[Federal Register Volume 60, Number 150 (Friday, August 4, 1995)]
[Rules and Regulations]
[Page 39848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19175]
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PENSION BENEFIT GUARANTY CORPORATION
29 CFR Parts 2606 and 2609
RIN 1212-AA72
Debt Collection Procedures--Tax Refund Offset
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
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SUMMARY: The Pension Benefit Guaranty Corporation is adopting, as a
final rule with change, amendments that it previously issued as an
interim final rule. The procedures in this rule enable the PBGC to
refer past-due, legally enforceable debts to the internal Revenue
Service to be offset against federal tax refunds.
EFFECTIVE DATE: This rule is effective August 4, 1995.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, 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).
SUPPLEMENTARY INFORMATION: On December 6, 1994 (59 FR 62571), the
Pension Benefit Guaranty Corporation published an interim final rule
that amended its administrative review and debt collection regulations
(29 CFR parts 2606 and 2609). As amended, the PBGC's regulations
include the procedures required for participation in the federal tax
refund offset program authorized by 31 U.S.C. 3720A. Section 3720A, and
Internal Revenue Service regulations thereunder (26 CFR 301.6402-6),
include requirements to ensure that debts referred for offset against
amounts otherwise payable as tax refunds are past-due and legally
enforceable and that the agency has made reasonable efforts (pursuant
to regulations) to obtain payment.
The one comment on the interim final rule expressed concern about
its effects on due process of law requirements under the Fifth
Amendment to the United States Constitution. The PBGC believes that the
commenter's concern is unwarranted. As noted above, the pre-referral
procedures required by IRS regulations, which are included in the
interim final rule, provide due process protections. Among other
things, before the PBGC refers a debt for tax refund offset, the debtor
has at least 60 days to present evidence that all or part of the debt
is not past-due or not legally enforceable (Sec. 2609.33(b)(2)).
This final rule makes no changes in the rules of agency
organization and procedure that wee prescribed by the interim final
rule and have been in effect since January 5, 1995. Therefore, the
Administrative Procedure Act does not require further notice and public
procedure or a delayed effective date, and the PBGC for good cause
finds that both such actions are unnecessary (5 U.S.C. 553 (b) and
(d)).
E.O. 12866
The PBGC previously determined that the interim final rule was not
a ``significant regulatory action'' under the criteria set forth in
Executive Order 12866.
List of Subjects
29 CFR Part 2606
Administrative practice and procedure, Organization and functions
(Government agencies), Pension insurance, Pensions.
29 CFR Part 2609
Administrative practice and procedure, Claims.
Accordingly, the interim final rule amending 29 CFR parts 2606 and
2609 that was published at 59 FR 62571 on December 6, 1994, is adopted
as a final rule without change.
Issued in Washington, DC this 31st day of July, 1995.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 95-19175 Filed 8-3-95; 8:45 am]
BILLING CODE 7708-01-M
