76660 Federal Register / Vol. 88, No. 214 / Tuesday, November 7, 2023 / Rules and Regulations 

1SECURE 2.0 Act of 2022, Division T of the 

Consolidated Appropriations Act, 2023, Public Law 

117–328 (Dec. 29, 2022). 

confidential information inadvertently 

disclosed may not be used by the party 

with inadvertent access, even within the 

confines of the alternative dispute 

resolution session. 

(g) The parties agree not to subpoena 

or compel the neutral to testify or 

produce any documents provided by a 

party in any administrative or judicial 

proceeding. The neutral will not 

voluntarily testify or produce 

documents on behalf of a party in any 

administrative or judicial proceeding 

unless otherwise required by law. 

§ 1406.3 Virtual services—additional terms 

of service. 

The following Terms of Service 

additionally apply when the FMCS 

service is provided virtually. 

(a) Parties may not provide meeting 

access information to non-parties 

without permission from the neutral 

unless the session is open to the public. 

(b) The neutral and all parties must be 

provided notice of all attendees before 

or at the time of attendance unless the 

session is open to the public. 

(c) Parties must ensure the integrity of 

technology used in virtual meetings. If 

an attendee is aware of any security 

breach, that attendee will inform the 

neutral immediately. 

§ 1406.4 Grievance mediation and Federal 

sector inter-agency agreement mediation 

—additional terms of service. 

The following Terms of Service 

additionally apply when the FMCS 

service is a grievance mediation or 

Federal sector inter-agency agreement 

mediation. 

(a) The grievant or complainant is 

entitled to be present at the mediation. 

(b) The parties agree not to disclose to 

any non-party oral or written 

communications made during the 

mediation process, including settlement 

terms, proposals, offers, or other 

statements, whether made privately to 

the neutral or when all parties are 

present. 

(c) Evidence that is otherwise 

admissible or discoverable will not be 

rendered inadmissible or nondiscoverable as a result of its use in the 

mediation proceedings. 

(d) The neutral has no authority to 

compel agreement or other resolution of 

the dispute and will issue no written 

recommendations or conclusions. At the 

request of the parties, or on the 

initiative of the neutral, the neutral may 

provide an oral recommendation or 

opinion to resolve the dispute. In that 

circumstance, the parties may jointly 

decide to implement that 

recommendation or opinion but neither 

party is obligated to do so. 

(e) (For Federal sector inter-agency 

agreement mediation, if applicable) Any 

communications between the Agency or 

Organizational Program/or Alternative 

Dispute Resolution Coordinator and the 

neutral(s) and/or the parties are 

considered dispute resolution 

communications with a neutral and will 

be kept confidential. 

§ 1406.5 Training and outreach 

presentations. 

The following Terms of Service 

additionally apply when the FMCS 

service is a training or outreach 

presentation. 

(a) The parties agree that they will not 

record any FMCS training or outreach 

presentation (whether delivered inperson or virtually) without the 

knowledge and consent of the parties 

and prior written approval of FMCS. 

(b) [Reserved] 

Dated: November 1, 2023. 

Alisa Zimmerman, 

Deputy General Counsel. 

[FR Doc. 2023–24526 Filed 11–6–23; 8:45 am] 

BILLING CODE 6732–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4000, 4003, 4006, 4010, 

4022, 4041A, 4043, 4211, and 4262 

RIN 1212–AB56 

Technical Amendments: Special 

Financial Assistance Withdrawal 

Liability Condition; SECURE 2.0 Act; 

and Other Updates 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: The Pension Benefit Guaranty 

Corporation (PBGC) is making 

miscellaneous technical updates, 

clarifications, and corrections to PBGC’s 

regulations, including to clarify a 

special financial assistance withdrawal 

liability condition and to update the 

reference to the dollar limit for lumpsum distributions in the closeout of 

sufficient multiemployer plans to reflect 

changes implemented under the 

SECURE 2.0 Act of 2022. 

DATES: This rule is effective on 

December 7, 2023. 

FOR FURTHER INFORMATION CONTACT: 

Hilary Duke (duke.hilary@pbgc.gov; 

202–229–3839), Assistant General 

Counsel for Regulatory Affairs, or 

Melissa Rifkin (rifkin.melissa@pbgc.gov; 

202–229–6563), Attorney, Regulatory 

Affairs Division; Office of the General 

Counsel, Pension Benefit Guaranty 

Corporation, 445 12th Street SW, 

Washington, DC 20024–2101. If you are 

deaf or hard of hearing or have a speech 

disability, please dial 7–1–1 to access 

telecommunications relay services. 

SUPPLEMENTARY INFORMATION: 

Executive Summary 

Purpose and Authority 

This final rule makes technical 

corrections, updates, and clarifications 

to several Pension Benefit Guaranty 

Corporation (PBGC) regulations. 

PBGC’s legal authority for this 

rulemaking comes from section 

4002(b)(3) of the Employee Retirement 

Income Security Act of 1974 (ERISA), 

which authorizes PBGC to issue 

regulations to carry out the purposes of 

title IV of ERISA, and section 4262 of 

ERISA (Special Financial Assistance by 

the Corporation), which permits PBGC, 

in consultation with the Secretary of the 

Treasury, to impose reasonable 

conditions by regulation or other 

guidance on an eligible multiemployer 

plan that receives special financial 

assistance (SFA). It also comes from 

section 4003 of ERISA (Operation of 

Corporation); section 4006 of ERISA 

(Premium Rates); section 4010 of ERISA 

(Authority to Require Certain 

Information); section 4022 of ERISA 

(Single-Employer Plan Benefits 

Guaranteed); section 4041A of ERISA 

(Termination of Multiemployer Plans); 

section 4043 of ERISA (Reportable 

Events); and section 4211 of ERISA 

(Methods for Computing Withdrawal 

Liability). 

Major Provisions 

The major provisions of this 

regulatory action amend PBGC’s 

regulations on: (1) Special Financial 

Assistance by PBGC (29 CFR part 4262) 

to clarify the calculation methodology 

for the condition requiring a phased 

recognition of SFA in a plan’s 

determination of withdrawal liability for 

plans that receive SFA; and (2) 

Termination of Multiemployer Plans (29 

CFR part 4041A) to update the reference 

to the dollar limit for lump-sum 

distributions in the closeout of 

sufficient multiemployer plans 

(reflecting updated dollar limits for 

pension plans under section 304 of the 

SECURE 2.0 Act of 2022 (SECURE 

2.0)).1 In addition, this regulatory action 

makes other clarifications, corrections, 

and updates. 


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2Withdrawal liability represents a withdrawing 

employer’s proportionate share of the plan’s 

unfunded benefit obligations and is an important 

source of income for the plan. To assess withdrawal 

liability, the plan sponsor must determine the 

withdrawing employer’s: (1) allocable share of the 

plan’s unfunded vested benefits (UVBs) (the value 

of nonforfeitable benefits that exceeds the value of 

plan assets) as of the end of the plan year before 

the employer’s withdrawal, or as otherwise 

provided under section 4211 of ERISA, and (2) 

annual withdrawal liability payment and 

amortization period under section 4219. 

3See 87 FR 40968. PBGC published the July 2022 

final rule in response to comments received on an 

interim final rule, which was published in the 

Federal Register on July 12, 2021, at 86 FR 36598. 

4See 88 FR 4900. 

5For a plan that receives payment of SFA under 

the terms of the interim final rule and then files a 

supplemented application, the first plan year of 

payment is the year in which it received SFA under 

the terms of the interim final rule. Where a plan’s 

first plan year of payment is not the plan year that 

includes the plan’s SFA measurement date, the 

exhaustion year is deferred by the number of years 

the first plan year of payment is after the plan year 

that includes the SFA measurement date. 

6For a plan that receives payment of SFA under 

the interim final rule and receives a supplemental 

payment, the total amount (payment under the 

interim final rule and supplemental payment) will 

be included in the phased recognition of SFA assets 

in determining UVBs for withdrawals occurring in 

plan years after the plan year the supplemental 

payment is received by the plan. For withdrawals 

that occur after the date the supplemented 

application is filed and before the plan year after 

the plan year in which the supplemental payment 

is made, only the payment of SFA under the interim 

final rule is included in the phased recognition of 

SFA assets. 

Background 

PBGC administers two insurance 

programs for private-sector defined 

benefit pension plans under title IV of 

ERISA: a single-employer plan 

termination insurance program and a 

multiemployer plan insolvency 

insurance program. In addition, PBGC 

administers an SFA program for eligible 

financially distressed multiemployer 

plans. The primary amendments in this 

rulemaking apply to the SFA program. 

This rulemaking responds to 

questions from stakeholders requesting 

clarification of the calculation 

methodology for the condition imposed 

on plans that receive SFA requiring a 

phased recognition of SFA in the 

determination of withdrawal liability. It 

also arises from statutory changes and 

from PBGC’s ongoing retrospective 

regulatory review program to identify 

and correct inaccuracies, 

inconsistencies, and requirements made 

irrelevant over time. 

Clarifications to SFA Program 

Withdrawal Liability Condition 

Background 

Under section 4262 of ERISA and 

PBGC’s SFA regulation, PBGC provides 

SFA to certain financially troubled 

multiemployer plans upon application 

for assistance. To ensure that SFA is 

used to pay benefits and the expenses 

related to those benefit payments, 

section 4262(m)(1) of ERISA expressly 

authorizes PBGC, in consultation with 

the Secretary of the Treasury, to impose 

reasonable conditions on an eligible 

multiemployer plan that receives SFA 

relating to certain aspects of plan terms 

or operations. These conditions are 

described in § 4262.16 of PBGC’s SFA 

regulation and include conditions that 

relate to withdrawal liability.2

On July 8, 2022, PBGC published a 

final rule 3 (July 2022 final rule) adding 

a condition requiring a phased 

recognition of SFA in a plan’s 

determination of withdrawal liability. 

PBGC provided for a 30-day comment 

period solely on this condition. In 

response to comments received, PBGC 

published, on January 26, 2023, a final 

rule 4 (January 2023 final rule) which 

provided a process for a plan sponsor to 

request approval from PBGC for an 

exception from the withdrawal liability 

conditions in § 4262.16(g)(1) and (2) 

under specific circumstances. 

Following publication of the January 

2023 final rule, PBGC received 

practitioner questions at public forums 

related to the withdrawal liability 

phase-in condition and make-up 

payments of previously suspended 

benefits. To address these questions, on 

July 19, 2023, PBGC posted guidance on 

its website at www.pbgc.gov, in the form 

of questions and answers, on the 

withdrawal liability phase-in condition. 

That guidance clarifies the calculation 

methodology for the phased recognition 

of SFA assets for plans that paid makeup payments of previously suspended 

benefits. 

Clarification of Calculation 

Methodology for Withdrawal Liability 

Phase-In Condition 

The withdrawal liability condition in 

§ 4262.16(g)(2) requires a phased 

recognition of SFA assets, i.e., SFA and 

earnings thereon, for the purpose of 

determining the plan’s unfunded vested 

benefits (UVBs) for calculating 

withdrawal liability, and provides the 

calculation methodology for 

determining the amount of SFA that is 

phased in for withdrawal liability 

purposes each year over the projected 

life of the SFA assets (determined as if 

SFA assets are exhausted before other 

plan assets are used to pay benefits and 

expenses). The applicable phase-in 

period runs from the first plan year in 

which the plan receives payment of SFA 

through the end of the plan year by 

which, according to the plan’s 

projections, it will exhaust any SFA 

assets.5

To calculate the amount of SFA assets 

excluded for each plan year during the 

phase-in period, the plan must take the 

total amount of SFA paid to the plan 

(not including the amount paid to PBGC 

for repayment of traditional financial 

assistance) and multiply that by a 

fraction, the numerator of which is the 

number of years remaining in the phasein period as of the date (the end of the 

determination year) that the UVBs are 

being determined, and the denominator 

is the total number of years in the 

phase-in period.6

Examples are included in 

§ 4262.16(g)(2) to illustrate the 

calculation methodology for the phased 

recognition of SFA assets. 

Section 4262(k) of ERISA and 

§ 4262.15 require that benefits 

suspended under sections 305(e)(9) or 

4245(a) of ERISA must be reinstated and 

make-up payments of previously 

suspended benefits must be paid to 

certain participants and beneficiaries. 

Plans must pay these make-up payments 

either as a lump sum within 3 months 

of the date SFA is paid, or in equal 

monthly installments over 5 years, 

starting within 3 months of the SFA 

payment date. 

As stated in PBGC’s guidance posted 

July 19, 2023, the phased recognition of 

SFA assets for purposes of calculating 

employer withdrawal liability was 

intended to approximate the pattern of 

how the SFA assets are likely to be 

spent down by a plan. Therefore, in the 

calculation under § 4262.16(g)(2)(ix), the 

amount of the SFA attributable to the 

make-up payments that have already 

been paid to participants and 

beneficiaries should be excluded from 

the ‘‘total amount of SFA paid to the 

plan under § 4262.12’’ before 

multiplication by the phase-in fraction. 

The result is the amount under 

§ 4262.16(g)(2)(ix) by which the value of 

plan assets used to determine UVBs for 

the determination year is reduced under 

§ 4262.16(g)(2)(viii). This calculation 

methodology applies regardless of 

whether the make-up payments are 

made in a lump sum or in equal 

monthly installments over 5 years, and 

regardless of whether such payments are 

made from SFA assets or non-SFA 

assets, or some combination thereof. 

Accordingly, this final rule 

incorporates the guidance posted on 

July 19, 2023, and amends 

§ 4262.16(g)(2)(ix) to reorganize the 

existing provisions as paragraph 

(g)(2)(ix)(A) and to add new paragraph 

(g)(2)(ix)(B) to clarify how plan assets 

expended on make-up payments of 


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76662 Federal Register / Vol. 88, No. 214 / Tuesday, November 7, 2023 / Rules and Regulations 

7The Taxpayer Relief Act of 1997, Public Law 

105–34 (Aug. 5, 1997), increased the maximum 

from $3,500 to $5,000 effective for plan years 

beginning after August 5, 1997. 

8See 86 FR 1256. 

9See 85 FR 10279. 

10Section 4006(a)(3)(F) of ERISA reads, ‘‘For each 

plan year beginning in a calendar year after 2006 

and before 2013. . .’’ and section 4006(a)(3)(H) of 

ERISA refers to 4006(a)(3)(A)(iv), which says, ‘‘in 

the case of a multiemployer plan, for plan years 

beginning after December 31, 2005, and before 

January 1, 2013.’’ 

11See 73 FR 15065. 

12See section 703 of the Bipartisan Budget Act of 

2013, Public Law 113–67 (Dec. 26, 2013). 

13See 81 FR 15432. 

previously suspended benefits are 

considered in the calculation 

methodology. The amendment also 

clarifies how the repayment of 

traditional financial assistance is 

considered in the calculation 

methodology. In addition, this final rule 

adds the example from the July 19, 

2023, guidance to 

§ 4262.16(g)(2)(xvi)(D). 

PBGC also received practitioner 

questions asking whether the 

calculation of SFA excluded under 

§ 4262.16(g)(2)(viii) could reduce the 

value of plan assets for determining 

UVBs to less than zero. In response, 

PBGC included in the July 19, 2023, 

guidance, a provision, applicable to all 

plans that receive SFA (regardless of 

whether they are required to pay makeup payments), stating that the value of 

the plan assets taken into account as of 

the end of a determination year under 

§ 4262.16(g)(2)(viii) used for purposes of 

determining UVBs may not be less than 

zero. This clarification is added in 

§ 4262.16(g)(2)(viii) of the SFA 

regulation. 

Clarifications and Corrections to 

Multiemployer Plan Regulations 

Termination of Multiemployer Plans— 

29 CFR part 4041A 

PBGC’s regulation on Termination of 

Multiemployer Plans (29 CFR part 

4041A) contains rules for the 

administration of multiemployer plans 

that have terminated by mass 

withdrawal. Subpart D contains 

procedures for closing out a plan where 

a plan’s assets, excluding any claim of 

the plan for unpaid withdrawal liability, 

are sufficient to satisfy all obligations 

for nonforfeitable benefits provided 

under the plan. In the case of such a 

plan, the plan sponsor may close out the 

plan by distributing plan assets in full 

satisfaction of all nonforfeitable benefits 

under the plan. Section 4041A.43 

provides rules for the payment of 

nonforfeitable benefits to participants 

and beneficiaries, including for lumpsum distributions. 

Section 203(e)(1) of ERISA and 

section 411(a)(11)(A) of the Internal 

Revenue Code provide a threshold (i.e., 

maximum present value of a benefit) 

that a pension plan may pay in a 

mandatory lump-sum distribution. From 

1997 through 2023, that maximum was 

$5,000.7 After 2023, it will be $7,000, as 

changed by section 304 of SECURE 2.0. 

Before the amendment provided by 

this final rule, § 4041A.43(b)(1) 

provided the dollar figure of $5,000 as 

the dollar threshold up to which the 

plan sponsor of a terminated 

multiemployer plan that is closing out 

may make as a lump-sum payment of 

nonforfeitable benefits. To avoid 

amending the regulation each time 

Congress changes the threshold for 

mandatory lump-sum distributions, the 

final rule amends § 4041A.43(b)(1) to 

refer not to a set monetary figure, but to 

the dollar amount specified in section 

203(e)(1) of ERISA. As a result, for 

purposes of part 4041A, the new $7,000 

maximum automatically will apply to 

the lump-sum payment of nonforfeitable 

benefits after December 31, 2023. 

Allocating Unfunded Vested Benefits to 

Withdrawing Employers—29 CFR Part 

4211 

Under the Allocating Unfunded 

Vested Benefits to Withdrawing 

Employers regulation (29 CFR part 

4211), PBGC is amending § 4211.31(b) 

by adding the words ‘‘set forth in’’ that 

were inadvertently omitted in a prior 

rule.8 The final sentence of paragraph 

(b) is corrected to read, ‘‘the statutory 

presumptive method set forth in subpart 

B of this part.’’ 

Other Clarifications, Corrections, and 

Updates 

Filing Rules—29 CFR Part 4000 

Under PBGC’s Filing, Issuance, 

Computation of Time, and Record 

Retention regulation (29 CFR part 4000), 

PBGC is modifying § 4000.4—Where do 

I file my submission? to update the 

reference to the telecommunications 

system for individuals who are deaf or 

hard of hearing or have a speech 

disability. PBGC is changing the 

reference from the ‘‘Federal relay 

service’’ to the ‘‘7–1–1’’ number, which 

is the system currently used by PBGC 

for access to telecommunications relay 

services. 

PBGC is removing and reserving 

§ 4000.28—What if I send a computer 

disk? which gives instructions for 

providing filings on a computer disk. 

Technological advancements have made 

this section obsolete. 

Rules for Administrative Review of 

Agency Decisions—29 CFR Part 4003 

Under PBGC’s Rules for 

Administrative Review of Agency 

Decisions regulation (29 CFR part 4003), 

PBGC is changing § 4003.35—Decision 

on request for reconsideration, by 

removing the word ‘‘final’’ from the 

phrase ‘‘final decision’’ in paragraph (a). 

In a prior rule,9 the word ‘‘final’’ was 

removed from other usages of the phrase 

‘‘final decision’’ in § 4003.35. In 

addition, PBGC is changing the wording 

‘‘request for reconsideration’’ to ‘‘a 

request for reconsideration’’ in 

paragraph (a)(1) to be consistent with 

the wording in paragraph (a)(2). 

Premium Rates—29 CFR Part 4006 

PBGC is modifying the Premium Rates 

regulation (29 CFR part 4006) in 

§ 4006.3—Premium rate, and § 4006.5— 

Exemptions and special rules. Section 

4006.3(a) contains references to sections 

4006(a)(3)(F) and 4006(a)(3)(H) of 

ERISA. Both statutory provisions 

affected the calculation of flat rate 

premiums and sunset in 2013.10 As 

these provisions are no longer relevant 

for calculating premiums, PBGC is 

removing them from the premium rates 

regulation. 

Also, PBGC is correcting a citation in 

§ 4006.5(b), which covers the variablerate premium cap. This paragraph 

references section ‘‘4006(a)(3)(H) of 

ERISA,’’ which was added to § 4006.5(b) 

in 2008 to reference the small employer 

cap. 11 Section 4006(a)(3)(H) was 

renumbered as 4006(a)(3)(I) in 2013.12

PBGC is changing this citation in 

§ 4006.5(b) to ‘‘section 4006(a)(3)(I) of 

ERISA for certain small employers.’’ 

Annual Financial and Actuarial 

Information Reporting—29 CFR Part 

4010 and Reportable Events—29 CFR 

Part 4043 

Under PBGC’s regulation on Annual 

Financial and Actuarial Information 

Reporting (29 CFR part 4010, ‘‘4010 

regulation’’), PBGC is correcting a 

reference in § 4010.10(b). The reference 

to ‘‘§ 4010.8(b)(1)’’ is changed to 

‘‘§ 4010.8(b)(2)(i)’’ to account for a prior 

reorganization of § 4010.8.13

PBGC is modifying § 4010.13 under 

PBGC’s 4010 regulation and § 4043.8 

under PBGC’s Reportable Events and 

Certain Other Notification Requirements 

regulation (29 CFR part 4043) to replace 

references to ‘‘§ 4901.21(a)(3)’’ with 

references to ‘‘§ 4901.21(a).’’ These 

corrections are to account for changes in 

a prior reorganization of § 4901.21, 

under PBGC’s regulation on Disclosure 

and Public Inspection of Pension 


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Federal Register / Vol. 88, No. 214 / Tuesday, November 7, 2023 / Rules and Regulations 76663 

14See 87 FR 43991. 

15See 88 FR 44045. 

Benefit Guaranty Corporation Records 

(29 CFR part 4901).14

Benefits Payable in Terminated SingleEmployer Plans—29 CFR Part 4022 

Under the Benefits Payable in 

Terminated Single-Employer Plans 

regulation (29 CFR part 4022), for 

consistency, PBGC is amending the 

heading for § 4022.7 by changing the 

words ‘‘single installment’’ to ‘‘lump 

sum.’’ In a prior rule,15 other usages of 

‘‘single installment’’ were changed to 

‘‘lump sum’’ throughout § 4022.7. 

Compliance With Rulemaking 

Guidelines 

Executive Orders 12866 and 13563 

The Office of Management and Budget 

(OMB) has determined that this rule is 

not a ‘‘significant regulatory action’’ 

under Executive Order 12866. 

Accordingly, OMB has not reviewed the 

final rule under Executive Order 12866. 

Executive Order 12866 directs 

agencies to assess all costs and benefits 

of available regulatory alternatives and, 

if regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). 

Although this is not a significant 

regulatory action under Executive Order 

12866, PBGC has examined the 

economic and policy implications of 

this final rule and has concluded that 

there will be no significant economic 

impact as a result of these amendments 

to PBGC’s regulations. The regulatory 

amendments concerning SFA primarily 

codify clarifications already issued by 

PBGC in sub-regulatory guidance. 

Making these clarifications more 

transparent will decrease uncertainty 

among plan sponsors in applying the 

withdrawal liability phase-in condition. 

Without the clarifications, some plan 

sponsors may not accurately account for 

make-up payments or repaid traditional 

financial assistance when calculating 

the amount of SFA excluded from plan 

assets for purposes of the condition in 

the determination of withdrawal 

liability. The amendments concerning 

lump-sum distributions reflecting 

SECURE 2.0 changes, and the 

miscellaneous amendments, conform 

PBGC’s existing regulations to statutory 

changes or prior regulatory changes or 

update and clarify outdated regulatory 

provisions. These amendments are cost 

neutral in their impact. 

Section 6 of Executive Order 13563 

requires agencies to rethink existing 

regulations by periodically reviewing 

their regulatory program for rules that 

‘‘may be outmoded, ineffective, 

insufficient, or excessively 

burdensome.’’ These rules should be 

modified, streamlined, expanded, or 

repealed as appropriate. PBGC has 

identified the amendments in this final 

rule as consistent with the principles for 

review under Executive Order 13563. 

PBGC believes codifying its previously 

issued guidance provides further clarity 

to the public, and believes that the other 

amendments will improve and clarify 

its existing regulations. 

Administrative Procedure Act 

The Administrative Procedure Act 

provides at 5 U.S.C. 553(b) that notice 

and comment requirements do not 

apply when an agency, for good cause, 

finds that they are impracticable, 

unnecessary, or contrary to the public 

interest. 

With respect to the clarifications to 

the SFA withdrawal liability condition 

in § 4262.16(g)(2), as described in 

PBGC’s July 2022 final rule, Congress 

expressed a clear urgency for PBGC to 

implement an SFA program to get 

appropriate assistance to eligible plans 

as quickly as possible. Congress 

authorized PBGC to prioritize the filing 

of applications for eligible plans with 

the greatest need, during the first 2 years 

after March 11, 2021, and PBGC 

provided for such a process. Plans that 

suspended benefits under section 

4245(a) of ERISA have been eligible to 

apply for SFA since July 12, 2021, and 

plans that suspended benefits under 

section 305(e)(9) have been eligible to 

apply since December 27, 2021. In 2022, 

plans began to receive payment of SFA 

and pay required make-up payments. 

This final rule provides clarifications 

needed by plan sponsors that pay makeup payments that will enable them to 

accurately calculate the amount of SFA 

excluded from plan assets for purposes 

of the withdrawal liability phase-in 

condition. Recognizing the importance 

of announcing these clarifications 

promptly, the changes to 

§§ 4262.16(g)(2)(viii), (ix), and (xvi)(D) 

were stated in sub-regulatory guidance. 

In addition, the amendment provides 

clarification for plans that repaid 

traditional financial assistance to PBGC. 

Thus, the amendments have the effect of 

increasing clarity of the calculation 

methodology for plan sponsors and 

employers. 

With respect to the amendment to 

§ 4041A.43(b)(1) in PBGC’s Termination 

of Multiemployer Plans regulation, the 

change conforms the regulation to the 

SECURE 2.0 change to enable certain 

plans to make lump-sum distributions 

up to the permissible threshold amount 

of $7,000 beginning January 1, 2024 

(from $5,000). PBGC is authorized under 

section 4041A(f)(1) of ERISA to permit 

the payment in a lump sum of benefits 

that exceed $1,750. In order to approve 

these higher distributions, PBGC must 

find that they are not adverse to the 

interests of the plan’s participants and 

beneficiaries generally and do not 

unreasonably increase PBGC’s risk of 

loss with respect to the plan. When a 

plan is being closed out under subpart 

D of part 4041A, a higher distribution 

threshold would not be adverse to the 

interests of the plan’s participants and 

beneficiaries, since their nonforfeitable 

benefits must be fully satisfied as part 

of the closeout. This fact also ensures 

that the higher threshold will not 

unreasonably increase PBGC’s risk of 

loss with respect to the plan. In 

addition, because the SECURE 2.0 

change applies to distributions after 

December 31, 2023, conforming the 

regulation without delay will simplify 

plan administration and be in the best 

interests of participants and 

beneficiaries who may request lumpsum distributions. The other 

amendments in this final rule are minor 

technical amendments to update and 

correct PBGC’s regulations; notice and 

comment are unnecessary because the 

amendments effect no substantive 

changes to any regulation. 

Accordingly, PBGC has determined 

that the amendments in this final rule 

fall under the ‘‘good cause’’ exemption 

of the Administrative Procedure Act at 

5 U.S.C. 553(b)(3)(B) and that the public 

interest is best served by issuing this 

final rule expeditiously, without further 

opportunity for notice and comment. 

Regulatory Flexibility Act 

Because PBGC is not publishing a 

general notice of proposed rulemaking 

under 5 U.S.C. 553(b), the regulatory 

flexibility analysis requirements of the 

Regulatory Flexibility Act do not apply. 

See 5 U.S.C. 601(2). 

List of Subjects 

29 CFR Part 4000 

Administrative practice and 

procedure, Employee benefit plans, 

Pension insurance, Pensions, Reporting 

and recordkeeping requirements. 

29 CFR Part 4003 

Administrative practice and 

procedure, Organization and functions 

(Government agencies), Pension 

insurance. 

29 CFR Part 4006 

Employee benefit plans, Pension 

insurance. 


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76664 Federal Register / Vol. 88, No. 214 / Tuesday, November 7, 2023 / Rules and Regulations 

29 CFR Part 4010 

Employee benefit plans, Penalties, 

Pension insurance, Pensions, Reporting 

and recordkeeping requirements. 

29 CFR Part 4022 

Employee benefit plans, Pension 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

29 CFR Part 4041A 

Employee benefit plans, Pension 

insurance, Reporting and recordkeeping 

requirements. 

29 CFR Part 4043 

Employee benefit plans, Pension 

insurance, Reporting and recordkeeping 

requirements. 

29 CFR Part 4211 

Employee benefit plans, Pension 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

29 CFR Part 4262 

Employee benefit plans, Pension 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, PBGC is amending 29 CFR 

parts 4000, 4003, 4006, 4010, 4022, 

4041A, 4043, 4211, and 4262 as follows. 

PART 4000—FILING, ISSUANCE, 

COMPUTATION OF TIME, AND 

RECORD RETENTION 

■ 1. The authority citation for part 4000 

continues to read as follows: 

Authority: 29 U.S.C. 1083(k), 1302(b)(3). 

§ 4000.4 [Amended] 

■ 2. Amend § 4000.4 by removing the 

words ‘‘TTY/TDD users may call the 

Federal relay service toll-free at 1–800– 

877–8339 and ask to be connected to the 

appropriate number’’ and adding in 

their place the words ‘‘If you are deaf or 

hard of hearing or have a speech 

disability, please dial 7–1–1 to access 

telecommunications relay services’’. 

§ 4000.28 [Removed and Reserved] 

■ 3. Remove and reserve § 4000.28. 

PART 4003—RULES FOR 

ADMINISTRATIVE REVIEW OF 

AGENCY DECISIONS 

■ 4. The authority citation for part 4003 

continues to read as follows: 

Authority: 29 U.S.C. 1302(b)(3). 

§ 4003.35 [Amended] 

■ 5. Amend § 4003.35 in paragraph (a) 

introductory text by removing the word 

‘‘final’’ and in paragraph (a)(1) by 

removing the words ‘‘decision on 

request’’ and adding in their place the 

words ‘‘decision on a request’’. 

PART 4006—PREMIUM RATES 

■ 6. The authority citation for part 4006 

continues to read as follows: 

Authority: 29 U.S.C. 1302(b)(3), 1306, 

1307. 

§ 4006.3 [Amended] 

■ 7. Amend § 4006.3 by: 

■ a. Removing the phrase ‘‘ERISA 

section 4006(a)(3)(A), (F), and (G)’’ and 

adding in its place the phrase ‘‘section 

4006(a)(3)(A) and (G) of ERISA’’ in 

paragraph (a)(1). 

■ b. Removing the phrase ‘‘ERISA 

section 4006(a)(3)(A), (H), and (J)’’ and 

adding in its place the phrase ‘‘section 

4006(a)(3)(A) and (J) of ERISA’’ in 

paragraph (a)(2). 

§ 4006.5 [Amended] 

■ 8. Amend § 4006.5 in paragraph (b) by 

removing the phrase ‘‘ERISA section 

4006(a)(3)(H)’’ and adding in its place 

the phrase ‘‘section 4006(a)(3)(I) of 

ERISA for certain small employers’’. 

PART 4010—ANNUAL FINANCIAL AND 

ACTUARIAL INFORMATION 

REPORTING 

■ 9. The authority citation for part 4010 

continues to read as follows: 

Authority: 29 U.S.C. 1302(b)(3), 1310. 

§ 4010.10 [Amended] 

■ 10. Amend § 4010.10 in paragraph (b) 

by removing ‘‘§ 4010.8(b)(1)’’ and 

adding in its place ‘‘§ 4010.8(b)(2)(i)’’. 

§ 4010.13 [Amended] 

■ 11. Amend § 4010.13 by removing the 

phrase ‘‘§ 4901.21(a)(3)’’ and adding in 

its place the phrase ‘‘§ 4901.21(a)’’. 

PART 4022—BENEFITS PAYABLE IN 

TERMINATED SINGLE-EMPLOYER 

PLANS 

■ 12. The authority citation for part 

4022 continues to read as follows: 

Authority: 29 U.S.C. 1302, 1322, 1322b, 

1341(c)(3)(D), and 1344. 

■ 13. Revise the section heading for 

§ 4022.7 to read as follows: 

§ 4022.7 Benefits payable in a lump sum. 

* * * * * 

PART 4041A—TERMINATION OF 

MULTIEMPLOYER PLANS 

■ 14. The authority citation for part 

4041A continues to read as follows: 

Authority: 29 U.S.C. 1302(b)(3), 1341a, 

1431, 1441. 

§ 4041A.43 [Amended] 

■ 15. Amend § 4041A.43 in paragraph 

(b)(1) by removing ‘‘$5,000’’ and adding 

in its place the words ‘‘the dollar 

amount specified in section 203(e)(1) of 

ERISA’’. 

PART 4043—REPORTABLE EVENTS 

AND CERTAIN OTHER NOTIFICATION 

REQUIREMENTS 

■ 16. The authority citation for part 

4043 continues to read as follows: 

Authority: 29 U.S.C. 1083(k), 1302(b)(3), 

1343. 

§ 4043.8 [Amended] 

■ 17. Amend § 4043.8 by removing 

‘‘§ 4901.21(a)(3)’’ and adding in its place 

‘‘§ 4901.21(a)’’. 

PART 4211—ALLOCATING UNFUNDED 

VESTED BENEFITS TO WITHDRAWING 

EMPLOYERS 

■ 18. The authority citation for part 

4211 continues to read as follows: 

Authority: 29 U.S.C. 1302(b)(3); 

1391(c)(1), (c)(2)(D), (c)(5)(A), (c)(5)(B), 

(c)(5)(D), and (f). 

§ 4211.31 [Amended] 

■ 19. Amend § 4211.31 in paragraph (b) 

by removing the words ‘‘subpart B of 

this part’’ and adding in its place the 

words ‘‘set forth in subpart B of this 

part’’. 

PART 4262—SPECIAL FINANCIAL 

ASSISTANCE BY PBGC 

■ 20. The authority citation for part 

4262 continues to read as follows: 

Authority: 29 U.S.C. 1302(b)(3), 1432. 

§ 4262.16 [Amended] 

■ 21. Amend § 4262.16 by revising 

paragraphs (g)(2)(viii) and (ix) and 

adding paragraph (g)(2)(xvi)(D) to read 

as follows: 

§ 4262.16 Conditions for special financial 

assistance. 

* * * * * 

(g) * * * 

(2) * * * 

(viii) SFA assets excluded. The value 

of the plan assets taken into account as 

of the end of each determination year is 

the value of the assets that would 

otherwise be taken into account in the 

absence of this provision reduced by the 

amount described in paragraph (g)(2)(ix) 

of this section. The value of plan assets 

determined under this paragraph 

(g)(2)(viii) may not be less than zero. 

(ix) Calculation of SFA assets 

excluded—(A) In general. Except for 

plans required to pay make-up 


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Federal Register / Vol. 88, No. 214 / Tuesday, November 7, 2023 / Rules and Regulations 76665 

payments described in § 4262.15(b), the 

amount described in this paragraph 

(g)(2)(ix)(A) is, as of the end of the 

determination year— 

(1) The total amount of special 

financial assistance paid to the plan 

under § 4262.12 (as determined under 

§ 4262.12(a) or (b), or under § 4262.12(b) 

and (c) for plans paid under a 

supplemented application, as 

applicable), minus the amount paid to 

PBGC under § 4262.12(e), as of the end 

of the determination year; 

(2) Multiplied by a fraction, the 

numerator of which is the number of 

years determined under paragraph 

(g)(2)(x) of this section as of the end of 

the determination year and the 

denominator of which is the number of 

years determined under paragraph 

(g)(2)(xi) of this section as of the end of 

the determination year. 

(B) Plans required to pay make-up 

payments. For plans required to pay 

make-up payments described in 

§ 4262.15(b), the amount described in 

this paragraph (g)(2)(ix)(B) is, as of the 

end of the determination year— 

(1) The total amount of special 

financial assistance paid to the plan 

under § 4262.12 (as determined under 

§ 4262.12(a) or (b), or under § 4262.12(b) 

and (c) for plans paid under a 

supplemented application, as 

applicable), minus the amount paid to 

PBGC under § 4262.12(e), and minus the 

amount of make-up payments paid by 

the plan to participants and 

beneficiaries under § 4262.15(b) 

whether the payments are made from 

SFA assets or non-SFA assets, as of the 

end of the determination year; 

(2) Multiplied by a fraction, the 

numerator of which is the number of 

years determined under paragraph 

(g)(2)(x) of this section as of the end of 

the determination year and the 

denominator of which is the number of 

years determined under paragraph 

(g)(2)(xi) of this section as of the end of 

the determination year. 

* * * * * 

(xvi) * * * 

(D) Example 4. In plan year 2022, Plan 

D received an SFA payment amount of 

$50,000,000 (not including the amount 

paid to PBGC for repayment of 

traditional financial assistance) and a 

supplemented SFA payment amount of 

$30,000,000. A total of $20,000,000 in 

lump-sum make-up payments were paid 

by Plan D in plan year 2022. An 

employer withdraws in 2023. At the end 

of the determination year (2022), the 

amount of SFA required to be excluded 

from assets equals $60,000,000 

($50,000,000 + $30,000,000— 

$20,000,000). If, instead, the make-up 

payments were paid by Plan D in plan 

year 2023, the amount of SFA required 

to be excluded from assets at the end of 

the determination year (2022) would 

equal $80,000,000. Under this scenario, 

Plan D’s unfunded vested benefit 

liability would be the same at the end 

of the determination year because the 

additional $20,000,000 of SFA required 

to be excluded from assets offsets the 

$20,000,000 in SFA that the plan still 

holds for make-up payments but has not 

yet distributed as of the end of the 

determination year. Similarly, if the 

employer withdraws in 2024, the makeup payments were paid in 2023, and the 

phase-in fraction was 9/10th for 2023, 

the amount of SFA excluded from the 

assets at the end of the determination 

year (2023) would be $54,000,000 (9/ 

10th × $60,000,000), where the 

$60,000,000 is calculated as the total 

$80,000,000 in SFA paid to the plan 

minus the $20,000,000 in make-up 

payments that were disbursed prior to 

the end of the determination year. 

Issued in Washington, DC. 

Gordon Hartogensis, 

Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2023–24268 Filed 11–6–23; 8:45 am] 

BILLING CODE 7709–02–P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 587 

Publication of Russian Harmful 

Foreign Activities Sanctions 

Regulations Web General License 73 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Publication of a Web General 

License. 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (OFAC) is publishing one 

general license (GL) issued pursuant to 

the Russian Harmful Foreign Activities 

Sanctions Regulations: GL 73, which 

was previously made available on 

OFAC’s website. 

DATES: GL 73 was issued on October 12, 

2023. See SUPPLEMENTARY INFORMATION

for additional relevant dates. 

FOR FURTHER INFORMATION CONTACT: 

OFAC: Assistant Director for Licensing, 

202–622–2480; Assistant Director for 

Regulatory Affairs, 202–622–4855; or 

Assistant Director for Compliance, 202– 

622–2490. 

SUPPLEMENTARY INFORMATION: 

Electronic Availability 

This document and additional 

information concerning OFAC are 

available on OFAC’s website: https://

ofac.treasury.gov. 

Background 

On October 12, 2023, OFAC issued GL 

73 to authorize certain transactions 

otherwise prohibited by the Russian 

Harmful Foreign Activities Sanctions 

Regulations, 31 CFR part 587. GL 73 was 

made available on OFAC’s website 

(https://ofac.treasury.gov) when it was 

issued. The text of this GL is provided 

below. 

OFFICE OF FOREIGN ASSETS 

CONTROL 

Russian Harmful Foreign Activities 

Sanctions Regulations 

31 CFR Part 587 

GENERAL LICENSE NO. 73 

Authorizing Limited Safety and 

Environmental Transactions Involving 

Certain Persons or Vessels 

(a) Except as provided in paragraph 

(c) of this general license, all 

transactions prohibited by Executive 

Order (E.O.) 14024 that are ordinarily 

incident and necessary to one of the 

following activities involving the 

blocked persons or vessels described in 

paragraph (b) are authorized through 

12:01 a.m. eastern standard time, 

January 8, 2024, provided that any 

payment to a blocked person must be 

made into a blocked account in 

accordance with the Russian Harmful 

Foreign Activities Sanctions Regulations 

(RuHSR): 

(1) The safe docking and anchoring of 

any of the blocked vessels listed in 

paragraph (b) of this general license 

(‘‘blocked vessels’’) in port; 

(2) The preservation of the health or 

safety of the crew of any of the blocked 

vessels; or 

(3) Emergency repairs of any of the 

blocked vessels or environmental 

mitigation or protection activities 

relating to any of the blocked vessels. 

(b) The authorization in paragraph (a) 

of this general license applies to the 

following blocked persons and vessels 

listed on the Office of Foreign Assets 

Control’s Specially Designated 

Nationals and Blocked Persons List and 

any entity in which any of the following 

persons own, directly or indirectly, 

individually or in the aggregate, a 50 

percent or greater interest: 

(1) Ice Pearl Navigation Corp 

(registered owner of YASA GOLDEN 

BOSPHORUS, IMO 9334038); or 


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