83 FR 26312 - Pendency of Request for Exemption From the Bond/Escrow Requirement Relating to the Sale of Assets by an Employer Who Contributes to a Multiemployer Plan; Marlins Holdings LLC
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 83, Issue 109 (June 6, 2018)
Federal Register Volume 83, Issue 109 (June 6, 2018)
| Page Range | 26312-26313 | |
| FR Document | 2018-12129 |
[Federal Register Volume 83, Number 109 (Wednesday, June 6, 2018)] [Notices] [Pages 26312-26313] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-12129] [[Page 26312]] ======================================================================= ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION Pendency of Request for Exemption From the Bond/Escrow Requirement Relating to the Sale of Assets by an Employer Who Contributes to a Multiemployer Plan; Marlins Holdings LLC AGENCY: Pension Benefit Guaranty Corporation. ACTION: Notice of pendency of request. ----------------------------------------------------------------------- SUMMARY: This notice advises interested persons that the Pension Benefit Guaranty Corporation has received a request from Marlins Holdings LLC for an exemption from the bond or escrow requirement and contract requirements under the Employee Retirement Income Security Act of 1974, as amended, with respect to the Major League Baseball Players Benefit Plan. A sale of assets by an employer that contributes to a multiemployer pension plan will not constitute a complete or partial withdrawal from the plan if the transaction meets certain conditions. One of these conditions is that the purchaser post a bond or deposit money in escrow for the five-plan-year period beginning after the sale. The PBGC is authorized to grant individual and class exemptions from this requirement. Before granting an exemption, the statute and PBGC regulations require PBGC to give interested persons an opportunity to comment on the exemption request. The purpose of this notice is to advise interested persons of the exemption request and solicit their views on it. DATES: Comments must be submitted on or before July 23, 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: [email protected]. Refer to the Marlins Holdings LLC 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 Marlins Holdings LLC. 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: Bruce Perlin, Assistant General Counsel ([email protected]), 202-326-4020, ext. 6818, Jon Chatalian, Acting Assistant General Counsel ([email protected]), ext. 6757, or Mary A. Petrovic, Attorney ([email protected]), ext. 4638, Office of the General 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 Section 4204 of the Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980 (ERISA), provides that a bona fide arm's-length sale of assets of a contributing employer to an unrelated party will not be considered a withdrawal if three conditions are met. These conditions, enumerated in section 4204(a)(1)(A)-(C), are that-- (A) the purchaser has an obligation to contribute to the plan with respect to covered operations for substantially the same number of contribution base units for which the seller was obligated to contribute; (B) the purchaser obtains a bond or places an amount in escrow, for a period of five plan years after the sale, equal to the greater of the seller's average required annual contribution to the plan for the three plan years preceding the year in which the sale occurred or the seller's required annual contribution for the plan year preceding the year in which the sale occurred; and (C) the contract of sale provides that if the purchaser withdraws from the plan within the first five plan years beginning after the sale and fails to pay any of its liability to the plan, the seller shall be secondarily liable for the liability it (the seller) would have had but for section 4204. The bond or escrow described above would be paid to the plan if the purchaser withdraws from the plan or fails to make any required contributions to the plan within the first five plan years beginning after the sale. Additionally, section 4204(b)(1) of ERISA provides that if a sale of assets is covered by section 4204, the purchaser assumes by operation of law the contribution record of the seller for the plan year in which the sale occurred and the preceding four plan years. Section 4204(c) of ERISA authorizes the Pension Benefit Guaranty Corporation (``PBGC'') to grant individual or class variances or exemptions from the purchaser's bond/escrow requirement of section 4204(a)(1)(B) when warranted. The legislative history of section 4204 indicates a Congressional intent that the statute be administered in a manner that assures protection of the plan with the least practicable intrusion into normal business transactions. Senate Committee on Labor and Human Resources, 96th Cong., 2nd Sess., S.1076, The Multiemployer Pension Plan Amendments Act of 1980: Summary and Analysis of Considerations 16 (Comm. Print, April 1980); 128 Cong. Rec. S10117 (July 29, 1980). The granting of a variance or exemption from the bond/ escrow requirement does not constitute a finding by the PBGC that a particular transaction satisfies the other requirements of section 4204(a)(1). Under the PBGC's regulation on variances for sales of assets (29 CFR part 4204), a request for a variance or exemption from the bond/ escrow requirement under any of the tests established in the regulation (29 CFR parts 4204.12 & 4204.13) is to be made to the plan in question. The PBGC will consider a variance or exemption request only when the request is not based on satisfaction of one of the four regulatory tests under regulation sections 4204.12 and 4204.13 or when the parties assert that the financial information necessary to show satisfaction of one of the regulatory tests is privileged or confidential financial information within the meaning of 5 U.S.C. 552(b)(4) (Freedom of Information Act). Under section 4204.22 of the regulation, the PBGC shall approve a request for a variance or exemption if it determines that approval of the request is warranted, in that it-- (1) would more effectively or equitably carry out the purposes of Title IV of the Act; and (2) would not significantly increase the risk of financial loss to the plan. Section 4204(c) of ERISA and section 4204.22(b) of the regulation require the PBGC to publish a notice of the pendency of a request for a variance or exemption in the Federal Register, and to provide interested parties with an opportunity to comment on the proposed variance or exemption. [[Page 26313]] The Request The PBGC has received a request from Marlins Holdings LLC (the ``Purchaser'') for an exemption from the bond or escrow requirement and contract requirements of section 4204(a)(1)(B) and (C) with respect to its purchase of the Miami Marlins Major League Baseball franchise from Miami Marlins, L.P. (the ``Seller'') on February 21, 2018. In the request, the Purchaser represents among other things that: 1. The Seller was obligated to contribute to the Major League Baseball Players Benefit Plan (the ``Plan'') for certain employees of the sold operations. 2. The Purchaser has agreed to assume the obligation to contribute to the Plan for substantially the same number of contribution base units as the Seller. 3. The Seller has agreed to be secondarily liable for any withdrawal liability it would have had with respect to the sold operations (if not for section 4204) should the Purchaser withdraw from the Plan and fail to pay its withdrawal liability. 4. The estimated amount of the withdrawal liability of the Seller with respect to the operations subject to the sale is $19,169,342. 5. The amount of the bond/escrow established under section 4204(a)(1)(B) is $4,781,000. 6. Major League Baseball has a unique structure in which the Plan is funded from the Major League Central Fund (the ``Central Fund''), maintained and administered by the Commissioner of Baseball. Under this structure, contributions to the Plan for all participating employers are paid by the Office of the Commissioner of Baseball from the Central Fund on behalf of each participating employer in satisfaction of the employer's pension liability under the Plan's funding agreement. The monies in the Central Fund are derived directly from common revenues related to the All-Star Game, post-season games, certain media rights and other common revenues (collectively, the ``Revenues''). 7. In support of the exemption request, the requester asserts that, ``the Plan is funded from the Central Fund that is maintained and administered by the Commissioner of Baseball.'' Major League Baseball pays contributions directly to the Plan from the Central Fund. Further, the requester asserts that, ``the Plan enjoys a substantial degree of security with respect to contributions on behalf of the Clubs. A change in ownership of a Club does not affect the obligation of the Central Fund to fund the Plan. As such, approval of this exemption request would not increase the risk of financial loss to the Plan.'' 8. A complete copy of the request was sent to the Plan and to the Major League Baseball Players Association by certified mail, return receipt requested. Comments All interested persons are invited to submit written comments on the pending exemption request to the above address. All comments will be made a part of the record. The PBGC will make the comments received available on its website, www.pbgc.gov. Copies of the comments and the non-confidential portions of the request may be obtained by writing or visiting the PBGC's Communications Outreach and Legislative Affairs Department (COLA) at the above address or by visiting that office or calling 202-326-4343 during normal business hours. Issued in Washington, DC. William Reeder, Director, Pension Benefit Guaranty Corporation. [FR Doc. 2018-12129 Filed 6-5-18; 8:45 am] BILLING CODE 7709-01-P
![Federal Register / Vol. 83, No. 109 / Wednesday, June 6, 2018 / Notices 26313
The Request 8. A complete copy of the request was to negotiated service agreement(s). The
The PBGC has received a request from sent to the Plan and to the Major League requests(s) may propose the addition or
Marlins Holdings LLC (the ‘‘Purchaser’’) Baseball Players Association by certified removal of a negotiated service
for an exemption from the bond or mail, return receipt requested. agreement from the market dominant or
escrow requirement and contract the competitive product list, or the
Comments
requirements of section 4204(a)(1)(B) modification of an existing product
and (C) with respect to its purchase of All interested persons are invited to currently appearing on the market
the Miami Marlins Major League submit written comments on the dominant or the competitive product
Baseball franchise from Miami Marlins, pending exemption request to the above list.
L.P. (the ‘‘Seller’’) on February 21, 2018. address. All comments will be made a Section II identifies the docket
In the request, the Purchaser represents part of the record. The PBGC will make number(s) associated with each Postal
among other things that: the comments received available on its Service request, the title of each Postal
1. The Seller was obligated to website, www.pbgc.gov. Copies of the Service request, the request’s acceptance
contribute to the Major League Baseball comments and the non-confidential date, and the authority cited by the
Players Benefit Plan (the ‘‘Plan’’) for portions of the request may be obtained Postal Service for each request. For each
certain employees of the sold by writing or visiting the PBGC’s request, the Commission appoints an
operations. Communications Outreach and officer of the Commission to represent
2. The Purchaser has agreed to assume Legislative Affairs Department (COLA) the interests of the general public in the
the obligation to contribute to the Plan at the above address or by visiting that proceeding, pursuant to 39 U.S.C. 505
for substantially the same number of office or calling 202–326–4343 during (Public Representative). Section II also
contribution base units as the Seller. normal business hours. establishes comment deadline(s)
3. The Seller has agreed to be Issued in Washington, DC. pertaining to each request.
secondarily liable for any withdrawal The public portions of the Postal
William Reeder,
liability it would have had with respect Service’s request(s) can be accessed via
Director, Pension Benefit Guaranty
to the sold operations (if not for section the Commission’s website (http://
Corporation.
4204) should the Purchaser withdraw www.prc.gov). Non-public portions of
[FR Doc. 2018–12129 Filed 6–5–18; 8:45 am]
from the Plan and fail to pay its the Postal Service’s request(s), if any,
BILLING CODE 7709–01–P
withdrawal liability. can be accessed through compliance
4. The estimated amount of the with the requirements of 39 CFR
withdrawal liability of the Seller with 3007.40.
respect to the operations subject to the POSTAL REGULATORY COMMISSION The Commission invites comments on
sale is $19,169,342. [Docket No. CP2018–227]
whether the Postal Service’s request(s)
5. The amount of the bond/escrow in the captioned docket(s) are consistent
established under section 4204(a)(1)(B) New Postal Product with the policies of title 39. For
is $4,781,000. request(s) that the Postal Service states
6. Major League Baseball has a unique AGENCY: Postal Regulatory Commission. concern market dominant product(s),
structure in which the Plan is funded ACTION: Notice. applicable statutory and regulatory
from the Major League Central Fund requirements include 39 U.S.C. 3622, 39
(the ‘‘Central Fund’’), maintained and SUMMARY: The Commission is noticing a U.S.C. 3642, 39 CFR part 3010, and 39
administered by the Commissioner of recent Postal Service filing for the CFR part 3020, subpart B. For request(s)
Baseball. Under this structure, Commission’s consideration concerning that the Postal Service states concern
contributions to the Plan for all negotiated service agreements. This competitive product(s), applicable
participating employers are paid by the notice informs the public of the filing, statutory and regulatory requirements
Office of the Commissioner of Baseball invites public comment, and takes other include 39 U.S.C. 3632, 39 U.S.C. 3633,
from the Central Fund on behalf of each administrative steps. 39 U.S.C. 3642, 39 CFR part 3015, and
participating employer in satisfaction of DATES: Comments are due: June 7, 2018. 39 CFR part 3020, subpart B. Comment
the employer’s pension liability under deadline(s) for each request appear in
ADDRESSES: Submit comments
the Plan’s funding agreement. The section II.
electronically via the Commission’s
monies in the Central Fund are derived
Filing Online system at http:// II. Docketed Proceeding(s)
directly from common revenues related
www.prc.gov. Those who cannot submit
to the All-Star Game, post-season games, 1. Docket No(s).: CP2018–227; Filing
comments electronically should contact
certain media rights and other common Title: Notice of United States Postal
the person identified in the FOR FURTHER
revenues (collectively, the ‘‘Revenues’’). Service of Filing a Functionally
INFORMATION CONTACT section by
7. In support of the exemption Equivalent Global Expedited Package
request, the requester asserts that, ‘‘the telephone for advice on filing
alternatives. Services 7 Negotiated Service
Plan is funded from the Central Fund Agreement and Application for Non-
that is maintained and administered by FOR FURTHER INFORMATION CONTACT: Public Treatment of Material Filed
the Commissioner of Baseball.’’ Major David A. Trissell, General Counsel, at Under Seal; Filing Acceptance Date:
League Baseball pays contributions 202–789–6820. May 30, 2018; Filing Authority: 39 CFR
directly to the Plan from the Central SUPPLEMENTARY INFORMATION: 3015.5; Public Representative: Kenneth
Fund. Further, the requester asserts that, R. Moeller; Comments Due: June 7,
‘‘the Plan enjoys a substantial degree of Table of Contents
2018.
daltland on DSKBBV9HB2PROD with NOTICES
security with respect to contributions on I. Introduction This notice will be published in the
behalf of the Clubs. A change in II. Docketed Proceeding(s) Federal Register.
ownership of a Club does not affect the
obligation of the Central Fund to fund I. Introduction Ruth Ann Abrams,
the Plan. As such, approval of this The Commission gives notice that the Acting Secretary.
exemption request would not increase Postal Service has filed request(s) for the [FR Doc. 2018–12089 Filed 6–5–18; 8:45 am]
the risk of financial loss to the Plan.’’ Commission to consider matters related BILLING CODE 7710–FW–P
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Document Created: 2018-06-06 00:54:11
Document Modified: 2018-06-06 00:54:11
| 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 23, 2018. | |
| Contact | Bruce Perlin, Assistant General Counsel ([email protected]), 202-326-4020, ext. 6818, Jon Chatalian, Acting Assistant General Counsel ([email protected]), ext. 6757, or Mary A. Petrovic, Attorney ([email protected]), ext. 4638, Office of the General 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 | 83 FR 26312 |
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