complete withdrawal [[Page 26120]] 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 5 years without renewing the obligation to contribute at the time of resumption. In the case of a plan terminated by mass withdrawal (within the meaning of section 4041(A)(2) of ERISA), section 4203(b)(3) provides that the 5-year restriction on an employer's resuming covered work is reduced to 3 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)(1) of ERISA provides that PBGC may prescribe regulations under which plans in other industries may be amended to provide for special withdrawal liability rules similar to the rules prescribed in section 4203(b) and (c) of ERISA. Section 4203(f)(2) of ERISA provides that such regulations shall permit the use of special withdrawal liability rules only in industries (or portions thereof) in which PBGC determines that the characteristics that would make use of such rules appropriate are clearly shown, and that the use of such rules will not pose a significant risk to the insurance system under Title IV of ERISA. Section 4208(e)(3) of ERISA provides that PBGC shall prescribe by regulation a procedure by which plans may be amended to adopt special partial withdrawal liability rules upon a finding by PBGC that the adoption of such rules is consistent with the purposes of Title IV of ERISA. PBGC's regulations on Extension of Special Withdrawal Liability Rules (29 CFR part 4203) prescribe procedures for a multiemployer plan to ask PBGC to approve a plan amendment that establishes special complete or partial withdrawal liability rules. Section 4203.5(b) of the regulation requires PBGC to publish a notice of the pendency of a request for approval of special withdrawal liability rules in the Federal Register, and to provide interested parties with an opportunity to comment on the request. The Request PBGC received a request, dated June 15, 2016, from the Alaska Electrical Pension Plan of the Alaska Electrical Pension Fund (the ``Plan''), for approval of a plan amendment providing for special withdrawal liability rules. On August 28, 2017, the Plan provided supplemental information in response to a request from PBGC. PBGC's summary of the actuarial reports provided by the Plan may be accessed on PBGC's website (https://www.pbgc.gov/prac/pg/other/guidance/multiemployer-notices.html). A copy of the Plan's submission can be requested from the PBGC Disclosure Officer. The fax number is 202-326- 4042. It may also be obtained by writing the Disclosure Officer, PBGC, 1200 K Street NW, Suite 11101, Washington, DC 20005. In summary, the Plan is a multiemployer pension plan maintained pursuant to a collective bargaining agreement between the Alaska Chapter National Electrical Contractors and the I.B.E.W. 1547 (``Union''), collective bargaining agreements between individual employers and the Union, and ``special agreements'' between various employers and the Board to provide for participation by certain non- bargained employees. The Plan covers unionized employees who predominantly work in the electrical industry in Alaska. Approximately one-third of the participants are employed in the building and construction industry and the remaining two-thirds are employed in the utilities and telecommunications industry. The Plan's proposed amendment would be effective for withdrawals occurring on or after January 1, 2017, and would create special withdrawal liability rules for employers contributing to the Plan whose employees work under a contract or subcontract with federal government agencies governed by the Service Contract Act (``SCA''), 41 U.S.C. 351 et seq.; provided that substantially all of the employees for whom the employer is required to make a contribution work under a service contract (``SCA Employers''). The Plan's submission represents that the industry for which the rule is requested has characteristics similar to those of the construction industry. According to the Plan, the principal similarity is that when a contributing SCA Employer loses a contract, the applicable federal government agency typically contracts with a new SCA Employer to contribute at the same or substantially the same rate, because the SCA provides that employees must not be paid less than the minimum monetary wages and fringe benefits found prevailing in a particular locality in accordance with the applicable collective bargaining agreement. Under the following circumstances relating to SCA Employers, the Plan's proposed amendment defines a complete withdrawal as follows: (1) If an SCA Employer ceases to have an obligation to contribute to the Plan because it loses all its Service Contracts and the successor SCA Employer has an obligation to contribute to the Plan for work performed under the Service Contract at the same or a higher contribution rate and for at least 85% as many contribution base units as such SCA Employer had the obligation to contribute during the plan year ending before such SCA Employer lost the contract, a complete withdrawal only occurs if the SCA Employer: (A) Continues to perform work in the jurisdiction of the collective bargaining agreement of the type for which contributions were previously required; or (B) Within 5 years after the date on which the SCA Employer loses the Service Contract(s), (i) Such SCA Employer resumes such work and does not renew the obligation at the time of resumption; or (ii) The federal government decides to close the facility, have the work performed by government employees, or transfer the work covered by the Service Contract to another location that is not covered by a collective bargaining unit; or (iii) The successor SCA Employer ceases contributions to the Plan for work performed pursuant to the Service Contract. Under the following circumstances relating to SCA Employers, the Plan's proposed amendment defines a partial withdrawal as follows: [[Page 26121]] (1) If an SCA Employer loses a contract to a successor SCA Employer, and if the successor has an obligation to contribute to the Plan for work performed under the Service Contract at the same or a higher contribution rate and for at least 85% as many contribution base units as such SCA Employer had the obligation to contribute during the plan year ending before such SCA Employer lost the contract, a partial withdrawal only occurs if the SCA Employer has an obligation to contribute for no more than an insubstantial portion of its work in the jurisdiction of a collective bargaining agreement for which contributions are or were required to the Plan, and either, (A) The SCA Employer continues to perform work in the jurisdiction of a collective bargaining agreement of the type for which contributions were previously required; or (B) Within 5 years after the date on which the SCA Employer loses the Service Contract, (i) The federal government decides to close the facility, have the work performed by government employees, or transfer the work covered by the service contract to another location that is not covered by a collective bargaining unit; or (ii) The successor SCA Employer ceases contributions to the Plan for work performed under the Service Contract. In the case of termination by mass withdrawal (within the meaning of section 4041A(a)(2) of ERISA), the proposed amendment provides that section 4203(b)(3) of ERISA, the provision that allows a construction employer to resume covered work after 3 years of withdrawal, rather than the standard 5-year restriction, is not applicable. Therefore, in the event of a mass withdrawal, there is still a 5-year restriction on resuming covered work in the jurisdiction of the Plan. The Plan's 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. Comments All interested persons are invited to submit written comments on the pending exemption request. All comments will be made part of the administrative record. Issued in Washington, DC, by: William Reeder, Director, Pension Benefit Guaranty Corporation. [FR Doc. 2018-12035 Filed 6-4-18; 8:45 am] BILLING CODE 7709-02-P
![Federal Register / Vol. 83, No. 108 / Tuesday, June 5, 2018 / Notices 26119
ATTACHMENT 1—GENERAL TARGET SCHEDULE FOR PROCESSING AND RESOLVING REQUESTS FOR ACCESS TO SENSITIVE
UNCLASSIFIED NON-SAFEGUARDS INFORMATION IN THIS PROCEEDING—Continued
Day Event/activity
40 .................. (Receipt +30) If NRC staff finds standing and need for SUNSI, deadline for NRC staff to complete information processing and
file motion for Protective Order and draft Non-Disclosure Affidavit. Deadline for applicant/licensee to file Non-Disclosure
Agreement for SUNSI.
A .................... If access granted: issuance of presiding officer or other designated officer decision on motion for protective order for access to
sensitive information (including schedule for providing access and submission of contentions) or decision reversing a final ad-
verse determination by the NRC staff.
A + 3 ............. Deadline for filing executed Non-Disclosure Affidavits. Access provided to SUNSI consistent with decision issuing the protective
order.
A + 28 ........... Deadline for submission of contentions whose development depends upon access to SUNSI. However, if more than 25 days re-
main between the petitioner’s receipt of (or access to) the information and the deadline for filing all other contentions (as es-
tablished in the notice of opportunity to request a hearing and petition for leave to intervene), the petitioner may file its SUNSI
contentions by that later deadline.
A + 53 ........... (Contention receipt +25) Answers to contentions whose development depends upon access to SUNSI.
A + 60 ........... (Answer receipt +7) Petitioner/Intervenor reply to answers.
>A + 60 ......... Decision on contention admission.
[FR Doc. 2018–10982 Filed 6–4–18; 8:45 am] ADDRESSES: Comments may be Pension Plan Amendments Act of 1980
BILLING CODE 7590–01–P submitted by any of the following (ERISA), provides that a complete
methods: withdrawal from a multiemployer plan
• Federal eRulemaking Portal: http:// generally occurs when an employer
www.regulations.gov. Follow the permanently ceases to have an
PENSION BENEFIT GUARANTY instructions for submitting comments. obligation to contribute under the plan
CORPORATION • Email: reg.comments@pbgc.gov. or permanently ceases all covered
Refer to the Alaska Plan in the subject operations under the plan. Under
Pendency for Request for Approval of line. section 4205 of ERISA, a partial
Special Withdrawal Liability Rules: • Mail or Hand Delivery: Regulatory withdrawal generally occurs when an
Alaska Electrical Pension Plan of the Affairs Division, Office of the General employer: (1) Reduces its contribution
Alaska Electrical Pension Fund Counsel, Pension Benefit Guaranty base units by seventy percent in each of
Corporation, 1200 K Street NW, three consecutive years; or (2)
AGENCY: Pension Benefit Guaranty Washington, DC 20005–4026. permanently ceases to have an
Corporation. All submissions received must obligation under one or more but fewer
include the agency’s name (Pension than all collective bargaining
ACTION: Notice of pendency of request.
Benefit Guaranty Corporation, or PBGC) agreements under which the employer
and refer to the Alaska Plan. All has been obligated to contribute under
SUMMARY: This notice advises interested
comments received will be posted the plan, while continuing to perform
persons that the Pension Benefit
without change to PBGC’s website, work in the jurisdiction of the collective
Guaranty Corporation (PBGC) has
http://www.pbgc.gov, including any bargaining agreement of the type for
received a request from the Alaska
personal information provided. Copies which contributions were previously
Electrical Pension Plan of the Alaska
of comments may also be obtained by required or transfers such work to
Electrical Pension Fund for approval of writing to Disclosure Division, Office of
a plan amendment providing for special another location or to an entity or
the General Counsel, Pension Benefit entities owned or controlled by the
withdrawal liability rules. Under Guaranty Corporation, 1200 K Street
PBGC’s regulation on Extension of employer; or (3) permanently ceases to
NW, Washington, DC 20005–4026 or have an obligation to contribute under
Special Withdrawal Liability Rules, a calling 202–326–4040 during normal
multiemployer pension plan may, with the plan for work performed at one or
business hours. (TTY users may call the more but fewer than all of its facilities,
PBGC approval, be amended to provide Federal relay service toll-free at 1–800–
for special withdrawal liability rules while continuing to perform work at the
877–8339 and ask to be connected to facility of the type for which the
similar to those that apply to the 202–326–4040.)
construction and entertainment obligation to contribute ceased.
FOR FURTHER INFORMATION CONTACT: Jon Although the general rules on
industries. Such approval is granted
Chatalian, ext. 6757, Acting Assistant complete and partial withdrawal
only if PBGC determines that the rules
General Counsel (Chatalian.Jon@ identify events that normally result in a
apply to an industry with characteristics
PBGC.gov), 202–326–4020, ext. 6757, diminution of the plan’s contribution
that make use of the special rules
Office of the Chief Counsel, Suite 340, base, Congress recognized that, in
appropriate and that the rules will not
1200 K Street NW, Washington, DC certain industries and under certain
pose a significant risk to the pension
20005–4026. (TTY users may call the circumstances, a complete or partial
insurance system. Before granting an
Federal relay service toll-free at 1–800– cessation of the obligation to contribute
approval, PBGC’s regulations require
877–8339 and ask to be connected to normally does not weaken the plan’s
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PBGC to give interested persons an
202–326–4020.) contribution base. For that reason,
opportunity to comment on the request.
SUPPLEMENTARY INFORMATION: Congress established special withdrawal
The purpose of this notice is to advise
rules for the construction and
interested persons of the request and to Background entertainment industries.
solicit their views on it. Section 4203(a) of the Employee For construction industry plans and
DATES: Comments must be submitted on Retirement Income Security Act of 1974, employers, section 4203(b)(2) of ERISA
or before July 20, 2018. as amended by the Multiemployer provides that a complete withdrawal
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![26120 Federal Register / Vol. 83, No. 108 / Tuesday, June 5, 2018 / Notices
occurs only if an employer ceases to may be amended to adopt special partial subcontract with federal government
have an obligation to contribute under withdrawal liability rules upon a agencies governed by the Service
a plan and the employer either finding by PBGC that the adoption of Contract Act (‘‘SCA’’), 41 U.S.C. 351 et
continues to perform previously covered such rules is consistent with the seq.; provided that substantially all of
work in the jurisdiction of the collective purposes of Title IV of ERISA. the employees for whom the employer
bargaining agreement, or resumes such PBGC’s regulations on Extension of is required to make a contribution work
work within 5 years without renewing Special Withdrawal Liability Rules (29 under a service contract (‘‘SCA
the obligation to contribute at the time CFR part 4203) prescribe procedures for Employers’’). The Plan’s submission
of resumption. In the case of a plan a multiemployer plan to ask PBGC to represents that the industry for which
terminated by mass withdrawal (within approve a plan amendment that the rule is requested has characteristics
the meaning of section 4041(A)(2) of establishes special complete or partial similar to those of the construction
ERISA), section 4203(b)(3) provides that withdrawal liability rules. Section industry. According to the Plan, the
the 5-year restriction on an employer’s 4203.5(b) of the regulation requires principal similarity is that when a
resuming covered work is reduced to 3 PBGC to publish a notice of the contributing SCA Employer loses a
years. Section 4203(c)(1) of ERISA pendency of a request for approval of contract, the applicable federal
applies the same special definition of special withdrawal liability rules in the government agency typically contracts
complete withdrawal to the Federal Register, and to provide with a new SCA Employer to contribute
entertainment industry, except that the interested parties with an opportunity to at the same or substantially the same
pertinent jurisdiction is the jurisdiction comment on the request. rate, because the SCA provides that
of the plan rather than the jurisdiction The Request employees must not be paid less than
of the collective bargaining agreement. the minimum monetary wages and
In contrast, the general definition of PBGC received a request, dated June fringe benefits found prevailing in a
complete withdrawal in section 4203(a) 15, 2016, from the Alaska Electrical particular locality in accordance with
of ERISA includes the permanent Pension Plan of the Alaska Electrical the applicable collective bargaining
cessation of the obligation to contribute Pension Fund (the ‘‘Plan’’), for approval agreement.
regardless of the continued activities of of a plan amendment providing for Under the following circumstances
the withdrawn employer. special withdrawal liability rules. On relating to SCA Employers, the Plan’s
Congress also established special August 28, 2017, the Plan provided proposed amendment defines a
partial withdrawal liability rules for the supplemental information in response complete withdrawal as follows:
construction and entertainment to a request from PBGC. PBGC’s (1) If an SCA Employer ceases to have
industries. Under section 4208(d)(1) of summary of the actuarial reports an obligation to contribute to the Plan
ERISA, ‘‘[a]n employer to whom section provided by the Plan may be accessed because it loses all its Service Contracts
4203(b) (relating to the building and on PBGC’s website (https:// and the successor SCA Employer has an
construction industry) applies is liable www.pbgc.gov/prac/pg/other/guidance/ obligation to contribute to the Plan for
for a partial withdrawal only if the multiemployer-notices.html). A copy of work performed under the Service
employer’s obligation to contribute the Plan’s submission can be requested Contract at the same or a higher
under the plan is continued for no more from the PBGC Disclosure Officer. The contribution rate and for at least 85% as
than an insubstantial portion of its work fax number is 202–326–4042. It may many contribution base units as such
in the craft and area jurisdiction of the also be obtained by writing the SCA Employer had the obligation to
collective bargaining agreement of the Disclosure Officer, PBGC, 1200 K Street contribute during the plan year ending
type for which contributions are NW, Suite 11101, Washington, DC before such SCA Employer lost the
required.’’ Under section 4208(d)(2) of 20005. contract, a complete withdrawal only
ERISA, ‘‘[a]n employer to whom section In summary, the Plan is a occurs if the SCA Employer:
4203(c) (relating to the entertainment multiemployer pension plan maintained (A) Continues to perform work in the
industry) applies shall have no liability pursuant to a collective bargaining jurisdiction of the collective bargaining
for a partial withdrawal except under agreement between the Alaska Chapter agreement of the type for which
the conditions and to the extent National Electrical Contractors and the contributions were previously required;
prescribed by the [PBGC] by I.B.E.W. 1547 (‘‘Union’’), collective or
regulation.’’ bargaining agreements between (B) Within 5 years after the date on
Section 4203(f)(1) of ERISA provides individual employers and the Union, which the SCA Employer loses the
that PBGC may prescribe regulations and ‘‘special agreements’’ between Service Contract(s),
under which plans in other industries various employers and the Board to (i) Such SCA Employer resumes such
may be amended to provide for special provide for participation by certain non- work and does not renew the obligation
withdrawal liability rules similar to the bargained employees. The Plan covers at the time of resumption; or
rules prescribed in section 4203(b) and unionized employees who (ii) The federal government decides to
(c) of ERISA. Section 4203(f)(2) of predominantly work in the electrical close the facility, have the work
ERISA provides that such regulations industry in Alaska. Approximately one- performed by government employees, or
shall permit the use of special third of the participants are employed in transfer the work covered by the Service
withdrawal liability rules only in the building and construction industry Contract to another location that is not
industries (or portions thereof) in which and the remaining two-thirds are covered by a collective bargaining unit;
PBGC determines that the employed in the utilities and or
characteristics that would make use of telecommunications industry. (iii) The successor SCA Employer
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such rules appropriate are clearly The Plan’s proposed amendment ceases contributions to the Plan for
shown, and that the use of such rules would be effective for withdrawals work performed pursuant to the Service
will not pose a significant risk to the occurring on or after January 1, 2017, Contract.
insurance system under Title IV of and would create special withdrawal Under the following circumstances
ERISA. Section 4208(e)(3) of ERISA liability rules for employers relating to SCA Employers, the Plan’s
provides that PBGC shall prescribe by contributing to the Plan whose proposed amendment defines a partial
regulation a procedure by which plans employees work under a contract or withdrawal as follows:
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(1) If an SCA Employer loses a Issued in Washington, DC, by: of the most significant parts of such
contract to a successor SCA Employer, William Reeder, statements.
and if the successor has an obligation to Director, Pension Benefit Guaranty A. Self-Regulatory Organization’s
contribute to the Plan for work Corporation.
Statement of the Purpose of, and the
performed under the Service Contract at [FR Doc. 2018–12035 Filed 6–4–18; 8:45 am]
Statutory Basis for, the Proposed Rule
the same or a higher contribution rate BILLING CODE 7709–02–P Change
and for at least 85% as many
contribution base units as such SCA 1. Purpose
Employer had the obligation to SECURITIES AND EXCHANGE The Exchange proposes to amend
contribute during the plan year ending COMMISSION Rule 7.35E (Auctions) relating to the
before such SCA Employer lost the Auction Reference Price for a Trading
contract, a partial withdrawal only [Release No. 34–83341; File No. SR– Halt Auction following a regulatory halt.
NYSEAMER–2018–22] Under Rule 7.35E, Auction Reference
occurs if the SCA Employer has an
obligation to contribute for no more Prices are used for a number of
Self-Regulatory Organizations; NYSE purposes, including determining
than an insubstantial portion of its work American LLC; Notice of Filing of
in the jurisdiction of a collective Auction Collars under Rule
Proposed Rule Change To Amend Rule 7.35E(a)(10)(A). Rule 7.35E(a)(8)(A)
bargaining agreement for which 7.35E Relating to the Auction defines the Auction Reference Price
contributions are or were required to the Reference Price for a Trading Halt applicable to auctions on the Exchange.
Plan, and either, Auction Following a Regulatory Halt For the Trading Halt Auction, the
(A) The SCA Employer continues to May 30, 2018. Reference Price is the last consolidated
perform work in the jurisdiction of a Pursuant to Section 19(b)(1) 1 of the round-lot price of that trading day, and
collective bargaining agreement of the Securities Exchange Act of 1934 (the if none, the prior day’s Official Closing
type for which contributions were ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Price (except as provided for in Rule
previously required; or notice is hereby given that, on May 15, 7.35E(e)(7)(A)).4
(B) Within 5 years after the date on 2018, NYSE American LLC (the The Exchange proposes to amend
‘‘Exchange’’ or ‘‘NYSE American’’) filed Rule 7.35E(a)(8)(A) to permit the
which the SCA Employer loses the
with the Securities and Exchange Exchange to designate a different
Service Contract,
Commission (the ‘‘Commission’’) the Auction Reference Price for a Trading
(i) The federal government decides to Halt Auction following a regulatory halt.
proposed rule change as described in
close the facility, have the work The Exchange believes that if the price
Items I, II, and III below, which Items
performed by government employees, or of a security changes during a regulatory
have been prepared by the self-
transfer the work covered by the service regulatory organization. The halt, for example, due to a news event,
contract to another location that is not Commission is publishing this notice to an Auction Reference Price based on the
covered by a collective bargaining unit; solicit comments on the proposed rule last consolidated round-lot price of that
or change from interested persons. trading day, or if none, the prior day’s
(ii) The successor SCA Employer Official Closing Price, may no longer
I. Self-Regulatory Organization’s reflect the value of the security. In such
ceases contributions to the Plan for
Statement of the Terms of Substance of case, using that price for purposes of
work performed under the Service the Proposed Rule Change calculating Auction Collars for the
Contract.
The Exchange proposes to amend Trading Halt Auction may unnecessarily
In the case of termination by mass constrict the price at which such
Rule 7.35E relating to the Auction
withdrawal (within the meaning of Reference Price for a Trading Halt auction would initially be permitted
section 4041A(a)(2) of ERISA), the Auction following a regulatory halt. The and potentially lead to an unnecessary
proposed amendment provides that proposed rule change is available on the number of extensions before the security
section 4203(b)(3) of ERISA, the Exchange’s website at www.nyse.com, at resumes trading, thereby delaying the
provision that allows a construction the principal office of the Exchange, and Trading Halt Auction.5 The Exchange
employer to resume covered work after at the Commission’s Public Reference believes that for these scenarios, it
3 years of withdrawal, rather than the Room. would be appropriate to designate a
standard 5-year restriction, is not different Auction Reference Price.6
applicable. Therefore, in the event of a II. Self-Regulatory Organization’s
mass withdrawal, there is still a 5-year Statement of the Purpose of, and 4 Rule 7.35E(e)(7)(A) provides for a different
Statutory Basis for, the Proposed Rule Auction Reference Price for a Trading Halt Auction
restriction on resuming covered work in following a Trading Pause. The ‘‘Official Closing
Change
the jurisdiction of the Plan. The Plan’s Price’’ is defined in Rule 1.1E(gg).
request includes the actuarial data on In its filing with the Commission, the 5 Pursuant to Rule 7.35E(e)(6), the Re-Opening
self-regulatory organization included Time for a Trading Halt Auction will be extended
which the Plan relies to support its if the Indicative Match Price, before being adjusted
contention that the amendment will not statements concerning the purpose of, based on Auction Collars, would be below (above)
pose a significant risk to the insurance and basis for, the proposed rule change the Lower (Upper) Auction Collar or if there is a
system under Title IV of ERISA. and discussed any comments it received sell (buy) Market Imbalance.
on the proposed rule change. The text 6 For example, the Exchange’s affiliated exchange,
Comments of those statements may be examined at NYSE Arca, Inc. (‘‘NYSE Arca’’) recently amended
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NYSE Arca Rule 7.35–E(a)(8)(A), which is identical
the places specified in Item IV below. to Rule 7.35E(a)(8)(A), on a temporary basis to
All interested persons are invited to The Exchange has prepared summaries, provide for a different Auction Reference Price for
submit written comments on the set forth in sections A, B, and C below, a security that was the subject of a regulatory halt.
pending exemption request. All See Securities Exchange Act Release No. 82716
comments will be made part of the (February 14, 2018), 83 FR 7517 (February 21, 2018)
1 15 U.S.C. 78s(b)(1). (SR–NYSEArca–2018–12). NYSE Arca sought such
administrative record. 2 15 U.S.C. 78a. relief to respond to the impact of market-wide
3 17 CFR 240.19b–4. Continued
VerDate Sep<11>2014 20:19 Jun 04, 2018 Jkt 241001 PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 E:\FR\FM\05JNN1.SGM 05JNN1](https://thefederalregister.org/doc/83_FR_26227/page/3.svg)
Document Created: 2018-11-02 11:47:32
Document Modified: 2018-11-02 11:47:32
| 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 pendency of request. | |
| Dates | Comments must be submitted on or before July 20, 2018. | |
| Contact | Jon Chatalian, ext. 6757, Acting Assistant General Counsel ([email protected]), 202-326-4020, ext. 6757, Office of the Chief Counsel, Suite 340, 1200 K Street NW, Washington, DC 20005-4026. (TTY 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 | 83 FR 26119 |
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