[Federal Register Volume 59, Number 171 (Tuesday, September 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21893]
[[Page Unknown]]
[Federal Register: September 6, 1994]
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PENSION BENEFIT GUARANTY CORPORATION
Request for Extension of Approval of Collection of Information
Under the Paperwork Reduction Act; Powers and Duties of Plan Sponsor of
Plan Terminated by Mass Withdrawal
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 the collection of
information requirements in its rules for the administration of
multiemployer plans that have terminated by mass withdrawal (OMB
control number 1212-0032; expires September 30, 1994). These rules
include requirements for notices and applications submitted to the
PBGC. The effect of this notice is to advise the public of the PBGC's
request and 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 (1212-0040), 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, between 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 programs
under Title IV of the Employee Retirement Income Security Act of 1974,
as amended (``ERISA'') (29 U.S.C. 1001 et seq.). Part 2675 of the
PBGC's regulations (29 CFR Part 2675), Powers and Duties of Plan
Sponsor of Plan Terminated by Mass Withdrawal, implements requirements
of ERISA sections 4041A and 4281 (29 U.S.C. 1341A and 1441) for the
administration of multiemployer plans that have terminated by mass
withdrawal.
Under section 4041A, which governs the payment of benefits under
such plans, the PBGC may authorize the payment of benefits in amounts
or forms not otherwise permitted, and the plan sponsor must reduce
benefits and suspend benefit payments in accordance with section 4281.
Under section 4281, if the annual valuation of such a plan shows
that plan assets are not sufficient to satisfy all nonforfeitable
benefits under the plan, the plan sponsor must amend the plan to
eliminate benefits that are not eligible for the PBGC's guarantee to
the extent necessary to ensure that plan assets are sufficient (as
determined and certified in accordance with PBGC regulations) for all
nonforfeitable benefits. If, after a plan has been so amended, the plan
becomes insolvent (i.e., unable to pay benefits when due for a plan
year), the plan sponsor must suspend benefits in excess of guaranteed
benefits to the extent that their payment cannot be supported by the
plan's available resources. In addition, if the plan's available
resources are inadequate to pay guaranteed benefits, the plan sponsor
must request financial assistance from the PBGC (see also ERISA
sections 4245(f) and 4261 (29 U.S.C. 1426 and 1431)).
To assure the consistency and adequate quality of required
submissions, Part 2675 includes rules for notices of the adoption of a
plan amendment reducing benefits and of any restoration of benefits
(Secs. 2675.23 and 2675.24), notices that a plan is, or will be,
insolvent and annual updates (Secs. 2675.34 and 2765.35), notices of
insolvency benefit level (Secs. 2675.36 and 2675.37), and applications
for financial assistance if a plan is, or will be, unable to pay
guaranteed benefits when due (Secs. 2675.16 and 2675.38). Part 2675
also provides for the submission of an application for PBGC approval to
pay benefits not otherwise permitted (Sec. 2675.17). The PBGC uses the
information submitted in making statutory determinations and in
identifying and estimating cash needs for financial assistance.
The PBGC is requesting that the Office of Management and Budget
(``OMB'') extend approval of this collection of information (OMB
control number 1212-0032; expires September 30, 1994) for another three
years. The PBGC estimates the total annual burden of these requirements
at 427 hours: 10 hours for notices of insolvency and 8 hours for
benefit reduction notices with respect to two plans; 4 hours for an
application to pay benefits not otherwise permitted under one plan; and
36 hours for annual updates, 45 hours for notices of insolvency benefit
level, and 324 hours for applications for financial assistance with
respect to nine plans. (The PBGC expects to receive benefit restoration
notices so infrequently that the number per year is assumed to be
zero.) These estimates are averages that, among other things, take into
account PBGC assumptions about increases in the number of insolvent
plans over time.
Issued in Washington, DC, this 29th day of August 1994.
Martin Slate,
Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 94-21893 Filed 9-2-94; 8:45 am]
BILLING CODE 7708-01-M
