[Federal Register Volume 77, Number 247 (Wednesday, December 26, 2012)]
[Notices]
[Pages 76090-76091]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-30934]
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PENSION BENEFIT GUARANTY CORPORATION
Pendency of Request for Approval of Special Withdrawal Liability
Rules; the I.A.M. National Pension Fund National Pension Plan
AGENCY: Pension Benefit Guaranty Corporation
ACTION: Notice of pendency of request.
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SUMMARY: This notice advises interested persons that the Pension
Benefit Guaranty Corporation (``PBGC'') has received a request from The
I.A.M. National Pension Fund National Pension Plan for approval of a
plan amendment providing for special withdrawal liability rules. Under
Sec. 4203(f) of the Employee Retirement Income Security Act of 1974
and PBGC's regulation on Extension of Special Withdrawal Liability
Rules, a multiemployer pension plan may, with PBGC approval, be amended
to provide for special withdrawal liability rules similar to those that
apply to the construction and entertainment industries. Such approval
is granted only if PBGC determines that the rules apply to an industry
with characteristics that make use of the special rules appropriate and
that the rules will not pose a significant risk to PBGC. Before
granting an approval, PBGC's regulations require PBGC to give
interested persons an opportunity to comment on the request. The
purpose of this notice is to advise interested persons of the request
and to solicit their views on it.
DATES: Comments must be submitted on or before February 7, 2013.
ADDRESSES: Comments may be submitted by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the Web site instructions for submitting comments.
Email: [email protected].
Fax: 202-326-4224.
Mail or Hand Delivery: Legislative and Regulatory
Department, Pension Benefit Guaranty Corporation, 1200 K Street NW.,
Washington, DC 20005-4026.
Comments received, including personal information provided, will be
posted to http://www.pbgc.gov. Copies of comments may also be obtained
by writing to Disclosure Division, Office of General Counsel, Pension
Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005-
4026, or calling 202-326-4040 during normal business hours. (TTY and
TDD users may call the Federal relay service toll-free at 1-800-877-
8339 and ask to be connected to 202-326-4040.)
FOR FURTHER INFORMATION CONTACT: Beth A. Bangert, Attorney, Office of
the Chief Counsel, Suite 340, 1200 K Street NW., Washington, DC 20005-
4026, 202-326-4020. (For TTY/TTD users, call the Federal relay service
toll free at 1-800-877-8339 and ask to be connected to 202-326-4020.)
SUPPLEMENTARY INFORMATION:
Background
Section 4203(a) of the Employee Retirement Income Security Act of
1974, as amended by the Multiemployer Pension Plan Amendments Act of
1980 (``ERISA''), provides that a complete withdrawal from a
multiemployer plan generally occurs when an employer permanently ceases
to have an obligation to contribute under the plan or permanently
ceases all covered operations under the plan. Under Sec. 4205 of
ERISA, a partial withdrawal generally occurs when an employer: (1)
Reduces its contribution base units by seventy percent in each of three
consecutive years; or (2) permanently ceases to have an obligation
under one or more but fewer than all collective bargaining agreements
under which the employer has been obligated to contribute under the
plan, while continuing to perform work in the jurisdiction of the
collective bargaining agreement of the type for which contributions
were previously required or transfers such work to another location or
to an entity or entities owned or controlled by the employer; or (3)
permanently ceases to have an obligation to contribute under the plan
for work performed at one or more but fewer than all of its facilities,
while continuing to perform work at the facility of the type for which
the obligation to contribute ceased.
Although the general rules on complete and partial withdrawal
identify events that normally result in a diminution of the plan's
contribution base, Congress recognized that, in certain industries and
under certain circumstances, a complete or partial cessation of the
obligation to contribute normally does not weaken the plan's
contribution base. For that reason, Congress established special
withdrawal rules for the construction and entertainment industries.
For construction industry plans and employers, Sec. 4203(b)(2) of
ERISA provides that a complete withdrawal occurs only if an employer
ceases to have an obligation to contribute under a plan and the
employer either continues to perform previously covered work in the
jurisdiction of the collective
[[Page 76091]]
bargaining agreement, or resumes such work within five years without
renewing the obligation to contribute at the time of resumption.
Section 4203(c)(1) of ERISA applies the same special definition of
complete withdrawal to the entertainment industry, except that the
pertinent jurisdiction is the jurisdiction of the plan rather than the
jurisdiction of the collective bargaining agreement. In contrast, the
general definition of complete withdrawal in Sec. 4203(a) of ERISA
defines a withdrawal to include permanent cessation of the obligation
to contribute regardless of the continued activities of the withdrawn
employer.
Congress also established special partial withdrawal liability
rules for the construction and entertainment industries. Under Sec.
4208(d)(1) of ERISA, ``[a]n employer to whom Sec. 4203(b)(relating to
the building and construction industry) applies is liable for a partial
withdrawal only if the employer's obligation to contribute under the
plan is continued for no more than an insubstantial portion of its work
in the craft and area jurisdiction of the collective bargaining
agreement of the type for which contributions are required.'' Under
Sec. 4208(d)(2) of ERISA, ``[a]n employer to whom Sec. 4203(c)
(relating to the entertainment industry) applies shall have no
liability for a partial withdrawal except under the conditions and to
the extent prescribed by the [PBGC] by regulation.''
Section 4203(f)(1) of ERISA provides that PBGC may prescribe
regulations under which plans in other industries may be amended to
provide for special withdrawal liability rules similar to the rules
prescribed in Sec. 4203(b) and (c) of ERISA. Section 4203(f)(2) of
ERISA provides that such regulations shall permit the use of special
withdrawal liability rules only in industries (or portions thereof) in
which PBGC determines that the characteristics that would make use of
such rules appropriate are clearly shown, and that the use of such
rules will not pose a significant risk to the insurance system under
Title IV of ERISA. Section 4208(e)(3) of ERISA provides that PBGC shall
prescribe by regulation a procedure by which plans may be amended to
adopt special partial withdrawal liability rules upon a finding by PBGC
that the adoption of such rules is consistent with the purposes of
Title IV of ERISA.
PBGC's regulations on Extension of Special Withdrawal Liability
Rules (29 CFR Part 4203) prescribes procedures for a multiemployer plan
to ask PBGC to approve a plan amendment that establishes special
complete or partial withdrawal liability rules. The regulation may be
accessed on PBGC's Web site (http://www.pbgc.gov).
Section 4203.5(b) of the regulation requires PBGC to publish a
notice of the pendency of a request for approval of special withdrawal
liability rules in the Federal Register, and to provide interested
parties with an opportunity to comment on the request.
The Request
PBGC received a request, dated July 9, 2010, from The I.A.M.
National Pension Fund National Pension Plan (``I.A.M. Fund''), which
the I.A.M. Fund subsequently amended, for approval of a plan amendment
providing for special withdrawal liability rules. PBGC's summary of the
actuarial reports provided by the I.A.M. Fund may be accessed on PBGC's
Web site (http://www.pbgc.gov). A copy of the complete filing may be
requested from the PBGC Disclosure Officer. The fax number is 202-326-
4042. It may also be obtained by writing the Disclosure Officer, PBGC,
1200 K Street NW., Suite 11101, Washington, DC 20005.
In brief, the I.A.M. Fund is a multiemployer plan covering workers
with various skill-sets including those providing services to federal
and District of Columbia government agencies. The I.A.M. Fund's
submission represents that the industry for which the rule is requested
has characteristics similar to those of the construction industry. The
I.A.M. Fund submitted an amendment prescribing special withdrawal
liability rules, which, if approved by PBGC, would be retroactively
effective as of January 1, 2009, to the extent permitted by ERISA Sec.
4214(a). Under the proposed amendment, complete withdrawal of an
employer would occur only: (a) Under conditions similar to those
described in ERISA Sec. 4203(b)(2) for the building and construction
industry; (b) upon the employer's sale or transfer of a substantial
portion of its business or assets to another entity who performs such
work in the jurisdiction of the collective bargaining agreement but has
no obligation to contribute to the I.A.M. Fund; or (c) when the
employer ceases to have an obligation to contribute in connection with
the withdrawal of every or substantially all employer(s) from the
I.A.M. Fund. Partial withdrawal of an employer would occur only under
conditions similar to those described in ERISA Sec. 4208(d)(1). The
request includes the actuarial data on which the I.A.M. Fund relies to
support its contention that the amendment will not pose a significant
risk to the insurance system under Title IV of ERISA.
Issued at Washington, DC, December 17, 2012.
Joshua Gotbaum,
Director.
[FR Doc. 2012-30934 Filed 12-21-12; 8:45 am]
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