83 FR 43911 - Submission of Information Collection for OMB Review; Comment Request; Survey of Multiemployer Pension Plan Withdrawal Liability Information

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 83, Issue 167 (August 28, 2018)

The Pension Benefit Guaranty Corporation (PBGC) is requesting that OMB approve, under the Paperwork Reduction Act, a survey of terminated and insolvent multiemployer pension plans to obtain withdrawal liability information. PBGC needs the withdrawal liability information to estimate its multiemployer program liabilities for purposes of its financial statements. This notice informs the public of PBGC's request and solicits public comment on the collection of information.

[Federal Register Volume 83, Number 167 (Tuesday, August 28, 2018)]
[Notices]
[Pages 43911-43912]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18593]


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PENSION BENEFIT GUARANTY CORPORATION


Submission of Information Collection for OMB Review; Comment 
Request; Survey of Multiemployer Pension Plan Withdrawal Liability 
Information

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of request for OMB approval.

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SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) is requesting 
that OMB approve, under the Paperwork Reduction Act, a survey of 
terminated and insolvent multiemployer pension plans to obtain 
withdrawal liability information. PBGC needs the withdrawal liability 
information to estimate its multiemployer program liabilities for 
purposes of its financial statements. This notice informs the public of 
PBGC's request and solicits public comment on the collection of 
information.

DATES: Comments must be submitted by September 27, 2018.

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.
    A copy of the request will be posted on PBGC's website at https://www.pbgc.gov/prac/laws-and-regulations/information-collections-under-omb-review. It may also be obtained without charge by writing to the 
Disclosure Division of the Office of the General Counsel, 1200 K Street 
NW, Washington, DC 20005-4026, faxing a request to 202-326-4042, 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). The Disclosure Division will email, fax, or 
mail the information to you, as you request.

FOR FURTHER INFORMATION CONTACT: Hilary Duke ([email protected]), 
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, extension 3839. (TTY users may 
call the Federal relay service toll-free at 1-800-877-8339 and ask to 
be connected to 202-326-4400, extension 3839.)

SUPPLEMENTARY INFORMATION: When a contributing employer withdraws from 
an underfunded multiemployer pension plan, the plan sponsor assesses 
withdrawal liability against the employer. The plan sponsor is required 
to determine and collect withdrawal liability in accordance with 
section 4219 of the Employee Retirement Income Security Act of 1974 
(ERISA). The plan sponsor assesses withdrawal liability by issuing a 
notice to an employer, including the amount of the employer's liability 
and a schedule of payments. PBGC's regulation on Notice, Collection, 
and Redetermination of Withdrawal Liability (29 CFR part 4219) requires 
the plan sponsor to file with PBGC a certification that notices have 
been provided to employers.
    PBGC is proposing to collect information about withdrawal liability 
that is owed by withdrawn employers of terminated \1\ and insolvent \2\ 
multiemployer pension plans. PBGC would distribute a survey that 
insolvent plans receiving financial assistance and terminated plans not 
yet receiving financial assistance would be required to complete and 
return to PBGC. Smaller plans with less than 500 participants would not 
be required to complete the survey. PBGC needs the information from the 
survey about withdrawal liability payments and settlements, and whether 
employers have withdrawn from the plan but have not yet been assessed 
withdrawal liability, to estimate with more precision PBGC's 
multiemployer program liabilities for purposes of its financial 
statements.\3\ PBGC would also use the information for its 
Multiemployer Pension Insurance Modelling System assumptions on

[[Page 43912]]

collection of withdrawal liability. Information provided to PBGC would 
be confidential to the extent provided in the Freedom of Information 
Act and the Privacy Act.
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    \1\ Under section 4041A(f)(2) of ERISA, PBGC may prescribe 
reporting requirements for terminated multiemployer pension plans, 
which PBGC considers appropriate to protect the interests of plan 
participants and beneficiaries or to prevent unreasonable loss to 
the corporation.
    \2\ Under section 4261(b)(1) of ERISA, PBGC provides financial 
assistance under such conditions as the corporation determines are 
equitable and are appropriate to prevent unreasonable loss to the 
corporation with respect to the plan.
    \3\ Section 4008 of ERISA requires the corporation, as soon as 
practicable after the close of each fiscal year, to transmit a 
report to the President and the Congress, including financial 
statements setting forth the finances of the corporation at the end 
of the fiscal year and the result of its operations (including the 
source and application of its funds) for the fiscal year.
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    On June 21, 2018, PBGC published (at 83 FR 28871) a notice of its 
intent to request OMB approval of the survey of multiemployer pension 
plan withdrawal liability information described above. No comments were 
received on the proposed submission of information collection.
    PBGC is requesting that OMB approve PBGC's use of this survey for 
three years. 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.
    The survey initially would be sent to approximately 65 plans.\4\ 
PBGC estimates that each survey would require approximately 20 hours to 
complete by a combination of pension fund office staff (50%) and 
outside professionals (attorneys and actuaries) (50%). PBGC estimates a 
total hour burden of 650 hours (based on pension fund office time). The 
estimated dollar equivalent of this hour burden, based on an assumed 
hourly rate of $75 for administrative, clerical, and supervisory time 
is $48,750. PBGC estimates a total cost burden for the withdrawal 
liability survey of $260,000 (based on 650 attorney and actuary hours 
assuming an average hourly rate of $400). PBGC further estimates that 
the average burden will be 10 hours of pension fund office staff time 
and $4,000 per plan. After the survey is sent initially, PBGC expects 
to send the survey to fewer than 10 newly terminated and insolvent 
plans per year.
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    \4\ As of September 30, 2017, there were 68 terminated plans not 
yet receiving financial assistance and 72 insolvent plans that 
received financial assistance from PBGC. See PBGC FY 2017 Annual 
Report, page 94 at https://www.pbgc.gov/sites/default/files/pbgc-annual-report-2017.pdf. Approximately 65 of the plans have 500 or 
more participants.

    Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2018-18593 Filed 8-27-18; 8:45 am]
 BILLING CODE 7709-02-P