83 FR 45996 - Submission of Information Collections for OMB Review; Comment Request; Multiemployer Plan Regulations

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 83, Issue 176 (September 11, 2018)

The Pension Benefit Guaranty Corporation (PBGC) is requesting that the Office of Management and Budget (OMB) extend approval, under the Paperwork Reduction Act, of collections of information in PBGC's regulations on multiemployer plans. This notice informs the public of PBGC's request and solicits public comment on the collections of information.

[Federal Register Volume 83, Number 176 (Tuesday, September 11, 2018)]
[Notices]
[Pages 45996-45997]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19657]


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PENSION BENEFIT GUARANTY CORPORATION


Submission of Information Collections for OMB Review; Comment 
Request; Multiemployer Plan Regulations

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 the Office of Management and Budget (OMB) extend approval, under 
the Paperwork Reduction Act, of collections of information in PBGC's 
regulations on multiemployer plans. This notice informs the public of 
PBGC's request and solicits public comment on the collections of 
information.

DATES: Comments must be submitted by October 11, 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: OMB has approved and issued control numbers 
for three collections of information in PBGC's regulations relating to 
multiemployer plans under the Employee Retirement Income Security Act 
of 1974 (ERISA). These collections of information are described below. 
OMB approvals for these collections of information expire November 30, 
2018. On July 6, 2018, PBGC published (at 83 FR 31574) a notice of its 
intent to request that OMB extend approval of these collections of 
information. No comments were received. PBGC is requesting that OMB 
extend its approval of these collections of information 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.

1. Termination of Multiemployer Plans (29 CFR Part 4041A) (OMB Control 
Number 1212-0020) (Expires November 30, 2018)

    Section 4041A(f)(2) of ERISA authorizes PBGC to prescribe reporting 
requirements and other rules and standards for administering terminated 
multiemployer plans. Section 4041A(c) and (f)(1) of ERISA prohibit the 
payment by a mass-withdrawal-terminated plan of lump sums greater than 
$1,750 or of nonvested plan benefits unless authorized by PBGC.
    The regulation requires the plan sponsor of a terminated plan to 
submit a notice of termination to PBGC. It also requires the plan 
sponsor of a mass-withdrawal-terminated plan that is closing out to 
give notices to participants regarding the election of alternative 
forms of benefit distribution and, if the plan is not closing out, to 
obtain PBGC approval to pay lump sums greater than $1,750 or to pay 
nonvested plan benefits.
    PBGC uses the information in a notice of termination to assess the 
likelihood that PBGC financial assistance will be needed. Plan 
participants and beneficiaries use the information on alternative forms 
of benefit to make personal financial decisions. PBGC uses the 
information in an application for approval to pay lump sums greater 
than $1,750 or to pay nonvested plan benefits to determine whether such 
payments should be permitted.
    PBGC estimates that each year plan sponsors submit notices of 
termination for ten plans, distribute election notices to participants 
in three of those plans, and submit requests to pay benefits or benefit 
forms not otherwise permitted for one of those plans. The estimated 
annual burden of the collection of information is 69 hours and $50,000.

2. Notice of Insolvency (29 CFR Part 4245) (OMB Control Number 1212-
0033) (Expires November 30, 2018)

    Section 4245(e) of ERISA requires two types of notice: A ``notice 
of

[[Page 45997]]

insolvency,'' stating a plan sponsor's determination that the plan is 
or may become insolvent, and a ``notice of insolvency benefit level,'' 
stating the level of benefits that will be paid during an insolvency 
year. The recipients of these notices are PBGC, contributing employers, 
employee organizations representing participants, and participants and 
beneficiaries.
    The regulation establishes the procedure for complying with these 
notice requirements. PBGC uses the information submitted to estimate 
cash needs for financial assistance to troubled plans. The collective 
bargaining parties use the information to decide whether additional 
plan contributions will be made to avoid the insolvency and consequent 
benefit suspensions. Plan participants and beneficiaries use the 
information in personal financial decisions.
    PBGC estimates that at most one plan sponsor of an ongoing plan 
gives notices each year under this regulation. The estimated annual 
burden of the collection of information is 20 hours and $12,000.

3. Duties of Plan Sponsor Following Mass Withdrawal (29 CFR Part 4281) 
(OMB Control Number 1212-0032) (Expires November 30, 2018)

    Section 4281 of ERISA provides rules for plans that have terminated 
by mass withdrawal. Under section 4281, if nonforfeitable benefits 
exceed plan assets, the plan sponsor must amend the plan to reduce 
benefits. If the plan nevertheless becomes insolvent, the plan sponsor 
must suspend certain benefits that cannot be paid. If available 
resources are inadequate to pay guaranteed benefits, the plan sponsor 
must request financial assistance from PBGC.
    The regulation requires a plan sponsor to give notices of benefit 
reduction, notices of insolvency, and notices of insolvency benefit 
level to PBGC and to participants and beneficiaries and, if necessary, 
to apply to PBGC for financial assistance.
    PBGC uses the information it receives to make determinations 
required by ERISA, to identify and estimate the cash needed for 
financial assistance to terminated plans, and to verify the 
appropriateness of financial assistance payments. Plan participants and 
beneficiaries use the information to make personal financial decisions.
    PBGC estimates that plan sponsors of terminated plans each year 
will give benefit reduction notices for 1 plan, notices of insolvency 
for 10 plans, and notices of insolvency benefit level for 55 plans. 
PBGC also estimates that plan sponsors each year will file initial 
requests for financial assistance for 10 plans and will submit 300 non-
initial applications for financial assistance. The estimated annual 
burden of the collection of information is 1,300 hours and $615,400.

    Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2018-19657 Filed 9-10-18; 8:45 am]
 BILLING CODE 7709-02-P