Special Financial Assistance by PBGC-Withdrawal Liability Condition Exception
Revision of a currently approved collection
No
Emergency
01/26/2023
Approved without change
01/26/2023
01/26/2023
table that charts list comparision
Inventory as of this Action
Requested
Previously Approved
07/31/2023
6 Months From Approved
01/31/2026
210
0
209
879
0
871
2,130,400
0
2,105,400
Under section 4262 of the Employee Retirement Income Security Act of 1974 (ERISA) PBGC operates the Special Financial Assistance program for financially troubled multiemployer plans. The statute sets forth the requirements for this 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.
This information collection contains the 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.
⢠A lock-in application that plan may, but is not required, to use to lock in its base data. PBGC needs the information in the lock-in application to garner a plan's base data when the plan files a full application for 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, benefit increases, 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.
PBGC is issuing a final rule to amend part 4262, effective on the date when it is published in the Federal Register and is submitting changes to the previously approved collection of information. PBGC is adding to the information collection request under this part a request for a determination from PBGC for approval of an exception from the withdrawal liability conditions applicable to plans that receive special financial assistance (SFA). A plan may apply for an exception before the plan files its SFA application or before the files a revised application. PBGC needs the information required for a request for determination to determine whether to approve the requested exception. PBGCâs determination will affect the planâs calculation of SFA that is required for the planâs application.
It is in the interest of a plan eligible to apply for SFA before March 11, 2023, during the priority group period, to be able to first determine if the plan should apply for an exception to the withdrawal liability conditions. Following the normal clearance procedure for this revised ICR or delaying review of this revised ICR would be contrary to the interests of the planâs participants and beneficiaries and could cause a delay in the submission of the planâs application and the planâs receipt of SFA. Accordingly, PBGC requests emergency processing, under 5 CFR 1320.13, of the revisions to this ICR.
PBGC is amending its regulation to add a request for approval of an exception from the withdrawal liability conditions. PBGC is increasing burden estimates to account for this new type of request.
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.
Form SFA Lock-In Applic SFA Lock-In Application
Special Financial Assistance ICR (WDL exception) Supporting Statement.03.docx
Assumptions Guidance, 01 FORMATTED.pdf
Lock-In Application