79714 Federal Register / Vol. 76, No. 246 / Thursday, December 22, 2011 / Notices 

1The same principles would apply to an 

amended filing made with a view to obtaining a 

credit against the next year’s premium. 

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 

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

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 


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