[Federal Register Volume 59, Number 249 (Thursday, December 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32100]
[[Page Unknown]]
[Federal Register: December 29, 1994]
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PENSION BENEFIT GUARANTY CORPORATION
Request for Extension of Approval of a Collection of Information
Under the Paperwork Reduction Act; Notice of Failure to Make Required
Contributions
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of request for OMB approval.
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SUMMARY: The Pension Benefit Guaranty Corporation (``PBGC'') has
requested that the Office of Management and Budget (``OMB'') extend
approval, under the Paperwork Reduction Act, of PBGC Form 200 (OMB
control number 1212-0041; expires February 28, 1995). This collection
of information implements a statutory requirement to notify the PBGC of
a failure to make a required payment to a single-employer plan covered
by the termination insurance program when the total of unpaid balances
of required payments not made when due (including interest) exceeds $1
million. The effect of this notice is to advise the public of PBGC's
request for OMB approval of and to solicit public comment on this
collection of information.
ADDRESSES: All written comments (at least three copies) should be
addressed to Office of Management and Budget, Paperwork Reduction
Project (1212-0041), Washington, DC 20503. The PBGC's request for
extension will be available for inspection at the PBGC's Communications
and Public Affairs Department, Suite 240, 1200 K Street, NW.,
Washington, DC 20005-4026, betw4een 9:00 a.m. and 4:00 p.m., Monday
through Friday.
FOR FURTHER INFORMATION CONTACT: Judith Neibrief, Attorney, Office of
the General Counsel, Pension Benefit Guaranty Corporation, 1200 K
Street, NW., Washington, DC 20005-4026, 202-326-4024 (202-326-4179 for
TTY and TDD). These are not toll-free numbers.
SUPPLEMENTARY INFORMATION: The Pension Benefit Guaranty Corporation
(``PBGC'') administers the pension plan termination insurance program
under Title IV of the Employee Retirement Income Security Act of 1974
(``ERISA'') (29 U.S.C. 1001 et seq.). The minimum funding standards of
the Internal Revenue Code of 1986 (``Code'') and ERISA (subsection (n)
of section 412 (26 U.S.C. 412) and subsection (f) of section 302 (29
U.S.C. 1082), respectively) include provisions that impose a lien in
favor of a plan if (1) any person fails to make a required installment
or any other payment required under section 412 of the Code and section
302 of ERISA when due, and (2) the unpaid balance of the required
installment or other payment (including interest), when added to the
aggregate unpaid balance of all preceding such installments or other
payments for which payment was not made when due (including interest),
exceeds $1 million (Code section 412(n)(1) and ERISA section
302(f)(1)). These provisions apply to a single-employer plan with a
funded current liability percentage (as defined in Code section
412(1)(8)(B) and ERISA section 302(d)(8)(B)) of less than 100 percent
that is covered by the termination insurance program. The lien is upon
all property and rights to property (whether real or personal)
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).
Any such lien may be perfected and enforced only by the PBGC or, at
its direction, by the plan's contributing sponsor or any member of the
contributing sponsor's controlled group (Code section 412(n)(5) and
ERISA section 302(f)(5)). Therefore, section 412(n)(4) of the Code and
section 302(f)(4) of ERISA require persons committing payment failures
to notify the PBGC, within 10 days of the due date for the required
installment or other required payment, whenever there is a failure to
make a required payment and the total of the unpaid balances (including
interest) exceeds $1 million.
To comply with this statutory requirement, Sec. 2615.31 of the
PBGC's regulations (29 CFR 2615.31) requires a contributing sponsor of
a single-employer plan covered by the termination insurance program,
and if that sponsor is a member of a parent-subsidiary controlled group
of corporations or group of trades or businesses under common control,
the parent of such group, to complete and submit PBGC Form 200, Notice
of Failure to Make Required Contributions, as described in the related
filing instructions. The PBGC uses the information it obtains to make
decisions regarding enforcement of liens created under ERISA section
302(f)(1) and Code section 412(n)(1). This information enables PBGC
staff to determine the amount of the statutory lien and to evaluate the
funding status of the plan and the financial condition of person(s)
responsible for its funding.
The PBGC is requesting that the Office of Management and Budget
(``OMB'') extend approval of the this collection of information (OMB
control number 1212-0041; expires February 28, 1995) for another three
years. The agency anticipates that this collection of information
requirement will apply, annually, with respect to up to 20 single-
employer plans. The PBGC estimates that, on average, (1) when a payment
failure first results in a total of unpaid balances (including
interest) which exceeds $1 million (``initial filing''), the average
response time will be 5.75 hours, and (2) when there is a subsequent
payment failure and the total of unpaid balances (including interest)
continues to exceed $1 million (``subsequent filing''), the average
response time will be 2.75 hours. Assuming an average of one initial
and two subsequent filings annually with respect to each of 10 plans
and two subsequent filings annually with respect to each of 10 plans
(which accounts for variation in the number of filings with respect to
any given plan and the increasing likelihood, over time, that a
submission will be a subsequent (rather than an initial filing), the
PBGC estimates the total annual burden on the public at 167.5 hours
((5.75 + (2.75) (2)) (10) + (2.75) (2) (10)).
Issued at Washington, D.C., this 23rd day of December, 1994.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 94-32100 Filed 12-28-94; 8:45 am]
BILLING CODE 7708-01-M
