Annual Financial and Actuarial Information Reporting

[[Page 35308]]

PENSION BENEFIT GUARANTY CORPORATION

29 CFR Part 2628

RIN 1212-AA78

Annual Financial and Actuarial Information Reporting

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Pension Benefit Guaranty Corporation is proposing

regulations to implement a new requirement under section 4010 of the

Employee Retirement Income Security Act of 1974. Section 4010 requires

controlled groups maintaining plans with large amounts of underfunding

to submit annually to the PBGC financial and actuarial information as

prescribed by the PBGC.

DATES: Comments must be received on or before September 5, 1995.

ADDRESSES: Comments may be mailed to the Office of the General Counsel,

Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington,

DC 20005-4026, or hand-delivered to Suite 340 at the above address.

Comments will be available for inspection at the PBGC's Communications

and Public Affairs Department, Suite 240, 1200 K Street, NW.,

Washington, DC 20005-4026.

FOR FURTHER INFORMATION CONTACT: Frank H. McCulloch, Senior Counsel,

Office of the General Counsel, Pension Benefit Guaranty Corporation,

1200 K Street, NW., Washington, DC 20005-4026; 202-326-4116 (202-326-

4179 for TTY and TDD).

SUPPLEMENTARY INFORMATION:

Background

Section 772(a) of the Retirement Protection Act of 1994 (subtitle F

of title VII of the Uruguay Round Agreements Act, Pub. L. 103-465, 108

Stat. 4809 (1994)) added section 4010 to ERISA. Under section 4010,

certain contributing sponsors and all members of their controlled

groups must submit annually to the PBGC financial and actuarial

information as prescribed by the PBGC in regulations.

Who Must File

Under section 4010 of ERISA, each contributing sponsor of a pension

plan and each member of its controlled group is obligated to submit

information to the PBGC if (1) the aggregate unfunded vested benefits

of all plans maintained by the members of the controlled group exceed

$50 million; (2) the conditions specified in section 302(f) of ERISA

and section 412(n) of the Internal Revenue Code for imposing a lien for

missed contributions exceeding $1 million have been met with respect to

any plan maintained by any member of the controlled group; or (3) the

Internal Revenue Service has granted minimum funding waivers in excess

of $1 million to any plan maintained by any member of the controlled

group, and any portion of the waivers is still outstanding. The

regulation defines each entity obligated to submit information to the

PBGC as a ``Filer'' (Sec. 2628.4).

``Unfunded vested benefits'' for the $50 million test are

determined in the same manner used to determine unfunded vested

benefits for purposes of calculating the PBGC's variable rate premium

(but without reference to the exemptions or special rules provided in

the PBGC's premium regulation (29 CFR 2610.24)).

Information Years

The regulation introduces the concept of an Information Year for a

person (Sec. 2628.6). The Information Year serves four purposes. First,

it will help persons determine which plan years and fiscal years to use

to identify Filers. Second, it will help Filers determine whether a

pension plan qualifies for a filing exemption. Third, it is used to

identify the information to be submitted by a Filer. Fourth, it

establishes the due date for submission of required information by a

Filer.

The regulation does not require a Filer to change its fiscal year

or the plan year of any pension plan. Further, the regulation does not

require a Filer to report financial information on any accounting

period other than an existing fiscal year or to report actuarial

information for any period other than the existing plan year of a

pension plan.

Generally, the Information Year is the fiscal year of the Filer. If

all members of a controlled group do not report financial information

on the same fiscal year, the Information Year is the calendar year.

Required Submissions

Section 4010(a) of ERISA requires each Filer annually to provide to

the PBGC audited financial statements and other financial and actuarial

information required by regulation. Section 2628.3(b) of the regulation

allows information to be submitted by a representative of a Filer so

that, for example, a Filer can submit required information to the PBGC

on behalf of itself and all other members of its controlled group and

satisfy their obligations under the regulation.

Exemptions

A Filer is not required to submit actuarial information for a

pension plan (``Exempt Plan'') if, at the end of the plan year ending

within the Filer's Information Year, the plan has no unfunded benefit

liabilities or has fewer than 500 participants. The amount of

``unfunded benefit liabilities'' is determined as of the end of that

plan year by subtracting the market value of plan assets, without

regard to any contributions receivable, from the value of the plan's

benefit liabilities. The regulation requires that the ``value of

benefit liabilities'' be calculated as of the end of that plan year

using (1) the PBGC's termination assumptions in effect at the end of

that plan year and (2) plan census data as of the end of that plan year

or the beginning of the next plan year. If that census data is not

available, the value of benefit liabilities may be based on a

projection of census data from a date within the plan year. This

projection must be consistent with projections used to measure pension

obligations for financial statement purposes and produce a result

appropriate to the measurement date for these obligations. Adjustments

to this projection process may be required where there have been

significant events (such as plan amendments or curtailments) which were

not reflected in the projection assumptions. Plans that have minimum

funding waivers outstanding at the end of the plan year ending within

the Filer's Information Year or that have any missed minimum funding

payments in any amount that were required to be made during the

Information Year are not Exempt Plans.

Section 2628.4(b) requires that all single-employer plans covered

by Title IV of ERISA in a controlled group, including Exempt Plans, be

taken into account in determining whether a person is a Filer. For

example, a contributing sponsor has two plans--Plan A with unfunded

vested benefits of $45 million and more than 500 participants, and Plan

B with unfunded vested benefits of $6 million and fewer than 500

participants. Because the aggregate unfunded vested benefits of the two

plans will exceed $50 million, the contributing sponsor and each of its

controlled group members are Filers. (Because Plan B has fewer than 500

participants, no actuarial information for the plan need be submitted.)

The PBGC also may waive some or all of the filing requirements for

Filers in appropriate cases where the PBGC finds convincing evidence

for such a waiver (Sec. 2628.5(b)). Waivers may be conditioned on the

submission of

[[Page 35309]]

substitute information or the execution of an agreement protective of

plan participants and the PBGC. A Filer that seeks a waiver must file

its request in writing no less than fifteen days before the applicable

due date for required information.

The PBGC invites members of the public to express their views

concerning other factors or criteria that could warrant additional

exemptions for individual Filers, for classes of Filers, or for plans.

Information To Be Submitted

Section 2628.7 describes the information that Filers must submit to

the PBGC. Although each Filer is subject to the obligation to submit

information on each controlled group member and plan (to the extent no

exemptions apply), the regulation allows for a single consolidated

filing for the controlled group.

Identifying Information

Section 2628.7(b) specifies identifying information for each Filer

(the Filer's name, address, telephone number, and the Employer

Identification Number (EIN), if any, assigned by the IRS) and for each

pension plan (the name of the plan, EIN, and the Plan Number assigned

by the plan's contributing sponsor). Also, each Filer (or one Filer for

the entire controlled group) must identify all members of the

controlled group and the legal relationship of each entity to the

others (parent, wholly-owned subsidiary, etc.).

Actuarial Information

Section 2628.7(c) specifies the actuarial information that a Filer

must provide as follows: (1) The market value of plan assets (without

regard to any contributions receivable) at the end of the plan year

ending within the Filer's Information Year, (2) the value of benefit

liabilities as of the same date, (3) certain participant data, and (4)

the actuarial valuation report (``AVR'') for that plan year, which must

contain or be supplemented by certain required actuarial information.

Generally, this actuarial information is developed and maintained by

the plan's enrolled actuary for purposes of, among other things,

completing Schedule B of the plan's Form 5500. A plan's enrolled

actuary must certify that all actuarial information submitted is

accurate and complete.

If the AVR or any of the supplementary actuarial information is not

available by the due date, Sec. 2628.7(d) allows a Filer to submit the

unavailable information by an alternative date--15 days after the

deadline for filing the plan's Form 5500 for the plan year ending

within the Filer's Information Year (see 29 CFR 2520.104a-5(a)(2)).

Financial Information

Section 4010(a)(2) of ERISA requires each Filer to provide to the

PBGC copies of audited financial statements (or, if not available,

unaudited statements). Financial statements include balance sheets,

income statements and cash flow statements. Under

Sec. 2628.7(e)(1)(iii), if audited or unaudited financial statements

are not prepared, the Filer may satisfy the financial information

requirement by submitting copies of federal tax returns for the tax

year ending within its Information Year.

For most controlled group members whose financial information is

combined with that of other group members, the submission of the

consolidated financial statement for the group will satisfy the

obligation to submit individual financial statements

(Sec. 2628.7(e)(2)(i)). Limited financial information--a group member's

revenues and operating income for the Information Year, and its assets

as of the end of the Information Year--is required for each

contributing sponsor of a non-Exempt Plan included in such a

consolidated financial statement (Sec. 2628.7(e)(2)(ii)).

If the required financial information of a controlled group member

has been filed with the Securities and Exchange Commission, or has

otherwise been made publicly available, the Filer need not submit it to

PBGC. Section 2628.7(e)(3) requires only that the Filer include a

statement in its submission to the PBGC indicating when the information

was made available to the public and where the PBGC may obtain it.

The PBGC may request additional information from any Filer to

determine plan assets and liabilities and a Filer's financial status

(Sec. 2628.7(f)). For example, after a controlled group's parent

submits consolidated financial statements in accordance with

Sec. 2628.7(e)(2)(i), it proposes to sell one of its subsidiaries. In

that instance, the PBGC would normally request financial information

relating to the subsidiary that was to be sold. Nothing in this

proposed regulation limits the PBGC's authority under section 4003 of

ERISA to seek any information from a Filer by any means provided

thereunder.

Previously Provided Information

Any information previously submitted to the PBGC need not be

resubmitted. Section 2628.7(g) allows the Filer to incorporate the

previous submission by reference. For example, some of the required

actuarial information with respect to a Filer's plans may have already

been submitted to the PBGC in a reportable event filing; the Filer can

make a reference to the reportable event filing in its submission.

When To File

Under Sec. 2628.8(a), a Filer must submit the required information

to the PBGC on or before the one hundred and fifth day after the end of

the Filer's Information Year. (This due date is designed to be fifteen

days after the Securities and Exchange Commission's annual reporting

date for public companies.) If a plan's AVR or any of the related

supplementary actuarial information is not available by this due date,

the Filer may submit the unavailable information by the alternative due

date--15 days after the deadline for filing the plan's Form 5500 for

the plan year ending within the Filer's Information Year

(Sec. 2628.8(b)).

Filers may submit required information by mail, by overnight and

express delivery services, by hand, or by other means that are

acceptable to the PBGC. The PBGC invites Filers to offer suggestions

regarding procedures to electronically transmit some or all of the

required information.

Confidentiality

Generally, required information submitted to the PBGC by a Filer in

accordance with this regulation will not be made available or disclosed

to the public. This restriction on disclosure shall not apply to

publicly available information. For example, if a Filer submits

required information to the PBGC, part of which is also publicly

available, only that information that is not publicly available will be

subject to confidentiality. Further, as provided in section 4010(c) of

ERISA, these confidentiality strictures shall not apply to information

disclosed by the PBGC in administrative or judicial proceedings or to

Congress.

Penalties for Non-Compliance

Failure to provide information to the PBGC in accordance with the

requirements of this part would constitute a violation of Title IV of

ERISA. Section 4071 authorizes the PBGC to assess a penalty against any

person who fails, within the specified time limits, to provide material

information to the PBGC. All required information under this regulation

is deemed material by the PBGC. The PBGC may assess a penalty on a

pension plan's contributing sponsor and on each member of its

controlled group of up to

[[Page 35310]]

$1,000 for each day for which a failure to submit required information

continues. The PBGC has the right to pursue other equitable or legal

remedies available to it under the law.

Effective Date

The regulation applies for Information Years ending on or after

December 31, 1995.

Paperwork Reduction Act

The PBGC has submitted the collection of information requirements

in this proposed regulation to the Office of Management and Budget for

review under section 3504(h) of the Paperwork Reduction Act (44 U.S.C.

chapter 35). The PBGC needs this information, and will use it, to

identify controlled groups with severely underfunded plans, to

determine the financial status of controlled group members and evaluate

the potential risk of future losses resulting from corporate

transactions and the need to take legal action, and to negotiate

agreements under which controlled groups would provide additional plan

funding. The PBGC estimates the public reporting burden for this

collection of information to average 215.3 hours for each of

approximately 100 controlled groups.

Comments concerning this collection of information should be

submitted to the Office of Management and Budget, Office of Information

and Regulatory Affairs, Room 10235, New Executive Office Building,

Washington, DC 20503; Attention: PBGC Desk Officer.

E.O. 12866 and Regulatory Flexibility Act

The PBGC has determined that this action is not a ``significant

regulatory action'' under the criteria set forth in Executive Order

12866. The provisions of this proposed regulation would implement

policy decisions made by Congress in requiring Filers to provide

audited financial statements and other required information annually to

the PBGC. Those provisions reflect the PBGC's interpretation of the

statutory standards and prescribe the form, time, and manner in which

the required information should be submitted.

Under section 605(b) of the Regulatory Flexibility Act, the PBGC

certifies that, if adopted, this proposed regulation would not have a

significant economic impact on a substantial number of small entities.

The tests for identifying Filers under section 4010(b) of ERISA limit

the filing requirements to large companies and their controlled groups.

With respect to many of those groups, the PBGC will obtain audited

financial statements from public sources (such as the Securities and

Exchange Commission), rather than require each of the companies to file

the information with the PBGC. Further, the proposed regulation will

exempt plans with fewer than 500 participants from the actuarial

information requirements. The regulation would not require individual

financial information with respect to many of the companies within

controlled groups. In addition, the PBGC intends to develop the means

to allow Filers to submit required information electronically.

Accordingly, as provided in section 605 of the Regulatory Flexibility

Act (5 U.S.C. 601, et seq.), sections 603 and 604 do not apply.

List of Subjects in 29 CFR Part 2628

Employee benefit plans, Pension insurance, Pensions, Reporting and

recordkeeping requirements.

For the reasons set forth above, the PBGC proposes to amend

subchapter C, chapter XXVI of 29 CFR by adding a new part 2628 to read

as follows:

PART 2628--ANNUAL FINANCIAL AND ACTUARIAL INFORMATION REPORTING

2628.1 Purpose and scope.

2628.2 Definitions.

2628.3 Required submission of information.

2628.4 Filers.

2628.5 Exemptions.

2628.6 Information Year.

2628.7 Required information.

2628.8 Due date and filing with the PBGC.

2628.9 Date of filing.

2628.10 Confidentiality of information submitted.

Authority: 29 U.S.C. 1302(b)(3); 29 U.S.C. 1310

Sec. 2628.1 Purpose and scope.

(a) Purpose. This part prescribes the procedures and the

information that Filers (as described in Sec. 2628.4(a) of this part)

must submit annually to the PBGC under section 4010 of the Act.

(b) Scope. This part applies to Filers for any Information Year

ending on or after December 31, 1995.

Sec. 2628.2 Definitions.

For purposes of this part--

Act means the Employee Retirement Income Security Act of 1974, as

amended.

Code means the Internal Revenue Code of 1986, as amended.

Contributing sponsor means a person who is a contributing sponsor

as defined in section 4001(a)(13) of the Act.

Controlled group means, in connection with any person, a group

consisting of that person and all other persons under common control

with such person, determined under part 2612 of this chapter.

Information Year means the year determined under Sec. 2628.6 of

this part.

Exempt Plan means a plan as described in Sec. 2628.5(a) of this

part.

Filer means a person who is a Filer as described in Sec. 2628.4 of

this part.

Fiscal year means, with respect to a person, the annual accounting

period or, if the person has not adopted a closing date, a calendar

year (i.e., the year ending on December 31).

Person means an individual, partnership, joint venture,

corporation, mutual company, joint-stock company, trust, estate,

unincorporated organization, association, or employee organization

representing any group of participants for purposes of collective

bargaining.

Plan means a single-employer plan (as defined in section

4001(a)(15) of the Act) that is covered by section 4021(a) and not

excluded under section 4021(b) of the Act.

Plan year means the calendar, policy, or fiscal year on which the

records of a Plan are kept.

Unfunded vested benefits means the amount determined under section

4006(a)(3)(E)(iii) of the Act and Sec. 2610.23 of this chapter (without

reference to Sec. 2610.24 of this chapter).

Value of benefit liabilities means the value of a Plan's benefit

liabilities (as defined in section 4001(a)(16) of the Act), as of the

end of the plan year ending within the Filer's Information Year, using:

(1) The PBGC's valuation assumptions for trusteed plans terminating

as of the end of that plan year, as prescribed in 29 CFR part 2619,

subpart C, and

(2) Plan census data as of the end of that plan year or the

beginning of the next plan year.

If such census data are not available, a projection of plan census data

from a date within the plan year must be used. The projection must be

consistent with projections used to measure pension obligations of the

Plan for financial statement purposes and must give a result

appropriate to the measurement date for these obligations. Thus, for

example, adjustments to the projection process may be required where

there has been a significant event (e.g., a plan amendment or a

curtailment) which has not been reflected in the projection

assumptions.

Sec. 2628.3 Required submission of information.

(a) General requirement. Except as provided in Sec. 2628.5, each

person who is a Filer as described in Sec. 2628.4(a) shall submit to

the PBGC annually on or

[[Page 35311]]

before the date specified in Sec. 2628.8(a) all information specified

in Sec. 2628.7 of this part.

(b) Submission by representative. One or more Filers or other

persons may act as a representative and submit the information

specified in Sec. 2628.7 on behalf of some or all Filers within a

controlled group. Representatives, other than Filers, must also submit

a written power of attorney signed by the Filer authorizing the

representative to act on the Filer's behalf in connection with the

required information.

Sec. 2628.4 Filers.

(a) General. A Filer is a contributing sponsor of a Plan and each

member of the contributing sponsor's controlled group if, for an

Information Year,

(1) The aggregate unfunded vested benefits of all Plans maintained

by the contributing sponsor and other members of the contributing

sponsor's controlled group exceed $50 million (disregarding those Plans

with no unfunded vested benefits) at the end of the plan year or years

ending within the Filer's Information Year;

(2) The conditions for imposition of a lien described in section

302(f)(1) (A) and (B) of the Act or section 412(n)(1) (A) and (B) of

the Code have been met during the plan year ending within the Filer's

Information Year with respect to any Plan maintained by the

contributing sponsor or any member of its controlled group; or

(3) The Internal Revenue Service has granted a waiver or waivers of

the minimum funding standards, as defined in section 303 of the Act and

section 412(d) of the Code, in excess of $1 million with respect to any

Plan maintained by the contributing sponsor or any member of its

controlled group, and any portion thereof is still outstanding at the

end of the plan year ending within the Filer's Information Year.

(b) All Plans, including any Exempt Plan as described in

Sec. 2628.5(a), maintained by members of a controlled group must be

taken into account in determining the persons who are Filers under this

section.

Sec. 2628.5 Exemptions.

(a) Exempt Plan. The actuarial information specified in

Sec. 2628.7(c) of this part is not required for a Plan (an ``Exempt

Plan'') that--

(1) Has no minimum funding waivers outstanding at the end of the

plan year ending within the Filer's Information Year,

(2) Has received all payments required to be made during the

Information Year under section 302 of the Act and Section 412 of the

Code, and

(3) Satisfies at least one of the following conditions--

(i) The Plan has no unfunded benefit liabilities, determined using

the market value of assets in the Plan (without regard to any

contributions receivable) at the end of the plan year ending within the

Filer's Information Year and the value of benefit liabilities; or

(ii) The Plan has fewer than 500 participants as of the end of the

plan year ending within the Filer's Information Year.

(b) Waiver of information requirements. The PBGC may waive the

requirement to submit required information with respect to a Filer, a

Plan, or groups thereof. The PBGC will exercise this discretion in

appropriate cases where it finds convincing evidence for such a waiver,

and any such waiver may be subject to conditions. A request for a

waiver must be filed in writing with the PBGC at the address provided

in Sec. 2628.8(d) no later than fifteen days prior to the applicable

date specified in Sec. 2628.8 of this part, and must state the facts

and circumstances on which the request is based.

Sec. 2628.6 Information Year.

(a) Determinations based on Information Year. An Information Year

is used under this part to determine which fiscal year and plan year

should be used to determine whether members of a controlled group are

Filers (Sec. 2628.4) and whether a Plan is an Exempt Plan

(Sec. 2628.5(a)), and to identify the information that a Filer must

submit (Sec. 2628.7) and the due date for submitting that information

(Sec. 2628.8(a)). A Filer is not required to change its fiscal year or

the plan year of a Plan, to report financial information on any

accounting period other than an existing fiscal year, or to report

actuarial information for any plan year other than the existing plan

year of a Plan.

(b) General. Except as provided in paragraph (c) of this section,

the Information Year shall be the fiscal year of the Filer or the

consolidated fiscal year of the Filer's controlled group.

(c) Controlled groups with different fiscal years. If members of a

controlled group report financial information for different fiscal

years, the Information Year shall be the calendar year. Example: Filers

A and B are members of the same controlled group. Filer A has a July 1

fiscal year, and Filer B has an October 1 fiscal year. The Information

Year is the calendar year. Filer A's financial information with respect

to its fiscal year beginning July 1, 1995, and Filer B's financial

information with respect to its fiscal year beginning October 1, 1995,

must be submitted to the PBGC following the end of the 1996 calendar

year (the calendar year in which those fiscal years end).

Sec. 2628.7 Required information.

(a) General. Except as otherwise provided in Sec. 2628.5 of this

part, the information to be submitted by a Filer is that specified in

paragraphs (b), (c), and (e) of this section with respect to each

member of the Filer's controlled group and each Plan maintained by any

member of the controlled group.

(b) Identifying information. (1) The name, address, and telephone

number of the Filer.

(2) The nine-digit Employer Identification Number (EIN) assigned by

the Internal Revenue Service to the Filer (if there is no EIN,

explain).

(3) If the Filer is a contributing sponsor of a Plan or Plans--

(i) The name of each Plan.

(ii) The EIN and the three-digit Plan Number (PN) assigned by the

contributing sponsor to each Plan, but--

(A) If the EIN-PN has changed since the beginning of the

Information Year, the previous EIN-PN and an explanation; or

(B) If there is no EIN-PN for the Plan, an explanation.

(4) The name and address of each other member of the Filer's

controlled group and the legal relationships of each (for example,

parent, subsidiary).

(c) Plan actuarial information. (1) The market value of Plan assets

(determined without regard to any contributions receivable) at the end

of the plan year ending within the Filer's Information Year.

(2) The value of benefit liabilities.

(3) Schedules or listings with the following information as of the

first day of the plan year ending within the Filer's Information Year:

(i) The distribution of active participants by 5-year age and

service groupings and, if benefits are based (in whole or in part) on

compensation, each grouping's average compensation;

(ii) The distribution of retirees by 5-year age groupings with each

grouping's average benefit amounts; and

(iii) The distribution of deferred vested participants by 5-year

age groupings with each grouping's average benefit amount to be paid at

normal retirement age.

(4) A copy of the actuarial valuation report for the plan year

ending within the Filer's Information Year that contains or is

supplemented by the following information:

(i) Each amortization base and related amortization charge or

credit to the

[[Page 35312]]

funding standard account (as defined in section 302(b) of the Act and

section 412(b) of the Code) for that plan year (excluding the amount

considered contributed to the Plan as described in section 302(b)(3)(A)

of the Act and section 412(b)(3)(A) of the Code);

(ii) The itemized development of the additional funding charge

payable for that plan year pursuant to section 412(l) of the Code;

(iii) The minimum funding contribution and the maximum deductible

contribution for that plan year;

(iv) The actuarial assumptions and actuarial methods used for that

plan year for purposes of section 302(b) and (d) of the Act and section

412(b) and (l) of the Code (and any change in those assumptions and

methods since the previous valuation and justifications for any

change); and

(v) A summary of the principal eligibility and benefit provisions

on which the valuation of the Plan was based (and any change(s) to

those provisions since the previous valuation), along with descriptions

of any benefits not included in the valuation, any significant events

that occurred during that plan year, and the Plan's early retirement

factors.

(5) A written certification by the Plan's enrolled actuary that, to

the best of his or her knowledge and belief, the actuarial information

submitted is true, correct, and complete and conforms to all applicable

laws and regulations.

(d) Alternative compliance for plan actuarial information. If any

of the information specified in paragraph (c)(4) of this section is not

available by the date specified in Sec. 2628.8(a) of this part, a Filer

may satisfy the requirement to provide such information by--

(1) Including a statement, with the material that is submitted to

the PBGC, that the Filer will file the unavailable information by the

alternative due date specified in Sec. 2628.8(b), and

(2) Filing such information and a certification by the Plan's

enrolled actuary as described in paragraph (c)(5) of this section with

the PBGC by that alternative due date.

(e) Financial information. (1) Except as provided in paragraph

(e)(2) of this section, required financial information for each

controlled group member consists of--

(i) Audited financial statements for the fiscal year ending within

the Information Year (including balance sheets, income statements, cash

flow statements, and notes to the financial statements); or

(ii) If no audited financial statements are prepared, unaudited

financial statements for the fiscal year ending within the Information

Year; or

(iii) If neither audited nor unaudited financial statements are

prepared, copies of federal tax returns for the tax year ending within

the Information Year.

(2) If the financial information of a controlled group member is

combined with the information of other group members in a consolidated

financial statement, required financial information consists of--

(i) The consolidated, audited (or, if unavailable, unaudited)

financial statement for the Information Year; and

(ii) For each controlled group member included in such consolidated

financial statement that is a contributing sponsor of a Plan that is

not an Exempt Plan, the contributing sponsor's revenues and operating

income for the Information Year, and assets as of the end of the

Information Year.

(3) If any of the financial information required by paragraphs

(e)(1) or (e)(2) of this section is publicly available (for example,

the controlled group member has filed audited financial statements with

the Securities and Exchange Commission), the Filer, in lieu of

submitting such information to the PBGC, may include a statement with

the other information that is submitted to the PBGC indicating when

such financial information was made available to the public and where

the PBGC may obtain it.

(f) Additional information. The PBGC may, by written notification,

require any Filer to submit additional actuarial or financial

information that is necessary to determine Plan assets and liabilities

or the financial status of a Filer. Such information must be submitted

within 10 days after the date of the written notification or by a

different time specified therein.

(g) Previous submissions. If any required information has been

previously submitted to the PBGC, a Filer may incorporate such

information into the required submission by referring to the previous

submission.

(h) Penalties for non-compliance. If all of the information

required under this section is not provided within the specified time

limit, the PBGC may assess a separate penalty under section 4071 of the

Act against the Filer and each member of the Filer's controlled group

of up to $1,000 a day for each day that the failure continues. The PBGC

may also pursue other equitable or legal remedies available to it under

the law.

Sec. 2628.8 Due date and filing with the PBGC.

(a) Due date. Except as permitted under paragraph (b) of this

section, a Filer shall file the information required under this part

with the PBGC on or before the 105th day after the close of the Filer's

Information Year.

(b) Alternative due date. A Filer that includes the statement

specified in Sec. 2628.7(d)(1) with its submission to the PBGC by the

date specified in paragraph (a) of this section must submit the

actuarial information specified in Sec. 2628.7(d)(2) within 15 days

after the deadline for filing the Plan's annual report for the plan

year ending within the Filer's Information Year (see Sec. 2520.104a-

5(a)(2) of this title).

(c) Extensions. 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 PBGC may extend

the due dates provided under paragraphs (a) and (b) of this section by

up to 180 days.

(d) How to file. Requests and information may be delivered by mail,

by overnight and express delivery services, by hand, or by any other

method acceptable to the PBGC, to: Corporate Finance and Negotiations

Department, Pension Benefit Guaranty Corporation, 1200 K Street, NW.,

Washington, DC 20005-4026.

Sec. 2628.9 Date of filing.

(a) Information filed under this part is considered filed on the

date of the United States postmark stamped on the cover in which the

information is mailed, if--

(1) The postmark was made by the United States Postal Service; and

(2) The document was mailed postage prepaid, properly addressed to

the PBGC.

(b) If the Filer sends or transmits the information to the PBGC by

means other than the United States Postal Service, the information is

considered filed on the date it is received by the PBGC. Information

received on a weekend or Federal holiday or after 5 p.m. on a weekday

is considered filed on the next regular business day.

(c) In computing any period of time under this part, the day of the

act or event from which the designated period of time begins to run

shall not be included. The last day of the period so computed shall be

included, unless it is a weekend or Federal holiday, in which event the

period runs until the end of the next day that is not a weekend or

Federal holiday.

[[Page 35313]]

Sec. 2628.10 Confidentiality of information submitted.

In accordance with Sec. 2603.15(b) of this chapter and section

4010(c) of the Act, any information or documentary material that is not

publicly available and is submitted to the PBGC pursuant to this part

shall not be made public, except as may be relevant to any

administrative or judicial action or proceeding or for disclosures to

either body of Congress or to any duly authorized committee or

subcommittee of the Congress.

Issued in Washington, DC this 30th day of June, 1995.

Martin Slate,

Executive Director, Pension Benefit Guaranty Corporation.

[FR Doc. 95-16510 Filed 7-5-95; 8:45 am]

BILLING CODE 7708-01-P