multi0031ss - 6-2017

Supporting Statement for Paperwork Reduction Act Submission

AGENCY:

Pension Benefit Guaranty Corporation

TITLE:

Procedures for PBGC Approval of Plan Amendments (29 CFR Part 4220)

STATUS:

Request for regular review and extension of currently approved collection (OMB
control number 1212-0031; expires June 30, 2017)

CONTACT: Hilary Duke (326-4400 x3839)

1. Need for collection. This collection of information is necessary for proper
performance of agency functions under section 4220 of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”). That section requires the plan sponsor of a
multiemployer pension plan covered by Title IV of ERISA to submit for PBGC review certain
optional plan amendments authorized by ERISA sections 4201-4219. Plans may within certain
limits adopt special plan rules regarding when a withdrawal from a multiemployer plan occurs
and how the withdrawing employer’s withdrawal liability is determined. Any such special plan
rule is effective only if, within 90 days after receiving notice and a copy of the special rule,
PBGC either approves or fails to disapprove the rule (section 4220(a)). PBGC may disapprove
an amendment only if it determines that the amendment creates an unreasonable risk of loss to
plan participants and beneficiaries or to PBGC (section 4220(c)).
PBGC’s regulation on Procedures for PBGC Approval of Plan Amendments (29 CFR
Part 4220) includes, in § 4220.3, rules for requesting PBGC’s approval of an amendment. PBGC
needs the required information to identify the plan and determine whether to approve or

disapprove a plan amendment. The regulation also permits the plan sponsor to submit other
information that is pertinent to the request.
2. Use of information. PBGC uses the information collected in evaluating the risk of
loss, if any, posed by a plan amendment.
3. Information technology. No consideration has been given to the use of improved
information technology to reduce burden. The reporting volume under the regulation is too low
to warrant the use of high technology. However, PBGC expects that most, if not all, plan
sponsors and their representatives will use email and electronic versions of documents to provide
the information required to PBGC under the regulation.
4. Duplicate or similar information. The regulation imposes a special purpose
information submission requirement that is triggered by a unique event (the adoption at a specific
time by a specific plan of a specific amendment), and this is the only such requirement imposed
by PBGC for that event.
The actuarial reports called for by the regulation are routinely prepared for other purposes
(but not otherwise routinely sent to PBGC). The plan amendments are not timely available from
any other source.
5. Reducing the burden on small entities. Inapplicable.
6. Consequence of reduced collection. PBGC has reduced collections under the
regulation by granting class approval for four types of amendments as to which it has determined
that adoption by any plan will not create an unreasonable risk of loss and for which, therefore, no
submission is necessary (see § 4220.1(c)). As to other amendments covered by ERISA section
4220, each one is unique and triggers only a single submission of information under the
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regulation. If the information were not collected, PBGC would be significantly hindered in the
performance of its statutory duties.
7. Consistency with guidelines. The information collection is not conducted in a manner
inconsistent with 5 CFR § 1320.5(d)(2).
8. Outside input. PBGC published a Federal Register notice soliciting public comment
on this and other collections of information pursuant to 5 CFR § 1320.8(d) (April 6, 2017, at 82
FR 16863). No public comments were received in response to the notice.
9. Payment to respondents. PBGC provides no payments or gifts to respondents in
connection with this collection of information.
10. Confidentiality. The regulation gives no assurance of confidentiality, but
information submitted to PBGC under the regulation is accessible only in accordance with
applicable law and regulations. PBGC’s rules providing and restricting access to its records are
set forth in 29 CFR Part 4901.
11. Personal questions. The regulation does not call for submission of information of a
sensitive nature.
12. Hour burden on the public. PBGC estimates that 1 plan amendment approval request
is submitted each year. PBGC estimates 0.50 hours of in-house time to compile information
needed for a request for a total of 0.50 hours per year. The estimated dollar equivalent of this
hour burden, based on an assumed blended hourly rate of $75 for administrative, clerical, and
supervisory time, is $37.50.

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13. Cost burden on the public. Plans use outside attorneys and actuaries to prepare the
request for PBGC approval under the regulation. Based on attorney experience, PBGC estimates
that the annual cost burden of the collection of information is $5,000.
14. Cost to the government. As discussed in item 12, PBGC staff processes about 1
submission annually under the regulation. PBGC estimates that the total annual cost to the
government is $0.
15. Explanation of burden changes. There is no change in the hour burden of this
collection of information. The cost burden increased from $0 to $5,000 due to a change in
methodology for estimating the cost burden.
16. Publication plans. PBGC does not intend to publish the results of this collection of
information.
17. Display of expiration date. PBGC is not seeking approval to not display the
expiration date for OMB approval of this information collection.
18. Exceptions to certification statement. There are no exceptions to the certification
statement.

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