[Federal Register Volume 61, Number 228 (Monday, November 25, 1996)]
[Notices]
[Pages 59917-59918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30027]
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PENSION BENEFIT GUARANTY CORPORATION
Request for Comment on Proposed Extension of Approval of
Collection of Information Under the Paperwork Reduction Act; Qualified
Domestic Relations Order Submitted to the PBGC
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of intention to request OMB extension of approval.
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SUMMARY: The Pension Benefit Guaranty Corporation intends to request
that the Office of Management and Budget (``OMB'') extend the approval
for a collection of information under the Paperwork Reduction Act. The
information collection relates to model forms contained in a PBGC
booklet (``Divorce Orders & PBGC'') providing guidance on how to submit
a proper qualified domestic relations order to the PBGC. The effect of
this notice is to advise the public of, and to solicit public comment
on, the extension of approval of this collection of information.
DATES: Comments should be submitted to the PBGC by January 24, 1997.
ADDRESSES: All written comments should be addressed to: The Office of
the General Counsel, Pension Benefit Guaranty Corporation, Suite 340,
1200 K Street, NW., Washington, DC 20005. The comments will be
available for public inspection at the PBGC Communications and Public
Affairs Department, Suite 240, 1200 K Street, NW., Washington, DC
20005, between the hours of 9 a.m. and 4 p.m. Copies of the booklet,
``Divorce Orders & PBGC,'' may be obtained by calling PBGC's Customer
Service Center at 1-800-400-PBGC or writing to the PBGC QDRO
Coordinator, P.O. Box 19153, Washington, DC 20036-0153. The booklet
also is available from the PBGC Homepage on the World Wide Web, at
http://www.pbgc.gov.
FOR FURTHER INFORMATION CONTACT: James L. Beller, Attorney, Office of
the General Counsel, Suite 340, 1200 K Street, NW., Washington, DC
20005, 202-326-4024 (202-326-4179 for TTY and TDD). (These are not
toll-free numbers.)
SUPPLEMENTAL INFORMATION: The Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35) establishes policies and procedures for controlling
the paperwork burdens imposed by Federal agencies on the public. The
Act vests the OMB with regulatory responsibility over these burdens,
and OMB has promulgated rules on the clearance of collections of
information by Federal agencies.
On September 10, 1996, the PBGC published a notice (61 FR 47774) of
its request for approval, on an emergency basis, of a new collection of
information relating to guidance on the submission of qualified
domestic relations orders (``QDROs'') to the PBGC. OMB approved the
collection of information with an expiration date of March 31, 1997.
The PBGC intends to seek three-year approval for this collection of
information.
The PBGC is a federal agency that insures the benefits of nearly 42
million working men and women in about 55,000 private-sector defined
benefit pension plans. A defined benefit pension plan that does not
have enough money to pay benefits may be terminated if the employer
responsible for the plan faces severe financial difficulty, such as
bankruptcy, and is unable to maintain the plan. In such an event, the
PBGC becomes trustee of the plan and pays benefits, subject to legal
limits, to plan participants and beneficiaries.
The benefits of a pension plan participant generally may not be
assigned or alienated. Title I of ERISA provides an exception for
domestic relations orders that relate to child
[[Page 59918]]
support, alimony payments, or marital property rights of an alternate
payee (a spouse, former spouse, child, or other dependent of a plan
participant). The exception applies only if the domestic relations
order meets specific legal requirements that make it a QDRO. The PBGC
reviews submitted domestic relations orders to determine whether the
order is qualified before paying benefits to an alternate payee.
The PBGC receives many inquiries on the requirements for QDROs.
Many domestic relations orders, both in draft and final form, do not
meet the applicable requirements. The PBGC works with practitioners on
a case-by-case basis to ensure that their orders are amended to meet
applicable requirements. This process is time-consuming for
practitioners and for the PBGC.
To simplify the process, the PBGC has included model QDROs and
accompanying guidance in a booklet, ``Divorce Orders & PBGC,'' that
attorneys and other professionals who are preparing QDROs for plans
trusteed by the PBGC may submit to the PBGC after receiving court
approval. These models and the guidance are intended to assist parties
by making it easier to comply with ERISA's QDRO requirements in plans
trusteed by the PBGC.
The requirements for submitting a QDRO are established by statute.
The model QDROs and accompanying guidance do not create any additional
requirements and will result in a reduction of the statutory burden.
The PBGC estimates that it will receive 333 QDROs each year from
prospective alternate payees; that the average burden of preparing a
QDRO with the assistance of the guidance and model QDROs in PBGC's
booklet will be 1/4 hour of the alternate payee's time and $400 in
professional fees if the alternate payee hires an attorney or other
professional to prepare the QDRO, or 10 hours of the alternate payee's
time if the alternate payee prepares the QDRO without hiring an
attorney or other professional; and that the total annual burden will
be 113 hours and $132,000.
The PBGC is soliciting public comments to:
(i) Evaluate whether the collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
(ii) Evaluate the accuracy of the agency's estimate of the burden
of the collection of information, including the validity of the
methodology and assumptions used;
(iii) Enhance the quality, utility, and clarity of the information
to be collected; and
(iv) 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.
Issued at Washington, DC, this 20th day of November 1996.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 96-30027 Filed 11-22-96; 8:45 am]
BILLING CODE 7708-01-P
