Federal Register / Vol. 89, No. 203 / Monday, October 21, 2024 / Notices 84209 

Document description ADAMS 

accession No. 

Submission for Approval of the Standard Practice and Procedures Plan (SPPP) Revision for Global Laser Enrichment Headquarters, dated July 16, 2024.ML24199A106 

SPPP Update Revision, dated September 12, 2024 .......................................................................................................................... ML24261B962 

Dated: October 15, 2024. 

For the Nuclear Regulatory Commission. 

James Downs, 

Acting Chief, Fuel Facilities Licensing Branch, 

Division of Fuel Management, Office of 

Nuclear Material Safety and Safeguards. 

[FR Doc. 2024–24190 Filed 10–18–24; 8:45 am] 

BILLING CODE 7590–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

Approval of Special Withdrawal 

Liability Rules: Motion Picture 

Laboratory Technicians and Film 

Editors Local 780 Pension Fund 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Notice of approval. 

SUMMARY: The Pension Benefit Guaranty 

Corporation (‘‘PBGC’’) received a 

request from the Motion Picture 

Laboratory Technicians and Film 

Editors Local 780 Pension Fund for 

approval of a plan amendment 

providing special withdrawal liability 

rules. PBGC published a Notice of 

Pendency of the Request for Approval of 

this amendment. PBGC is now advising 

the public of PBGC’s approval of the 

amendment. 

FOR FURTHER INFORMATION CONTACT: John 

Ginsberg, Assistant General Counsel, 

Multiemployer Law Division 

(ginsberg.john@pbgc.gov; 202–229– 

3714), Benjamin Kelly, Deputy Assistant 

General Counsel, Multiemployer Law 

Division (kelly.benjamin@pbgc.gov; 

202–229–4097), Office of the General 

Counsel, 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: 

Background 

The Employee Retirement Income 

Security Act of 1974, as amended 

(‘‘ERISA’’), provides, in section 4203(a), 

that a complete withdrawal from a 

multiemployer plan generally occurs 

when an employer permanently ceases 

to have an obligation to contribute 

under the plan or permanently ceases 

all covered operations under the plan. 

Under section 4205 of ERISA, a partial 

withdrawal generally occurs when an 

employer: (1) has a 70% decline in its 

contribution base units (‘‘CBUs’’); (2) 

permanently ceases to have an 

obligation under one or more but fewer 

than all collective bargaining 

agreements (‘‘CBAs’’) under which it 

has been obligated to contribute to the 

plan, while continuing to perform work 

in the jurisdiction of the CBA of the 

type for which contributions were 

previously required, or transfers such 

work to another location; or (3) 

permanently ceases to have an 

obligation to contribute for work 

performed at one or more but fewer than 

all of its facilities, while continuing to 

perform work at such facility of the type 

for which its obligation to contribute 

ceased. 

ERISA provides contingent 

exemptions from withdrawal liability 

for the building and construction 

industry and the entertainment 

industry. In plans to which the building 

and construction industry exemption 

under section 4203(b) of ERISA applies, 

a building and construction industry 

employer completely withdraws only if 

it ceases to have an obligation to 

contribute and continues to perform 

previously covered work in the 

jurisdiction of the CBA or resumes such 

work within 5 years without renewing 

the obligation to contribute at the time 

of resumption. (In the case of a plan 

terminated by mass withdrawal, section 

4203(b)(3) provides that the 5-year 

period is reduced to 3 years.) Section 

4203(c)(1) of ERISA provides a 

substantially similar exemption from 

complete withdrawal to an employer 

contributing to an entertainmentindustry plan on a temporary or projectby-project basis, except that the 

pertinent jurisdiction is the jurisdiction 

of the plan rather than the jurisdiction 

of the CBA. 

ERISA also provides a contingent 

exception to partial withdrawal liability 

for these industries. Under section 

4208(d)(1) of ERISA, an employer to 

which the building and construction 

industry exemption under section 

4203(b) applies is liable for a partial 

withdrawal ‘‘only if the employer’s 

obligation to contribute under the plan 

is continued for no more than an 

insubstantial portion of its work in the 

craft and area jurisdiction of the 

collective bargaining agreement of the 

type for which contributions are 

required.’’ Under section 4208(d)(2) of 

ERISA, ‘‘[a]n employer to whom section 

4203(c) (relating to the entertainment 

industry) applies shall have no liability 

for a partial withdrawal except under 

the conditions and to the extent 

prescribed by [PBGC] by regulation.’’ 

Sections 4203(f)(1) and 4208(e)(3) of 

ERISA authorize PBGC to prescribe 

regulations under which plans in other 

industries may be amended to adopt 

special withdrawal liability rules 

similar to those for the building and 

construction industry and the 

entertainment industry. PBGC’s 

regulations on Extension of Special 

Withdrawal Liability Rules (29 CFR part 

4203) prescribe procedures for a 

multiemployer plan to request PBGC 

approval of a special withdrawal 

liability rule. 

Under 29 CFR 4203.5(b), PBGC must 

publish notice of the pendency of a 

request for approval of special 

withdrawal liability rules in the Federal 

Register and provide interested parties 

an opportunity to comment on the 

request. Under 29 CFR 4203.5, PBGC 

will approve a special withdrawal 

liability rule if it determines the rule (1) 

will apply only to an industry that has 

characteristics that would make use of 

the special withdrawal rule appropriate, 

and (2) will not pose a significant risk 

to the insurance system. 

The Request 

The Motion Picture Laboratory 

Technicians and Film Editors Local 780 

Pension Fund (the ‘‘Plan’’) is a 

multiemployer pension plan jointly 

maintained by Local Union No. 780 of 

the International Alliance of Theatrical 

Stage Employees (the ‘‘Union’’) and 

employers that have CBAs with the 

Union. The Plan covers approximately 

2,000 participants. According to the 

Plan, most of the employers that 

contribute to the Plan have contracts or 

subcontracts to provide non-military 

support services at military bases and 

other federal facilities—mainly 

commissary services. 

On October 14, 2021, the Plan 

adopted an amendment to its plan 

document providing a special 

withdrawal liability rule (as revised by 

further amendment executed on June 6, 

2024, the ‘‘Special Rule’’). The 

effectiveness of the Special Rule is, by 

its terms and under 29 CFR 4203.3(a), 


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84210 Federal Register / Vol. 89, No. 203 / Monday, October 21, 2024 / Notices 

1See 88 FR 2974. 

subject to PBGC approval. On December 

1, 2021, PBGC received the Plan’s 

request for approval of the Special Rule. 

A copy of the Plan’s submission, 

including the Special Rule, can be 

requested from the PBGC Disclosure 

Division via email to disclosure@

pbgc.gov, via physical mail to PBGC 

Disclosure Division, Office of the 

General Counsel, Pension Benefit 

Guaranty Corporation, 445 12th Street 

SW, Washington, DC 20024, or by 

calling 202–229–4040 during normal 

business hours. If you are deaf or hard 

of hearing, or have a speech disability, 

please dial 7–1–1 to access 

telecommunications relay services. 

The Plan asserts that, in the Planspecific industry covered by the Special 

Rule, employees and a facility generally 

remain the same when a contractor is 

replaced. The employers: 

use the same ‘‘pool’’ of workers at the facility 

regardless of which Employer currently is 

awarded the contract. Contributions 

supporting future benefit accruals and 

satisfying any unfunded past liabilities are 

made on behalf of the same pool of 

employees and the same number of [CBUs]. 

Consequently, the change in the signatory 

Employer under a new contract has little or 

no effect on the funded position of the 

Pension Fund. 

The Plan asserts that the Special Rule 

may induce new employers to bid on 

covered work, and that this, in turn, will 

promote the health of the Plan and 

reduce risk to the insurance system. 

The Plan submitted all information 

required under 29 CFR 4203.4(d) and 

supplemental information that PBGC 

required under 29 CFR 4203.4(e). 

Notice and Comment 

On January 18, 2023, PBGC published 

notice of pendency of the Plan’s request 

in the Federal Register.1 Comments 

were due on March 6, 2023. PBGC 

received no comments. 

Summary of the Special Rule 

The Special Rule would apply: (1) 

only to each employer obligated to 

contribute to the Plan for work 

performed under a contract or 

subcontract to provide services to a 

federal government agency (an ‘‘Original 

Employer’’); (2) only when an Original 

Employer loses one or more such 

contracts (‘‘Federal Contracts’’) to an 

unrelated ‘‘Successor Employer’’ that 

has an obligation to contribute to the 

Plan meeting certain requirements 

designed to ensure a stable contribution 

base, as described below. 

Complete Withdrawals 

A complete withdrawal will not occur 

if an Original Employer ceases to have 

an obligation to contribute to the Plan 

because it loses all Federal Contracts 

under which it performed work for 

which contributions were required, and 

is performing no other work for which 

contributions are required, if: 

(1) Substantially all the employees for 

whom the Original Employer was 

obligated to contribute continue to 

perform work under one or more 

Federal Contracts with a Successor 

Employer (which may include a 

Successor Employer subsequent to the 

initial Successor Employer); and 

(2) For the 5 plan years following that 

in which the Original Employer lost all 

its Federal Contracts, the Successor 

Employer has an obligation to 

contribute to the Plan for the work that 

had been performed under the Original 

Employer’s Federal Contract(s): 

(a) At the same or a higher 

contribution rate as the highest 

contribution rate of the Original 

Employer; and 

(b) For substantially the same number 

of CBUs as those for which the Original 

Employer had an obligation to 

contribute in the final plan year 

preceding that in which it lost all its 

Federal Contracts. 

Notwithstanding these rules, the 

Original Employer does completely 

withdrawal as of the date it ceased to 

have an obligation to contribute to the 

Plan or ceased all covered operations 

under the Plan if, within the 5 plan 

years following that in which the 

Original Employer lost all its Federal 

Contracts, either: 

(i) The Federal Contract of the 

Successor Employer is terminated, and 

no subsequent Successor Employer is 

obligated to contribute to the Plan under 

the conditions described in paragraphs 

2(a) and (b); or 

(ii) The Successor Employer ceases 

contributions to the Plan for the work 

performed under the Federal Contract, 

or fails to meet the contribution 

conditions described in paragraphs 2(a) 

and (b). 

Partial Withdrawals 

If an Original Employer loses one or 

more but not all its Federal Contracts to 

a Successor Employer, or loses all its 

Federal Contracts to a Successor 

Employer but continues to have an 

obligation under a CBA to contribute to 

the Plan for other operations, the 

following rules apply. 

The CBUs attributable to the work 

performed under the Federal Contract 

are excluded in determining whether 

the Original Employer has experienced 

a partial withdrawal under section 

4205(a)(1) of ERISA, and the loss of the 

Federal Contract is not considered a 

facility closing, if: 

(1) For the 5 plan years following that 

in which the Original Employer lost a 

Federal Contract to a Successor 

Employer, the Successor Employer has 

an obligation to contribute to the Plan 

for work formerly performed under the 

Original Employer’s Federal Contract: 

(a) At the same or a higher 

contribution rate as the highest 

contribution rate of the Original 

Employer; and 

(b) For substantially the same number 

of CBUs as those for which the Original 

Employer had an obligation to 

contribute in the final plan year 

preceding the plan year in which the 

Original Employer lost the Federal 

Contract. 

Notwithstanding these rules, the 

Original Employer will experience a 

partial withdrawal if: 

(i) Within the 5 plan years following 

that in which the Original Employer lost 

one or more but not all its Federal 

Contracts, the Successor Employer’s 

Federal Contract is terminated and no 

subsequent Successor Employer is 

obligated to contribute to the Plan under 

the conditions described in paragraphs 

1(a) and (b); 

(ii) Within the 5 plan years following 

that in which the Original Employer lost 

one or more but less than all its Federal 

Contracts, the Successor Employer 

ceases contributions to the Plan or does 

not contribute to the Plan under the 

conditions described in paragraphs 1(a) 

and (b); or 

(iii) The Original Employer either 

loses a Federal Contract to a Successor 

Employer or bargains out of a Federal 

Contract and there is no Successor 

Employer with an obligation to 

contribute to the Plan under the 

conditions described in paragraphs 1(a) 

and (b). 

Bona Fide Sale of Assets 

As originally adopted on October 14, 

2021, the Special Rule provided that, if 

an Original Employer engages in a bona 

fide, arm’s-length sale of assets to an 

unrelated purchaser (‘‘Buyer’’), the 

Buyer would be treated as a Successor 

Employer. That provision was 

inconsistent with applicable law under 

section 4204 of ERISA. On June 6, 2024, 

the Plan adopted an amendment 

removing this provision of the Special 

Rule. 

Effective Date 

The Special Rule would be effective 

for (i) complete withdrawals under 


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Federal Register / Vol. 89, No. 203 / Monday, October 21, 2024 / Notices 84211 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 100417 

(June 25, 2024), 89 FR 54602 (July 1, 2024) (File No. 

SR–FICC–2024–009) (‘‘Notice of Filing’’). 

4Comments on the Proposed Rule Change are 

available at https://www.sec.gov/comments/sr-ficc2024-009/srficc2024009.htm. 

5 15 U.S.C. 78s(b)(2). 

6Securities Exchange Act Release No. 100693 

(Aug. 12, 2024), 89 FR 66746 (Aug. 16, 2024) (File 

No. SR–FICC–2024–009). 

7 15 U.S.C. 78s(b)(2). 

8Securities Exchange Act Release No. 101194 

(Sep. 26, 2024), 89 FR 80296 (Oct. 02, 2024) (File 

No. SR–FICC–2024–009). 

9Text of the proposed changes made by the 

Partial Amendment No. 1 to the Proposed Rule 

Change is available at https://www.sec.gov/ 

comments/sr-ficc-2024-009/srficc2024009-524075- 

1504142.pdf. The GSD Rules are available at 

https://www.dtcc.com/∼/media/Files/Downloads/ 

legal/rules/ficc_gov_rules.pdf. Terms not otherwise 

defined herein are defined in the GSD Rules or in 

the Proposed Rule Change. 

10 15 U.S.C. 78s(b)(1). 

11 17 CFR 240.19b–4. 

section 4203(a) of ERISA on or after 

January 1, 2021; (ii) partial withdrawals 

under section 4205(a)(1) of ERISA 

during any three-year testing period 

beginning on or after January 1, 2019; 

and (iii) partial withdrawals under 

section 4205(a)(2) of ERISA on or after 

January 1, 2021. Under 29 CFR 

4203.3(a), a special withdrawal liability 

may not be put into effect until it is 

approved by PBGC. 

Determinations Regarding the Special 

Rule 

Under section 4203(f) of ERISA and 

29 CFR 4203.5(a), PBGC must make two 

determinations before approving a plan 

amendment that provides a special 

withdrawal liability rule. First, based on 

a showing by the plan, PBGC must 

determine that the special withdrawal 

liability rule will apply only to an 

industry with characteristics that would 

make it appropriate to exempt 

employers from withdrawal liability 

under the rule. Second, PBGC must 

determine that the special withdrawal 

liability rule will not pose a significant 

risk to the insurance system. After 

review of the information submitted by 

the Plan, and having received no public 

comments, PBGC has made the 

determinations required to approve the 

Special Rule. 

The Special Rule would apply only to 

a narrow, Plan-specific industry 

consisting of Original Employers 

obligated to contribute to the Plan for 

work performed under a Federal 

Contract, and only when an Original 

Employer loses its contract to a 

Successor Employer that signs an 

agreement with the Union requiring 

contributions to the Plan. PBGC 

determined that the characteristics of 

this narrowly defined industry make it 

appropriate to exempt employers from 

withdrawal liability under the terms of 

the Special Rule. 

Those terms limit the risk of loss to 

PBGC. The Special Rule only applies if 

a Successor Employer contributes at the 

same or a higher contribution rate as the 

highest contribution rate, and for a 

comparable number of CBUs, as the 

Original Employer. The Plan has 

demonstrated a history of stable or 

increasing aggregate contributions 

notwithstanding employer withdrawals, 

which is consistent with the amount of 

covered work being undiminished when 

one federal contractor providing 

commissary services at a federal facility 

is replaced by another obligated to 

contribute to the Plan at the same rate 

for the same work at the facility. 

The Plan is a green-zone plan. Its 

annual reports for plan years 2011 

through 2022 show increasing active 

participants and contributions, despite 

at least a dozen employer withdrawals 

over that period. The Plan reports that 

it was 103 percent funded on an 

actuarial basis as of January 1, 2022. 

Conclusion 

Based on the Plan’s submissions and 

representations in connection with the 

request for approval, PBGC has 

determined that the Special Rule: (1) 

will apply only to an industry that has 

characteristics that would make the use 

of the Special Rule appropriate; and (2) 

will not pose a significant risk to the 

insurance system. Therefore, under 29 

CFR 4203.5, PBGC approves the plan 

amendment describing the Special Rule. 

PBGC’s approval is specific to the Plan 

and to the plan amendment submitted 

for PBGC’s approval. Any plan 

amendment revising the the Special 

Rule, other than to eliminate it entirely, 

must be submitted for PBGC’s approval. 

Issued in Washington, DC. 

Ann Y. Orr, 

Acting Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2024–24212 Filed 10–18–24; 8:45 am] 

BILLING CODE 7709–02–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101340; File No. SR–FICC– 

2024–009] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing of Partial Amendment No. 1 to 

Proposed Rule Change To Modify the 

GSD Rules Relating to the Adoption of 

a Trade Submission Requirement 

October 15, 2024. 

On June 12, 2024, Fixed Income 

Clearing Corporation (‘‘FICC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change SR–FICC–2024– 

009 (‘‘Proposed Rule Change’’) pursuant 

to Section 19(b) of the Securities 

Exchange Act of 1934 (‘‘Exchange 

Act’’) 1 and Rule 19b–4 2 thereunder to 

modify FICC’s Government Securities 

Division (‘‘GSD’’) Rulebook (‘‘GSD 

Rules’’) as it relates to the adoption of 

a requirement for its direct participants 

to submit for clearance and settlement 

all eligible secondary market 

transactions in U.S. Treasury securities 

to which such direct participant is a 

counterparty. The Proposed Rule 

Change was published for comment in 

the Federal Register on July 1, 2024.3

The Commission has received 

comments regarding the substance of 

the changes proposed in the Proposed 

Rule Change.4

On August 16, 2024, pursuant to 

Section 19(b)(2) of the Exchange Act,5

the Commission designated a longer 

period within which to approve, 

disapprove, or institute proceedings to 

determine whether to approve or 

disapprove the Proposed Rule Change.6

On September 26, 2024, pursuant to 

Section 19(b)(2)(B) of the Exchange 

Act,7 the Commission instituted 

proceedings to determine whether to 

approve or disapprove the Proposed 

Rule Change.8

On September 24, 2024, FICC filed 

Partial Amendment No. 1 to the 

Proposed Rule Change.9 Pursuant to 

Section 19(b)(1) of the Act 10 and Rule 

19b-4 thereunder,11 the Commission is 

publishing notice of this Partial 

Amendment No.1 to the Proposed Rule 

Change as described in Item I below. 

The Commission is publishing this 

notice to solicit comment on Partial 

Amendment No. 1 from interested 

persons. 

I. Summary of the Terms of Substance 

of Partial Amendment No. 1 to the 

Proposed Rule Change 

FICC filed Partial Amendment No. 1 

to its previously submitted Proposed 

Rule Change, which would make several 

changes to FICC’s GSD Rules to (1) 

adopt a membership requirement that 

all Netting Members submit to FICC for 

clearance and settlement eligible 

secondary market transactions to which 

they are a counterparty and defines the 

scope of such trade submission 

requirement; (2) adopt ongoing 

membership requirements to enable 

FICC to identify and monitor Netting 


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