Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Proposed Rules 32815 

Issued under authority provided by 49 

U.S.C. 106(f) and 44701(a) in Washington, 

DC, on July 2, 2018. 

Dorenda D. Baker, 

Executive Director, Aircraft Certification 

Service. 

[FR Doc. 2018–15154 Filed 7–13–18; 8:45 am] 

BILLING CODE 4910–13–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4041A, 4245, and 4281 

RIN 1212–AB38 

Terminated and Insolvent 

Multiemployer Plans and Duties of 

Plan Sponsors 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Proposed rule. 

SUMMARY: The Pension Benefit Guaranty 

Corporation proposes to amend its 

multiemployer reporting, disclosure, 

and valuation regulations to reduce the 

number of actuarial valuations required 

for smaller plans terminated by mass 

withdrawal, add a valuation filing 

requirement and a withdrawal liability 

reporting requirement for certain 

terminated plans and insolvent plans, 

remove certain insolvency notice and 

update requirements, and reflect the 

repeal of the multiemployer plan 

reorganization rules. 

DATES: Comments must be submitted on 

or before September 14, 2018 to be 

assured of consideration. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. (Follow the online 

instructions for submitting comments.) 

• Email: reg.comments@pbgc.gov. 

Refer to RIN 1212–AB38 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 must include the 

agency’s name (Pension Benefit 

Guaranty Corporation, or PBGC) and the 

RIN for this rulemaking (RIN 1212– 

AB38). All comments received will be 

posted without change to PBGC’s 

website, 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 800– 

877–8339 and ask to be connected to 

202–326–4040.) 

FOR FURTHER INFORMATION CONTACT: 

Hilary Duke (duke.hilary@pbgc.gov), 

Assistant General Counsel for 

Regulatory Affairs, Office of the General 

Counsel, Pension Benefit Guaranty 

Corporation, 1200 K Street NW, 

Washington, DC 20005–4026; 202–326– 

4400, extension 3839. (TTY users may 

call the Federal relay service toll-free at 

800–877–8339 and ask to be connected 

to 202–326–4400, extension 3839.) 

SUPPLEMENTARY INFORMATION: 

Executive Summary—Purpose of the 

Regulatory Action 

This proposed rule would make 

certain reporting and disclosure of 

multiemployer information to PBGC and 

interested parties more efficient and 

reflect the repeal of the multiemployer 

plan reorganization rules. The proposal 

would reduce costs by allowing smaller 

plans terminated by mass withdrawal to 

perform actuarial valuations less 

frequently and by removing certain 

notice requirements for insolvent plans. 

This would reduce plan administrative 

costs and, in turn, may reduce financial 

assistance provided by PBGC. 

PBGC’s legal authority for this action 

is based on 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; 

section 4041A(f)(2) of ERISA, which 

gives PBGC authority to prescribe 

reporting requirements for terminated 

plans; section 4245(e) of ERISA, which 

directs PBGC to prescribe requirements 

for notices regarding multiemployer 

plan insolvency; section 4261 of ERISA, 

which authorizes PBGC to provide 

financial assistance to insolvent plans, 

and section 4281(d)(3) of ERISA, which 

directs PBGC to prescribe requirements 

for notices to plan participants and 

beneficiaries in the event of a benefit 

suspension by an insolvent plan. 

Executive Summary—Major Provisions 

of the Regulatory Action 

Plan Sponsor Duties—Annual Valuation 

and Withdrawal Liability 

The plan sponsor of a multiemployer 

plan terminated by mass withdrawal is 

responsible for specific duties, 

including an annual actuarial valuation 

of the plan’s assets and benefits. This 

proposed rule would reduce 

administrative burden by allowing the 

plan sponsor to perform an actuarial 

valuation only every 5 years if the 

present value of the plan’s 

nonforfeitable benefits is $50 million or 

less. The proposed rule would add a 

new requirement for plan sponsors of 

certain terminated or insolvent plans to 

file actuarial valuations with PBGC. 

Where the present value of the plan’s 

nonforfeitable benefits is $50 million or 

less, a plan receiving financial 

assistance from PBGC would be able to 

file alternative valuation information. 

The plan sponsor of a multiemployer 

plan also is responsible for determining, 

giving notice of, and collecting 

withdrawal liability. The proposal 

would require plan sponsors of certain 

terminated or insolvent plans to file 

with PBGC information about 

withdrawal liability payments and 

whether any employers have withdrawn 

but have not yet been assessed 

withdrawal liability. 

Insolvency Notices and Updates 

A multiemployer plan terminated by 

mass withdrawal that is insolvent or is 

expected to be insolvent for a plan year 

must provide certain notices to PBGC 

and participants and beneficiaries. 

Similarly, a multiemployer plan that is 

certified by the plan’s actuary to be in 

critical status and that is expected to 

become insolvent under section 4245 of 

ERISA must provide certain notices to 

PBGC and interested parties. Notices 

include a notice of insolvency and a 

notice of insolvency benefit level. The 

proposed rule would eliminate outdated 

information included in the notices. The 

proposal would require a plan to 

provide notices of insolvency if the plan 

sponsor determines the plan is insolvent 

in the current plan year or is expected 

to be insolvent in the next plan year. 

The proposal also would eliminate the 

requirement to provide most annual 

updates to the notices of insolvency 

benefit level. 

Background 

The Pension Benefit Guaranty 

Corporation (PBGC) administers two 

insurance programs for private-sector 

defined benefit pension plans under 

title IV of the Employee Retirement 

Income Security Act of 1974 (ERISA): A 

single-employer plan termination 

insurance program and a multiemployer 

plan insolvency insurance program. In 

general, a multiemployer pension plan 

is a collectively bargained plan 

involving two or more unrelated 

employers. This proposed rule deals 

with multiemployer plans. 

Under section 4041A of ERISA, a 

mass withdrawal termination of a plan 

occurs when all employers withdraw or 

cease to be obligated to contribute to the 

plan. A plan terminated by mass 


sradovich on DSK3GMQ082PROD with PROPOSALS
32816 Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Proposed Rules 

1Termination of a multiemployer plan by plan 

amendment is determined under section 

4041A(a)(1) of ERISA. 

2 In 2014, PBGC amended its regulations to 

reduce the number of actuarial valuations required 

for certain smaller terminated plans and remove 

certain insolvency notice and update requirements. 

See 79 FR 30459 (May 28, 2014). This rulemaking 

is a continuation of that effort to reduce plan 

burden. 

3PBGC Regulatory Planning and Review of 

Existing Regulations, Request for Information (82 

FR 34619, July 26, 2017). 

4No valuation is required for a plan year in which 

the plan is closed out in accordance with subpart 

D of part 4041A. 

5Section 4041A.24(a)(2) of PBGC’s termination 

regulation currently excludes plans receiving 

financial assistance from PBGC from the annual 

actuarial valuation requirement. 

withdrawal continues to pay all vested 

benefits from existing plan assets and 

withdrawal liability payments from 

withdrawn employers. PBGC’s financial 

assistance to the terminated plan starts 

only if and when the plan sponsor 

determines that the plan is insolvent 

under section 4281(d) of ERISA. PBGC 

also provides financial assistance to 

certain plans in critical status that are 

not terminated or are terminated by plan 

amendment 1 if the plan sponsor 

determines that the plan is insolvent 

under section 4245 of ERISA. 

Before 2015, financially troubled 

multiemployer plans entered a 

‘‘reorganization’’ status if their funding 

was below a certain level. Plans in 

reorganization status were subject to 

certain rules affecting plan funding, 

benefits, and reporting and disclosure. 

The plan sponsor of a plan in 

reorganization that determined the plan 

was insolvent or was expected to be 

insolvent for a plan year was required 

to provide PBGC and interested parties 

notices regarding the plan’s insolvency. 

The Pension Protection Act of 2006 

established critical and endangered 

statuses for underfunded plans and 

provided new tools to help 

multiemployer plans in those statuses 

improve plan funding but did not repeal 

the reorganization rules. Section 108 of 

the Multiemployer Pension Reform Act 

of 2014 (MPRA) repealed the rules on 

reorganization under section 4241 of 

ERISA effective for plan years beginning 

after December 31, 2014. MPRA also 

amended the notice requirements under 

section 4245(e) of ERISA and 418E(e) of 

the Internal Revenue Code (Code) to 

replace the references to a plan in 

reorganization with references to a plan 

in critical status. These amendments did 

not substantively change the notice 

requirements. 

This proposed rule would reduce 

reporting and disclosure requirements 

for multiemployer plans that are 

terminated by mass withdrawal or in 

critical status and that are, or are 

expected to be, insolvent.2 PBGC 

identified these proposed amendments 

as part of its ongoing retrospective 

review under Executive Order 13563 

‘‘Improving Regulation and Regulatory 

Review.’’ Executive Order 13563 

provides for Federal regulations to use 

less burdensome means to achieve 

policy goals, and for agencies to give 

careful consideration to the benefits and 

costs of those regulations. Comments 

received from one commenter in 

response to PBGC’s July 2017 Request 

for Information3 support the proposed 

changes to reduce notice requirements 

for insolvent plans. 

Proposed Regulatory Changes 

Annual Valuation Requirement 

PBGC’s regulation on Termination of 

Multiemployer Plans (29 CFR part 

4041A) establishes rules for the 

administration of multiemployer plans 

that have terminated by mass 

withdrawal, including basic duties of 

plan sponsors of plans terminated by 

mass withdrawal. Among the 

requirements, the plan sponsor of a plan 

terminated by mass withdrawal must 

value the plan’s nonforfeitable benefits 

and assets as of the last day of the plan 

year in which the plan terminates and 

the last day of each plan year thereafter. 

The details of the annual actuarial 

valuation requirement are provided in 

subpart B of PBGC’s regulation on 

Duties of Plan Sponsor Following Mass 

Withdrawal (29 CFR part 4281). 

The plan sponsor of a plan terminated 

by mass withdrawal uses the annual 

actuarial valuation to determine 

whether the value of nonforfeitable 

benefits exceeds the value of assets. If 

benefits exceed assets, the plan may 

need to reduce benefits. If no benefits 

are subject to reduction, the plan will 

continue to make periodic 

determinations of plan solvency. The 

proposed rule would revise § 4041A.25 

of the multiemployer termination 

regulation to clarify the timing of the 

plan sponsor’s determinations of plan 

solvency by combining similar 

provisions to eliminate repetition and 

by removing potentially confusing 

language. 

The plan sponsor of a plan in critical 

status must also make determinations of 

plan solvency. If the plan sponsor 

determines under section 4245(d) of 

ERISA that the plan is expected to be 

insolvent for a plan year, the plan must 

file a notice with PBGC, including a 

copy of the most recent actuarial 

valuation for the plan. PBGC uses the 

annual actuarial valuation to estimate 

the liabilities PBGC will incur when the 

plan becomes insolvent and for 

purposes of its financial statements. 

PBGC is proposing to reduce the 

number of plans terminated by mass 

withdrawal that are required to prepare 

an annual actuarial valuation. Section 

4041A.24 of the multiemployer 

termination regulation provides that if 

the value of nonforfeitable benefits for a 

plan terminated by mass withdrawal is 

$25 million or less as determined for a 

plan year, the plan sponsor may use the 

actuarial valuation for the next two 

years and perform a new actuarial 

valuation for the third plan year. The 

proposed rule would increase the 

threshold requirement for plans and 

allow them to use less frequent actuarial 

valuations. A plan would be able to use 

an actuarial valuation for 5 years if the 

present value of the plan’s 

nonforfeitable benefits is $50 million or 

less and be in compliance with the 

statutory requirement that there be an 

annual written determination of the 

value of the plan’s nonforfeitable 

benefits and the plan’s assets. 

If the present value of a plan’s 

nonforfeitable benefits exceeds $50 

million, the plan would continue to be 

required to perform actuarial valuations 

annually.4 Plans could move in and out 

of the 5-year or annual valuation cycle, 

as applicable, as the value of 

nonforfeitable benefits changes. Thus, a 

plan that had been using an actuarial 

valuation for 5 years would be required 

to perform actuarial valuations annually 

if the most recent actuarial valuation 

indicates that the present value of the 

plan’s nonforfeitable benefits exceeds 

$50 million. Similarly, a plan that had 

been performing the actuarial valuation 

annually would be able to use the 

actuarial valuation for 5 years if the 

most recent actuarial valuation shows 

the present value of the plan’s 

nonforfeitable benefits to be $50 million 

or less. 

To estimate PBGC’s multiemployer 

plan liabilities, PBGC also is proposing 

to add the annual actuarial valuation 

requirement for insolvent plans 

receiving financial assistance from 

PBGC (whether terminated or not 

terminated) and plans terminated by 

plan amendment that are expected to 

become insolvent.5 The provision 

allowing smaller plans to use less 

frequent actuarial valuations would be 

available to these plans. In addition, 

where the present value of the plan’s 

nonforfeitable benefits is $50 million or 

less, a plan receiving financial 

assistance from PBGC could comply 

with the actuarial valuation requirement 

by filing alternative information as 


sradovich on DSK3GMQ082PROD with PROPOSALS
Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Proposed Rules 32817 

6See 29 CFR 4219.17. 

7PBGC may prescribe reporting requirements for 

terminated plans under section 4041A(f)(2) of 

ERISA. 

8See PBGC FY 2017 Annual Report, page 94 at 

https://www.pbgc.gov/sites/default/files/pbgcannual-report-2017.pdf. 

specified in valuation instructions on 

PBGC’s website. 

SUMMARY OF ACTUARIAL VALUATION FILING REQUIREMENTS

Size of plan according to most recent actuarial valuation 

Frequency of actuarial 

valuation: terminated plans 

and insolvent plans 

Alternative information 

permitted to be filed: plans 

receiving financial assistance 

Present Value of Plan’s Nonforfeitable Benefits is $50 Million or Less .............. Every 5 Years .......................... Yes.

Present Value of Plan’s Nonforfeitable Benefits Exceeds $50 Million ................ Each Year ................................ No.

The proposed amendments would 

enable PBGC to continue to have 

reasonably reliable data to measure its 

liabilities, while reducing burden on 

plans that present smaller exposure. 

PBGC currently obtains actuarial 

valuations for plans receiving financial 

assistance by contacting plan sponsors. 

The proposal would require a plan 

sponsor to file the plan’s actuarial 

valuation with PBGC within 180 days 

after the end of the plan year for which 

the actuarial valuation is performed. 

Having plans file the actuarial valuation 

or alternative valuation information 

within the proposed time period would 

provide for a more efficient process for 

plans and PBGC. The proposed rule 

would also make clarifications and 

other editorial changes to part 4041A. 

Withdrawal Liability Payments 

The plan sponsor of a multiemployer 

plan is required to determine and 

collect withdrawal liability in 

accordance with section 4219 of ERISA. 

The plan sponsor assesses withdrawal 

liability by issuing a notice to an 

employer, including the amount of the 

employer’s liability and a schedule of 

payments. The plan sponsor also must 

file with PBGC a certification that 

notices have been provided to 

employers.6

PBGC uses information about 

withdrawal liability payments and 

settlements, and whether employers 

have withdrawn from the plan but have 

not yet been assessed withdrawal 

liability, to estimate PBGC’s 

multiemployer liabilities for purposes of 

its financial statements and to provide 

financial assistance to plans.7 It is 

particularly important for PBGC to 

identify all sources of available funding 

given the declining financial position of 

the multiemployer program. As of 

September 30, 2017, there were 72 

insolvent plans that received financial 

assistance from PBGC and 68 terminated 

plans not yet receiving financial 

assistance.8 The number of plans 

receiving and expected to receive 

financial assistance led PBGC to 

examine the way it obtains withdrawal 

liability information. 

PBGC is proposing that plan sponsors 

of plans subject to the actuarial 

valuation requirement (plans terminated 

by mass withdrawal, plans terminated 

by plan amendment that are expected to 

become insolvent, and insolvent plans 

receiving financial assistance from 

PBGC (whether terminated or not 

terminated)), file with PBGC 

information about withdrawal liability, 

in the aggregate and by employer, that 

the plan has or has not yet assessed 

withdrawn employers. The information 

would be specified in the withdrawal 

liability instructions on PBGC’s website. 

For each employer not yet assessed 

withdrawal liability, information would 

include the name of the employer and 

the reasons the employer has not yet 

been assessed withdrawal liability. For 

each employer assessed withdrawal 

liability, information would include the 

name of the employer and whether there 

are scheduled periodic payments or 

there has been a lump-sum settlement. 

For periodic payments, information 

would include the start date, end date, 

frequency of payment (monthly, 

quarterly, annually), amount of 

payment, and whether the employer is 

current on making its payments. For 

lump sum settlements, information 

would include the amount and date of 

payment. To satisfy the filing 

requirement for employers assessed 

withdrawal liability, a plan sponsor 

could choose to file documents already 

prepared containing the withdrawal 

liability information for each employer, 

such as withdrawal liability notices 

setting forth scheduled payments or 

withdrawal liability settlement 

agreements. 

The proposal would require a plan 

sponsor to file the withdrawal liability 

information with PBGC within 180 days 

after the earlier of the end of the plan 

year in which the plan terminates or 

becomes insolvent and each plan year 

thereafter, unless there is no updated 

information to file. Having plans file the 

withdrawal liability information 

electronically and within the proposed 

time period would provide for an 

efficient process for plans and PBGC. 

Terminated and Insolvent Plan Notices 

The plan sponsor of a multiemployer 

plan terminated by mass withdrawal 

must make determinations of insolvency 

annually in accordance with section 

4281 of ERISA and the plan sponsor of 

a multiemployer plan in critical status 

must make determinations of insolvency 

in accordance with section 4245(d) of 

ERISA. When the plan sponsor of a 

multiemployer plan determines that the 

plan’s resources are not sufficient to pay 

the promised level of benefits stated in 

the plan when due during the plan year, 

the plan sponsor must suspend benefits 

above the amount that assets will cover. 

However, benefits may not be reduced 

to an amount less than the PBGC 

guarantee level. Plans that are not able 

to pay benefits at the promised level of 

benefits stated in the plan are required 

to notify PBGC and plan participants 

and beneficiaries. 

The notice requirements for plans that 

have terminated by mass withdrawal are 

provided under subpart D of PBGC’s 

regulation on Duties of Plan Sponsor 

Following Mass Withdrawal (29 CFR 

part 4281). Similar notice requirements 

are provided for plans that are in critical 

status under PBGC’s regulation on 

Notice of Insolvency (29 CFR part 4245). 

Under the latter, in addition to notifying 

PBGC and participants and 

beneficiaries, plans must notify other 

interested parties, including employers 

required to contribute to the plan and 

employee organizations that, for 

collective bargaining purposes, 

represent participants employed by 

such employers. 

There are two types of notice that 

plans must provide: A ‘‘notice of 

insolvency,’’ stating the plan year that 

the plan is insolvent or is expected to 

be insolvent, and a ‘‘notice of 

insolvency benefit level,’’ stating the 

level of benefits that will be paid during 


sradovich on DSK3GMQ082PROD with PROPOSALS
32818 Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Proposed Rules 

9Section 4000.3(b)(4) of PBGC’s regulation on 

Filing, Issuance, Computation of Time, and Record 

Retention requires, with exceptions, filings to PBGC 

under parts 4041A, 4245, and 4281 to be made 

electronically in accordance with the instructions 

on PBGC’s website, except as otherwise provided by 

PBGC. 

a plan year in which a plan is insolvent. 

The proposed rule would require the 

plan sponsor of a critical status plan or 

of a plan terminated by mass 

withdrawal to provide notices of 

insolvency if it determines that the plan 

is insolvent in the current plan year or 

is expected to be insolvent in the next 

plan year. The proposal also would 

make the timing of the delivery of the 

notice of insolvency and the notice of 

insolvency benefit level the same—by 

the later of 90 days before the beginning 

of the insolvency year or 30 days after 

the date the insolvency determination is 

made. In addition, the proposal would 

allow the plan sponsor to provide one 

combined notice for the same 

insolvency year. 

PBGC’s regulations currently require 

plan sponsors to provide the notice of 

insolvency benefit level annually. 

PBGC’s experience has been that 

virtually all multiemployer plans that 

become insolvent will remain so. Thus, 

once a plan sponsor has provided the 

initial notice of insolvency benefit level, 

there is little need to require the plan 

sponsor to provide similar subsequent 

notices. Consequently, PBGC is 

proposing to eliminate most of the 

annual updates to the notices of 

insolvency benefit level. The plan 

sponsor would provide updated notices 

to PBGC and to all participants and 

beneficiaries only if there is a change in 

the amount of benefits paid that affects 

participants and beneficiaries generally. 

If a participant or beneficiary enters pay 

status or is reasonably expected to enter 

pay status during the insolvency year, or 

there is a change in benefit level that 

affects only one participant or 

beneficiary or a participant class, a 

notice would only be required to be 

provided to PBGC and to each affected 

person. For example, in the latter case, 

if a participant enters pay status or a 

participant’s death results in the 

payment of benefits to the participant’s 

beneficiary, only PBGC and those 

affected participants and beneficiaries 

would be provided notices. 

Plan sponsors are required to 

electronically file notices of 

termination, notices of insolvency, and 

notices of insolvency benefit level.9 The 

proposed rule would move the content 

requirements for these notices filed with 

PBGC from the regulations to 

instructions available on PBGC’s 

website. PBGC generally considers it 

preferable to describe information to be 

filed only in the filing instructions, and 

not in the regulation prescribing the 

filing, to avoid having two authoritative 

descriptions of the same requirements 

and to make it easier for filers to find 

the information they need in one place. 

The proposed rule also would make 

changes to the contents of the notice of 

insolvency and notice of insolvency 

benefit level by eliminating outdated 

information and, consistent with MPRA, 

by removing references to 

reorganization in the notice of 

insolvency regulation. The proposed 

rule would also make clarifications and 

other editorial changes to parts 4245 

and 4281. 

Application for Financial Assistance 

The plan sponsor of a multiemployer 

plan must apply to PBGC for financial 

assistance if the plan sponsor 

determines that the plan’s resource 

benefit level will be below the level of 

benefits guaranteed by PBGC or that the 

plan will be unable to pay guaranteed 

benefits when due for any month during 

the year. Section 4281.47 of PBGC’s 

duties of plan sponsor regulation 

requires a plan sponsor to file an initial 

application with PBGC at the same time 

that it files a notice of insolvency 

benefit level. When the plan sponsor 

determines an inability to pay 

guaranteed benefits for any month, the 

plan sponsor must file a recurring 

application within 15 days after the 

plan sponsor makes the determination. 

To provide PBGC adequate time to 

review applications for financial 

assistance, the proposed rule would 

require an initial application to be filed 

no later than 90 days before the first day 

of the month for which the plan sponsor 

has determined that the resource benefit 

level will be below the level of 

guaranteed benefits. The proposed rule 

would require a recurring application to 

be filed as soon as practicable after the 

plan sponsor determines the plan will 

be unable to pay guaranteed benefits 

when due for a month and make other 

editorial changes. The contents of the 

applications for financial assistance 

would be moved from the regulations to 

instructions on PBGC’s website. 

Applicability 

The amendments to §§ 4041A.2, 

4041A.12 and 4041A.25 of the 

multiemployer termination regulation 

that make changes to the definitions, the 

content of the notice of termination, and 

the determination of plan solvency 

would be applicable as of the effective 

date of the final rule. 

The amendments to § 4041A.23 of the 

multiemployer termination regulation 

and to part 4245 that require plan 

sponsors to file with PBGC withdrawal 

liability information would be 

applicable for plan years ending after 

the effective date of the final rule. 

The amendments to § 4041A.24 of the 

multiemployer termination regulation 

and to part 4245 that change the annual 

actuarial valuation requirement would 

be applicable to actuarial valuations 

prepared for plan years ending after the 

effective date of the final rule. 

The amendments to part 4245 and 

part 4281 that make changes to the 

content and timing of the notices of 

insolvency and notices of insolvency 

benefit level and that make changes to 

the timing of an application for financial 

assistance would be applicable as of the 

effective date of the final rule. 

Executive Orders 12866, 13563, and 

13771 

PBGC has determined that this 

rulemaking is not a ‘‘significant 

regulatory action’’ under Executive 

Order 12866 and Executive Order 

13771. Accordingly, this proposed rule 

is exempt from Executive Order 13771 

and OMB has not reviewed the rule 

under Executive Order 12866. 

Executive Orders 12866 and 13563 

direct 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). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This 

proposed rule is associated with 

retrospective review and analysis in 

PBGC’s Plan for Regulatory Review 

issued in accordance with Executive 

Order 13563. 

Although this is not a significant 

regulatory action under Executive Order 

12866, PBGC has examined the 

economic implications of this proposed 

rule and has concluded that the 

amendments to the annual actuarial 

valuation requirements and notice of 

insolvency and notice of insolvency 

benefit level would reduce costs for 

multiemployer plans by approximately 

$438,000. The analysis is as follows. 

Annual Actuarial Valuation 

Requirement 

PBGC has estimated the value of this 

proposed rule for the annual actuarial 

valuation requirements for plans 

terminated by mass withdrawal that are 

not insolvent (assuming an annual 


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Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Proposed Rules 32819 

10The cost of an actuarial valuation varies greatly 

by plan size. Based on plan actuary experience, an 

actuarial valuation for a smaller plan where the 

present value of the plan’s nonforfeitable benefits 

is $50 million or less may cost approximately 

$10,000 to $35,000. 

11See, e.g., special rules for small plans under 

part 4007 (Payment of Premiums). 

12See, e.g., ERISA section 104(a)(2), which 

permits the Secretary of Labor to prescribe 

simplified annual reports for pension plans that 

cover fewer than 100 participants. 

13See, e.g., Code section 430(g)(2)(B), which 

permits plans with 100 or fewer participants to use 

valuation dates other than the first day of the plan 

year. 

14See, e.g., Department of Labor’s final rule on 

Prohibited Transaction Exemption Procedures, 76 

FR 66637, 66644 (Oct. 27, 2011). 

actuarial valuation cost of $12,000 per 

plan for plans whose nonforfeitable 

benefits have a present value of $25 

million or less and cost of $30,000 per 

plan for plans whose nonforfeitable 

benefits have a present value in the 

range of $25 to $50 million.10). As of the 

end of the 2017 fiscal year, there were 

68 terminated plans that were not 

insolvent. Of that total, there were 47 

plans whose nonforfeitable benefits 

have a present value of $25 million or 

less that will be able to use an actuarial 

valuation for 5 years instead of 3 years 

for annual savings of approximately 

$75,200 (47 × $12,000 × .1333 (1/3–1/5)) 

and 8 plans whose nonforfeitable 

benefits have a present value in the 

range of $25 to $50 million that will be 

able to use an actuarial valuation for 5 

years instead of 1 year for annual 

savings of approximately $192,000 (8 × 

$30,000 × .8 (1–1/5)). PBGC estimates 

annual aggregate savings of 

approximately $267,200 to these plans. 

As of the end of the 2017 fiscal year, 

there were 72 insolvent plans. Of that 

total, there were 15 insolvent plans 

whose nonforfeitable benefits have a 

present value exceeding $50 million. As 

PBGC currently obtains actuarial 

valuations from these insolvent plans 

and provides financial assistance for the 

cost of performing the actuarial 

valuations, PBGC believes there is no 

additional cost under this proposed rule 

for performing insolvent plan actuarial 

valuations. 

The savings under the proposed rule 

are offset by the annual cost of the 

actuarial valuation and alternative 

valuation filing requirements. PBGC 

estimates that each year, approximately 

40 plans will file actuarial valuations 

and approximately 10 plans will file 

alternative valuation information. As 

discussed below under the Paperwork 

Reduction Act analysis, PBGC estimates 

an annual aggregate hour burden of 20 

hours at an estimated dollar equivalent 

of $1,500 and an annual aggregate cost 

burden of $8,000. 

Withdrawal Liability Filing 

Under the proposed rule, PBGC 

expects to receive withdrawal liability 

information from approximately 140 

plans. As discussed below under the 

Paperwork Reduction Act analysis, 

PBGC estimates an annual hour burden 

of 140 hours at an estimated dollar 

equivalent of $10,500 and an annual 

cost burden of $56,000. 

Annual Notice Updates 

As discussed below under the 

Paperwork Reduction Act analysis, 

PBGC estimates that the annual 

aggregate cost of preparing the notice of 

insolvency and notice of insolvency 

benefit level without the proposed rule, 

and based on recent plan experience, is 

approximately $627,400 ($12,000 + 

$615,400). This estimate is based on an 

estimated 11 plans required to issue the 

notice of insolvency and 55 plans 

required to issue an annual update to 

the notice of insolvency benefit level. 

Allowing plans to issue a combined 

notice and eliminating most of the 

annual updates to the notice of 

insolvency benefit level will reduce the 

cost to $380,400, saving plans 

approximately $247,000 ($627,400 ¥ 

$380,400). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

imposes certain requirements with 

respect to rules that are subject to the 

notice and comment requirements of 

section 553(b) of the Administrative 

Procedure Act and that are likely to 

have a significant economic impact on 

a substantial number of small entities. 

Unless an agency determines that a rule 

is not likely to have a significant 

economic impact on a substantial 

number of small entities, section 603 of 

the Regulatory Flexibility Act requires 

that the agency present an initial 

regulatory flexibility analysis at the time 

of the publication of the proposed rule 

describing the impact of the rule on 

small entities and seeking public 

comment on such impact. Small entities 

include small businesses, organizations 

and governmental jurisdictions. 

Small Entities 

For purposes of the Regulatory 

Flexibility Act requirements with 

respect to this proposed rule, PBGC 

considers a small entity to be a plan 

with fewer than 100 participants. This 

is substantially the same criterion PBGC 

uses in other regulations 11 and is 

consistent with certain requirements in 

title I of ERISA 12 and the Code,13 as 

well as the definition of a small entity 

that the Department of Labor has used 

for purposes of the Regulatory 

Flexibility Act.14

Thus, PBGC believes that assessing 

the impact of the proposed rule on small 

plans is an appropriate substitute for 

evaluating the effect on small entities. 

The definition of small entity 

considered appropriate for this purpose 

differs, however, from a definition of 

small business based on size standards 

promulgated by the Small Business 

Administration (13 CFR 121.201) 

pursuant to the Small Business Act. 

PBGC therefore requests comments on 

the appropriateness of the size standard 

used in evaluating the impact on small 

entities of the proposed amendments. 

Certification 

On the basis of its definition of small 

entity, PBGC certifies under section 

605(b) of the Regulatory Flexibility Act 

(5 U.S.C. 601 et seq.) that the 

amendments in this rule will not have 

a significant economic impact on a 

substantial number of small entities. 

Based on data for the 2017 fiscal year, 

PBGC estimates that only 16 small plans 

of the approximately 1,400 plans 

covered by PBGC’s multiemployer 

program will be required to file 

withdrawal liability information and an 

actuarial valuation or alternative 

valuation information under the 

proposed rule. An estimated three small 

plans will be relieved of the burden to 

prepare and distribute an annual notice 

of insolvency benefit level update to 

participants and beneficiaries. This is 

not a substantial number of small plans. 

Accordingly, as provided in section 605 

of the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.), sections 603 and 604 

do not apply. 

Paperwork Reduction Act 

PBGC is submitting the information 

requirements under this proposed rule 

to the Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act. An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid OMB 

control number. 

The collection of information in part 

4041A is approved under control 

number 1212–0020 (expires November 

30, 2018). Based on recent plan 

experience, PBGC estimates that the 

current notice of termination and other 

requirements in part 4041A have an 

annual burden of 69 hours and a cost of 

$50,000, increased from an estimated 17 

hours and $3,850. 


sradovich on DSK3GMQ082PROD with PROPOSALS
32820 Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Proposed Rules 

PBGC estimates that the proposed 

changes to file withdrawal liability 

information electronically would have a 

minimal hour and cost burden as it is 

expected that the information would be 

easily accessible and that most plans 

would use documents already prepared 

containing withdrawal liability 

information. PBGC estimates that 

approximately 140 plans would file 

withdrawal liability information and 

that it would take each plan 

approximately 2 hours to electronically 

file the information. PBGC further 

estimates that the filings would be 

completed by pension fund office staff 

(50%) and outside attorneys (50%). The 

total hour burden would be 

approximately 140 hours of pension 

fund office time at an estimated dollar 

equivalent of $10,500 (based on an 

assumed hourly rate of $75 for 

administrative, clerical, and supervisory 

time). The total cost burden would be 

approximately $56,000 (based on 140 

contracted hours assuming an average 

hourly rate of $400). 

PBGC expects that an estimated 40 

plans (28 plans with nonforfeitable 

benefits that exceed $50 million plus 12 

plans with nonforfeitable benefits of $50 

million or less) would file actuarial 

valuations and that it would take each 

plan 30 minutes to file the information 

electronically. PBGC expects that an 

estimated 10 plans receiving financial 

assistance from PBGC would file 

alternative valuation information and 

that it would take each plan 2 hours to 

file the information electronically. 

PBGC further estimates that the filings 

would be completed by pension fund 

office staff (50%) and outside attorneys 

(50%). The total estimated hour burden 

to file the actuarial valuations and to 

complete and file the alternative 

valuation information would be 

approximately 20 hours of pension fund 

office time at an estimated dollar 

equivalent of $1,500 (based on an 

assumed hourly rate of $75 for 

administrative, clerical, and supervisory 

time). The total cost burden would be 

approximately $8,000 (based on 20 

contracted hours assuming an average 

hourly rate of $400). 

PBGC estimates that without the 

proposed rule there would be 2,111 

notices and responses and that the total 

annual burden of the collection of 

information in part 4041A would be 

about 69 hours and $50,000. PBGC 

estimates that with the proposed rule 

there would be 2,301 notices and 

responses each year and that the total 

annual burden of the collection of 

information would be an hour burden of 

about 229 hours for pension fund office 

time (69+140+20) at an estimated dollar 

equivalent of $17,175 and a cost burden 

for work by outside consultants of 

$114,000 ($50,000+$56,000+$8,000). 

The collection of information in part 

4245 is approved under control number 

1212–0033 (expires November 30, 

2018). PBGC estimates that only 1 plan 

would issue new notices of insolvency 

under part 4245 and that each year there 

would be 1,038 notices or combined 

notices issued to participants and 

beneficiaries, PBGC, and other 

interested parties. PBGC previously 

estimated that the notices were prepared 

and distributed by outside consultants 

and that the annual hour burden was 1 

hour and the annual cost burden was 

$723. Based on recent plan experience, 

the time to prepare and distribute the 

notices can vary significantly by plan 

size. PBGC estimates that without the 

proposed rule, the annual hour burden 

would be 20 hours and the annual cost 

burden would be $12,000. The proposed 

regulation would reduce the burden by 

allowing plans to combine the notice of 

insolvency and the notice of insolvency 

benefit level and by eliminating most of 

the annual updates to participants and 

beneficiaries. PBGC estimates the 

proposed rule would reduce the annual 

hour burden to 16 hours of pension 

fund office time and the annual cost 

burden for work by outside consultants 

to $10,000. 

The collection of information in part 

4281 is approved under control number 

1212–0032 (expires November 30, 

2018). PBGC expects to receive the 

following notices under part 4281: 1 

notice of benefit reduction; 10 notices of 

insolvency; 55 notices of insolvency 

benefit level; 10 initial applications for 

financial assistance; and 300 non-initial 

applications for financial assistance. 

PBGC’s estimates previously assumed 

that the notices were prepared and 

distributed by outside consultants. 

PBGC estimated an annual hour burden 

of 60 hours and an annual cost burden 

of $309,020. Based on recent plan 

experience and information that the 

notices are distributed by pension fund 

offices, PBGC estimates an annual hour 

burden of 1,300 hours and an annual 

cost burden of $615,400. Under the 

proposed rule, most of the annual 

updates to the notice of insolvency 

benefit level would be eliminated unless 

there is a change in benefit level. PBGC 

estimates the proposed change would 

reduce the number of plans issuing 

notices of insolvency benefit level from 

55 plans to approximately 5 plans. 

PBGC estimates that 13,826 notices and 

applications would be issued annually 

under part 4281. PBGC estimates that 

the proposed rule would reduce the 

annual hour burden to 240 hours of 

pension fund office time and the annual 

cost burden for work by outside 

consultants to $370,400. 

List of Subjects 

29 CFR Part 4041A 

Employee benefit plans, Pension 

insurance, Reporting and recordkeeping 

requirements. 

29 CFR Part 4245 

Employee benefit plans, Pension 

insurance, Reporting and recordkeeping 

requirements. 

29 CFR Part 4281 

Employee benefit plans, Pension 

insurance, Reporting and recordkeeping 

requirements. 

For the reasons given above, PBGC 

proposes to amend 29 CFR chapter XL 

and 29 CFR parts 4041A, 4245, and 

4281 as follows: 

PART 4041A—TERMINATION OF 

MULTIEMPLOYER PLANS 

■ 1. The authority citation for part 

4041A is revised to read as follows: 

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

1431, 1441. 

■ 2. In § 4041A.2: 

■ a. Add in alphabetical order a 

definition for ‘‘Actuarial valuation’’; 

■ b. Amend the definition of ‘‘Available 

resources’’ by removing ‘‘means, for a 

plan year, available’’ and adding in its 

place ‘‘means available’’; 

■ c. Amend the definition of ‘‘Benefits 

subject to reduction’’ by removing ‘‘the 

PBGC’s’’ and adding in its place 

‘‘PBGC’s’’; 

■ d. Amend the definition of ‘‘Financial 

assistance’’ by removing ‘‘the PBGC’’ 

and adding in its place ‘‘PBGC’’; 

■ e. Amend the definition of 

‘‘Insolvency benefit level’’ by removing 

‘‘the PBGC’’ and adding in its place 

‘‘PBGC’’; 

■ f. Amend the definition of ‘‘Insolvent’’ 

by removing in the first sentence ‘‘that 

a plan is unable’’ and adding in its place 

‘‘unable’’ and by removing the second 

sentence; 

■ g. Amend the definition of 

‘‘Nonguaranteed benefits’’ by removing 

‘‘the PBGC’s’’ and adding in its place 

‘‘PBGC’s’’. 

The addition reads as follows: 

§ 4041A.2 Definitions. 

* * * * * 

Actuarial valuation means a report 

submitted to a plan of a valuation of 

plan assets and liabilities that is 

performed in accordance with subpart B 

of part 4281 of this chapter. 

* * * * * 


sradovich on DSK3GMQ082PROD with PROPOSALS
Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Proposed Rules 32821 

§ 4041A.11 [Amended] 

■ 3. In § 4041A.11: 

■ a. Amend paragraph (a) by removing 

‘‘A Notice of Termination shall be filed 

with the PBGC’’ and adding in its place 

‘‘A notice of termination must be filed 

with PBGC’’; 

■ b. Amend the paragraph heading in 

paragraph (b) by removing ‘‘shall’’ and 

adding in its place ‘‘must’’ and the text 

is amended by removing ‘‘shall sign and 

file the Notice.’’ and adding in its place 

‘‘must sign and file the notice.’’; 

■ c. Amend paragraph (c)(1) by 

removing ‘‘the Notice shall be filed with 

the PBGC’’ and adding in its place ‘‘the 

notice must be filed with PBGC’’; 

■ d. Amend paragraph (c)(2) by 

removing ‘‘the Notice shall be filed with 

the PBGC’’ and adding in its place ‘‘the 

notice must be filed with PBGC’’; 

■ e. Amend paragraph (d) by removing 

‘‘Filings to PBGC’’ and adding in its 

place ‘‘Filings with PBGC’’. 

■ 4. Revise section 4041A.12 to read as 

follows: 

§ 4041A.12 Contents of notice. 

(a) Information to be contained in 

notice. A notice of termination under 

§ 4041A.11 required to be filed with 

PBGC must contain the information and 

certification specified in the 

instructions for the notice of 

termination on PBGC’s website 

(www.pbgc.gov). 

(b) Additional information. In 

addition to the information required 

under paragraph (a) of this section, 

PBGC may require the submission of 

any other information that PBGC 

determines is necessary for review of a 

notice of termination. 

§ 4041A.21 [Amended] 

■ 5. In § 4041A.21: 

■ a. Amend the first sentence by 

removing ‘‘shall’’ and adding in its 

place ‘‘must’’; 

■ b. Amend the second sentence by 

removing ‘‘shall be’’ and adding in its 

place ‘‘is’’ and by removing ‘‘this 

subpart.’’ and adding in its place ‘‘this 

subpart C.’’; 

■ 6. In § 4041A.23: 

■ a. Amend the section heading by 

removing ‘‘Imposition and collection of 

withdrawal liability.’’ and adding in its 

place ‘‘Withdrawal liability.’’; 

■ b. Redesignate the text of § 4041A.23 

as paragraph (a) with the paragraph 

heading ‘‘Collection of withdrawal 

liability.’’; 

■ c. Amend paragraph (a) by removing 

‘‘shall be responsible for determining, 

imposing and collecting’’ and adding in 

its place ‘‘must determine, give notice 

of, and collect’’ and by removing ‘‘part 

4219, subpart C,’’ and adding in its 

place ‘‘subpart C of part 4219’’; 

■ d. Add paragraph (b) to read as 

follows: 

§ 4041A.23 Withdrawal liability. 

* * * * * 

(b) Filing of withdrawal liability 

information. For each employer that has 

withdrawn from the plan, the plan 

sponsor must file with PBGC, not later 

than 180 days after the end of the plan 

year in which the plan terminates and 

each plan year thereafter, the 

information specified in the withdrawal 

liability instructions on PBGC’s website 

(www.pbgc.gov). 

■ 7. Revise § 4041A.24 to read as 

follows: 

§ 4041A.24 Plan valuations and 

monitoring. 

(a) Annual valuation requirement. 

The plan sponsor of a plan must have 

actuarial valuations performed in 

accordance with this section and with 

subpart B of part 4281. 

(1) Termination year valuation. The 

plan sponsor of a plan must have an 

actuarial valuation performed for the 

plan for the plan year in which the plan 

terminates. 

(2) High-obligation valuations. If the 

present value of a plan’s nonforfeitable 

benefits exceeds $50 million according 

to the most recent actuarial valuation 

under this paragraph (a), the plan 

sponsor must have an actuarial 

valuation performed for the plan for 

each plan year. 

(3) Low-obligation valuations. If the 

present value of a plan’s nonforfeitable 

benefits does not exceed $50 million 

according to the most recent actuarial 

valuation under this paragraph (a), the 

plan sponsor may treat that actuarial 

valuation as the actuarial valuation for 

each of the four plan years following the 

plan year for which the actuarial 

valuation was performed. 

(4) Timing and filing. Each actuarial 

valuation under this paragraph (a) must 

be performed within 150 days after the 

end of the plan year for which it is 

performed and must be filed with PBGC 

within 180 days after the end of that 

plan year in accordance with the 

valuation instructions on PBGC’s 

website (www.pbgc.gov). 

(5) Exception for plans closing out. 

Notwithstanding paragraphs (a)(1) 

through (a)(4) of this section, no 

actuarial valuation is required for the 

plan year in which a plan closes out 

under subpart D of this part. 

(b) Plan monitoring; benefit 

reductions—(1) Applicability. This 

paragraph (b) applies to a plan that is 

not receiving financial assistance from 

PBGC for the plan year following the 

plan year for which an actuarial 

valuation is performed under paragraph 

(a) of this section. 

(2) Funding level determination. Upon 

receipt of each actuarial valuation under 

paragraph (a) of this section, the plan 

sponsor must determine whether the 

value of nonforfeitable benefits exceeds 

the value of plan assets (including 

withdrawal liability claims). If it does, 

then the plan sponsor must— 

(i) Amend the plan to reduce benefits 

subject to reduction (if any) in 

accordance with the procedures in 

subpart C of part 4281 of this chapter to 

the extent necessary to ensure that the 

plan’s assets are sufficient to discharge 

when due all of the plan’s obligations 

with respect to nonforfeitable benefits 

or, if that result cannot be achieved, to 

the maximum extent possible; and 

(ii) If, after implementing the 

provisions of paragraph (b)(2)(i) of this 

section, the plan’s assets are insufficient 

to discharge when due all of the plan’s 

obligations with respect to 

nonforfeitable benefits, make 

determinations of plan solvency in 

accordance with § 4041A.25. 

(3) Notices of benefit reduction. The 

plan sponsor of a plan that is amended 

to reduce benefits under paragraph 

(b)(2)(i) of this section must provide 

participants and beneficiaries and PBGC 

notice of the benefit reduction in 

accordance with § 4281.32 of this 

chapter. 

(c) Alternative method of 

compliance—(1) Applicability. 

Paragraph (c) of this section applies to 

a plan that meets both of the following 

requirements— 

(i) The plan is receiving financial 

assistance from PBGC for the plan year 

following the plan year for which an 

actuarial valuation is required under 

paragraph (a) of this section. 

(ii) The present value of the plan’s 

nonforfeitable benefits does not exceed 

$50 million according to the most recent 

actuarial valuation under paragraph (a) 

of this section. 

(2) Alternative compliance 

requirements. A plan sponsor is 

considered to comply with the actuarial 

valuation and filing requirements of 

paragraph (a) of this section if both— 

(i) The plan sponsor files with PBGC 

the information in paragraph (c)(3) of 

this section within the time required for 

filing the actuarial valuation under 

paragraph (a)(4) of this section, and 

(ii) If, within 90 days after the plan 

sponsor makes the filing described in 

paragraph (c)(2)(i) of this section, PBGC 

requests other information reasonably 

required to determine the plan’s assets 

and liabilities, the plan sponsor files 

such other information within 60 days 

after PBGC’s request. 


sradovich on DSK3GMQ082PROD with PROPOSALS
32822 Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Proposed Rules 

(3) Information to be provided. The 

information the plan sponsor must file 

with PBGC under paragraph (c)(2)(i) of 

this section is all of the following: 

(i) The most recent summary plan 

description of the plan or the date the 

document was previously filed with 

PBGC. 

(ii) The most recent actuarial 

valuation of the plan or the date the 

document was previously filed with 

PBGC. 

(iii) Information reasonably necessary 

for PBGC to prepare an actuarial 

valuation as specified in the valuation 

instructions on PBGC’s website 

(www.pbgc.gov). 

■ 8. In § 4041A.25: 

■ a. Revise paragraphs (a) and (b); 

■ b. Amend paragraph (c) by removing 

‘‘shall’’ and adding in its place ‘‘must’’; 

■ c. Amend paragraph (d) by removing 

‘‘If the plan sponsor determines that the 

plan is, or is expected to be, insolvent 

for a plan year, it shall’’ and adding in 

its place ‘‘If the plan sponsor determines 

that the plan is insolvent in the current 

plan year or is expected to be insolvent 

in the next plan year it must’’ and by 

removing ‘‘the PBGC’’ and adding in its 

place ‘‘PBGC’’. 

The revisions read as follows: 

§ 4041A.25 Periodic determinations of plan 

solvency. 

(a) Annual insolvency determination. 

A plan that has no benefits subject to 

reduction and has assets insufficient to 

discharge when due all of the plan’s 

obligations with respect to 

nonforfeitable benefits must make 

periodic determinations of plan 

solvency in accordance with this 

paragraph (a). No later than six months 

before the beginning of the applicable 

plan year described in this paragraph 

(a), or as soon as practicable after the 

plan sponsor determines the applicable 

plan year, and no later than six months 

before each plan year thereafter, the 

plan sponsor must determine in writing 

whether the plan is expected to be 

insolvent for such plan year. The 

applicable plan year is— 

(1) For a plan that had no benefits 

subject to reduction when it terminated, 

the plan year the plan terminated; or 

(2) For a plan that eliminated benefits 

subject to reduction by amendment after 

termination, the plan year in which the 

amendment that eliminated all (or all 

remaining) benefits subject to reduction 

is effective. 

(b) Other determination of insolvency. 

Whether or not a prior determination of 

plan insolvency has been made under 

paragraph (a) of this section (or under 

section 4245 of ERISA), a plan sponsor 

that has reason to believe, taking into 

account the plan’s recent and 

anticipated financial experience, that 

the plan is insolvent in the current plan 

year or is expected to be insolvent in the 

next plan year must determine in 

writing whether the plan is or is 

expected to be insolvent for that plan 

year. 

* * * * * 

SUBCHAPTER J—INSOLVENCY, 

REORGANIZATION, TERMINATION, AND 

OTHER RULES APPLICABLE TO 

MULTIEMPLOYER PLANS 

■ 9. Amend the heading for Subchapter 

J by removing ‘‘reorganization,’’. 

PART 4245—NOTICE OF INSOLVENCY 

■ 10. The authority citation for part 

4245 is revised to read as follows: 

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

1431, 1426(e). 

■ 11. Revise the heading for Part 4245 

to read as follows: 

PART 4245—DUTIES OF PLAN 

SPONSOR OF AN INSOLVENT PLAN 

■ 12. Revise § 4245.1 to read as follows: 

§ 4245.1 Purpose, scope, and filing and 

issuance rules. 

(a) Purpose and scope. This part 

prescribes insolvency notice 

requirements and financial assistance 

requirements pertaining to critical status 

plans. Plans that have terminated by 

mass withdrawal under section 

4041A(a)(2) of ERISA are required to file 

and issue similar insolvency notices 

under part 4281 of this chapter and 

withdrawal liability and actuarial 

valuation information under part 4041A 

of this chapter. 

(b) Filing and issuance rules.—(1) 

Method of filing. Filing with PBGC 

under this part must be made by a 

method permitted under the rules in 

subpart A of part 4000 of this chapter. 

(2) Method of issuance. The issuance 

of the notice of insolvency benefit level 

to interested parties must be made by 

one of the following methods— 

(i) A method permitted under the 

rules in subpart B of part 4000 of this 

chapter. 

(ii) For interested parties other than 

participants and beneficiaries who are 

in pay status or reasonably expected to 

enter pay status during the insolvency 

year for which the notice is given, the 

plan sponsor may post the notice at 

participants’ work sites or publish the 

notice in a union newsletter or in a 

newspaper of general circulation in the 

area or areas where participants reside. 

Notice to a participant is deemed notice 

to that participant’s beneficiary or 

beneficiaries. 

(3) Filing and issuance dates. The 

date that a filing is sent and the date that 

an issuance is provided are determined 

under the rules in subpart C of part 4000 

of this chapter. 

(4) Where to file. Filings with PBGC 

under this part must be made as 

described in § 4000.4 of this chapter. 

(5) Computation of time. The time 

period for filing or issuance under this 

part must be computed under the rules 

in subpart D of part 4000 of this chapter. 

■ 13. In § 4245.2: 

■ a. Revise the definition of ‘‘Actuarial 

valuation’’; 

■ b. Amend the definition of ‘‘Available 

resources’’ by removing ‘‘means, for a 

plan year, available’’ and adding in its 

place ‘‘means available’’; 

■ c. Amend the definition of ‘‘Benefits 

subject to reduction’’ by removing ‘‘the 

PBGC’s’’ and adding in its place 

‘‘PBGC’s’’; 

■ d. Amend the definition of ‘‘Financial 

assistance’’ by removing ‘‘the PBGC’’ 

and adding in its place ‘‘PBGC’’; 

■ e. Amend the definition of 

‘‘Insolvency benefit level’’ by removing 

‘‘the PBGC’’ and adding in its place 

‘‘PBGC’’; 

■ f. Amend the definition of ‘‘Insolvent’’ 

by removing in the first sentence ‘‘that 

a plan is unable’’ and adding in its place 

‘‘unable’’ and by removing the second 

sentence; 

■ g. Add in alphabetical order a 

definition for ‘‘Interested parties’’; 

■ h. Remove the definition of 

‘‘Reorganization’’. 

The revision and addition read as 

follows: 

§ 4245.2 Definitions. 

* * * * * 

Actuarial valuation means a report 

submitted to a plan of a valuation of 

plan assets and liabilities that is 

performed in accordance with subpart B 

of part 4281 of this chapter. 

* * * * * 

Interested parties means, with respect 

to a plan,— 

(1) Employers required to contribute 

to the plan; 

(2) Employee organizations that, for 

collective bargaining purposes, 

represent plan participants employed by 

such employers; and 

(3) Plan participants and 

beneficiaries. 

* * * * * 

■ 14. Revise § 4245.3 to read as follows: 

§ 4245.3 Notice of insolvency. 

(a) Requirement of notice. The plan 

sponsor of a plan that determines that 

the plan is insolvent in the current plan 

year or is expected to be insolvent in the 

next plan year must file with PBGC a 


sradovich on DSK3GMQ082PROD with PROPOSALS
Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Proposed Rules 32823 

notice of insolvency containing the 

information described in § 4245.4(a) and 

must issue to interested parties a notice 

of insolvency containing the 

information described in § 4245.4(b). 

Once notices of insolvency with respect 

to a plan have been provided as 

required, no notices of insolvency need 

be provided with respect to the plan for 

any subsequent plan year. A notice of 

insolvency may be combined with a 

notice of insolvency benefit level under 

§ 4245.5 for the same plan year. 

(b) When to provide notice. The plan 

sponsor must provide the notices of 

insolvency under paragraph (a) of this 

section at the time described in 

§ 4281.43(b) of this chapter. 

■ 15. Revise § 4245.4 to read as follows: 

§ 4245.4 Contents of notice of insolvency. 

(a) Notice to PBGC. A notice of 

insolvency under § 4245.3 required to 

be filed with PBGC must contain the 

information and certification specified 

in the notice of insolvency instructions 

on PBGC’s website (www.pbgc.gov). 

(b) Notices to interested parties. A 

notice of insolvency under § 4245.3 

required to be given to interested parties 

must contain all of the following 

information— 

(1) The information set forth in 

§ 4281.44(b)(1) through (4) of this 

chapter. 

(2) The estimated total amount of 

annual benefit payments under the plan 

(determined without regard to the 

insolvency) for the insolvency year. 

(3) The estimated amount of the 

plan’s available resources for the 

insolvency year. 

■ 16. Revise § 4245.5 to read as follows: 

§ 4245.5 Notice of insolvency benefit level. 

(a) Requirement of notice. The plan 

sponsor of an insolvent plan must file 

with PBGC and issue to interested 

parties notices of insolvency benefit 

level containing the information 

described in § 4245.6 in each of the 

following circumstances— 

(1) For the initial insolvency year, 

provide the notices of insolvency 

benefit level to PBGC and to interested 

parties. 

(2) For any insolvency year following 

the initial insolvency year— 

(i) If there is a change in the 

insolvency benefit level that affects plan 

payees generally, provide the notices of 

insolvency benefit level to PBGC and to 

plan payees. For purposes of this 

section, ‘‘plan payee’’ means a 

participant or beneficiary in pay status 

or reasonably expected to enter pay 

status during the insolvency year. 

(ii) If there is a change in the 

insolvency benefit level that affects only 

one plan payee or a class of plan payees 

but not plan payees generally (treating 

commencement of a person’s benefits 

for this purpose as a change in the 

insolvency benefit level for that person), 

provide the notices of insolvency 

benefit level to PBGC and to each 

affected plan payee. 

(b) Combined notices. The plan 

sponsor may combine a notice of 

insolvency benefit level and a notice of 

insolvency under § 4245.3 for the same 

plan year. 

(c) When to provide notice. The plan 

sponsor must provide the required 

notices under this section at the time 

described in § 4281.45(c) of this chapter. 

■ 17. Revise § 4245.6 to read as follows: 

§ 4245.6 Contents of notice of insolvency 

benefit level. 

(a) Notice to PBGC. A notice of 

insolvency benefit level under 

§ 4245.5(a) required to be filed with 

PBGC must contain the information and 

certification specified in the notice of 

insolvency benefit level instructions on 

PBGC’s website (www.pbgc.gov). 

(b) Notices to interested parties other 

than participants and beneficiaries in or 

entering pay status. A notice of 

insolvency benefit level under 

§ 4245.5(a) required to be delivered to 

interested parties, other than to a 

participant or beneficiary who is in pay 

status or is reasonably expected to enter 

pay status during the insolvency year, 

must include all of the following 

information— 

(1) The name of the plan. 

(2) The plan year for which the notice 

is issued. 

(3) The estimated amount of annual 

benefit payments under the plan 

(determined without regard to the 

insolvency) for the insolvency year. 

(4) The estimated amount of the 

plan’s available resources for the 

insolvency year. 

(5) The amount of financial 

assistance, if any, requested from PBGC. 

(c) Notices to participants and 

beneficiaries in or entering pay status. A 

notice of insolvency benefit level 

required by § 4245.5(a) to be delivered 

to participants and beneficiaries who 

are in pay status or are reasonably 

expected to enter pay status during the 

insolvency year for which the notice is 

given must include the information set 

forth in § 4281.46(b)(1) through (7) of 

this chapter. 

■ 18. Revise § 4245.7 to read as follows: 

§ 4245.7 Successor plan. 

The plan sponsor of a successor plan 

created by a partition order under 

§ 4233.14 of this chapter must issue to 

participants and beneficiaries any notice 

required under the partition order and 

is not required to file or issue notices 

under §§ 4245.3 or 4245.5. 

■ 19. Revise § 4245.8 to read as follows: 

§ 4245.8 Financial assistance. 

(a) Application for financial 

assistance. If the plan sponsor of a plan 

determines that the plan’s resource 

benefit level for an insolvency year is 

below the level of benefits guaranteed 

by PBGC or that the plan will be unable 

to pay guaranteed benefits when due for 

any month during the year, the plan 

sponsor must apply to PBGC for 

financial assistance pursuant to section 

4261 of ERISA and in accordance with 

§ 4281.47 of this chapter. 

(b) Actuarial valuations and 

withdrawal liability. The plan sponsor 

of an insolvent plan or a terminated 

plan that is expected to become 

insolvent under section 4245 of ERISA 

must— 

(1) File withdrawal liability 

information with PBGC in accordance 

with § 4041A.23 of this chapter. The 

filing under paragraph § 4041A.23(b) of 

this chapter must be not later than 180 

days after the earlier of the end of the 

plan year in which the plan becomes 

insolvent or terminates and each plan 

year thereafter. 

(2) Have performed and file with 

PBGC actuarial valuations in accordance 

with § 4041A.24 of this chapter, except 

that if a plan is not terminated, the 

termination year valuation under 

§ 4041A.24(a)(1) of this chapter must be 

performed for the plan for the plan year 

in which the plan becomes insolvent. 

PART 4281—DUTIES OF PLAN 

SPONSOR FOLLOWING MASS 

WITHDRAWAL 

■ 20. The authority citation for part 

4281 is revised to read as follows: 

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

1399(c)(1)(D), 1431, and 1441. 

■ 21. In § 4281.2: 

■ a. Add in alphabetical order a 

definition for ‘‘Actuarial valuation’’; 

■ b. Amend the definition of ‘‘Available 

resources’’ by removing ‘‘means, for a 

plan year, available’’ and adding in its 

place ‘‘means available’’; 

■ c. Amend the definition of ‘‘Benefits 

subject to reduction’’ by removing ‘‘the 

PBGC’s’’ and adding in its place 

‘‘PBGC’s’’; 

■ d. Amend the definition of ‘‘Financial 

assistance’’ by removing ‘‘the PBGC’’ 

and adding in its place ‘‘PBGC’’; 

■ e. Amend the definition of 

‘‘Insolvency benefit level’’ by removing 

‘‘the PBGC’’ and adding in its place 

‘‘PBGC’’; 

■ f. Amend the definition of ‘‘Insolvent’’ 

by removing in the first sentence ‘‘that 


sradovich on DSK3GMQ082PROD with PROPOSALS
32824 Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Proposed Rules 

a plan is unable’’ and adding in its place 

‘‘unable’’ and by removing the second 

sentence; 

■ g. Amend the definition of ‘‘Pro rata’’ 

by removing ‘‘shall’’ and adding in its 

place ‘‘must’’. 

The addition reads as follows: 

§ 4281.2 Definitions. 

* * * * * 

Actuarial valuation means a report 

submitted to a plan of a valuation of 

plan assets and liabilities that is 

performed in accordance with subpart B 

of this part. 

* * * * * 

■ 22. Revise § 4281.3 to read as follows: 

§ 4281.3 Filing and issuance rules. 

(a) Method of filing. Filing with PBGC 

under this part must be made by a 

method permitted under the rules in 

subpart A of part 4000 of this chapter. 

(b) Method of issuance. The notices 

must be issued to interested parties by 

the methods provided in § 4281.32(c) for 

notices of benefit reductions, 

§ 4281.43(c) for notices of insolvency, 

and § 4281.45(d) for notices of 

insolvency benefit level. 

(c) Filing and issuance dates. The date 

that a filing is sent and the date that an 

issuance is provided are determined 

under the rules in subpart C of part 4000 

of this chapter. 

(d) Where to file. Filings with PBGC 

under this part must be made as 

described in § 4000.4 of this chapter. 

(e) Computation of time. The time 

period for filing or issuance under this 

part must be computed under the rules 

in subpart D of part 4000 of this chapter. 

§ 4281.11 [Amended] 

■ 23. In § 4281.11: 

■ a. Amend paragraph (a) by removing 

‘‘annual valuation’’ and adding in its 

place ‘‘annual actuarial valuation’’, by 

removing ‘‘shall be’’ and adding in its 

place ‘‘are’’, and by removing ‘‘year 

thereafter.’’ and adding in its place 

‘‘year thereafter for which an actuarial 

valuation is required to be performed 

under § 4041A.24 of this chapter.’’. 

■ b. Amend paragraph (b) introductory 

text by removing ‘‘shall be’’ and adding 

in its place ‘‘is’’. 

§ 4281.13 [Amended] 

■ 24. In § 4281.13: 

■ a. Amend the introductory text by 

removing ‘‘shall’’ and adding in its 

place ‘‘must’’; 

■ b. Amend paragraph (b) by removing 

‘‘described in § 4281.14;’’ and by adding 

in its place ‘‘under § 4044.53 of this 

chapter;’’. 

§ 4281.14 [Removed and Reserved] 

■ 25. Section 4281.14 is removed and 

reserved. 

■ 26. Revise § 4281.43 to read as 

follows: 

§ 4281.43 Notice of insolvency. 

(a) Requirement of notice. The plan 

sponsor of a plan that determines that 

the plan is insolvent in the current plan 

year or is expected to be insolvent in the 

next plan year must file with PBGC a 

notice of insolvency containing the 

information described in § 4281.44(a) 

and issue to plan participants and 

beneficiaries a notice of insolvency 

containing the information described in 

§ 4281.44(b). Once notices of insolvency 

with respect to a plan have been 

provided as required, no notice of 

insolvency need be provided with 

respect to the plan for any subsequent 

year. A notice of insolvency may be 

combined with a notice of insolvency 

benefit level under § 4281.45 for the 

same plan year. 

(b) When to provide notice—(1) 

Except as provided in paragraph (b)(2) 

of this section, the plan sponsor must 

file or issue the notices of insolvency 

under paragraph (a) of this section by 

the later of— 

(i) 90 days before the beginning of the 

insolvency year, or 

(ii) 30 days after the date the 

insolvency determination is made. 

(2) Participants and beneficiaries in 

pay status. The plan sponsor may 

deliver the notices of insolvency under 

paragraph (a) of this section to 

participants and beneficiaries in pay 

status concurrently with the first benefit 

payment made after the date the 

insolvency determination is made. 

(c) Method of issuance to participants 

and beneficiaries. The issuance of the 

notice of insolvency to participants and 

beneficiaries must be made by one of 

the following methods— 

(1) A method permitted under the 

rules in subpart B of part 4000 of this 

chapter. 

(2) For participants and beneficiaries 

other than those who are in pay status 

or reasonably expected to enter pay 

status during the insolvency year for 

which the notice is given, the plan 

sponsor may post the notice at 

participants’ work sites or publish the 

notice in a union newsletter or in a 

newspaper of general circulation in the 

area or areas where participants reside. 

Notice to a participant is deemed notice 

to that participant’s beneficiary or 

beneficiaries. 

■ 27. Revise § 4281.44 to read as 

follows: 

§ 4281.44 Contents of notice of 

insolvency. 

(a) Notice to PBGC. A notice of 

insolvency required under § 4281.43(a) 

to be filed with PBGC must contain the 

information and certification specified 

in the notice of insolvency instructions 

on PBGC’s website (www.pbgc.gov). 

(b) Notice to participants and 

beneficiaries. A notice of insolvency 

required under § 4281.43(a) to be issued 

to plan participants and beneficiaries 

must contain all of the following 

information— 

(1) The name of the plan. 

(2) A statement of the plan year for 

which the plan sponsor has determined 

that the plan is or is expected to be 

insolvent. 

(3) A statement that benefits above the 

amount that can be paid from available 

resources or the level guaranteed by 

PBGC, whichever is greater, will be 

suspended during the insolvency year, 

with a brief explanation of which 

benefits are guaranteed by PBGC under 

section 4022A of ERISA. 

(4) The name, address, and telephone 

number of the plan administrator or 

other person designated by the plan 

sponsor to answer inquiries concerning 

benefits. 

■ 28. Revise § 4281.45 to read as 

follows: 

§ 4281.45 Notice of insolvency benefit 

level. 

(a) Requirement of notice. The plan 

sponsor of an insolvent plan must file 

with PBGC a notice of insolvency 

benefit level containing the information 

described in § 4281.46(a) and issue to 

plan payees (which for purposes of this 

section means participants and 

beneficiaries in pay status or reasonably 

expected to enter pay status during the 

insolvency year) a notice of insolvency 

benefit level containing the information 

described in § 4281.46(b) in each of the 

following circumstances— 

(1) Except as provided in paragraph 

(a)(2) of this section, for the initial 

insolvency year and for any insolvency 

year following the initial insolvency 

year, if there is a change in insolvency 

benefit level that affects plan payees 

generally, provide the notices of 

insolvency benefit level to PBGC and to 

plan payees. 

(2) For any insolvency year following 

the initial insolvency year, if there is a 

change in the insolvency benefit level 

that affects only one plan payee or a 

class of plan payees but not plan payees 

generally (treating commencement of a 

person’s benefits for this purpose as a 

change in the insolvency benefit level 

for that person), provide the notices of 


sradovich on DSK3GMQ082PROD with PROPOSALS
Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Proposed Rules 32825 

insolvency benefit level to PBGC and to 

each affected plan payee. 

(b) Combined notices. The plan 

sponsor may combine a notice of 

insolvency benefit level under this 

section and a notice of insolvency under 

§ 4281.43 for the same plan year. 

(c) When to provide notice—(1) 

Except as provided in paragraph (c)(2) 

of this section, the plan sponsor must 

provide the notices under this section 

by the later of— 

(i) 90 days before the beginning of the 

insolvency year, or 

(ii) 30 days after the date the 

insolvency determination is made. 

(2) Participants and beneficiaries in or 

entering pay status. The plan sponsor 

may deliver the notices required under 

this section to participants and 

beneficiaries who are in pay status or 

reasonably expected to enter pay status 

during the insolvency year for which 

the notice is given concurrently with the 

first benefit payment made after the date 

the insolvency determination is made. 

(d) Method of issuance to participants 

and beneficiaries. The issuance of the 

notice of insolvency benefit level to 

participants and beneficiaries who are 

in pay status or reasonably expected to 

enter pay status during the insolvency 

year for which the notice is given must 

be made by a method permitted under 

the rules in subpart B of part 4000 of 

this chapter. 

■ 29. Revise § 4281.46 to read as 

follows: 

§ 4281.46 Contents of notice of insolvency 

benefit level. 

(a) Notice to PBGC. A notice of 

insolvency benefit level required by 

§ 4281.45(a) to be filed with PBGC must 

contain the information and 

certification specified in the notice of 

insolvency benefit level instructions on 

PBGC’s website (www.pbgc.gov). 

(b) Notice to participants and 

beneficiaries in or entering pay status. A 

notice of insolvency benefit level 

required by § 4281.45(a) to be delivered 

to plan participants and beneficiaries in 

pay status or reasonably expected to 

enter pay status during the insolvency 

year must contain all of the following 

information— 

(1) The name of the plan. 

(2) The insolvency year for which the 

notice is being sent. 

(3) The monthly benefit that the 

participant or beneficiary may expect to 

receive during the insolvency year. 

(4) A statement that in subsequent 

plan years, depending on the plan’s 

available resources, this benefit level 

may be increased or decreased but not 

below the level guaranteed by PBGC, 

and that the participant or beneficiary 

will be notified in advance of the new 

benefit level if it is less than the 

participant’s full nonforfeitable benefit 

under the plan. 

(5) The amount of the participant’s or 

beneficiary’s monthly nonforfeitable 

benefit under the plan. 

(6) The amount of the participant’s or 

beneficiary’s monthly benefit that is 

guaranteed by PBGC. 

(7) The name, address, and telephone 

number of the plan administrator or 

other person designated by the plan 

sponsor to answer inquiries concerning 

benefits. 

■ 30. In § 4281.47: 

■ a. Amend the first sentence in 

paragraph (a) by removing ‘‘plan 

sponsor’’ and adding in its place ‘‘plan 

sponsor of a plan’’ and by removing 

‘‘shall’’ and adding in its place ‘‘must’’; 

the second sentence is amended by 

removing ‘‘shall’’ and adding in its 

place ‘‘must’’ and by removing 

‘‘prescribed in paragraph (b) of this 

section.’’ and adding in its place ‘‘under 

paragraph (b) of this section and contain 

the information under paragraph (c) of 

this section.’’; and the third and fourth 

sentences are removed. 

■ b. Revise paragraphs (b) and (c); 

■ c. Remove paragraphs (d) and (e). 

The revisions read as follows: 

§ 4281.47 Application for financial 

assistance. 

* * * * * 

(b) When, how, and where to apply— 

(1) Initial application. Except as 

provided in the next sentence, a plan 

sponsor must apply for financial 

assistance no later than 90 days before 

the first day of the month for which the 

plan sponsor has determined the 

resource benefit level will be below the 

level of guaranteed benefits. If a plan 

sponsor cannot practicably apply for 

financial assistance no later than 90 

days before such date, the application 

must be made as soon as practicable. 

(2) Recurring application. A plan 

sponsor must apply for financial 

assistance as soon as practicable after 

the plan sponsor determines that the 

plan will be unable to pay guaranteed 

benefits when due for a month. 

(3) How and where to apply. 

Application to PBGC for financial 

assistance must be made in accordance 

with the rules in subpart A of part 4000 

of this chapter. See § 4000.4 of this 

chapter for information on where to 

apply. 

(c) Contents of application—(1) Initial 

application. A plan sponsor applying 

for financial assistance because the 

plan’s resource benefit level is below 

the level of guaranteed benefits must file 

an application that includes the 

information specified in the instructions 

for an application for initial financial 

assistance on PBGC’s website 

(www.pbgc.gov). 

(2) Recurring application. A plan 

sponsor applying for financial 

assistance because the plan is unable to 

pay guaranteed benefits for any month 

must file an application that includes 

the information specified in the 

instructions for an application for 

recurring financial assistance on PBGC’s 

website (www.pbgc.gov). 

(3) Additional information. PBGC may 

request any additional information that 

it needs to calculate or verify the 

amount of financial assistance necessary 

as part of the conditions of granting 

financial assistance pursuant to section 

4261 of ERISA. 

Issued in Washington, DC. 

William Reeder, 

Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2018–15076 Filed 7–13–18; 8:45 am] 

BILLING CODE 7709–02–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 300 

[EPA–HQ–SFUND–1990–0011; FRL–9980– 

63—Region 5] 

National Oil and Hazardous 

Substances Pollution Contingency 

Plan; National Priorities List: Partial 

Deletion of the Beloit Corporation 

Superfund Site 

AGENCY: Environmental Protection 

Agency. 

ACTION: Proposed rule; notification of 

intent. 

SUMMARY: The Environmental Protection 

Agency (EPA) Region 5 is issuing a 

Notice of Intent to Delete the Former 

Beloit Corporation Research Center 

Property (RCP) of the Beloit Corporation 

Superfund Site (Site), in Rockton, 

Illinois, from the National Priorities List 

(NPL) and requests public comments on 

this proposed action. This partial 

deletion includes all media at the 20- 

acre RCP. The rest of the Site remains 

on the NPL and is not affected by this 

action. The NPL, promulgated pursuant 

to Section 105 of the Comprehensive 

Environmental Response, 

Compensation, and Liability Act 

(CERCLA) of 1980, as amended, is an 

appendix of the National Oil and 

Hazardous Substances Pollution 

Contingency Plan (NCP). EPA and the 

State of Illinois, through the Illinois 

Environmental Protection Agency, have 


sradovich on DSK3GMQ082PROD with PROPOSALS