Request for Information on Suspensions of Benefits Under the Multiemployer Pension Reform Act of 2014, 8578-8580 [2015-03290]
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8578
Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules
mstockstill on DSK4VPTVN1PROD with PROPOSALS
(Pub. L. 113–235), supported a listening
meeting between FDA and the regulated
industries to consider alternative
solutions to the proposed rule on safety
labeling that will meet all public health
goals relating to multisource drugs (see
https://www.congress.gov/
congressional-record/2014/12/11/housesection/article/H9307-1) (FDA has
verified the Web site address, but FDA
is not responsible for any subsequent
changes to the Web site after this
document publishes in the Federal
Register).
In view of these requests and to
promote transparency, FDA will hold a
public meeting at which any
stakeholders may present or comment
on the proposed rule or any alternative
proposals intended to improve
communication of important newly
acquired drug safety information to
health care professionals and the public.
In addition, FDA is reopening the
comment period for the proposed rule
(78 FR 67985) until April 27, 2015, to
receive submissions of additional
written comments on the proposed rule
as well as alternative proposals
presented during the public meeting.
II. Registration and Requests for Oral
Presentations
If you would like to attend the public
meeting, please register for the meeting
by email to
CBESupplements.PublicMeeting@
fda.hhs.gov by March 20, 2015. The
email should contain complete contact
information for each attendee (including
name, title, firm name or affiliation,
address, email, telephone and fax
numbers). Those without email access
can register by contacting Ellen
Molinaro (see FOR FURTHER INFORMATION
CONTACT) by March 20, 2015. There is
no fee to register for the meeting, and
registration will be on a first-come, firstserved basis. Early registration is
recommended because seating is
limited. Onsite registration on the day of
the meeting also will be permitted on a
space-available basis beginning at 7:30
a.m.
Individuals who wish to present at
the public meeting must register on or
before March 16, 2015, and provide
complete contact information, including
name, title, firm name or affiliation,
address, email, telephone and fax
numbers. You should provide a brief
description of your presentation, and
indicate the approximate desired length
of your presentation, so that FDA can
consider these in organizing the
presentations. FDA will do its best to
accommodate requests to speak and will
determine the amount of time allotted to
each presenter and the approximate
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17:51 Feb 17, 2015
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time that each oral presentation is
scheduled to begin. After reviewing the
presentation requests, FDA will notify
each participant before the meeting of
the amount of time available and the
approximate time their presentation is
scheduled to begin. If time permits,
individuals or organizations that did not
register in advance may be granted the
opportunity to make a presentation. An
agenda will be posted on the FDA Web
site at https://www.fda.gov/Drugs/
NewsEvents/ucm431265.htm prior to
the meeting. Presenters are encouraged
to submit a copy of their presentation
and related written material to the
docket (see ‘‘Comments’’) in advance of
the public meeting.
If you need special accommodations
because of a disability, please contact
Ellen Molinaro (see FOR FURTHER
INFORMATION CONTACT) at least 7 days in
advance.
III. Streaming Webcast of the Public
Meeting
This public meeting will also be
Webcast. Information about how to view
the live Webcast of this meeting will be
posted on the FDA Web site at https://
www.fda.gov/Drugs/NewsEvents/
ucm431265.htm prior to the meeting.
IV. Comments
Interested persons may submit either
electronic comments regarding
proposed alternatives to the proposed
rule to https://www.regulations.gov or
written comments to the Division of
Dockets Management (see ADDRESSES). It
is only necessary to send one set of
comments. Identify comments with the
docket number found in brackets in the
heading of this document. Received
comments may be seen in the Division
of Dockets Management between 9 a.m.
and 4 p.m., Monday through Friday, and
will be posted to the docket at https://
www.regulations.gov.
Electronic or written comments will
be accepted after the public meeting
until April 27, 2015.
V. Transcripts
Please be advised that as soon as
possible after a transcript of the public
meeting is available, it will be accessible
at https://www.regulations.gov. It may be
viewed at the Division of Dockets
Management (see ADDRESSES). A
transcript will also be available in either
hardcopy or on CD–ROM, after
submission of a Freedom of Information
request. Written requests are to be sent
to the Division of Freedom of
Information (ELEM–1029), Food and
Drug Administration, 12420 Parklawn
Dr., Element Bldg., Rockville, MD
20857.
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VI. Reference
The following reference has been
placed on display in the Division of
Dockets Management (see ADDRESSES),
and may be seen by interested persons
between 9 a.m. and 4 p.m., Monday
through Friday.
1. Letter dated November 14, 2014,
from Mr. Neas (GPhA) and Mr.
Castellani (PhRMA) to Dr. Hamburg
(FDA) regarding request for listening
meeting on Expedited Agency Review
proposal.
Dated: February 11, 2015.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2015–03211 Filed 2–17–15; 8:45 am]
BILLING CODE 4164–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–102648–15]
RIN 1545–BM66
Request for Information on
Suspensions of Benefits Under the
Multiemployer Pension Reform Act of
2014
Internal Revenue Service (IRS),
Treasury.
ACTION: Request for information.
AGENCY:
The Department of the
Treasury invites public comments with
regard to future guidance required to
implement provisions of the
Multiemployer Pension Reform Act of
2014, Division O of the Consolidated
and Further Continuing Appropriations
Act, 2015, Public Law 113–235 (MPRA).
MPRA generally permits a sponsor of a
multiemployer defined benefit plan that
is in critical and declining status to
suspend certain benefits following the
provision of specified notice,
consideration of public comments,
approval of an application for
suspension, and satisfaction of other
specified conditions (including a
participant vote).
DATES: Comments must be received by
April 6, 2015.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–102648–15), Room
5205, Internal Revenue Service, PO Box
7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be handdelivered Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to: CC:PA:LPD:PR (REG–102648–15),
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue NW.,
SUMMARY:
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Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules
mstockstill on DSK4VPTVN1PROD with PROPOSALS
Washington, DC, or sent electronically
via the Federal eRulemaking Portal at
https://www.regulations.gov (IRS REG–
102648–15). All materials submitted
will be shared with the Department of
Labor and the Pension Benefit Guaranty
Corporation, and will be available for
public inspection and copying.
FOR FURTHER INFORMATION CONTACT:
Concerning the request for information,
Jamie Dvoretzky at (202) 317–4102;
concerning submission of comments,
Regina Johnson at (202) 317–6901 (not
toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
Section 212 of the Pension Protection
Act of 2006, Public Law 109–280 (120
Stat. 780 (2006)) (PPA ’06) added
section 432 of the Internal Revenue
Code (Code), which prescribes funding
rules for certain multiemployer defined
benefit plans in endangered and critical
status and permits plans in critical
status to be amended to reduce certain
otherwise protected benefits (referred to
as ‘‘adjustable benefits’’). Section 202 of
PPA ’06 amended section 305 of the
Employee Retirement Income Security
Act of 1974, Public Law 93–406 (88 Stat.
829 (1974)), as amended (ERISA), to
prescribe parallel rules. PPA ’06
provided that section 432 and ERISA
section 305 would sunset for plan years
beginning after December 31, 2014.
However, section 101 of MPRA made
them permanent, with certain
modifications.
Section 201 of MPRA amended Code
section 432 to add a new status, called
‘‘critical and declining status,’’ for
multiemployer defined benefit plans.
Section 432(b)(6) provides that a plan in
critical status is treated as being in
critical and declining status if the plan
satisfies the criteria for critical status,
and in addition is projected to become
insolvent within the meaning of section
418E during the current plan year or any
of the 14 succeeding plan years (or 19
succeeding plan years if the plan has a
ratio of inactive participants to active
participants that exceeds two to one or
if the funded percentage of the plan is
less than 80 percent).1
Section 201 of MPRA also amended
section 432(e)(9) to prescribe benefit
suspension rules for multiemployer
defined benefit plans in critical and
declining status. Section 432(e)(9)(A)
provides that notwithstanding section
1 Section 201(a) of MPRA makes parallel
amendments to section 305 of ERISA. Under section
101 of Reorganization Plan No. 4 of 1978 (43 FR
47713), the Department of the Treasury has
interpretive jurisdiction over the subject matter of
this document for purposes of ERISA as well as the
Code.
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411(d)(6) and subject to the
requirements of section 432(e)(9)(B)
through (I), the plan sponsor of a plan
in critical and declining status may, by
plan amendment, suspend benefits that
the sponsor deems appropriate. Section
432(e)(9)(B) defines ‘‘suspension of
benefits’’ as the temporary or permanent
reduction of any current or future
payment obligation of the plan to any
participant or beneficiary under the
plan, whether or not in pay status at the
time of the suspension of benefits, and
sets forth other rules relating to
suspensions. In the case of plans with
10,000 or more participants, section
432(e)(9)(B) requires the plan sponsor to
select a plan participant in pay status
(who may also be a plan trustee) to act
as a retiree representative throughout
the suspension approval process.
Section 432(e)(9)(C) prescribes the
conditions that must be satisfied before
a plan sponsor may suspend benefits.
For example, section 432(e)(9)(C)(i)
provides that the plan actuary must
certify, taking into account the proposed
suspensions of benefits (and, if
applicable, a proposed partition of the
plan under section 4233 of ERISA), that
the plan is projected to avoid insolvency
within the meaning of section 418E,
assuming the suspensions of benefits
continue until the suspensions of
benefits expire by their own terms or, if
no such expiration is set, indefinitely.
Section 432(e)(9)(D) contains limitations
on the benefits that may be suspended.
For example, section 432(e)(9)(D)(ii)
limits the applicability of a suspension
in the case of a participant or
beneficiary who has attained age 75 as
of the effective date of the suspension
and section 432(e)(9)(D)(iii) provides
that no benefits based on disability (as
defined under the plan) may be
suspended.
Section 432(e)(9)(E) prescribes rules
relating to possible benefit
improvements while a suspension of
benefits is in effect. Section 432(e)(9)(F)
contains notice requirements associated
with a suspension of benefits. These
include the requirement under section
432(e)(9)(F)(i) that no suspension of
benefits may be made unless notice to
specified parties of the proposed
suspension has been given by the plan
sponsor (in the form and manner to be
prescribed in guidance) concurrently
with an application for approval of the
suspension. Section 432(e)(9)(G)
describes the process for approval or
rejection of a plan sponsor’s application
for a suspension of benefits, including
that the Treasury Secretary, in
consultation with the Pension Benefit
Guaranty Corporation (PBGC) and the
Secretary of Labor, shall approve an
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application upon finding that the plan
is eligible for the suspension and has
satisfied the criteria of section
432(e)(9)(C), (D), (E), and (F). As part of
this process, section 432(e)(9)(G)(ii)
requires the publication of a request for
comments within 30 days after receipt
of an application for suspension of
benefits, and section 432(e)(9)(G)(iii),
(iv) and (v) prescribes rules for agency
action and review of the application.
Section 432(e)(9)(H) contains rules
relating to the participant vote that is
required before any suspension of
benefits may take effect, with special
rules for systemically important plans.
The special rules include an
opportunity for the Participant and Plan
Sponsor Advocate selected under
section 4004 of ERISA to submit
recommendations with respect to a
suspension in certain circumstances.
Section 432(e)(9)(I) contains provisions
relating to judicial review.
An application for approval of a plan
amendment to suspend benefits may be
made in combination with an
application to the PBGC for a partition
of the plan, and a plan sponsor also may
ask the PBGC for technical or financial
assistance with a merger. The PBGC is
issuing its own request for information
to seek comment on the processes
associated with applying for partition or
merger assistance, including how such
processes should be coordinated with
the benefit suspension process. The
agencies will coordinate on the
development of processes that will
apply to applications falling within
their respective jurisdictions.
Request for Information
Comments are requested on matters
that may be addressed in future
guidance implementing section
432(e)(9), and in particular on the
following:
1. How should future guidance
address actuarial and other issues,
including duration, related to the
following certifications and
determinations:
a. The actuary’s certification under
section 432(b)(3) that a multiemployer
plan is in critical and declining status;
b. The actuary’s section 432(e)(9)(C)(i)
projection of continued solvency (taking
into account the proposed suspension
and, if applicable, a proposed partition
under section 4233 of ERISA); and
c. The plan sponsor’s section
432(e)(9)(C)(ii) determination that the
plan is projected to become insolvent
unless benefits are suspended?
2. For purposes of the section
432(e)(9)(D)(iii) limitation that a
suspension is not permitted to apply to
benefits based on disability (as defined
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Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Proposed Rules
under the plan), how can a plan sponsor
identify which benefits are based on
disability?
3. For participants who have not yet
retired:
a. What practical issues should be
considered as a result of the fact that
their benefits are not yet fixed (for
example, their benefits could vary as a
result of future accruals, when they
decide to retire and which optional form
of benefit they select)?
b. What practical issues should be
considered in the case of a suspension
of benefits that is combined with a
reduction of future accruals or a
reduction of section 432(e)(8) adjustable
benefits (such as subsidized early
retirement factors) under a
rehabilitation plan?
4. For participants who have retired,
what practical issues should be
considered regarding the section
432(e)(9)(D)(ii) age limitations on
suspensions, the application of the
section 432(e)(9)(E) rules on benefit
improvements, or other provisions?
5. With respect to the section
432(e)(9)(F) requirement to provide
notice of the proposed suspension to
plan participants and beneficiaries
concurrently with the submission of the
application for approval:
a. What suggestions do commenters
have for the steps that are needed to
satisfy the requirement to provide notice
to the plan participants and
beneficiaries ‘‘who may be contacted by
reasonable efforts,’’ including the
application of that requirement to
terminated vested participants?
b. What practical issues do plan
sponsors anticipate in providing
individual estimates of the effect of the
proposed suspensions on each
participant and beneficiary?
c. If the suspension is combined with
other reductions as described in request
number 3.b, how will the notice of
proposed suspension interact with the
notices required for those other
reductions?
d. What issues arise in coordinating
benefit protections that are measured as
of the date of suspension (such as the
restriction on suspensions that apply to
a participant or beneficiary who has
attained age 75 as of the effective date
of the suspension) with the timing of the
application, notice, and voting process?
6. With respect to item 5, please
provide any examples of notices of
proposed suspension that commenters
would like to be considered in the
development of a model notice.
7. What issues arise in connection
with the section 432(e)(9)(G)(ii)
requirement to solicit comments on an
application for suspension of benefits?
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a. Should the comments received
from contributing employers, employee
organizations, participants and
beneficiaries, and other interested
parties be made available to the public?
b. How long should the comment
period last?
8. With respect to the section
432(e)(9)(H) participant vote, what
issues arise in connection with:
a. Preparing the ballot, including
developing a statement in opposition to
the suspension compiled from
comments and obtaining approval of the
ballot within the statutory time
constraints for conducting a vote; and
b. Conducting the vote and obtaining
certification of the results of the vote?
9. What other practical issues do
commenters anticipate will arise in the
course of implementing these
provisions?
Timing of Applications and Notices
Section 201(b)(7) of MPRA provides
that, not later than 180 days after the
date of the enactment of this Act, the
Treasury Secretary, in consultation with
the Pension Benefit Guaranty
Corporation and the Secretary of Labor,
shall publish appropriate guidance to
implement section 432(e)(9). In
addition, section 432(e)(9)(F)(i) provides
that no suspension of benefits may be
made unless notice of the proposed
suspension has been given by the plan
sponsor concurrently with an
application for approval of the
suspension, and section
432(e)(9)(F)(iii)(I) provides that notice
must be ‘‘provided in a form and
manner prescribed in guidance.’’
Section 432(e)(9)(G)(i) provides that the
Treasury Secretary, in consultation with
the Pension Benefit Guaranty
Corporation and the Secretary of Labor,
shall approve an application for
suspension upon finding that the plan
has satisfied the criteria of section
432(e)(9)(C), (D), (E), and (F). Because
appropriate guidance is required to
implement section 432(e)(9), including
the procedures for the plan sponsor to
submit an application for approval of a
suspension of benefits and provide
concurrent notice, a plan sponsor
should not submit an application for a
suspension of benefits until a date
specified in that future guidance.
Dated: February 11, 2015.
David G. Clunie,
Executive Secretary, Department of the
Treasury.
[FR Doc. 2015–03290 Filed 2–13–15; 11:15 am]
BILLING CODE 4830–01–P
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DEPARTMENT OF JUSTICE
Office of the Attorney General
28 CFR Part 11
[JMD Docket No. 152; A.G. Order No. 3493–
2015]
RIN 1105–NYD
Department of Justice Debt Collection
Regulations
Department of Justice.
Notice of proposed rulemaking.
AGENCY:
ACTION:
This rule proposes to amend
the regulations that govern debt
collection at the Department of Justice
(Department) to bring the regulations
into conformity with government-wide
standards, to update or delete obsolete
references, and to make other clarifying
or technical changes.
DATES: Written comments must be
postmarked and electronic comments
must be submitted on or before April 20,
2015. Comments received by mail will
be considered timely if they are
postmarked on or before that date. The
electronic Federal Docket Management
System (FDMS) will accept comments
until Midnight Eastern Time at the end
of that day.
ADDRESSES: The Department encourages
that all comments be submitted
electronically through https://
www.regulations.gov using the
electronic comment form provided on
that site. An electronic copy of this
document is also available at the
https://www.regulations.gov Web site for
easy reference. Paper comments that
duplicate the electronic submission are
not necessary as all comments
submitted to https://www.regulations.gov
will be posted for public review and are
part of the official docket record. Should
you wish to submit written comments
via regular or express mail, however,
they should be sent to: Dennis Dauphin,
Director, Debt Collection Management
Staff, Justice Management Division, U.S.
Department of Justice, Washington, DC
20530.
FOR FURTHER INFORMATION CONTACT:
Dennis Dauphin, Director, Debt
Collection Management Staff, or Morton
J. Posner, Assistant General Counsel,
Justice Management Division, U.S.
Department of Justice, Washington, DC
20530, (202) 514–5343 or (202) 514–
3452.
SUMMARY:
This rule
updates the Department’s debt
collection regulations at 28 CFR part 11,
subpart A—Retention of Private Counsel
for Debt Collection, Subpart B—
SUPPLEMENTARY INFORMATION:
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]]>Agencies
[Federal Register Volume 80, Number 32 (Wednesday, February 18, 2015)]
[Proposed Rules]
[Pages 8578-8580]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-03290]
=======================================================================
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-102648-15]
RIN 1545-BM66
Request for Information on Suspensions of Benefits Under the
Multiemployer Pension Reform Act of 2014
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Request for information.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury invites public comments with
regard to future guidance required to implement provisions of the
Multiemployer Pension Reform Act of 2014, Division O of the
Consolidated and Further Continuing Appropriations Act, 2015, Public
Law 113-235 (MPRA). MPRA generally permits a sponsor of a multiemployer
defined benefit plan that is in critical and declining status to
suspend certain benefits following the provision of specified notice,
consideration of public comments, approval of an application for
suspension, and satisfaction of other specified conditions (including a
participant vote).
DATES: Comments must be received by April 6, 2015.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-102648-15), Room
5205, Internal Revenue Service, PO Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
102648-15), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue NW.,
[[Page 8579]]
Washington, DC, or sent electronically via the Federal eRulemaking
Portal at https://www.regulations.gov (IRS REG-102648-15). All materials
submitted will be shared with the Department of Labor and the Pension
Benefit Guaranty Corporation, and will be available for public
inspection and copying.
FOR FURTHER INFORMATION CONTACT: Concerning the request for
information, Jamie Dvoretzky at (202) 317-4102; concerning submission
of comments, Regina Johnson at (202) 317-6901 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
Section 212 of the Pension Protection Act of 2006, Public Law 109-
280 (120 Stat. 780 (2006)) (PPA '06) added section 432 of the Internal
Revenue Code (Code), which prescribes funding rules for certain
multiemployer defined benefit plans in endangered and critical status
and permits plans in critical status to be amended to reduce certain
otherwise protected benefits (referred to as ``adjustable benefits'').
Section 202 of PPA '06 amended section 305 of the Employee Retirement
Income Security Act of 1974, Public Law 93-406 (88 Stat. 829 (1974)),
as amended (ERISA), to prescribe parallel rules. PPA '06 provided that
section 432 and ERISA section 305 would sunset for plan years beginning
after December 31, 2014. However, section 101 of MPRA made them
permanent, with certain modifications.
Section 201 of MPRA amended Code section 432 to add a new status,
called ``critical and declining status,'' for multiemployer defined
benefit plans. Section 432(b)(6) provides that a plan in critical
status is treated as being in critical and declining status if the plan
satisfies the criteria for critical status, and in addition is
projected to become insolvent within the meaning of section 418E during
the current plan year or any of the 14 succeeding plan years (or 19
succeeding plan years if the plan has a ratio of inactive participants
to active participants that exceeds two to one or if the funded
percentage of the plan is less than 80 percent).\1\
---------------------------------------------------------------------------
\1\ Section 201(a) of MPRA makes parallel amendments to section
305 of ERISA. Under section 101 of Reorganization Plan No. 4 of 1978
(43 FR 47713), the Department of the Treasury has interpretive
jurisdiction over the subject matter of this document for purposes
of ERISA as well as the Code.
---------------------------------------------------------------------------
Section 201 of MPRA also amended section 432(e)(9) to prescribe
benefit suspension rules for multiemployer defined benefit plans in
critical and declining status. Section 432(e)(9)(A) provides that
notwithstanding section 411(d)(6) and subject to the requirements of
section 432(e)(9)(B) through (I), the plan sponsor of a plan in
critical and declining status may, by plan amendment, suspend benefits
that the sponsor deems appropriate. Section 432(e)(9)(B) defines
``suspension of benefits'' as the temporary or permanent reduction of
any current or future payment obligation of the plan to any participant
or beneficiary under the plan, whether or not in pay status at the time
of the suspension of benefits, and sets forth other rules relating to
suspensions. In the case of plans with 10,000 or more participants,
section 432(e)(9)(B) requires the plan sponsor to select a plan
participant in pay status (who may also be a plan trustee) to act as a
retiree representative throughout the suspension approval process.
Section 432(e)(9)(C) prescribes the conditions that must be
satisfied before a plan sponsor may suspend benefits. For example,
section 432(e)(9)(C)(i) provides that the plan actuary must certify,
taking into account the proposed suspensions of benefits (and, if
applicable, a proposed partition of the plan under section 4233 of
ERISA), that the plan is projected to avoid insolvency within the
meaning of section 418E, assuming the suspensions of benefits continue
until the suspensions of benefits expire by their own terms or, if no
such expiration is set, indefinitely. Section 432(e)(9)(D) contains
limitations on the benefits that may be suspended. For example, section
432(e)(9)(D)(ii) limits the applicability of a suspension in the case
of a participant or beneficiary who has attained age 75 as of the
effective date of the suspension and section 432(e)(9)(D)(iii) provides
that no benefits based on disability (as defined under the plan) may be
suspended.
Section 432(e)(9)(E) prescribes rules relating to possible benefit
improvements while a suspension of benefits is in effect. Section
432(e)(9)(F) contains notice requirements associated with a suspension
of benefits. These include the requirement under section
432(e)(9)(F)(i) that no suspension of benefits may be made unless
notice to specified parties of the proposed suspension has been given
by the plan sponsor (in the form and manner to be prescribed in
guidance) concurrently with an application for approval of the
suspension. Section 432(e)(9)(G) describes the process for approval or
rejection of a plan sponsor's application for a suspension of benefits,
including that the Treasury Secretary, in consultation with the Pension
Benefit Guaranty Corporation (PBGC) and the Secretary of Labor, shall
approve an application upon finding that the plan is eligible for the
suspension and has satisfied the criteria of section 432(e)(9)(C), (D),
(E), and (F). As part of this process, section 432(e)(9)(G)(ii)
requires the publication of a request for comments within 30 days after
receipt of an application for suspension of benefits, and section
432(e)(9)(G)(iii), (iv) and (v) prescribes rules for agency action and
review of the application.
Section 432(e)(9)(H) contains rules relating to the participant
vote that is required before any suspension of benefits may take
effect, with special rules for systemically important plans. The
special rules include an opportunity for the Participant and Plan
Sponsor Advocate selected under section 4004 of ERISA to submit
recommendations with respect to a suspension in certain circumstances.
Section 432(e)(9)(I) contains provisions relating to judicial review.
An application for approval of a plan amendment to suspend benefits
may be made in combination with an application to the PBGC for a
partition of the plan, and a plan sponsor also may ask the PBGC for
technical or financial assistance with a merger. The PBGC is issuing
its own request for information to seek comment on the processes
associated with applying for partition or merger assistance, including
how such processes should be coordinated with the benefit suspension
process. The agencies will coordinate on the development of processes
that will apply to applications falling within their respective
jurisdictions.
Request for Information
Comments are requested on matters that may be addressed in future
guidance implementing section 432(e)(9), and in particular on the
following:
1. How should future guidance address actuarial and other issues,
including duration, related to the following certifications and
determinations:
a. The actuary's certification under section 432(b)(3) that a
multiemployer plan is in critical and declining status;
b. The actuary's section 432(e)(9)(C)(i) projection of continued
solvency (taking into account the proposed suspension and, if
applicable, a proposed partition under section 4233 of ERISA); and
c. The plan sponsor's section 432(e)(9)(C)(ii) determination that
the plan is projected to become insolvent unless benefits are
suspended?
2. For purposes of the section 432(e)(9)(D)(iii) limitation that a
suspension is not permitted to apply to benefits based on disability
(as defined
[[Page 8580]]
under the plan), how can a plan sponsor identify which benefits are
based on disability?
3. For participants who have not yet retired:
a. What practical issues should be considered as a result of the
fact that their benefits are not yet fixed (for example, their benefits
could vary as a result of future accruals, when they decide to retire
and which optional form of benefit they select)?
b. What practical issues should be considered in the case of a
suspension of benefits that is combined with a reduction of future
accruals or a reduction of section 432(e)(8) adjustable benefits (such
as subsidized early retirement factors) under a rehabilitation plan?
4. For participants who have retired, what practical issues should
be considered regarding the section 432(e)(9)(D)(ii) age limitations on
suspensions, the application of the section 432(e)(9)(E) rules on
benefit improvements, or other provisions?
5. With respect to the section 432(e)(9)(F) requirement to provide
notice of the proposed suspension to plan participants and
beneficiaries concurrently with the submission of the application for
approval:
a. What suggestions do commenters have for the steps that are
needed to satisfy the requirement to provide notice to the plan
participants and beneficiaries ``who may be contacted by reasonable
efforts,'' including the application of that requirement to terminated
vested participants?
b. What practical issues do plan sponsors anticipate in providing
individual estimates of the effect of the proposed suspensions on each
participant and beneficiary?
c. If the suspension is combined with other reductions as described
in request number 3.b, how will the notice of proposed suspension
interact with the notices required for those other reductions?
d. What issues arise in coordinating benefit protections that are
measured as of the date of suspension (such as the restriction on
suspensions that apply to a participant or beneficiary who has attained
age 75 as of the effective date of the suspension) with the timing of
the application, notice, and voting process?
6. With respect to item 5, please provide any examples of notices
of proposed suspension that commenters would like to be considered in
the development of a model notice.
7. What issues arise in connection with the section
432(e)(9)(G)(ii) requirement to solicit comments on an application for
suspension of benefits?
a. Should the comments received from contributing employers,
employee organizations, participants and beneficiaries, and other
interested parties be made available to the public?
b. How long should the comment period last?
8. With respect to the section 432(e)(9)(H) participant vote, what
issues arise in connection with:
a. Preparing the ballot, including developing a statement in
opposition to the suspension compiled from comments and obtaining
approval of the ballot within the statutory time constraints for
conducting a vote; and
b. Conducting the vote and obtaining certification of the results
of the vote?
9. What other practical issues do commenters anticipate will arise
in the course of implementing these provisions?
Timing of Applications and Notices
Section 201(b)(7) of MPRA provides that, not later than 180 days
after the date of the enactment of this Act, the Treasury Secretary, in
consultation with the Pension Benefit Guaranty Corporation and the
Secretary of Labor, shall publish appropriate guidance to implement
section 432(e)(9). In addition, section 432(e)(9)(F)(i) provides that
no suspension of benefits may be made unless notice of the proposed
suspension has been given by the plan sponsor concurrently with an
application for approval of the suspension, and section
432(e)(9)(F)(iii)(I) provides that notice must be ``provided in a form
and manner prescribed in guidance.'' Section 432(e)(9)(G)(i) provides
that the Treasury Secretary, in consultation with the Pension Benefit
Guaranty Corporation and the Secretary of Labor, shall approve an
application for suspension upon finding that the plan has satisfied the
criteria of section 432(e)(9)(C), (D), (E), and (F). Because
appropriate guidance is required to implement section 432(e)(9),
including the procedures for the plan sponsor to submit an application
for approval of a suspension of benefits and provide concurrent notice,
a plan sponsor should not submit an application for a suspension of
benefits until a date specified in that future guidance.
Dated: February 11, 2015.
David G. Clunie,
Executive Secretary, Department of the Treasury.
[FR Doc. 2015-03290 Filed 2-13-15; 11:15 am]
BILLING CODE 4830-01-P
