[Federal Register Volume 59, Number 148 (Wednesday, August 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18908]
[[Page Unknown]]
[Federal Register: August 3, 1994]
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PENSION BENEFIT GUARANTY CORPORATION
Request for Extension of Approval Under the Paperwork Reduction
Act; Collection of Information Under 29 CFR Part 2674, Notice of
Insolvency
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of request for extension of OMB approval.
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SUMMARY: This notice advises the public that the Pension Benefit
Guaranty Corporation has requested extension of approval by the Office
of Management and Budget for a currently approved collection of
information (1212-0033) contained in its regulation on Notice of
Insolvency (29 CFR Part 2674). The collection of information involves
notices that must be given by the plan sponsor of a multiyear pension
plan under certain adverse financial circumstances described in the
regulation. Current approval of the collection of information expires
on September 30, 1994.
ADDRESSES: All written comments (at least three copies) should be
addressed to: Office of Management and Budget, Paperwork Reduction
Project (1212-0031), Washington, DC 20503. The request for extension
will be available for public inspection at the PBGC Communications and
Public Affairs Department, Suite 240, 1200 K Street, NW., Washington,
DC 20006, between the hours of 9:00 a.m. and 4:00 p.m. on business
days.
FOR FURTHER INFORMATION CONTACT:
Harold J. Ashner or Deborah C. Murphy, Attorney, Office of the General
Counsel, Suite 340, Pension Benefit Guaranty Corporation, 1200 K
Street, NW., Washington, DC 20006, 202-326-4024 (202-326-4179 for TTY
and TDD).
SUPPLEMENTARY INFORMATION: This collection of information is contained
in the Pension Benefit Guaranty Corporation's (``PBGC's'') regulation
on Notice of Insolvency (29 CFR 2674).
Section 4245(e) of the Employee Retirement Income Security Act of
1974 (``ERISA'') requires that the sponsor of a multiemployer pension
plan that is in reorganization notify the Secretary of the Treasury,
the PBGC, and certain third parties (i.e., contributing employers,
employee organizations representing participants, and plan participants
and beneficiaries) whenever the plan is or may become ``insolvent'' for
a plan year (that is, unable to pay full benefits when due during that
plan year). The plan sponsor must also notify the same parties of the
level of benefits that will be paid during each insolvency year.
Section 4245(e)(4) provides that these notices (except for the notices
to the Secretary of the Treasury) are to be given in accordance with
rules promulgated by the PBGC.
Section 4245(e) requires two types of notice to the PBGC: a
``notice of insolvency,'' stating the plan sponsor's determination that
the plan is or may become insolvent, and a ``notice of insolvency
benefit level,'' stating the level of benefits that will be paid during
an insolvency year. (The notices also go to certain third parties.) The
Notice of Insolvency regulation prescribes the contents of these
notices, the manner in which they must be given, and the time limits
for their issuance.
The PBGC uses the information it receives to estimate cash needs
for financial assistance to troubled plans. Without this regulation,
the notices required by ERISA section 4245 would be inconsistently
given and of varying quality, as plan sponsors applied their individual
interpretations to the law. Further, PBGC financial assistance to
troubled plans would likely be delayed by delays in notification.
The PBGC has requested extension of approval by the Office of
Management and Budget (OMB) for this collection of information (1212-
033), which is currently approved by OMB through September 30, 1994.
The PBGC estimates that three plans will be affected by this regulation
each year and that each of these plans will spend 6 hours preparing the
required notices. This amounts to an annual burden on the public of 18
hours.
Issued at Washington, DC, this 28th day of July 1994.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 94-18908 Filed 8-2-94; 8:45 am]
BILLING CODE 7708-01-M
