[Federal Register Volume 62, Number 35 (Friday, February 21, 1997)]
[Notices]
[Pages 8057-8058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4306]
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PENSION BENEFIT GUARANTY CORPORATION
Agency Information Collection Activities; Submission for OMB
Review; Comment Request; Qualified Domestic Relations Orders Submitted
to the PBGC
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice.
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SUMMARY: The Pension Benefit Guaranty Corporation has requested 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
to OMB on, the extension of approval of this collection of information.
DATE: All comments must be submitted to OMB by March 24, 1997.
ADDRESSES: All written comments should be addressed to: Office of
Information and Regulatory Affairs, OMB, Attention: Desk Officer for
the Pension Benefit Guaranty Corporation, 725 17th Street, NW., Room
10235, Washington, DC 20503. A copy of the request for approval may be
obtained by writing to the PBGC Communications and Public Affairs
Department, suite 240, 1200 K Street, NW., Washington, DC 20005, or by
visiting that office 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, 202-326-4020, ext. 3865 (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. On
November 25, 1996, the PBGC published a notice (61 FR 59917) informing
the public of its intention to seek a three-year extension of the
approval of this collection of information and soliciting comments. No
comments were received.
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
[[Page 8058]]
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 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.
Issued at Washington, DC., this 14th day of February 1997.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 97-4306 Filed 2-20-97; 8:45 am]
BILLING CODE 4163-19-P
