The President signed into law on March 11, 2021, the American Rescue Plan (ARP) Act of 2021 (P.L. 117-2). ARP creates a special financial assistance (SFA) program to provide support to financially troubled multiemployer plans. Section 9704 of ARP added new section 4262 of to the Employee Retirement Income Security Act of 1974 (ERISA), which sets forth the requirements for the SFA program including specifying which plans are eligible to apply, the cutoff date for applications, actuarial assumptions, determinations on applications, restrictions and conditions on plans that receive SFA, and the requirements for certain plans with suspended benefits to reinstate those benefits and provide make-up payments to restore previously suspended benefits. Unlike financial assistance under section 4261 of ERISA, which is provided in the form of a loan and in periodic payments, a plan receiving SFA under section 4262 has no obligation to repay SFA, and PBGC must pay SFA in the form of a single, lump sum payment. Section 4262(c) of ERISA requires PBGC to prescribe in regulations or other guidance the requirements for SFA applications within 120 days of March 11, 2021.
PBGC guidance contains information collection requirements necessary to implement the SFA program and to provide proper stewardship of taxpayer funds. These information requirements include:
⢠An application for SFA (including calculating the amount of SFA) that the plan sponsor of an eligible multiemployer plan must file with PBGC to receive payment of SFA. PBGC needs the information in the application to review a planâs eligibility for SFA, priority group status (if applicable), and amount of requested SFA.
⢠An Annual Statement of Compliance (with the restrictions and conditions under section 4262 of ERISA and 29 CFR part 4262) that a plan that has received SFA is required to file with PBGC. PBGC needs the information in the Annual Statement of Compliance to ensure that a plan is compliant with the imposed restrictions and conditions.
⢠A notice of reinstatement that a plan sponsor of a plan with benefits that were suspended under sections 305(e)(9) or 4245(a) of ERISA must issue to participants and beneficiaries whose benefits are 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.
⢠A request for a determination from PBGC for approval for an exception under certain circumstances for SFA conditions under § 4262.16 relating to reductions in contributions, transfers or mergers, and settlement of withdrawal liability. PBGC needs the information required for a request for determination to determine whether to approve an exception from the specified condition.
The American Rescue Plan (ARP) Act of 2021 (P.L. 117-2) was signed into law on March 11, 2021. Section 9704 of ARP added a new section 4262 of the Employee Retirement Income Security Act of 1974 (ERISA). Section 4262(c) requires the Pension Benefit Guaranty Corporation (PBGC) to issue regulations or guidance setting forth requirements for special financial assistance (SFA) applications within 120 days of the date of enactment of ARP, and under section 4262(d) of ERISA, PBGC may prioritize applications of certain plans during the first 2 years after March 11, 2021. Section 4262(l) of ERISA permits PBGC to provide for how SFA and earnings thereon are to be invested, and section 4262(m) permits PBGC, in consultation with the Secretary of the Treasury, to impose reasonable conditions by regulation or other guidance on an eligible multiemployer plan that receives SFA. Section 4262(k) requires plans with suspended benefits to reinstate those benefits and provide for make-up payments.
PBGC is issuing an interim final rule on July 9, 2021 (120 days after enactment of ARP), and this accompanying information collection request (ICR) includes the application requirements and instructions necessary for the sponsor of an eligible plan to apply for SFA. It also includes an annual compliance statement, requests for a determination with respect to certain conditions of SFA, and a notice to participants and beneficiaries whose benefits will be reinstated. All components of this ICR are necessary or helpful for plan sponsors to know before applying for SFA and therefore integral to the application process.
Following the normal clearance procedure for this ICR is likely to result in public harm. Delaying review of this ICR would be contrary to the policy of ARP to allow plans to begin applying immediately for SFA on issuance of a rule or guidance by PBGC. In particular, soon-to-be insolvent plans and already insolvent plans would be permitted to apply for SFA on July 9 as the first priority group. If plans are unable to apply immediately, then SFA will be delayed, soon-to-be insolvent plans will become insolvent, and benefits for participants and beneficiaries in those plans will be reduced. For plans already insolvent with participant benefits that were already reduced, any delay will result in those participants having to wait longer to have their benefits reinstated and to receive their make-up payments. Accordingly, PBGC requests emergency processing, under 5 CFR 1320.13, of this ICR.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Requests for determination