Premium Changes Based On Recharacterization of Contributions, 79714 [2011-32804]
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79714
Federal Register / Vol. 76, No. 246 / Thursday, December 22, 2011 / Notices
Ongoing Review of Partner Countries’
Policy Performance
The Board also reviewed the policy
performance of countries that are
implementing compacts. These
countries do not need to be reselected
each year in order to continue
implementation. Once MCC makes a
commitment to a country through a
compact agreement, MCC does not
consider the country for reselection on
an annual basis during the term of its
compact. The Board emphasized the
need for all partner countries to
continue to improve their environment.
If it is determined that a country has
demonstrated a significant policy
reversal, MCC can hold it accountable
by applying MCC’s Suspension and
Termination Policy.
Selection To Initiate the Compact
Process
The Board also authorized MCC to
invite Benin and El Salvador to submit
a proposal for a second compact, as
described in section 609 of the Act (22
U.S.C. 7708).
Submission of a proposal is not a
guarantee that MCC will finalize a
compact with an eligible country. Any
MCA assistance provided under section
605 of the Act (22 U.S.C. 7704) will be
contingent on the successful negotiation
of a mutually agreeable compact
between the eligible country and MCC,
approval of the compact by the Board,
and the availability of funds.
[FR Doc. 2011–32733 Filed 12–21–11; 8:45 am]
BILLING CODE 9211–03–P
PENSION BENEFIT GUARANTY
CORPORATION
Premium Changes Based On
Recharacterization of Contributions
Pension Benefit Guaranty
Corporation.
ACTION: Policy statement.
AGENCY:
This policy statement
addresses PBGC’s policy on accepting
and responding to amended premium
filings based on recharacterization of
contributions. Recharacterization of
contributions refers to a situation in
which contributions originally
designated as being for the plan year in
which they were made are retroactively
redesignated as being for the preceding
plan year. This makes plan assets for the
current year higher, and the plan’s
variable-rate premium lower, than
originally reported. Such
recharacterization seeks not to correct a
factual error but to change a valid
designation and is not an appropriate
jlentini on DSK4TPTVN1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
19:17 Dec 21, 2011
Jkt 226001
basis for an amended premium filing or
premium refund.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion
(klion.catherine@pbgc.gov), Manager, or
Deborah C. Murphy
(murphy.deborah@pbgc.gov), Attorney,
Regulatory and Policy Division,
Legislative and Regulatory Department,
Pension Benefit Guaranty Corporation,
1200 K Street NW., Washington DC
20005–4026; (202) 326–4024. (TTY and
TDD users may call the Federal relay
service toll free at 1–(800) 877–8339 and
ask to be connected to (202) 326–4024.)
SUPPLEMENTARY INFORMATION:
The Pension Benefit Guaranty
Corporation (PBGC) administers the
pension insurance program under title
IV of the Employee Retirement Income
Security Act of 1974 (ERISA). Under
sections 4006 and 4007 of ERISA, plans
covered by title IV must pay premiums
to PBGC. For single-employer plans,
premiums include an amount (the
variable-rate premium, or VRP) based on
unfunded vested benefits (the excess, if
any, of the value of vested benefits over
the value of plan assets).
A contribution made to a pension
plan during the first eight-and-a-half
months of a plan year may be
characterized as being either for the
current year (the plan year in which it
is made) or for the prior year (the
preceding plan year). The
characterization affects when the
contribution is first reflected in plan
assets. If a contribution is characterized
as being for the prior year, it is treated
as a receivable (which increases plan
assets) as of the beginning of the current
year and thus reduces any VRP for the
current year. If a contribution is
characterized as being for the current
year, it does not increase plan assets as
of the beginning of the current year and
thus does not affect VRP for the current
year.
The year for which a contribution is
made is designated on Schedule SB
(formerly Schedule B) (actuarial
information) to the annual report for the
plan on IRS/DOL/PBGC Form 5500.
PBGC has received a number of
amended premium filings, showing
increased assets and decreased VRP,
supported by amended Schedules SB (or
B) that reflect recharacterization of
contributions, and submitted with a
view to obtaining premium refunds.
PBGC has in practice accepted such
amended filings and granted the
refunds. Upon further consideration of
the matter, however, PBGC has
concluded that in general, such
amendments should be rejected and the
associated premium refunds denied.
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
Permitting the amendment of
premium filings gives filers a way to
correct mistakes in the data reported in
the filings. Where the correction of
erroneous data results in a lower
premium, it is appropriate to refund the
amount of the overpayment. However,
recharacterization of a contribution does
not correct a mistake; rather, it seeks to
undo a valid designation of the year for
which the contribution was made. Thus,
it is not an appropriate basis for
amending the relevant premium filing
and claiming a refund.1
PBGC’s consideration of amended
premium filings takes into account the
facts and circumstances of each case. In
general, however, as explained above,
PBGC’s policy will be to reject amended
filings and deny refunds based on
recharacterization of contributions.
For questions about premium filings,
contact Robert Callahan
(callahan.robert@pbgc.gov) or Bill
O’Neill (oneill.bill@pbgc.gov), Financial
Operations Department; (202) 346–4067.
Issued in Washington, DC, this 16th day of
December, 2011.
Joshua Gotbaum,
Director, Pension Benefit Guaranty
Corporation.
[FR Doc. 2011–32804 Filed 12–21–11; 8:45 am]
BILLING CODE 7709–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65991; File No. 4–566]
Program for Allocation of Regulatory
Responsibilities Pursuant to Rule 17d–
2; Notice of Filing and Order
Approving and Declaring Effective an
Amendment to the Plan for the
Allocation of Regulatory
Responsibilities Among BATS
Exchange, Inc., BATS Y-Exchange,
Inc., Chicago Board Options
Exchange, Incorporated, Chicago
Stock Exchange, Inc., EDGA
Exchange, Inc., EDGX Exchange, Inc.,
Financial Industry Regulatory
Authority, Inc., NASDAQ OMX BX, Inc.,
NASDAQ OMX PHLX LLC, The
NASDAQ Stock Market LLC, National
Stock Exchange, Inc., New York Stock
Exchange LLC, NYSE Amex LLC, and
NYSE Arca, Inc. Relating to the
Surveillance, Investigation, and
Enforcement of Insider Trading Rules
December 16, 2011.
Notice is hereby given that the
Securities and Exchange Commission
1 The same principles would apply to an
amended filing made with a view to obtaining a
credit against the next year’s premium.
E:\FR\FM\22DEN1.SGM
22DEN1
Agencies
[Federal Register Volume 76, Number 246 (Thursday, December 22, 2011)]
[Notices]
[Page 79714]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-32804]
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-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
Premium Changes Based On Recharacterization of Contributions
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Policy statement.
-----------------------------------------------------------------------
SUMMARY: This policy statement addresses PBGC's policy on accepting and
responding to amended premium filings based on recharacterization of
contributions. Recharacterization of contributions refers to a
situation in which contributions originally designated as being for the
plan year in which they were made are retroactively redesignated as
being for the preceding plan year. This makes plan assets for the
current year higher, and the plan's variable-rate premium lower, than
originally reported. Such recharacterization seeks not to correct a
factual error but to change a valid designation and is not an
appropriate basis for an amended premium filing or premium refund.
FOR FURTHER INFORMATION CONTACT: Catherine B. Klion
(klion.catherine@pbgc.gov), Manager, or Deborah C. Murphy
(murphy.deborah@pbgc.gov), Attorney, Regulatory and Policy Division,
Legislative and Regulatory Department, Pension Benefit Guaranty
Corporation, 1200 K Street NW., Washington DC 20005-4026; (202) 326-
4024. (TTY and TDD users may call the Federal relay service toll free
at 1-(800) 877-8339 and ask to be connected to (202) 326-4024.)
SUPPLEMENTARY INFORMATION:
The Pension Benefit Guaranty Corporation (PBGC) administers the
pension insurance program under title IV of the Employee Retirement
Income Security Act of 1974 (ERISA). Under sections 4006 and 4007 of
ERISA, plans covered by title IV must pay premiums to PBGC. For single-
employer plans, premiums include an amount (the variable-rate premium,
or VRP) based on unfunded vested benefits (the excess, if any, of the
value of vested benefits over the value of plan assets).
A contribution made to a pension plan during the first eight-and-a-
half months of a plan year may be characterized as being either for the
current year (the plan year in which it is made) or for the prior year
(the preceding plan year). The characterization affects when the
contribution is first reflected in plan assets. If a contribution is
characterized as being for the prior year, it is treated as a
receivable (which increases plan assets) as of the beginning of the
current year and thus reduces any VRP for the current year. If a
contribution is characterized as being for the current year, it does
not increase plan assets as of the beginning of the current year and
thus does not affect VRP for the current year.
The year for which a contribution is made is designated on Schedule
SB (formerly Schedule B) (actuarial information) to the annual report
for the plan on IRS/DOL/PBGC Form 5500. PBGC has received a number of
amended premium filings, showing increased assets and decreased VRP,
supported by amended Schedules SB (or B) that reflect
recharacterization of contributions, and submitted with a view to
obtaining premium refunds. PBGC has in practice accepted such amended
filings and granted the refunds. Upon further consideration of the
matter, however, PBGC has concluded that in general, such amendments
should be rejected and the associated premium refunds denied.
Permitting the amendment of premium filings gives filers a way to
correct mistakes in the data reported in the filings. Where the
correction of erroneous data results in a lower premium, it is
appropriate to refund the amount of the overpayment. However,
recharacterization of a contribution does not correct a mistake;
rather, it seeks to undo a valid designation of the year for which the
contribution was made. Thus, it is not an appropriate basis for
amending the relevant premium filing and claiming a refund.\1\
---------------------------------------------------------------------------
\1\ The same principles would apply to an amended filing made
with a view to obtaining a credit against the next year's premium.
---------------------------------------------------------------------------
PBGC's consideration of amended premium filings takes into account
the facts and circumstances of each case. In general, however, as
explained above, PBGC's policy will be to reject amended filings and
deny refunds based on recharacterization of contributions.
For questions about premium filings, contact Robert Callahan
(callahan.robert@pbgc.gov) or Bill O'Neill (oneill.bill@pbgc.gov),
Financial Operations Department; (202) 346-4067.
Issued in Washington, DC, this 16th day of December, 2011.
Joshua Gotbaum,
Director, Pension Benefit Guaranty Corporation.
[FR Doc. 2011-32804 Filed 12-21-11; 8:45 am]
BILLING CODE 7709-01-P