Disclosure of Premium-Related Information

PENSION BENEFIT GUARANTY CORPORATION

29 CFR PART 4007

RIN: 1212-AA66

Disclosure of Premium-Related Information

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Final rule.

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SUMMARY: The Pension Benefit Guaranty Corporation is amending its

premium payment regulation to provide for the submission to the PBGC of

information contained in records relating to premium filings. The

amendment is intended to assist the PBGC in obtaining timely

information for premium audits.

EFFECTIVE DATE: August 8, 1997.

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

Counsel, or James L. Beller, Attorney, Pension Benefit Guaranty

Corporation, Office of the General Counsel, Suite 340, 1200 K Street,

NW., Washington, DC 20005-4026, 202-326-4024 (202-326-4179 for TTY and

TDD).

SUPPLEMENTARY INFORMATION: On December 17, 1996, the PBGC published in

the Federal Register (61 FR 66247) a proposed rule to provide for

submission to the PBGC of plan records that are necessary to support

premium filings within 30 days of the date of the PBGC's request, or by

a different time specified in the request. The PBGC received three

comments, all of which stated that the 30-day time period was too short

for large, multi-location companies because of the need to gather data

from different locations.

Most companies do not have special problems and can comply within a

short period of time. The PBGC recognizes that, due to delays in the

mail and other circumstances, companies may need more than 30 days to

comply, and has therefore replaced the 30-day time period with a 45-day

time period. For companies that, for valid reasons (e.g., difficulty in

retrieving off-site files) are unable to provide the records within 45

days, the final rule provides an automatic extension of up to an

additional 45 days. To qualify for the extension, the plan

administrator must certify that, despite reasonable efforts, the

additional time is necessary to comply with the PBGC's request. The

PBGC may shorten the original or extended deadline if the collection of

unpaid premiums (or any associated interest or penalties) would be

jeopardized.

Paperwork Reduction Act

This rule contains information collection requirements. As required

by the Paperwork Reduction Act of 1995, the PBGC has submitted a copy

of this information collection to the Office of Management and Budget

for its review. Affected parties do not have to comply with the

information collection requirements of this rule until the PBGC

publishes in the Federal Register the control number assigned by OMB to

this information collection. Publication of the control number notifies

the public that OMB has approved these information collection

requirements.

E.O. 12866 and the Regulatory Flexibility Act

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

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

12866.

The PBGC certifies that the amendment will not have a significant

economic effect on a substantial number of small entities. This rule

merely changes the manner in which the plan administrator complies with

an existing requirement to provide PBGC with information. Sending that

information to the PBGC instead of making it available for on-site

review by the PBGC will not impose any significant additional burden on

the plan administrator. Accordingly, as provided in section 605(b) of

the Regulatory Flexibility Act, sections 603 and 604 do not apply.

Small Business Regulatory Enforcement Fairness Act of 1996

This rule is not a major rule as defined by section 804 of the

Small Business Regulatory Enforcement Fairness Act of 1996. This rule

will not result in an annual effect on the economy of $100 million or

more; a major increase in costs or prices; or significant adverse

effects on competition, employment, investment, productivity,

innovation, or on the ability of the United States-based companies to

compete with foreign-based companies in domestic and export markets.

List of Subjects in 29 CFR Part 4007

Penalties, Pension insurance, Pensions, Reporting and recordkeeping

requirements.

For the reasons set forth above, the PBGC is amending 29 CFR part

4007 as follows:

PART 4007--PAYMENT OF PREMIUMS

1. The authority citation for part 4007 is revised to read as

follows:

Authority: 29 U.S.C. 1302(b)(3), 1303(a), 1306, 1307.

2. In Sec. 4007.10, the section heading is revised; paragraph (a)

is amended by removing the last sentence; and new paragraphs (c) and

(d) are added, to read as follows:

Sec. 4007.10 Recordkeeping; audits; disclosure of information.

* * * * *

(c) Providing record information. (1) In general. The plan

administrator shall

[[Page 36664]]

make the records retained pursuant to paragraph (a) of this section

available to the PBGC upon request for inspection and photocopying at

the location where they are kept (or another, mutually agreeable,

location) and shall submit information in such records to the PBGC

within 45 days of the date of the PBGC's written request therefor, or

by a different time specified therein.

(2) Extension. Except as provided in paragraph (c)(3) of this

section, the plan administrator may automatically extend the period

described in paragraph (c)(1) by submitting a certification to the PBGC

prior to the expiration of that time period. The certification shall--

(i) Specify a date to which the time period described in paragraph

(c)(1) is extended that is no more than 90 days from the date of the

PBGC's written request for information; and

(ii) Contain a statement, certified to by the plan administrator

under penalty of perjury (18 U.S.C. Sec. 1001), that, despite

reasonable efforts, the additional time is necessary to comply with the

PBGC's request.

(3) Shortening of time period. The PBGC may in its discretion

shorten the time period described in paragraph (c)(1) or (c)(2) of this

section where it determines that collection of unpaid premiums (or any

associated interest or penalties) would otherwise be jeopardized. If

the PBGC shortens the time period described in paragraph (c)(1), no

extension is available under paragraph (c)(2).

(d) Address and timeliness. Information required to be submitted

under paragraph (c) of this section shall be submitted to the address

specified in the PBGC's request. The timeliness of a submission shall

be determined in accordance with Secs. 4007.5 and 4007.6.

Issued in Washington, D.C. this 2nd day of July, 1997.

Alexis M. Herman,

Chairman, Board of Directors, Pension Benefit Guaranty Corporation.

Issued on the date set forth above pursuant to a resolution of

the Board of Directors authorizing its Chairman to issue this final

rule.

James J. Keightley,

Secretary, Board of Directors, Pension Benefit Guaranty Corporation.

[FR Doc. 97-17952 Filed 7-8-97; 8:45 am]

BILLING CODE 7708-01-P