[Federal Register Volume 70, Number 199 (Monday, October 17, 2005)]
[Notices]
[Pages 60380-60381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20703]


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PENSION BENEFIT GUARANTY CORPORATION


Proposed Submission of Information Collection for OMB Review; 
Comment Request; Qualified Domestic Relations Orders Submitted to the 
PBGC

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of intention to request OMB approval of revisions to, 
and extension of, a currently approved information collection.

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SUMMARY: The Pension Benefit Guaranty Corporation (``PBGC'') intends to 
request that the Office of Management and Budget (``OMB'') approve, 
under the Paperwork Reduction Act, revisions to an information 
collection (OMB control number 1212-0054; expires December 31, 2006) 
relating to model forms contained in the PBGC booklet, Divorce Orders & 
PBGC. (The PBGC is changing the title of the booklet to Qualified 
Domestic Relations Orders & PBGC.) In addition, the PBGC is requesting 
3-year approval of the revised collection of information. The booklet 
provides guidance on how to submit a proper qualified domestic 
relations order (a ``QDRO'') to the PBGC. The revisions reflect changes 
in how the PBGC pays benefits. This notice informs the public of the 
PBGC's intent and solicits public comment on the collection of 
information.

DATES: Comments must be submitted by December 16, 2005.

ADDRESSES: Comments may be mailed to the Legislative and Regulatory 
Department, Pension Benefit Guaranty Corporation, 1200 K Street, NW., 
Washington, DC 20005-4026, or delivered to Suite 340 at that address 
during normal business hours. Comments also may be submitted by e-mail 
to <a href="/cdn-cgi/l/email-protection#156574657067627a677e3b767a7878707b616655657772763b727a63"><span class="__cf_email__" data-cfemail="a2d2c3d2c7d0d5cdd0c98cc1cdcfcfc7ccd6d1e2d2c0c5c18cc5cdd4">[email protected]</span></a>, or by fax to 202-326-4112. The PBGC 
will make all comments available on its Web site at http://www.pbgc.gov.
    Copies of the collections of information may be obtained without 
charge by writing to the PBGC's Communications and Public Affairs 
Department at Suite 240 at the above address or by visiting that office 
or calling 202-326-4040 during normal business hours. (TTY and TDD 
users may call the Federal relay service toll-free at 1-800-877-8339 
and ask to be connected to 202-326-4040.) The reportable events 
regulations, forms, and instructions may be accessed on the PBGC's Web 
site at http://www.pbgc.gov.

FOR FURTHER INFORMATION CONTACT: James L. Beller, Jr., Attorney, 
Legislative and Regulatory Department, Pension Benefit Guaranty 
Corporation, 1200 K Street, NW., Washington, DC 20005-4026, 202-326-
4024. (For TTY/TDD users, call the Federal relay service toll-free at 
1-800-877-8339 and ask to be connected to 202-326-4024.)

SUPPLEMENTARY INFORMATION: The PBGC intends to request paperwork 
approval relating to model forms contained in the PBGC booklet, Divorce 
Orders & PBGC. Although the collection of information has been approved 
by OMB under control number 1212-0054 through December 31, 2006, the 
PBGC is revising the model QDRO forms and accompanying guidance to 
reflect changes in how it pays benefits. In addition, the PBGC is 
changing the title of the booklet to Qualified Domestic Relations 
Orders & PBGC and requesting 3-year approval of the revised QDRO forms 
and accompanying guidance. 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.
    A defined benefit pension plan that does not have enough money to 
pay benefits may be terminated if the employer responsible for the plan 
faces severe financial difficulty, such as bankruptcy, and is unable to 
maintain the plan. In such an event, the PBGC becomes trustee of the 
plan and pays benefits, subject to legal limits, to plan participants 
and beneficiaries.
    The benefits of a pension plan participant generally may not be 
assigned or alienated. Title I of ERISA provides an exception for 
domestic relations orders that relate to child support, alimony 
payments, or marital property rights of an alternate payee (a spouse, 
former spouse, child, or other dependent of a plan participant). The 
exception applies only if the domestic relations order meets specific 
legal requirements that make it a qualified domestic relations order.
    When the PBGC is trustee of a plan, it reviews submitted domestic 
relations orders to determine whether the order is qualified before 
paying benefits to an alternate payee. The requirements for submitting 
a QDRO are established by statute. The models and the guidance assist 
parties by making it easier to comply with ERISA's QDRO requirements in 
plans trusteed by the PBGC; they do not create any additional 
requirements and result in a reduction of the statutory burden.
    In April of 2002, the PBGC revised its regulations to make several 
changes in how it pays benefits, including giving participants more 
choices of annuity benefit forms, clarifying (for certain purposes 
under Title IV of ERISA) what it means to be able to ``retire'' under 
plan provisions, and adding rules on who will get certain payments the 
PBGC owes to a participant at the time of death. See 67 FR 16950, April 
8, 2002. Many of these changes may affect qualified domestic relations 
orders submitted to the PBGC and, therefore, necessitate a number of 
revisions to the model QDROs and accompanying guidance.
    The PBGC estimates that it will receive 875 QDROs each year from 
prospective alternate payees; that the average burden of preparing a 
QDRO with the assistance of the guidance and model QDROs in PBGC's 
booklet will be \1/4\ hour of the alternate payee's time and $734 in 
professional fees if the alternate payee hires an attorney or other 
professional to prepare the QDRO, or 10 hours of the alternate payee's 
time if the alternate payee prepares the QDRO without hiring an 
attorney or other professional; and that the total annual burden will 
be 1067 hours and $578,600.
    The PBGC is soliciting public comments to--
    <bullet> Evaluate whether the proposed collections of information 
are necessary for the proper performance of the functions of the 
agency, including whether the information will have practical utility;
    <bullet> Evaluate the accuracy of the agency's estimate of the 
burden of the proposed collections of information, including the 
validity of the methodologies and assumptions used;
    <bullet> Enhance the quality, utility, and clarity of the 
information to be collected; and
    <bullet> Minimize the burden of the collections of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.


[[Page 60381]]


    Issued in Washington, DC, this 12th day of October, 2005.
Rick Hartt,
Chief Technology Officer, Pension Benefit Guaranty Corporation.
[FR Doc. 05-20703 Filed 10-14-05; 8:45 am]
BILLING CODE 7708-01-P


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