# Rules for Administrative Review of Agency Decisions; Distress Terminations of Single-Employer Plans; Standard Terminations of Single- Employer Plans > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-8886 ## Record - **Collection:** Federal Register - **Document type:** Uncategorized Document - **Published:** April 14, 1994 ## Text PENSION BENEFIT GUARANTY CORPORATION 29 CFR Parts 2606, 2616, and 2617 Rules for Administrative Review of Agency Decisions; Distress Terminations of Single-Employer Plans; Standard Terminations of Single- Employer Plans AGENCY: Pension Benefit Guaranty Corporation. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: On August 24, 1993, the Pension Benefit Guaranty Corporation (``PBGC'') published an interim rule with request for comments amending certain of its regulations (Administrative Review of Agency Decisions and Standard Terminations of Single-Employer Plans) to permit the PBGC's Executive Director to grant relief from deadlines in the event of a major disaster. The PBGC is now adopting these amendments as a final rule and also is amending its distress termination regulation in order to give the Executive Director the authority to grant relief similar to that given in the interim rule for standard terminations. EFFECTIVE DATE: April 14, 1994. FOR FURTHER INFORMATION CONTACT: Harold J. Ashner, Assistant General Counsel, or Renae R. Hubbard, Special Counsel, Office of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005, 202-326-4024 (202-326-4179 for TTY and TDD). (These are not toll-free numbers.) SUPPLEMENTARY INFORMATION: On August 24, 1993, the Pension Benefit Guaranty Corporation (``PBGC'') published an interim rule with request for comments amending its regulations on Rules for Administrative Review of Agency Decisions and Standard Terminations of Single-Employer Plans (29 CFR parts 2606 and 2617, 58 FR 44738; as corrected, 58 FR 48680, September 17, 1993). The interim rule provided that, when the President of the United States declares, under the Disaster Relief Act of 1974, as amended (42 U.S.C. 5121, 5122(2), 5141(b)), that a major disaster (such as the 1993 flood disaster in the midwestern United States) exists, the PBGC's Executive Director (or his or her designee) may grant relief from certain regulatory deadlines by which persons are to submit filings to the PBGC or take other actions. The PBGC received no comments and is adopting the interim rule as a final rule without change. Before the interim rule was published, Secs. 2606.33 and 2606.53 of the PBGC's administrative review regulation (29 CFR part 2606) provided deadlines for filing a request for reconsideration or appeal of an initial determination, and Sec. 2606.4 provided for extensions of those deadlines for good cause shown and only if requested in writing by the applicable filing deadline. The PBGC concluded that, when a major disaster like the 1993 midwestern flood is declared, the above deadlines do not serve the agency's objective of making timely review available to aggrieved persons. As amended, Sec. 2606.4 provides that the deadlines for filing a request for reconsideration or appeal may be extended by the Executive Director (or his or her designee) when a major disaster is declared. The extension may be for a period of up to 180 days and applies to any aggrieved person who resides in, or whose principal place of business is within, a designated disaster area, or with respect to whom the office of the service provider, bank, insurance company, or other person maintaining the information necessary to file the request for reconsideration or appeal is within a designated disaster area. Similarly, as amended Secs. 2617.25 and 2617.28 of the PBGC's standard termination regulation (29 CFR part 2617) include an exception to the deadlines (1) for filing the standard termination notice with the PBGC (Secs. 2617.3(b)(2) and 2617.25(a)) and, consequently, for issuing notices of plan benefits to participants and beneficiaries (Secs. 2617.3(b)(3) and 2617.23(a)) and (2) for completing the distribution of plan assets (Sec. 2617.28(a), (e), and (f)). As in the administrative review regulation, the Executive Director (or his or her designee) may extend these deadlines for a period of up to 180 days when a major disaster is declared. The extension applies to plan terminations with respect to which the principal place of business of the contributing sponsor or the plan administrator, or the office of the service provider, bank, insurance company, or other person maintaining the information necessary to issue the notices of plan benefits or file the standard termination notice, or to complete the distribution of plan assets (as applicable), is within a designated disaster area. The PBGC believes that similar relief should be available for plans terminating in distress terminations pursuant to section 4041(c) of the Employee Retirement Income Security Act of 1974, as amended, and the PBGC's distress termination regulation (29 CFR part 2616). Sections 2616.3(b), 2616.24, and 2616.25(c)(2) establish deadlines for filing a distress termination notice and related information with the PBGC. Section 2616.27(a)(1) establishes the deadline for issuing notices of benefit distribution in those few terminations where the plan is sufficient for at least guaranteed benefits and, accordingly, plan assets may be distributed to participants and beneficiaries in a manner similar to a standard termination distribution. (The notices of distribution are similar to the notices of plan benefits required in standard terminations under 29 CFR 2617.23.) Finally, Sec. 2616.29(a)(1) contains distribution procedures and deadlines that are generally the same as those in standard terminations; that section cross-references 29 CFR 2617.28 (c), (e), and (f) and provides the same 180-day (unless extended) deadline for distribution. The amendments in this final rule permit the PBGC's Executive Director (or his or her designee) to extend the above deadlines in the same circumstances as were provided for standard terminations in the interim rule. (The PBGC did not include distress terminations in the interim rule because the small number of distress terminations filed annually lessened the need for prompt action; however, these provisions are essentially procedural in that they establish alternative mechanisms for obtaining extensions of filing or other deadlines (5 U.S.C. 553(b)(A)), and the notice and public procedure and delayed effective date requirements of 5 U.S.C. 553 therefore do not apply.) E.O. 12866 The PBGC has determined that this action is not a ``significant regulatory action'' under the criteria set forth in Executive Order 12866, because it will not have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities; create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in Executive Order 12866. List of Subjects 29 CFR Part 2606 Administrative practice and procedure, Organization and functions (Government agencies), Pension insurance, Pensions. 29 CFR Parts 2616 and 2617 Employee benefit plans, Pension insurance, Pensions, Reporting requirements. In consideration of the foregoing, the interim final rule amending 29 CFR parts 2606 and 2617, as published on August 24, 1993, at 58 FR 44738 and corrected on September 17, 1993, at 58 FR 48600, is adopted as a final rule without change, and 29 CFR part 2616 is amended as follows: PART 2616--DISTRESS TERMINATIONS OF SINGLE-EMPLOYER PLANS 1. The authority citation for part 2616 continues to read as follows: Authority: 29 U.S.C. 1302(b)(3), 1341, 1344. Sec. 2616.3 [Amended] 2. Paragraph (b)(2) of Sec. 2616.3 is amended by adding ``or, if applicable, no later than the due date established in an extension notice issued under Sec. 2616.10'' after ``date'' and before the semicolon. 2a. Section 2616.10 is redesignated as Sec. 2616.11. 3. A new Sec. 2616.10 is added to subpart A to read as follows: Sec. 2616.10 Disaster relief. (a) Notwithstanding any other provision in this part, when the President of the United States declares that, under the Disaster Relief Act of 1974, as amended (42 U.S.C. 5121, 5122(2), 5141(b)), a major disaster exists, the Executive Director of the PBGC (or his or her designee) may, by issuing one or more notices of disaster relief, extend the due date for filing the distress termination notice pursuant to Sec. 2616.24, for issuing the notices of benefit distribution pursuant to Sec. 2616.27(a)(1), or for completing the distribution of plan assets pursuant to Sec. 2616.29, by up to 180 days. (b) The due date extension or extensions shall apply only to plan terminations with respect to which the principal place of business of the contributing sponsor or the plan administrator, or the office of the service provider, bank, insurance company, or other person maintaining the information necessary to file the distress termination notice, to issue the notices of benefit distribution, or to complete the distribution of plan assets (as applicable), is within a designated disaster area. (c) The distress termination notice filed pursuant to Sec. 2616.24, or the post-distribution certification filed pursuant to Sec. 2616.29(b) shall identify the distress termination notice filing or the distribution (as applicable) as being qualified for the due date extension. 4. Section 2616.24 is amended by adding paragraph (d) to read as follows: Sec. 2616.24 Distress termination notice. * * * * * (d) Due date extension. Notwithstanding the provisions of paragraphs (a), (b), and (c) of this section, the due date for filing PBGC Form 601 or other information required under this section may be extended by a notice issued under Sec. 2616.10. Sec. 2616.25 [Amended] 5. Paragraph (c)(2) of Sec. 2616.25 is amended by adding ``, or, if applicable, no later than the due date established in an extension notice issued under Sec. 2616.10'' after ``later'' and before the period. Sec. 2616.27 [Amended] 6. Paragraph (a)(1) of Sec. 2616.27 is amended by adding ``or, if applicable, no later than the due date established in an extension notice issued under Sec. 2616.10'' after ``distribution notice'' and before the comma. Sec. 2616.29 [Amended] 7. Paragraph (a)(1) of Sec. 2616.29 is amended by removing ``2617.28 (c), (e) and (f)'' and adding in its place ``2617.28(c)'' and by adding ``(except as provided in Sec. 2616.10 or 2617.28 (e) or (f))'' after ``61st day and'' and before ``no later than''. Issued in Washington, DC this 8th day of April 1994. Martin Slate, Executive Director, Pension Benefit Guaranty Corporation. [FR Doc. 94-8886 Filed 4-13-94; 8:45 am] BILLING CODE 7708-01-M --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-8886. Public record. Not legal advice.