PBGC Seeks to Extend Info Gathering on SFA Regulation

The Pension Benefit Guaranty Corporation (PBGC) intends to ask the Office of Management and Budget (OMB) for approval to extend its collection of information contained in the regulation on special financial assistance (SFA). 

The OMB’s approval of the collection of information expires May 31, 2024. The PBGC intends to ask the OMB to extend its approval for three years. 

Background

The American Rescue Plan Act of 2021 (ARPA) added Section 4262 to ERISA, which created the SFA Program. That program is intended to provide eligible multiemployer pension plans with assistance in paying all benefits due during the period beginning on the date of payment of SFA through the plan year ending in 2051. 

Earlier this year, the Government Accountability Office (GAO) said that the Office of the Inspector General (OIG) found, at the behest of the GAO, that the PBGC has been running the SFA program appropriately, at least regarding its administration of funds. However, the OIG also has said in another analysis this year that the PBGC has work to do in its review of applications for aid under the SFA Program.

The Information—and Why the PBGC Needs it

Under ERISA Sections 4262.6 through 4262.9, to apply for SFA, a plan sponsor must file an application with PBGC and include information about the plan, plan documentation, and actuarial information. This information is necessary in order to enable the PBGC to review a plan’s eligibility for SFA and amount of requested SFA. 

Under ERISA Section 4262.10(g), a plan sponsor may—but is not required to—file a lock-in application as a plan’s initial application. The lock-in application contains basic information about the plan and a statement of intent to lock-in base data. The PBGC needs this information to ensure that a plan sponsor intends to lock in the plan’s data. 

Under ERISA Section 4262.16(i), a plan sponsor of a plan that has received SFA must file an Annual Statement of Compliance with the restrictions and conditions under Section 4262 of ERISA once every year through 2051. The PBGC needs this information to ensure that a plan is complying with the restrictions and conditions. 

Under ERISA Section 4262.15(c), a plan sponsor of a plan with benefits that were suspended under Sections 305(e)(9) or 4245(a) of ERISA must issue notices of reinstatement to participants and beneficiaries whose benefits were suspended and are being reinstated. Participants and beneficiaries need the notice of reinstatement to better understand the calculation and timing of their reinstated benefits and, if applicable, make-up payments. 

Under ERISA Sections 4262.16(d), (f), (g) and (h) a plan sponsor must file a request for a determination from PBGC for approval for an exception under certain circumstances for SFA conditions under Section?4262.16 relating to reductions in contributions, transfers or mergers, and withdrawal liability. The PBGC needs the information required for a request for determination to determine whether to approve an exception from the specified condition of receiving SFA. 

Comments Invited 

The PBGC will accept comments from the public on the collection of information for 60 days after the announcement is published in the Federal Register, which is set for Dec. 20, 2023. 

Why. The PBGC is soliciting public comments to help it do the following:

• evaluate whether the proposed collection of information is necessary for the PBGC to function properly; 
• evaluate the accuracy of the PBGC’s estimate of the burden of the proposed collection of information, including the validity of the methodologies and assumptions used; 
• enhance the quality, utility, and clarity of the information to be collected; and 
• minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology.

Submitting comments. Comments may be submitted in the following manners: 

• Via the federal eRulemaking portal: http://www.regulations.gov. 
• By email to: [email protected]. Refer to OMB control number 1212-0074 in the subject line. 
• By mail or hand delivery to: Regulatory Affairs Division, Office of the General Counsel, Pension Benefit Guaranty Corporation, 445 12th Street, SW, Washington, DC, 20024-2101.

All submissions received must include the agency’s name (Pension Benefit Guaranty Corporation, or PBGC) and refer to OMB control number 1212-0074.