Pendency for Request for Approval of Special Withdrawal Liability Rules: United Food and Commercial Workers International Union-Industry Pension Fund, 50702-50704 [2018-21801]
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50702
Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Notices
The Commission has determined that
these amendments satisfy the criteria for
categorical exclusion in accordance
with 10 CFR 51.22. Therefore, pursuant
to 10 CFR 51.22(b), no environmental
impact statement or environmental
assessment need be prepared for these
amendments.
IV. Conclusion
Using the reasons set forth in the
combined safety evaluation, the staff
granted the exemptions and issued the
amendments that SNC requested on
April 20, 2018. The exemption and
amendment were issued on September
25, 2018, as part of a combined package
to SNC (ADAMS Accession No.
ML18232A526).
Dated at Rockville, Maryland, this 3rd day
of October 2018.
For the Nuclear Regulatory Commission.
Jennifer L. Dixon-Herrity,
Chief, Licensing Branch 4, Division of
Licensing, Siting, and Environmental
Analysis, Office of New Reactors.
[FR Doc. 2018–21912 Filed 10–5–18; 8:45 am]
BILLING CODE 7590–01–P
PENSION BENEFIT GUARANTY
CORPORATION
Pendency for Request for Approval of
Special Withdrawal Liability Rules:
United Food and Commercial Workers
International Union—Industry Pension
Fund
Pension Benefit Guaranty
Corporation.
ACTION: Notice of pendency of request.
AGENCY:
This notice advises interested
persons that the Pension Benefit
Guaranty Corporation (‘‘PBGC’’) has
received a request from the United Food
and Commercial Workers International
Union—Industry Pension Fund for
approval of a plan amendment
providing for special withdrawal
liability rules. Under 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
the pension insurance system. Before
granting an approval, PBGC’s
regulations require PBGC to give
interested persons an opportunity to
comment on the request. The purpose of
amozie on DSK3GDR082PROD with NOTICES1
SUMMARY:
VerDate Sep<11>2014
19:13 Oct 05, 2018
Jkt 247001
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 November 23, 2018.
ADDRESSES: Comments may be
submitted by any of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: reg.comments@pbgc.gov.
Refer to the UFCW Industry Plan in the
subject line.
• Mail or Hand Delivery: Regulatory
Affairs Division, Office of the General
Counsel, Pension Benefit Guaranty
Corporation, 1200 K Street NW,
Washington, DC 20005–4026.
All submissions received must
include the agency’s name (Pension
Benefit Guaranty Corporation, or PBGC)
and refer to the UFCW Industry Plan.
All comments received will be posted
without change to PBGC’s website,
https://www.pbgc.gov, including any
personal information provided. Copies
of comments may also be obtained by
writing to Disclosure Division, Office of
the General Counsel, Pension Benefit
Guaranty Corporation, 1200 K Street
NW, Washington, DC 20005–4026 or
calling 202–326–4040 during normal
business hours. (TTY 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:
Bruce Perlin (Perlin.Bruce@PBGC.gov),
202–326–4020, ext. 6818, or Elizabeth
Coleman (Coleman.Elizabeth@
PBGC.gov), ext. 3661, Office of the
General Counsel, Suite 340, 1200 K
Street NW, Washington, DC 20005–
4026; (TTY users may 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
section 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
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
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, section 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
bargaining agreement or resumes such
work within 5 years without renewing
the obligation to contribute at the time
of resumption. In the case of a plan
terminated by mass withdrawal (within
the meaning of section 4041(A)(2) of
ERISA), section 4203(b)(3) provides that
the 5-year restriction on an employer’s
resuming covered work is reduced to 3
years. 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 section 4203(a)
of ERISA includes the 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 section 4208(d)(1) of
ERISA, ‘‘[a]n employer to whom section
4203(b) (relating to the building and
construction industry) applies is liable
for a partial withdrawal only if the
E:\FR\FM\09OCN1.SGM
09OCN1
Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Notices
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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 section 4208(d)(2) of
ERISA, ‘‘[a]n employer to whom
§ 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 section 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) prescribe 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
website (https://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 from the
United Food and Commercial Workers
International Union—Industry Pension
Fund (the ‘‘Plan’’), for approval of a
plan amendment providing for special
withdrawal liability rules. The Plan
provided supplemental information in
response to a request from PBGC.
PBGC’s summary of the actuarial reports
provided by the Plan may be accessed
on PBGC’s website (https://
www.pbgc.gov/prac/pg/other/guidance/
VerDate Sep<11>2014
19:13 Oct 05, 2018
Jkt 247001
multiemployer-notices.html). A copy of
the Plan’s submission can 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 summary, the Plan is a
multiemployer pension plan jointly
maintained by Local Unions affiliated
with the United Food and Commercial
Workers International Union (‘‘UFCW’’)
and employers signatory to collective
bargaining agreements with the UFCW.
The Plan covers unionized employees
who work predominantly in the retail
food industry. The Plan’s proposed
amendment would be effective for
withdrawals occurring under ERISA
section 4205(a)(1) during the 3-year
testing period ending June 30, 2014, or
any subsequent plan year and for any
withdrawals occurring under sections
4203 and 4205(a)(2) of ERISA on or after
July 1, 2013. Thus, the proposed
amendment is intended to apply to
cessations of the obligation to contribute
that have already occurred. Plans may
adopt this retroactive relief as a
discretionary provision under ERISA
section 4203.3(b)(2). There are two
employers that may be eligible for relief
from withdrawal liability under the
proposed amendment if it is approved.
The proposed amendment would
create special withdrawal liability rules
for employers contributing to the Plan
for work performed under a contract or
subcontract for services to federal
government agencies (‘‘Employer’’). The
Plan’s submission represents that the
industry for which the rule is requested
has characteristics similar to those of
the construction industry. According to
the Plan, the principal similarity is that
when an Employer loses a government
contract, or subcontract, it usually does
so through the competitive bidding
process, and the applicable federal
government agency typically contracts
with a successor Employer that is
obligated to contribute to the Plan at the
same or substantially the same rate for
the same employees. The Plan believes
the proposed amendment may induce
potential new employers to bid on work
at a government facility and agree to
continue making contributions to the
Plan when they otherwise may avoid
seeking a contribution obligation to the
Plan to avoid potential withdrawal
liability.
Under the proposed amendment, the
special withdrawal liability rules would
apply to an Employer that ceases to
have a contribution obligation to the
Plan because it loses a governmental
contract to a successor Employer
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
50703
(‘‘Successor Employer’’), if all the
following conditions are met for the 5
plan years immediately following the
year the Employer lost the contract.
A complete withdrawal will not occur
if an Employer loses all its
governmental contracts to a Successor
Employer, so long as: (1) Substantially
all the employees for which the
Employer was obligated to contribute to
the Plan continue to perform covered
work with a Successor Employer; (2) for
each of the next 5 plan years the
Successor Employer has an obligation to
contribute at the same or a higher
contribution rate to the Plan; (3) for each
of the next 5 plan years the Successor
Employer contributes substantially the
same contribution base units as did the
initial Employer in the plan year
immediately prior to the year it lost the
contract; and (4) the Employer posts a
bond or establishes an escrow account
equal to the lesser of the present value
of its withdrawal liability or 5 years of
installment payments of its withdrawal
liability. The Employer will have
experienced a complete withdrawal if
within the 5 plan years following the
year the Employer lost the contract, the
Successor Employer’s contract
terminates, and no subsequent
Successor Employer assumes the
contribution obligations and conditions,
or if the Successor Employer fails to
meet the contribution conditions.
A partial withdrawal will not occur if
an Employer loses one or more, but less
than all, of its governmental contracts to
a Successor Employer, or if it loses all
its governmental contracts but continues
to have a contribution obligation to the
Plan under a collective bargaining
agreement, so long as: (1) For each of the
next 5 plan years the Successor
Employer has an obligation to
contribute at the same or a higher
contribution rate to the Plan; (2) for each
of the next 5 plan years the Successor
Employer contributes substantially the
same contribution base units as did the
initial Employer in the plan year
immediately prior to the year it lost the
contract; and (3) the Employer posts a
bond or establishes an escrow account
equal to the lesser of the present value
of its partial withdrawal liability or 5
years of installment payments of its
withdrawal liability. The Employer will
have experienced a partial withdrawal if
within the 5 plan years following the
year the Employer lost the contract, the
Successor Employer’s contract
terminates, and no subsequent
Successor Employer assumes the
contribution obligations and conditions,
or if the Successor Employer fails to
meet the contribution conditions.
E:\FR\FM\09OCN1.SGM
09OCN1
50704
Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Notices
Alternatively, the proposed
amendment provides that an Employer
that loses a governmental contract to a
Successor Employer will not experience
a complete or partial withdrawal if the
Successor Employer assumes the
Employer’s contribution history under
the affected contract(s) for the plan year
in which the contract is lost and the 5
immediately preceding plan years.
Lastly, the Plan’s trustees may waive or
reduce the bond or escrow requirement
if the Employer demonstrates that doing
so would not significantly increase the
risk of financial loss to the Plan. The
Plan’s request includes the actuarial
data on which the Plan relies to support
its contention that the amendment will
not pose a significant risk to the
insurance system under Title IV of
ERISA.
Comments
All interested persons are invited to
submit written comments on the
pending exemption request. All
comments will be made part of the
administrative record.
William Reeder,
Director, Pension Benefit Guaranty
Corporation.
[FR Doc. 2018–21801 Filed 10–5–18; 8:45 am]
BILLING CODE 7709–02–P
RAILROAD RETIREMENT BOARD
Agency Forms Submitted for OMB
Review, Request for Comments
In accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35), the Railroad
Retirement Board (RRB) is forwarding
an Information Collection Request (ICR)
to the Office of Information and
Regulatory Affairs (OIRA), Office of
Management and Budget (OMB). Our
ICR describes the information we seek
to collect from the public. Review and
SUMMARY:
approval by OIRA ensures that we
impose appropriate paperwork burdens.
The RRB invites comments on the
proposed collections of information to
determine (1) the practical utility of the
collections; (2) the accuracy of the
estimated burden of the collections; (3)
ways to enhance the quality, utility, and
clarity of the information that is the
subject of collection; and (4) ways to
minimize the burden of collections on
respondents, including the use of
automated collection techniques or
other forms of information technology.
Comments to the RRB or OIRA must
contain the OMB control number of the
ICR. For proper consideration of your
comments, it is best if the RRB and
OIRA receive them within 30 days of
the publication date.
1. Title and purpose of information
collection: Employee’s Certification;
OMB 3220–0140.
Section 2 of the Railroad Retirement
Act (RRA), provides for the payment of
an annuity to the spouse or divorced
spouse of a retired railroad employee.
For the spouse or divorced spouse to
qualify for an annuity, the RRB must
determine if any of the employee’s
current marriage to the applicant is
valid.
The requirements for obtaining
documentary evidence to determine
valid marital relationships are
prescribed in 20 CFR 219.30 through
219.35. Section 2(e) of the RRA requires
that an employee must relinquish all
rights to any railroad employer service
before a spouse annuity can be paid.
The RRB uses Form G–346,
Employee’s Certification, to obtain the
information needed to determine
whether the employee’s current
marriage is valid. Form G–346 is
completed by the retired employee who
is the husband or wife of the applicant
for a spouse annuity. Completion is
required to obtain a benefit. One
response is requested of each
Information Collection Request (ICR)
Title: Employee’s Certification.
OMB Control Number: 3220–0140.
Forms submitted: G–346 and
G–346sum.
Type of request: Extension without
change of a currently approved
collection.
Affected public: Individuals or
Households.
Abstract: Under Section 2 of the
Railroad Retirement Act, spouses of
retired railroad employees may be
entitled to an annuity. The collection
obtains information from the employee
about the employee’s previous
marriages, if any, to determine if any
impediment exists to the marriage
between the employee and his or her
spouse.
Changes proposed: The RRB proposes
no changes to the forms in the
collection.
The burden estimate for the ICR is as
follows:
Annual
responses
Form No.
amozie on DSK3GDR082PROD with NOTICES1
respondent. The RRB proposes no
changes to Form G–346.
Consistent with 20 CFR 217.17, the
RRB uses Form G–346sum, Employee’s
Certification Summary, which mirrors
the information collected on Form G–
346, when an employee, after being
interviewed by an RRB field office
representative ‘‘signs’’ the form using an
alternative signature method known as
‘‘attestation.’’ Attestation refers to the
action taken by the RRB field office
representative to confirm and annotate
the RRB’s records of the applicant’s
affirmation under penalty of perjury that
the information provided is correct and
the applicant’s agreement to sign the
form by proxy. Completion is required
to obtain a benefit. One response is
requested of each respondent.
Previous Requests for Comments: The
RRB has already published the initial
60-day notice (83 FR 35032 on July 24,
2018) required by 44 U.S.C. 3506(c)(2).
That request elicited no comments.
Time
(minutes)
Burden
(hours)
G–346 ..........................................................................................................................................
G–346sum ...................................................................................................................................
4,220
2,100
5
5
352
175
Total ......................................................................................................................................
6,320
........................
527
2. Title and Purpose of information
collection: Railroad Separation
Allowance or Severance Pay Report;
OMB 3220–0173.
Section 6 of the Railroad Retirement
Act provides for a lump-sum payment to
an employee or the employee’s
survivors equal to the Tier II taxes paid
VerDate Sep<11>2014
19:13 Oct 05, 2018
Jkt 247001
by the employee on a separation
allowance or severance payment for
which the employee did not receive
credits toward retirement. The lumpsum is not payable until retirement
benefits begin to accrue or the employee
dies. Also, Section 4(a–1)(iii) of the
Railroad Unemployment Insurance Act
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
provides that a railroad employee who
is paid a separation allowance is
disqualified for unemployment and
sickness benefits for the period of time
the employee would have to work to
earn the amount of the allowance. The
reporting requirements are specified in
20 CFR 209.14.
E:\FR\FM\09OCN1.SGM
09OCN1
]]>Agencies
[Federal Register Volume 83, Number 195 (Tuesday, October 9, 2018)]
[Notices]
[Pages 50702-50704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21801]
=======================================================================
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
Pendency for Request for Approval of Special Withdrawal Liability
Rules: United Food and Commercial Workers International Union--Industry
Pension Fund
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of pendency of request.
-----------------------------------------------------------------------
SUMMARY: This notice advises interested persons that the Pension
Benefit Guaranty Corporation (``PBGC'') has received a request from the
United Food and Commercial Workers International Union--Industry
Pension Fund for approval of a plan amendment providing for special
withdrawal liability rules. Under 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 the pension insurance system. 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 November 23, 2018.
ADDRESSES: Comments may be submitted by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Refer to the UFCW Industry
Plan in the subject line.
Mail or Hand Delivery: Regulatory Affairs Division, Office
of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K
Street NW, Washington, DC 20005-4026.
All submissions received must include the agency's name (Pension
Benefit Guaranty Corporation, or PBGC) and refer to the UFCW Industry
Plan. All comments received will be posted without change to PBGC's
website, https://www.pbgc.gov, including any personal information
provided. Copies of comments may also be obtained by writing to
Disclosure Division, Office of the General Counsel, Pension Benefit
Guaranty Corporation, 1200 K Street NW, Washington, DC 20005-4026 or
calling 202-326-4040 during normal business hours. (TTY 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: Bruce Perlin ([email protected]),
202-326-4020, ext. 6818, or Elizabeth Coleman
([email protected]), ext. 3661, Office of the General Counsel,
Suite 340, 1200 K Street NW, Washington, DC 20005-4026; (TTY users may
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 section 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, section 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 bargaining agreement or resumes such
work within 5 years without renewing the obligation to contribute at
the time of resumption. In the case of a plan terminated by mass
withdrawal (within the meaning of section 4041(A)(2) of ERISA), section
4203(b)(3) provides that the 5-year restriction on an employer's
resuming covered work is reduced to 3 years. 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 section 4203(a) of ERISA includes the 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 section
4208(d)(1) of ERISA, ``[a]n employer to whom section 4203(b) (relating
to the building and construction industry) applies is liable for a
partial withdrawal only if the
[[Page 50703]]
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 section 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 section 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) prescribe 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 website (https://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 from the United Food and Commercial Workers
International Union--Industry Pension Fund (the ``Plan''), for approval
of a plan amendment providing for special withdrawal liability rules.
The Plan provided supplemental information in response to a request
from PBGC. PBGC's summary of the actuarial reports provided by the Plan
may be accessed on PBGC's website (https://www.pbgc.gov/prac/pg/other/guidance/multiemployer-notices.html). A copy of the Plan's submission
can 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 summary, the Plan is a multiemployer pension plan jointly
maintained by Local Unions affiliated with the United Food and
Commercial Workers International Union (``UFCW'') and employers
signatory to collective bargaining agreements with the UFCW. The Plan
covers unionized employees who work predominantly in the retail food
industry. The Plan's proposed amendment would be effective for
withdrawals occurring under ERISA section 4205(a)(1) during the 3-year
testing period ending June 30, 2014, or any subsequent plan year and
for any withdrawals occurring under sections 4203 and 4205(a)(2) of
ERISA on or after July 1, 2013. Thus, the proposed amendment is
intended to apply to cessations of the obligation to contribute that
have already occurred. Plans may adopt this retroactive relief as a
discretionary provision under ERISA section 4203.3(b)(2). There are two
employers that may be eligible for relief from withdrawal liability
under the proposed amendment if it is approved.
The proposed amendment would create special withdrawal liability
rules for employers contributing to the Plan for work performed under a
contract or subcontract for services to federal government agencies
(``Employer''). The Plan's submission represents that the industry for
which the rule is requested has characteristics similar to those of the
construction industry. According to the Plan, the principal similarity
is that when an Employer loses a government contract, or subcontract,
it usually does so through the competitive bidding process, and the
applicable federal government agency typically contracts with a
successor Employer that is obligated to contribute to the Plan at the
same or substantially the same rate for the same employees. The Plan
believes the proposed amendment may induce potential new employers to
bid on work at a government facility and agree to continue making
contributions to the Plan when they otherwise may avoid seeking a
contribution obligation to the Plan to avoid potential withdrawal
liability.
Under the proposed amendment, the special withdrawal liability
rules would apply to an Employer that ceases to have a contribution
obligation to the Plan because it loses a governmental contract to a
successor Employer (``Successor Employer''), if all the following
conditions are met for the 5 plan years immediately following the year
the Employer lost the contract.
A complete withdrawal will not occur if an Employer loses all its
governmental contracts to a Successor Employer, so long as: (1)
Substantially all the employees for which the Employer was obligated to
contribute to the Plan continue to perform covered work with a
Successor Employer; (2) for each of the next 5 plan years the Successor
Employer has an obligation to contribute at the same or a higher
contribution rate to the Plan; (3) for each of the next 5 plan years
the Successor Employer contributes substantially the same contribution
base units as did the initial Employer in the plan year immediately
prior to the year it lost the contract; and (4) the Employer posts a
bond or establishes an escrow account equal to the lesser of the
present value of its withdrawal liability or 5 years of installment
payments of its withdrawal liability. The Employer will have
experienced a complete withdrawal if within the 5 plan years following
the year the Employer lost the contract, the Successor Employer's
contract terminates, and no subsequent Successor Employer assumes the
contribution obligations and conditions, or if the Successor Employer
fails to meet the contribution conditions.
A partial withdrawal will not occur if an Employer loses one or
more, but less than all, of its governmental contracts to a Successor
Employer, or if it loses all its governmental contracts but continues
to have a contribution obligation to the Plan under a collective
bargaining agreement, so long as: (1) For each of the next 5 plan years
the Successor Employer has an obligation to contribute at the same or a
higher contribution rate to the Plan; (2) for each of the next 5 plan
years the Successor Employer contributes substantially the same
contribution base units as did the initial Employer in the plan year
immediately prior to the year it lost the contract; and (3) the
Employer posts a bond or establishes an escrow account equal to the
lesser of the present value of its partial withdrawal liability or 5
years of installment payments of its withdrawal liability. The Employer
will have experienced a partial withdrawal if within the 5 plan years
following the year the Employer lost the contract, the Successor
Employer's contract terminates, and no subsequent Successor Employer
assumes the contribution obligations and conditions, or if the
Successor Employer fails to meet the contribution conditions.
[[Page 50704]]
Alternatively, the proposed amendment provides that an Employer
that loses a governmental contract to a Successor Employer will not
experience a complete or partial withdrawal if the Successor Employer
assumes the Employer's contribution history under the affected
contract(s) for the plan year in which the contract is lost and the 5
immediately preceding plan years. Lastly, the Plan's trustees may waive
or reduce the bond or escrow requirement if the Employer demonstrates
that doing so would not significantly increase the risk of financial
loss to the Plan. The Plan's request includes the actuarial data on
which the Plan relies to support its contention that the amendment will
not pose a significant risk to the insurance system under Title IV of
ERISA.
Comments
All interested persons are invited to submit written comments on
the pending exemption request. All comments will be made part of the
administrative record.
William Reeder,
Director, Pension Benefit Guaranty Corporation.
[FR Doc. 2018-21801 Filed 10-5-18; 8:45 am]
BILLING CODE 7709-02-P
