Pendency of Request for Exemption From the Bond/Escrow Requirement Relating to the Sale of Assets by an Employer Who Contributes to a Multiemployer Plan; Washington Nationals Baseball Club, LLC, 4538-4540 [E7-1505]

Download as PDF 4538 Federal Register / Vol. 72, No. 20 / Wednesday, January 31, 2007 / Notices Agricultural Trade Act of 1978, the GSM–102 program, and the SCGP, are export subsidies prohibited under Articles 3.1(a) and 3.2 of the SCM Agreement and provided in violation of Articles 3.3, 8, 9.1, and 10.1 of the WTO Agreement on Agriculture. Third, Canada alleges that the United States has provided support to domestic agricultural producers in excess of U.S. commitments with respect to the Aggregate Measurement of Support (‘‘AMS’’) as described in Article 6.2 of the WTO Agreement on Agriculture and the U.S. WTO schedule of commitments. According to Canada, the calculation of the U.S. AMS should include direct payments and countercyclical payments under the FSRI Act for each of wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, and other oilseeds, as well as production flexibility contracts under the FAIR Act and MLAs for each of wheat, corn, grain sorghum, barley, oats, upland cotton, and rice. Canada considers that, if such payments are included in the calculation of the U.S. AMS, the United States would be in breach of Article 3.2 of the Agreement on Agriculture for domestic support provided in each of the years 1999, 2000, 2001, 2004, and 2005. Major Issues Raised by Canada mstockstill on PROD1PC62 with NOTICES documents sent by fax, USTR requests that the submitter provide a confirmation copy to the electronic mail address listed above. FOR FURTHER INFORMATION CONTACT: David Yocis, Assistant General Counsel, Office of the United States Trade Representative, 600 17th Street, NW., Washington, DC, (202) 395–6150. SUPPLEMENTARY INFORMATION: Section 127(b) of the Uruguay Round Agreements Act (URAA) (19 U.S.C. 3537(b)(1)) requires that notice and opportunity for comment be provided after the United States submits or receives a request for the establishment of a WTO dispute settlement panel. In an effort to provide additional opportunity for comment, USTR is providing notice that consultations have been requested pursuant to the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes (‘‘DSU’’). If such consultations should fail to resolve the matter and a dispute settlement panel is established pursuant to the DSU, such panel, which would hold its meetings in Geneva, Switzerland, would be expected to issue a report on its findings and recommendations within six to nine months after it is established. Public Comment: Requirements for Submissions Interested persons are invited to submit written comments concerning the issues raised in the dispute. Comments should be submitted (i) electronically, to FR0705@ustr.eop.gov, with ‘‘Corn Subsidy (Canada) (DS357)’’ in the subject line, or (ii) by fax, to Sandy McKinzy at (202) 395–3640. For documents sent by fax, USTR requests that the submitter provide a confirmation copy to the electronic mail address listed above. USTR encourages the submission of documents in Adobe PDF format as attachments to an electronic mail. Interested persons who make submissions by electronic mail should not provide separate cover letters; information that might appear in a cover letter should be included in the submission itself. Similarly, to the extent possible, any attachments to the submission should be included in the same file as the submission itself, and not as separate files. Comments must be in English. A person requesting that information contained in a comment submitted by that person be treated as confidential business information must certify that such information is business confidential and would not customarily be released to the public by the In its consultation request, Canada raises three major groups of issues. First, Canada asserts that domestic support provided by the United States to producers of corn has caused and threatens to cause serious prejudice to the interests of Canada by causing and threatening to cause price suppression in the Canadian market for corn, in breach of Article 5(c) and 6.3(c) of the WTO Agreement on Subsidies and Countervailing Measures (‘‘SCM Agreement’’). The domestic support programs identified by Canada include direct payments, counter-cyclical payments, and marketing loans under the Farm Security and Rural Investment Act of 2002 (‘‘FSRI Act’’), production flexibility contracts and marketing loans under the Federal Agriculture Improvement and Reform Act of 1996 (‘‘FAIR Act’’), market loss assistance (‘‘MLA’’) payments under a number of legislative enactments from 1998 to 2001, and export credit guarantees provided under the Agricultural Trade Act of 1978, the General Sales Manager (‘‘GSM–102’’) program, and the Supplier Credit Guarantee Program (‘‘SCGP’’). Second, Canada claims that support for corn and other agricultural products not included in the U.S. WTO schedule of agricultural export subsidy commitments provided under the VerDate Aug<31>2005 15:08 Jan 30, 2007 Jkt 211001 PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 submitter. Confidential business information must be clearly designated as such and the submission must be marked ‘‘Business Confidential’’ at the top and bottom of the cover page and each succeeding page. Information or advice contained in a comment submitted, other than business confidential information, may be determined by USTR to be confidential in accordance with section 135(g)(2) of the Trade Act of 1974 (19 U.S.C. 2155(g)(2)). If the submitter believes that information or advice may qualify as such, the submitter — (1) Must clearly so designate the information or advice; (2) Must clearly mark the material as ‘‘Submitted in Confidence’’ at the top and bottom of the cover page and each succeeding page; and (3) Is encouraged to provide a nonconfidential summary of the information or advice. Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), USTR will maintain a file on this dispute settlement proceeding, accessible to the public, in the USTR Reading Room, which is located at 1724 F Street, NW., Washington, DC 20508. The public file will include non-confidential comments received by USTR from the public with respect to the dispute; if a dispute settlement panel is convened, the U.S. submissions to that panel, the submissions, or non-confidential summaries of submissions, to the panel received from other participants in the dispute, as well as the report of the panel; and, if applicable, the report of the Appellate Body. An appointment to review the public file (Docket WTO/DS– 357, Canada Corn-AMS Dispute) may be made by calling the USTR Reading Room at (202) 395–6186. The USTR Reading Room is open to the public from 9:30 a.m. to noon and 1 p.m. to 4 p.m., Monday through Friday. Daniel Brinza, Assistant United States Trade Representative for Monitoring and Enforcement. [FR Doc. E7–1563 Filed 1–30–07; 8:45 am] BILLING CODE 3190–W7–P PENSION BENEFIT GUARANTY CORPORATION Pendency of Request for Exemption From the Bond/Escrow Requirement Relating to the Sale of Assets by an Employer Who Contributes to a Multiemployer Plan; Washington Nationals Baseball Club, LLC Pension Benefit Guaranty Corporation. AGENCY: E:\FR\FM\31JAN1.SGM 31JAN1 Federal Register / Vol. 72, No. 20 / Wednesday, January 31, 2007 / Notices ACTION: Notice of pendency of request. This notice advises interested persons that the Pension Benefit Guaranty Corporation has received a request from Washington Nationals Baseball Club, LLC for an exemption from the bond/escrow requirement of section 4204(a)(1)(B) of the Employee Retirement Income Security Act of 1974, as amended, with respect to the Major League Baseball Players Benefit Plan. Section 4204(a)(1) provides that the sale of assets by an employer that contributes to a multiemployer pension plan will not constitute a complete or partial withdrawal from the plan if the transaction meets certain conditions. One of these conditions is that the purchaser post a bond or deposit money in escrow for the five-plan-year period beginning after the sale. The PBGC is authorized to grant individual and class exemptions from this requirement. Before granting an exemption, the statute and PBGC regulations require PBGC to give interested persons an opportunity to comment on the exemption request. The purpose of this notice is to advise interested persons of the exemption request and solicit their views on it. SUMMARY: Comments must be submitted on or before March 19, 2007. DATES: Comments may be mailed to the Office of the Chief Counsel, Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005– 4026, or delivered to Suite 340 at the above address. Comments also may be submitted electronically through the PBGC’s Web site at reg.comments@pbgc.gov or by fax to 202–326–4112. The PBGC will make all comments available on its Web site, https://www.pbgc.gov. Copies of the comments and the non-confidential portions of the request may be obtained by writing to the PBGC’s Communications and Public Affairs Department at Suite 1200 at the above address or by visiting that office or calling 202–326–4040 during normal business hours. (TTY and TDD users may call the Federal relay service tollfree at 1–800–877–8339 and ask to be connected to 202–326–4040.) ADDRESSES: Eric Field, 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.) mstockstill on PROD1PC62 with NOTICES FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: VerDate Aug<31>2005 15:08 Jan 30, 2007 Jkt 211001 Background Section 4204 of the Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980 (‘‘ERISA’’ or ‘‘the Act’’), provides that a bona fide arm’s-length sale of assets of a contributing employer to an unrelated party will not be considered a withdrawal if three conditions are met. These conditions, enumerated in section 4204(a)(1)(A)–(C), are that— (A) The purchaser has an obligation to contribute to the plan with respect to covered operations for substantially the same number of contribution base units for which the seller was obligated to contribute; (B) The purchaser obtains a bond or places an amount in escrow, for a period of five plan years after the sale, equal to the greater of the seller’s average required annual contribution to the plan for the three plan years preceding the year in which the sale occurred or the seller’s required annual contribution for the plan year preceding the year in which the sale occurred (the amount of the bond or escrow is doubled if the plan is in reorganization in the year in which the sale occurred); and (C) The contract of sale provides that if the purchaser withdraws from the plan within the first five plan years beginning after the sale and fails to pay any of its liability to the plan, the seller shall be secondarily liable for the liability it (the seller) would have had but for section 4204. The bond or escrow described above would be paid to the plan if the purchaser withdraws from the plan or fails to make any required contributions to the plan within the first five plan years beginning after the sale. Additionally, section 4204(b)(1) provides that if a sale of assets is covered by section 4204, the purchaser assumes by operation of law the contribution record of the seller for the plan year in which the sale occurred and the preceding four plan years. Section 4204(c) of ERISA authorizes the Pension Benefit Guaranty Corporation (‘‘PBGC’’) to grant individual or class variances or exemptions from the purchaser’s bond/ escrow requirement of section 4204(a)(1)(B) when warranted. The legislative history of section 4204 indicates a Congressional intent that the statute be administered in a manner that assures protection of the plan with the least practicable intrusion into normal business transactions. Senate Committee on Labor and Human Resources, 96th Cong., 2nd Sess., S. 1076, The Multiemployer Pension Plan PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 4539 Amendments Act of 1980: Summary and Analysis of Considerations 16 (Comm. Print, April 1980); 128 Cong. Rec. S10117 (July 29, 1980). The granting of a variance or exemption from the bond/escrow requirement does not constitute a finding by the PBGC that a particular transaction satisfies the other requirements of section 4204(a)(1). Under the PBGC’s regulation on variances for sales of assets (29 CFR part 4204), a request for a variance or exemption from the bond/escrow requirement under any of the tests established in the regulation (§§ 4204.12 and 4204.13) is to be made to the plan in question. The PBGC will consider variance or exemption requests only when the request is not based on satisfaction of one of the four regulatory tests under regulation §§ 4204.12 and 4204.13 or when the parties assert that the financial information necessary to show satisfaction of one of the regulatory tests is privileged or confidential financial information within the meaning of 5 U.S.C. 552(b)(4) (Freedom of Information Act). Under § 4204.22 of the regulation, the PBGC shall approve a request for a variance or exemption if it determines that approval of the request is warranted, in that it— (1) Would more effectively or equitably carry out the purposes of Title IV of the Act; and (2) Would not significantly increase the risk of financial loss to the plan. Section 4204(c) of ERISA and section 4204.22(b) of the regulation require the PBGC to publish a notice of the pendency of a request for a variance or exemption in the Federal Register, and to provide interested parties with an opportunity to comment on the proposed variance or exemption. The Request The PBGC has received a request from the Washington Nationals Baseball Club, LLC (the ‘‘Buyer’’) for an exemption from the bond/escrow requirement of section 4204(a)(1)(B) with respect to its purchase of the Washington Nationals from Baseball Expos, L.P. (the ‘‘Seller’’) on April 24, 2006. In the request, the Buyer represents among other things that: 1. The Seller was obligated to contribute to the Major League Baseball Players Benefit Plan (the ‘‘Plan’’) for certain employees of the sold operations. 2. The Buyer has agreed to assume the obligation to contribute to the Plan for substantially the same number of contribution base units as the Seller. 3. The Seller has agreed to be secondarily liable for any withdrawal E:\FR\FM\31JAN1.SGM 31JAN1 4540 Federal Register / Vol. 72, No. 20 / Wednesday, January 31, 2007 / Notices mstockstill on PROD1PC62 with NOTICES liability it would have had with respect to the sold operations (if not for section 4204) should the Buyer withdraw from the Plan and fail to pay its withdrawal liability. 4. The estimated amount of the withdrawal liability of the Seller with respect to the operations subject to the sale is $14,454,124. 5. The amount of the bond/escrow established under section 4204(a)(1)(B) is $2,803,040. 6. The Major League Baseball Clubs (the ‘‘Clubs’’) have established the Major League Central Fund (the ‘‘Central Fund’’) pursuant to the Major League Baseball Constitution. Under this agreement, contributions to the Plan for all participating employers are paid by the Office of the Commissioner of Baseball from the Central Fund on behalf of each participating employer in satisfaction of the employer’s pension liability under the Plan’s funding agreement. The monies in the Central Fund are derived directly from (i) gate receipts from All-Star games; (ii) radio and television revenue from World Series, League Championship Series, Division Series, All-Star Games, and (iii) certain other radio and television revenue, including revenues from foreign broadcasts, regular, spring training and exhibition games (‘‘Revenues’’). 7. In support of the exemption request, the requester asserts that: ‘‘The Plan is funded directly from Revenues which are paid from the Central Fund directly to the Plan without passing through the hands of any of the Clubs. Therefore the Plan enjoys a substantial degree of security with respect to contributions on behalf of the Clubs. A change in ownership of a Club does not affect the obligation of the Central Fund to fund the Plan out of the Revenues. As such, approval of this exemption request would not increase the risk of financial loss to the Plan.’’ 8. A complete copy of the request was sent to the Plan and to the Major League Baseball Players Association by certified mail, return receipt requested. Comments All interested persons are invited to submit written comments on the pending exemption request to the above address. All comments will be made a part of the record. The PBGC will make the comments received available on its Web site, www.pbgc.gov. Copies of the comments and the non-confidential portions of the request may be obtained by writing or visiting the PBGC’s Communications and Public Affairs Department (CPAD) at the above address or by visiting that office or calling 202– VerDate Aug<31>2005 15:08 Jan 30, 2007 Jkt 211001 326–4040 during normal business hours. Issued at Washington, DC, on this 24th of January, 2007. Vincent K. Snowbarger, Interim Director. [FR Doc. E7–1505 Filed 1–30–07; 8:45 am] BILLING CODE 7708–01–P OFFICE OF PERSONNEL MANAGEMENT Proposed Collection; Comment Request for Review of a Revised Information Collection: RI 30–1 Office of Personnel Management. ACTION: Notice. Support Group, Center for Retirement and Insurance Services, U.S. Office of Personnel Management, 1900 E Street, NW., Room 3349, Washington, DC 20415–3540. FOR INFORMATION REGARDING ADMINISTRATIVE COORDINATION—CONTACT: Cyrus S. Benson, Team Leader, Publications Team, RIS Support Services/Support Group, (202) 606– 0623. U.S. Office of Personnel Management. Tricia Hollis, Chief of Staff. [FR Doc. E7–1542 Filed 1–30–07; 8:45 am] BILLING CODE 6325–38–P AGENCY: OFFICE OF PERSONNEL MANAGEMENT SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (Pub. L. 104–13, May 22, 1995), this notice announces that the Office of Personnel Management (OPM) intends to submit to the Office of Management and Budget (OMB) a request for review of a revised information collection. RI 30–1, Request to Disability Annuitant for Information on Physical Condition and Employment, is used by persons who are not yet age 60 and who are receiving disability annuity and are subject to inquiry as to their medical condition as OPM deems reasonably necessary. RI 30–1 collects information as to whether the disabling condition has changed. Approximately 8,000 RI 30–1 forms will be completed annually. We estimate it takes approximately 60 minutes to complete the form. The annual burden is 8,000 hours. Comments are particularly invited on: whether this collection of information is necessary for the proper performance of functions of the Office of Personnel Management, and whether it will have practical utility; whether our estimate of the public burden of this collection of information is accurate, and based on valid assumptions and methodology; and ways in which we can minimize the burden of the collection of information on those who are to respond, through the use of appropriate technological collection techniques or other forms of information technology. For copies of this proposal, contact Mary Beth Smith-Toomey on (202) 606– 8358, FAX (202) 418–3251 or via e-mail to MaryBeth.Smith-Toomey@opm.gov. Please include a mailing address with your request. DATES: Comments on this proposal should be received within 60 calendar days from the date of this publication. ADDRESSES: Send or deliver comments to—Pamela S. Israel, Chief, Operations PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 Proposed Collection; Comment Request for Extension of a Currently Approved Information Collection: RI 30–10 Office of Personnel Management. ACTION: Notice. AGENCY: SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (Pub. L. 104–13, May 22, 1995), this notice announces that the Office of Personnel Management (OPM) intends to submit to the Office of Management and Budget (OMB) a request for extension of a currently approved information collection. RI 30–10, Disabled Dependent Questionnaire, is used to collect sufficient information about the medical condition and earning capacity for the Office of Personnel Management to be able to determine whether a disabled adult child is eligible for health benefits coverage and/or survivor annuity payments under the Civil Service Retirement System or the Federal Employees Retirement System. Comments are particularly invited on: whether this collection of information is necessary for the proper performance of functions of the Office of Personnel Management, and whether it will have practical utility; whether our estimate of the public burden of this collection of information is accurate, and based on valid assumptions and methodology; and ways in which we can minimize the burden of the collection of information on those who are to respond, through the use of appropriate technological collection techniques or other forms of information technology. Approximately 2,500 RI 30–10 forms are completed annually. The form takes approximately 60 minutes to complete. The annual estimated burden is 2,500 hours. E:\FR\FM\31JAN1.SGM 31JAN1

Agencies

Pension Benefit Guaranty Corporation

[Federal Register Volume 72, Number 20 (Wednesday, January 31, 2007)]
[Notices]
[Pages 4538-4540]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-1505]


=======================================================================
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PENSION BENEFIT GUARANTY CORPORATION


Pendency of Request for Exemption From the Bond/Escrow 
Requirement Relating to the Sale of Assets by an Employer Who 
Contributes to a Multiemployer Plan; Washington Nationals Baseball 
Club, LLC

AGENCY: Pension Benefit Guaranty Corporation.

[[Page 4539]]


ACTION: Notice of pendency of request.

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

SUMMARY: This notice advises interested persons that the Pension 
Benefit Guaranty Corporation has received a request from Washington 
Nationals Baseball Club, LLC for an exemption from the bond/escrow 
requirement of section 4204(a)(1)(B) of the Employee Retirement Income 
Security Act of 1974, as amended, with respect to the Major League 
Baseball Players Benefit Plan. Section 4204(a)(1) provides that the 
sale of assets by an employer that contributes to a multiemployer 
pension plan will not constitute a complete or partial withdrawal from 
the plan if the transaction meets certain conditions. One of these 
conditions is that the purchaser post a bond or deposit money in escrow 
for the five-plan-year period beginning after the sale. The PBGC is 
authorized to grant individual and class exemptions from this 
requirement. Before granting an exemption, the statute and PBGC 
regulations require PBGC to give interested persons an opportunity to 
comment on the exemption request. The purpose of this notice is to 
advise interested persons of the exemption request and solicit their 
views on it.

DATES: Comments must be submitted on or before March 19, 2007.

ADDRESSES: Comments may be mailed to the Office of the Chief Counsel, 
Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, 
DC 20005-4026, or delivered to Suite 340 at the above address. Comments 
also may be submitted electronically through the PBGC's Web site at 
reg.comments@pbgc.gov or by fax to 202-326-4112. The PBGC will make all 
comments available on its Web site, https://www.pbgc.gov. Copies of the 
comments and the non-confidential portions of the request may be 
obtained by writing to the PBGC's Communications and Public Affairs 
Department at Suite 1200 at the above address or by visiting that 
office 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: Eric Field, 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 4204 of the Employee Retirement Income Security Act of 
1974, as amended by the Multiemployer Pension Plan Amendments Act of 
1980 (``ERISA'' or ``the Act''), provides that a bona fide arm's-length 
sale of assets of a contributing employer to an unrelated party will 
not be considered a withdrawal if three conditions are met. These 
conditions, enumerated in section 4204(a)(1)(A)-(C), are that--
    (A) The purchaser has an obligation to contribute to the plan with 
respect to covered operations for substantially the same number of 
contribution base units for which the seller was obligated to 
contribute;
    (B) The purchaser obtains a bond or places an amount in escrow, for 
a period of five plan years after the sale, equal to the greater of the 
seller's average required annual contribution to the plan for the three 
plan years preceding the year in which the sale occurred or the 
seller's required annual contribution for the plan year preceding the 
year in which the sale occurred (the amount of the bond or escrow is 
doubled if the plan is in reorganization in the year in which the sale 
occurred); and
    (C) The contract of sale provides that if the purchaser withdraws 
from the plan within the first five plan years beginning after the sale 
and fails to pay any of its liability to the plan, the seller shall be 
secondarily liable for the liability it (the seller) would have had but 
for section 4204.
    The bond or escrow described above would be paid to the plan if the 
purchaser withdraws from the plan or fails to make any required 
contributions to the plan within the first five plan years beginning 
after the sale. Additionally, section 4204(b)(1) provides that if a 
sale of assets is covered by section 4204, the purchaser assumes by 
operation of law the contribution record of the seller for the plan 
year in which the sale occurred and the preceding four plan years.
    Section 4204(c) of ERISA authorizes the Pension Benefit Guaranty 
Corporation (``PBGC'') to grant individual or class variances or 
exemptions from the purchaser's bond/escrow requirement of section 
4204(a)(1)(B) when warranted. The legislative history of section 4204 
indicates a Congressional intent that the statute be administered in a 
manner that assures protection of the plan with the least practicable 
intrusion into normal business transactions. Senate Committee on Labor 
and Human Resources, 96th Cong., 2nd Sess., S. 1076, The Multiemployer 
Pension Plan Amendments Act of 1980: Summary and Analysis of 
Considerations 16 (Comm. Print, April 1980); 128 Cong. Rec. S10117 
(July 29, 1980). The granting of a variance or exemption from the bond/
escrow requirement does not constitute a finding by the PBGC that a 
particular transaction satisfies the other requirements of section 
4204(a)(1).
    Under the PBGC's regulation on variances for sales of assets (29 
CFR part 4204), a request for a variance or exemption from the bond/
escrow requirement under any of the tests established in the regulation 
(Sec. Sec.  4204.12 and 4204.13) is to be made to the plan in question. 
The PBGC will consider variance or exemption requests only when the 
request is not based on satisfaction of one of the four regulatory 
tests under regulation Sec. Sec.  4204.12 and 4204.13 or when the 
parties assert that the financial information necessary to show 
satisfaction of one of the regulatory tests is privileged or 
confidential financial information within the meaning of 5 U.S.C. 
552(b)(4) (Freedom of Information Act).
    Under Sec.  4204.22 of the regulation, the PBGC shall approve a 
request for a variance or exemption if it determines that approval of 
the request is warranted, in that it--
    (1) Would more effectively or equitably carry out the purposes of 
Title IV of the Act; and
    (2) Would not significantly increase the risk of financial loss to 
the plan.
    Section 4204(c) of ERISA and section 4204.22(b) of the regulation 
require the PBGC to publish a notice of the pendency of a request for a 
variance or exemption in the Federal Register, and to provide 
interested parties with an opportunity to comment on the proposed 
variance or exemption.

The Request

    The PBGC has received a request from the Washington Nationals 
Baseball Club, LLC (the ``Buyer'') for an exemption from the bond/
escrow requirement of section 4204(a)(1)(B) with respect to its 
purchase of the Washington Nationals from Baseball Expos, L.P. (the 
``Seller'') on April 24, 2006. In the request, the Buyer represents 
among other things that:
    1. The Seller was obligated to contribute to the Major League 
Baseball Players Benefit Plan (the ``Plan'') for certain employees of 
the sold operations.
    2. The Buyer has agreed to assume the obligation to contribute to 
the Plan for substantially the same number of contribution base units 
as the Seller.
    3. The Seller has agreed to be secondarily liable for any 
withdrawal

[[Page 4540]]

liability it would have had with respect to the sold operations (if not 
for section 4204) should the Buyer withdraw from the Plan and fail to 
pay its withdrawal liability.
    4. The estimated amount of the withdrawal liability of the Seller 
with respect to the operations subject to the sale is $14,454,124.
    5. The amount of the bond/escrow established under section 
4204(a)(1)(B) is $2,803,040.
    6. The Major League Baseball Clubs (the ``Clubs'') have established 
the Major League Central Fund (the ``Central Fund'') pursuant to the 
Major League Baseball Constitution. Under this agreement, contributions 
to the Plan for all participating employers are paid by the Office of 
the Commissioner of Baseball from the Central Fund on behalf of each 
participating employer in satisfaction of the employer's pension 
liability under the Plan's funding agreement. The monies in the Central 
Fund are derived directly from (i) gate receipts from All-Star games; 
(ii) radio and television revenue from World Series, League 
Championship Series, Division Series, All-Star Games, and (iii) certain 
other radio and television revenue, including revenues from foreign 
broadcasts, regular, spring training and exhibition games 
(``Revenues'').
    7. In support of the exemption request, the requester asserts that: 
``The Plan is funded directly from Revenues which are paid from the 
Central Fund directly to the Plan without passing through the hands of 
any of the Clubs. Therefore the Plan enjoys a substantial degree of 
security with respect to contributions on behalf of the Clubs. A change 
in ownership of a Club does not affect the obligation of the Central 
Fund to fund the Plan out of the Revenues. As such, approval of this 
exemption request would not increase the risk of financial loss to the 
Plan.''
    8. A complete copy of the request was sent to the Plan and to the 
Major League Baseball Players Association by certified mail, return 
receipt requested.

Comments

    All interested persons are invited to submit written comments on 
the pending exemption request to the above address. All comments will 
be made a part of the record. The PBGC will make the comments received 
available on its Web site, www.pbgc.gov. Copies of the comments and the 
non-confidential portions of the request may be obtained by writing or 
visiting the PBGC's Communications and Public Affairs Department (CPAD) 
at the above address or by visiting that office or calling 202-326-4040 
during normal business hours.

    Issued at Washington, DC, on this 24th of January, 2007.
Vincent K. Snowbarger,
Interim Director.
[FR Doc. E7-1505 Filed 1-30-07; 8:45 am]
BILLING CODE 7708-01-P

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