PBGC Seeks OMB Nod on Modified Info Collection on Missing Participants

The Pension Benefit Guaranty Corporation (PBGC) is requesting that the Office of Management and Budget (OMB) extend approval, under the Paperwork Reduction Act, of a collection of information under PBGC’s regulation on missing participants, with modifications. 

OMB approval of the current collection of information expires Jan. 31, 2021. The PBGC is requesting that the OMB extend its approval of this collection of information (with modifications) for three years. Furthermore, the PBGC intends to modify its information collection to require additional information about missing participants in two categories in order to properly withhold taxes when such participants are located and their benefits are claimed and paid:

• For defined contribution plans that permit Roth accounts, the PBGC intends to require a breakdown of qualified and non-qualified Roth amounts transferred to PBGC (if any), and if non-qualified Roth amounts are being transferred, the date the first Roth contribution was made. 
• When relevant for DB and DC plans, the PBGC intends to require identification of the portion of a participant’s benefit transfer amount treated as foreign-source income; for DB plans, the PBGC also intends to require identification of how that determination was made.

The PBGC explains that it needs information from plans that participate in the missing participants program to identify the plans and the missing participants and beneficiaries, to search for missing participants and beneficiaries, to determine the persons entitled to benefits that the plans transfer to PBGC and the form and amount of benefits payable, and to refer claimants of benefits being held elsewhere to the institutions holding the benefits. 

Comments Welcome

The PBGC will accept comments on its plan to modify information collection in this way. Comments must be submitted on or before 30 days after this announcement appears in the Federal Register, which is scheduled on Dec. 8, 2020. 

Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to http://www.reginfo.gov/public/do/PRAMain.