SUPPLEMENTARY INFORMATION:

Section 4262 of the Employee Retirement Income Security Act of 1974 (ERISA) requires PBGC to provide special financial assistance (SFA) to certain financially troubled multiemployer plans upon application for assistance. Part 4262 of PBGC's regulations, “Special Financial Assistance by PBGC,” provides guidance to multiemployer pension plan sponsors on eligibility, determining the amount of SFA, content of an application for SFA, the process of applying, PBGC's review of applications, restrictions and conditions, and reporting and notice requirements.

Under § 4262.16(i), a plan sponsor of a plan that has received SFA must file an Annual Statement of Compliance (ASOC) with the restrictions and conditions under section 4262 of ERISA and part 4262 once every year through 2051. PBGC needs the information in the ASOC to ensure that a plan is compliant with SFA restrictions and conditions. The current ASOC instructions require, among other documents, audited financial statements, actuarial valuation reports, account statements demonstrating segregation of SFA funds, investment/custodian account statements, SFA investment allocation worksheets, zone certifications, and updated cash-flow projections. The current instructions also state that PBGC may request additional documents and information as needed for the plan to demonstrate ( printed page 65802) compliance with the restrictions and conditions.

PBGC is proposing to revise the ASOC instructions to include additional requests for documentation of plan investment policies. Specifically, PBGC is proposing to require plans to submit the plan's most recent investment policy statement, investment guidelines, asset allocation policy, investment committee charter, or other written policy or governing document, if any, used by the plan's board of trustees, investment committee, or other fiduciary committee to guide, monitor, or evaluate the investment of plan assets, including SFA assets. PBGC is also proposing to require plans to submit copies of the minutes for meetings of plan trustees or other fiduciary committees at which investment policy or other investment-related service providers were discussed. PBGC is further proposing to require plans to submit any investment-related reports reviewed or incorporated into the minutes of those meetings related to plan investment policy or investment performance.

Plans would be permitted to submit relevant excerpts of minutes and to redact privileged material, personally identifiable information, and portions of the minutes or materials unrelated to investment policy, investment performance, SFA compliance, or monitoring of investment-related service providers, provided that the submission remains sufficient to identify the date of the meeting, the fiduciary body meeting, the materials reviewed, any actions taken, and any votes or decisions related to plan investments. If no responsive meeting was held during the plan year under review, if no responsive minutes or materials exist, or if the plan has no written investment policy statement or comparable written investment guidelines, the plan would be required to attach a statement to that effect.

Additionally, PBGC is proposing to require that plans, as part of the ASOC process, provide data on missing participants and documentation concerning plan procedures for identifying and locating them. Missing participants are participants that a plan cannot locate and include participants with inaccurate or incomplete contact information or census data as well as participants with undeliverable mail or email addresses. Lastly, PBGC is also proposing to revise the language in the ASOC for filers to indicate if any criminal violations affecting the plan have occurred.

The addition of these documentation requirements will increase the annual time and cost burden on the public. On average, PBGC estimates that identifying, collecting, reviewing, redacting where appropriate, and submitting the required written investment policies or guidelines, minutes, and related investment materials would require approximately 3 hours of fund office time and cost approximately $1,200 in contractor costs per plan sponsor. PBGC estimates that over the next 3 years an annual average of 175 plan sponsors will file Annual Statements of Compliance. As modified, PBGC estimates that the Annual Statement of Compliance will impose an average hour burden of 7 hours and an average annual cost burden of $4,400. PBGC estimates that the Annual Statement of Compliance will impose an average annual hour burden of 1,225 hours (175 plan sponsors × 7 hours) and an average annual cost burden of $770,000 (175 × $4,400).

For the information collection in part 4262 as a whole, the estimated aggregate average annual hour burden for the next 3 years is 1,242.6 hours (1,225 + 4 + 13.6), including the burden of completing the Annual Statement of Compliance; notices of benefit re-instatement; requests for determination for exception to certain SFA conditions; and for employer and fund office administrative, clerical, and supervisory time. The estimated aggregate average annual cost burden for the next 3 years for the information collection request in part 4262 is $807,000 ($770,000 + $4,000 + $33,000) for work done by outside actuaries and attorneys. The actual hour burden and cost burden per plan will vary depending on plan size and other factors.

The collection of information under the regulation has been approved by OMB under control number 1212-0074 (expires May 31, 2027). PBGC intends to request that OMB extend its approval of the collection of information with modifications for 3 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.

PBGC is soliciting public comments to—

• Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;
• Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information, including the validity of the methodologies and assumptions used;
• Enhance the quality, utility, and clarity of the information to be collected; and
• Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology,e.g., permitting electronic submission of responses.