Under section 4262 of the Employee Retirement Income Security Act of 1974 (ERISA) PBGC administers a 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.
Under section 4262 of the Employee Retirement Income Security Act of 1974â¯(ERISA) andâ¯29 CFR part 4262, the Pension Benefit Guaranty Corporation (PBGC) provides special financial assistance to certain financially troubled multiemployer pension plans. To apply for SFA, a plan sponsor of an eligible plan must file an application with PBGC and include information about the plan, plan documentation, and actuarial information, as specified in PBGCâs SFA regulation â 29 CFR part 4262 â and the application instructions. PBGC uses the required actuarial and financial information and documentation to verify a planâs eligibility and requested amount of SFA. This ICR is approved under OMB control number 1212-0074 (expires July 31, 2026).
The current instructions for the SFA application require the plan sponsor to submit census data for terminated vested participants in the plan. PBGC uses this data to conduct an independent death search using the Social Security Administrationâs (SSA) Full Death Master File (DMF), to which PBGC has access, as a means to help plans identify and remove any deceased terminated vested participants from the census data used to prepare their SFA applications.
PBGCâs Office of Inspector General has recommended to further expand the independent death audit to all participant categories, rather than just terminated vested participants. PBGC has agreed to implement this change, which must be done quickly because under section 4262(f) of ERISA plan sponsors may submit initial applications for SFA only until December 31, 2025, and revised applications for SFA only until December 31, 2026. Accordingly, PBGC is requesting emergency approval to amend the application instructions to require census data of all participant categories. The information from the independent death audit will further assist plans in identifying deceased participants and increase the accuracy of census data used for purposes of making SFA projections.
The hourly and cost burdens have increased due to the new requirement to submit with the application census data for participants in all categories that were included in SFA projections. The change to the SFA application instructions increased the aggregate hour burden by 59 hours (1 hour x 59 plans) and the cost burden by $108,000 ($2,000 x 59 plans).
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 Lock-In Application
sfa-assumptions-guidance October 2023_final.pdf
SFA FR Emergency Memo Census Data October 2023.10.docx
Lock-In Application