Reportable Events

PENSION BENEFIT GUARANTY CORPORATION

29 CFR Part 2615

RIN 1212-AA77

Reportable Events

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of intent to form a negotiated rulemaking advisory

committee.

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SUMMARY: The Pension Benefit Guaranty Corporation intends to form a

negotiated rulemaking advisory committee under the Negotiated

Rulemaking Act of 1990. The committee will develop proposed amendments

to the PBGC's regulations governing reportable events, i.e., events

that may be indicative of a need to terminate a pension plan. These

amendments will, among other things, implement recent amendments

contained in the Retirement Protection Act of 1994.

DATES: Comments and applications or nominations for membership must be

received on or before September 15, 1995.

ADDRESSES: Comments and nominations or applications for membership may

be mailed to the Office of the General Counsel, Pension Benefit

Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005-4026, or

delivered to Suite 340 at the above address. Comments, nominations, and

applications will be available for public inspection at the PBGC's

Communications and Public Affairs Department, Suite 240.

FOR FURTHER INFORMATION CONTACT: Harold J. Ashner, Assistant General

Counsel, or James L. Beller, Attorney, Office of the General Counsel,

PBGC, 1200 K Street, NW., Washington, DC 20005-4026, 202-326-4024 (202-

326-4179 for TTY and TDD).

SUPPLEMENTARY INFORMATION:

Background

Section 4043 of the Employee Retirement Income Security Act of

1974, as amended by the Retirement Protection Act of 1994, requires the

reporting to the PBGC of certain events (``reportable events'') that

may be indicative of a need to terminate the plan. The PBGC's existing

regulations on reportable events (29 CFR part 2615, subpart A) specify

the events that must be reported, the circumstances under which

reporting is waived, and the information that must be included in a

reportable event filing.

RPA amended section 4043 of ERISA by (1) establishing the reporting

obligation, which was previously placed solely on plan administrators,

on contributing sponsors as well; (2) adding four new reportable

events; (3) establishing a new obligation on contributing sponsors of

certain underfunded plans to provide 30 days' advance notice of certain

reportable events; and (4) protecting reportable event filings from

public disclosure.

The PBGC intends to publish a proposed rule that would amend its

existing regulations on reportable events to reflect RPA and to make

other appropriate changes. Two major issues the PBGC intends to address

in these regulations are: (1) The conditions under which the

regulations should provide for waivers of reporting requirements (based

on, e.g., the size or funding status of the plan); and (2) the

information the regulations should require as part of the reportable

event filing (including, e.g., plan actuarial and employer financial

information). Other issues may be addressed as well.

The PBGC intends to use the negotiated rulemaking procedure in

accordance with the Negotiated Rulemaking Act of 1990. The PBGC will

form an advisory committee consisting of representatives of the

affected interests and the agency for the purpose of reaching a

consensus on the text of a proposed rule.

A number of interests (including employers, service providers, and

participants) are likely to be significantly affected by new

regulations on reportable events. The effect of the regulations is

likely to vary, depending primarily on the size and funding status of

the plan and the size, corporate structure, and financial condition of

the employer.

Regulatory Negotiation

Negotiated rulemaking is a consensus-based approach to the

development of agency rules, in which representatives of affected

interests work together to reach consensus on the content of a proposed

rule. The PBGC believes that these proposed regulations are appropriate

for regulatory negotiation because of the various interests likely to

be significantly affected and the complexity of the subject matter.

Formation of the committee is in the public interest in connection

with developing rules concerning reportable events. The PBGC hopes to

be able to use the consensus of the committee as the basis for the

proposed rule.

The PBGC invites comments on the appropriateness of regulatory

negotiation for these proposed regulations.

Committee Membership

The PBGC tentatively has identified the following interests and

list of possible committee members:

Employer Representatives:

Association of Private Pension and Welfare Plans

Chamber of Commerce of the United States of America

The ERISA Industry Committee

Financial Executives Institute

Service Provider Representatives:

American Academy of Actuaries

American Bar Association

American Institute of Certified Public Accountants

American Society of Pension Actuaries

Participant Representatives:

Air Line Pilots Association

American Association of Retired Persons

American Federation of Labor-Council of Industrial Organizations

International Union, United Automobile, Aerospace & Implement

Workers of America

United Steelworkers of America

Pension Benefit Guaranty Corporation:

Ellen A. Hennessy, Deputy Executive Director and Chief Negotiator

William Posner, Deputy Executive

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Director and Chief Operating Officer

Stuart A. Sirkin, Director, Corporate Policy and Research

Department

Andrea E. Schneider, Director, Corporate Finance and Negotiations

Department

James J. Keightley, General Counsel

The PBGC will use a neutral facilitator for the committee. The

facilitator's role is to chair negotiating sessions and to help

committee members define and reach consensus. The PBGC will nominate

for the committee's consideration Kate Blunt, Special Assistant to the

Deputy Executive Director and Chief Management Officer, to serve as the

facilitator of the committee. Ms. Blunt has extensive experience in

facilitating meetings, conducting focus groups, and mediating disputes.

She will perform her duties as facilitator in an impartial manner.

All committee meetings will be open to the public.

Requests for Representation

Persons who will be significantly affected by the planned proposed

rule on reportable events and who believe that their interests will not

be adequately represented by the persons identified above may apply, or

nominate another person, for membership on the committee to represent

their interests. Each application or nomination must include: (1) The

name of the applicant or nominee and a description of the interests

that person will represent; (2) evidence that the applicant or nominee

is authorized to represent parties related to the interests the person

proposes to represent; (3) a written commitment that the applicant or

nominee will actively participate in good faith in the development of

proposed regulations; and (4) the reasons that the persons identified

above do not adequately represent the interests of the person

submitting the application or nomination.

Committee Expenses and Administrative Support

In most cases, committee members are responsible for their own

expenses of participation. The PBGC may pay for certain expenses, in

accordance with section 7(d) of the Federal Advisory Committee Act, if

(1) a member certifies a lack of adequate financial resources to

participate in the committee; and (2) the PBGC determines that such

member's participation in the committee is necessary to assure adequate

representation of the member's interest.

The PBGC will provide logistical, administrative, and management

support to the committee. All meetings will be held at the PBGC's

offices in Washington, D.C.

Proposed Agenda and Schedule

The proposed agenda and schedule for the committee's activities

will be determined by the committee at the first meeting, which the

PBGC anticipates will be held in October of 1995.

The PBGC's goal is to issue a proposed rule on reportable events by

the spring of 1996. If it appears that the committee is unable to reach

consensus in time to meet this goal, the PBGC may proceed with

rulemaking based in part on information gained through the negotiated

rulemaking process.

Notice of Establishment of Committee

After reviewing any comments on this Notice of Intent and any

requests for representation, the PBGC will issue a notice announcing

the establishment of a negotiated rulemaking advisory committee and the

date of the first meeting, unless the PBGC decides, based on comments

and other relevant considerations, that establishment of the committee

is inappropriate. Notice of future meetings will be published in the

Federal Register.

Issued in Washington, D.C., this 8th day of August, 1995.

Martin Slate,

Executive Director, Pension Benefit Guaranty Corporation.

[FR Doc. 95-19929 Filed 8-10-95; 8:45 am]

BILLING CODE 7708-01-P