No
material or nonsubstantive change to a currently approved
collection
No
Emergency
07/09/2021
12/03/2021
Requested
Previously Approved
01/31/2022
01/31/2022
122
122
723
723
1,946,600
1,946,600
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 plan’s 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