83 FR 51713 - Submission of Information Collections for OMB Review; Comment Request; Reportable Events; Notice of Failure To Make Required Contributions

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 83, Issue 198 (October 12, 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 under PBGC's regulation on Reportable Events and Certain Other Notification Requirements with modifications. This notice informs the public of PBGC's request and solicits public comment on the collection.

[Federal Register Volume 83, Number 198 (Friday, October 12, 2018)]
[Notices]
[Pages 51713-51714]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-22229]


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PENSION BENEFIT GUARANTY CORPORATION


Submission of Information Collections for OMB Review; Comment 
Request; Reportable Events; Notice of Failure To Make Required 
Contributions

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of request for extension of 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 under PBGC's 
regulation on Reportable Events and Certain Other Notification 
Requirements with modifications. This notice informs the public of 
PBGC's request and solicits public comment on the collection.

DATES: Comments must be submitted by November 13, 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://

[[Page 51714]]

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: Stephanie Cibinic, Deputy Assistant 
General Counsel for Regulatory Affairs ([email protected]; 
202-326-4400, extension 6352), Office of the General Counsel, Pension 
Benefit Guaranty Corporation, 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 202-326-4400, extension 6352.

SUPPLEMENTARY INFORMATION: Section 4043 of the Employee Retirement 
Income Security Act of 1974 (ERISA) requires plan administrators and 
plan sponsors to report certain plan and employer events to PBGC. The 
reporting requirements give PBGC notice of events that may indicate 
plan or employer financial problems. PBGC uses the information provided 
in determining what, if any, action it needs to take. For example, PBGC 
might need to institute proceedings to terminate a plan (placing it in 
trusteeship) under section 4042 of ERISA to ensure the continued 
payment of benefits to plan participants and their beneficiaries or to 
prevent unreasonable increases in PBGC's losses.
    The provisions of section 4043 of ERISA have been implemented in 
PBGC's regulation on Reportable Events and Certain Other Notification 
Requirements (29 CFR part 4043). Subparts B and C of the regulation 
deal with reportable events.
    PBGC has issued Forms 10 and 10-Advance and related instructions 
under subparts B and C (approved under OMB control number 1212-0013). 
OMB approval of this collection of information expires November 30, 
2018. PBGC is requesting that OMB extend its approval for another three 
years, with modifications. 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 is proposing in this renewal request that all reportable 
events filings include controlled group information, company financial 
statements, and the plan's actuarial valuation report. Currently there 
are five reportable events where some or all of that information isn't 
required. All three types of information would be added to two of these 
events (``Active Participant Reduction'' and ``Distribution to a 
Substantial Owner''). One type of information would be added to two 
events (``Transfer of Benefit Liabilities'' and ``Change in 
Contributing Sponsor or Controlled Group''), and two types to one event 
(``Extraordinary Dividend or Stock Redemption''). These reporting 
requirements give PBGC notice of events that may indicate plan or 
employer financial problems. The additional information is needed to 
help PBGC determine a sponsor's ability to continue to maintain a 
pension plan.
    PBGC estimates that requiring this information will add 30 minutes 
to approximately 30 percent of the 568 reportable events notices it 
expects to receive in a year under subpart B of the reportable events 
regulation using Form 10 (out of approximately 590 that includes 
notices under subpart C using the Form 10-Advance). PBGC further 
estimates that the total average annual burden of this collection of 
information is 1,855 hours and $439,500.
    Section 303(k) of the Employee Retirement Income Security Act of 
1974 (ERISA) and section 430(k) of the Internal Revenue Code of 1986 
(Code) impose a lien in favor of an underfunded single-employer plan 
that is covered by PBGC's termination insurance program if (1) any 
person fails to make a required payment when due, and (2) the unpaid 
balance of that payment (including interest), when added to the 
aggregate unpaid balance of all preceding payments for which payment 
was not made when due (including interest), exceeds $1 million. (For 
this purpose, a plan is underfunded if its funding target attainment 
percentage is less than 100 percent.) The lien is upon all property and 
rights to property belonging to the person or persons that are liable 
for required contributions (i.e., a contributing sponsor and each 
member of the controlled group of which that contributing sponsor is a 
member).
    Only PBGC (or, at its direction, the plan's contributing sponsor or 
a member of the same controlled group) may perfect and enforce this 
lien. ERISA and the Code require persons that fail to make payments to 
notify PBGC within 10 days of the due date whenever there is a failure 
to make a required payment and the total of the unpaid balances 
(including interest) exceeds $1 million.
    PBGC Form 200, Notice of Failure to Make Required Contributions, 
and related instructions implement the statutory notification 
requirement. Submission of Form 200 is required by 29 CFR 4043.81 
(Subpart D of PBGC's regulation on Reportable Events and Other 
Notification Requirements, 29 CFR part 4043).
    OMB has approved this collection of information under OMB control 
number 1212-0041, which expires November 30, 2018. PBGC is requesting 
that OMB extend its approval for another three years, with minor 
modifications. 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 receive 100 Form 200 filings per year 
and that the average annual burden of this collection of information is 
100 hours and $72,500.

    Issued in Washington, DC.
Stephanie Cibinic,
Deputy Assistant General Counsel for Regulatory Affairs, Pension 
Benefit Guaranty Corporation.
[FR Doc. 2018-22229 Filed 10-11-18; 8:45 am]
 BILLING CODE 7709-02-P