1518 Federal Register / Vol. 80, No. 7 / Monday, January 12, 2015 / Notices 

1The notice and comments are posted at http:// 

www.pbgc.gov/prac/pg/other/guidance/paperworknotices.html. 

Affairs, Office of Management and 

Budget, Attention: Desk Officer for the 

Pension Benefit Guaranty Corporation, 

via electronic mail at 

OIRA_DOCKET@omb.eop.gov or by fax 

to 202–395–6974. 

The OMB submission (including the 

collection of information, comments, 

and supporting statement) will be 

posted at http://www.pbgc.gov/prac/ 

laws-and-regulations/informationcollections-under-omb-review.html. 

Copies of the collection of information 

and comments may also be obtained 

without charge by writing to the 

Disclosure Division, Office of General 

Counsel, Pension Benefit Guaranty 

Corporation, 1200 K Street NW., 

Washington, DC 20005–4026; visiting 

the Disclosure Division; faxing a request 

to 202–326–4042; or calling 202–326– 

4040 during normal business hours. 

(TTY/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 premium payment 

regulation and the premium instructions 

(including illustrative forms) for 2014 

are available at www.pbgc.gov . 

FOR FURTHER INFORMATION CONTACT: 

Deborah C. Murphy, Deputy Assistant 

General Counsel for Regulatory Affairs, 

Pension Benefit Guaranty Corporation, 

1200 K Street NW., Washington, DC 

20005–4026; 202–326–4024. (TTY/TDD 

users may call the Federal relay service 

toll-free at 1–800–877–8339 and ask to 

be connected to 202–326–4024.) 

SUPPLEMENTARY INFORMATION: Section 

4007 of Title IV of the Employee 

Retirement Income Security Act of 1974 

(ERISA) requires pension plans covered 

under Title IV pension insurance 

programs to pay premiums to PBGC. All 

plans covered by Title IV pay a flat-rate 

per-participant premium. An 

underfunded single-employer plan also 

pays a variable-rate premium based on 

the value of the plan’s unfunded vested 

benefits. 

Pursuant to section 4007, PBGC has 

issued its regulation on Payment of 

Premiums (29 CFR part 4007). Under 

§ 4007.3 of the premium payment 

regulation, the plan administrator of 

each pension plan covered by Title IV 

of ERISA is required to file a premium 

payment and information prescribed by 

PBGC for each premium payment year. 

Premium information must be filed 

electronically using ‘‘My Plan 

Administration Account’’ (‘‘My PAA’’) 

through PBGC’s Web site except to the 

extent PBGC grants an exemption for 

good cause in appropriate 

circumstances, in which case the 

information must be filed using an 

approved PBGC form. Under § 4007.10 

of the premium payment regulation, 

plan administrators are required to 

retain records about premiums and 

information submitted in premium 

filings. 

Premium filings report (i) the flat-rate 

premium and related data (all plans), (ii) 

the variable-rate premium and related 

data (single-employer plans), and (iii) 

additional data such as identifying 

information and miscellaneous planrelated or filing-related data (all plans). 

PBGC needs this information to identify 

the plans for which premiums are paid, 

to verify whether the amounts paid are 

correct, to help PBGC determine the 

magnitude of its exposure in the event 

of plan termination, to help track the 

creation of new plans and transfer of 

participants and plan assets and 

liabilities among plans, and to keep 

PBGC’s insured-plan inventory up to 

date. That information and the retained 

records are also needed for audit 

purposes. 

PBGC is revising the 2015 filing 

procedures and instructions to require 

after-the-fact reporting of certain risk 

transfers through lump sum windows 

and annuity purchases. Risk transfers 

can substantially reduce the premiums 

that plans otherwise would pay to 

PBGC. Because PBGC premiums and the 

investment income earned on them are 

a major source of income for PBGC, 

information about risk transfers is 

critical to PBGC’s ability to assess its 

future financial condition. There is 

currently no available comprehensive, 

detailed, and reliable source for 

information on risk transfers. 

PBGC is also changing certain 

premium declaration certification 

procedures, offering the option for a 

plan to provide a telephone number 

specifically for inclusion in PBGC’s 

Search Plan List on PBGC’s Web site, 

updating the premium rates (including 

to reflect the Consolidated and Further 

Continuing Appropriations Act, 2015, 

Pub. L. 113–235), and making 

conforming, clarifying, and editorial 

changes. 

On September 23, 2014 (at 79 FR 

56831), PBGC gave public notice that it 

intended to submit the revised 

procedures and instructions to OMB for 

review. PBGC received nine comment 

letters from representatives of 

employers, pension practitioners, 

annuity providers, and participants.1

The comments focused almost 

exclusively on the new risk transfer 

items. PBGC has made changes to the 

new items (both the questions 

themselves and the instructions) in 

response to some of the comments. The 

changes and other responses to the 

comments are discussed in detail in the 

supporting statement to the OMB 

submission. 

The collection of information under 

the regulation has been approved 

through April 30, 2017, by OMB under 

control number 1212–0009. PBGC 

intends to request that OMB approve the 

revised collection of information for 

three years. 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. 

PBGC estimates that it will receive 

25,700 premium filings per year from 

25,700 plan administrators under this 

collection of information. PBGC further 

estimates that the average annual 

burden of this collection of information 

is approximately 8,000 hours and 

$53,200,000. 

Issued in Washington, DC, this 7th day of 

January, 2015. 

Judith Starr, 

General Counsel, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2015–00253 Filed 1–9–15; 8:45 am] 

BILLING CODE 7709–02–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE., Washington, DC 

20549–2736. 

Extension: 

Rule 11a–3, SEC File No. 270–321, OMB 

Control No. 3235–0358. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520), the Securities 

and Exchange Commission (the 

‘‘Commission’’) is soliciting comments 

on the collection of information 

summarized below. The Commission 

plans to submit this existing collection 

of information to the Office of 

Management and Budget (‘‘OMB’’) for 

extension and approval. 

Section 11(a) of the Investment 

Company Act of 1940 (‘‘Act’’) (15 U.S.C. 

80a–11(a)) provides that it is unlawful 

for a registered open-end investment 

company (‘‘fund’’) or its underwriter to 

make an offer to the fund’s shareholders 

or the shareholders of any other fund to 

exchange the fund’s securities for 

securities of the same or another fund 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 7 / Monday, January 12, 2015 / Notices 1519 

1This estimate is based on the following 

calculations: (1,633 (funds) × 0.05% = 82 funds); 

(82 × 1 (attorney hour) = 82 total attorney hours); 

(82 (funds) × 2 (clerical hours) = 164 total clerical 

hours); (82 (attorney hours) + 164 (clerical hours) 

= 246 total hours). 

2This estimate is based on the following 

calculations: (246 (notice hours) + 408 

(recordkeeping hours) = 654 total hours). 

3This estimate is based on the following 

calculation: (408 funds responding to recordkeeping 

requirement + 82 funds responding to notice 

requirement = 490 total respondents). 

on any basis other than the relative net 

asset values (‘‘NAVs’’) of the respective 

securities to be exchanged, ‘‘unless the 

terms of the offer have first been 

submitted to and approved by the 

Commission or are in accordance with 

such rules and regulations as the 

Commission may have prescribed in 

respect of such offers.’’ Section 11(a) 

was designed to prevent ‘‘switching,’’ 

the practice of inducing shareholders of 

one fund to exchange their shares for 

the shares of another fund for the 

purpose of exacting additional sales 

charges. 

Rule 11a–3 (17 CFR 270.11a–3) under 

the Act is an exemptive rule that 

permits open-end investment 

companies (‘‘funds’’), other than 

insurance company separate accounts, 

and funds’ principal underwriters, to 

make certain exchange offers to fund 

shareholders and shareholders of other 

funds in the same group of investment 

companies. The rule requires a fund, 

among other things, (i) to disclose in its 

prospectus and advertising literature the 

amount of any administrative or 

redemption fee imposed on an exchange 

transaction, (ii) if the fund imposes an 

administrative fee on exchange 

transactions, other than a nominal one, 

to maintain and preserve records with 

respect to the actual costs incurred in 

connection with exchanges for at least 

six years, and (iii) give the fund’s 

shareholders a sixty day notice of a 

termination of an exchange offer or any 

material amendment to the terms of an 

exchange offer (unless the only material 

effect of an amendment is to reduce or 

eliminate an administrative fee, sales 

load or redemption fee payable at the 

time of an exchange). 

The rule’s requirements are designed 

to protect investors against abuses 

associated with exchange offers, provide 

fund shareholders with information 

necessary to evaluate exchange offers 

and certain material changes in the 

terms of exchange offers, and enable the 

Commission staff to monitor funds’ use 

of administrative fees charged in 

connection with exchange transactions. 

The staff estimates that there are 

approximately 1,633 active open-end 

investment companies registered with 

the Commission as of March 2014. The 

staff estimates that 25 percent (or 408) 

of these funds impose a non-nominal 

administrative fee on exchange 

transactions. The staff estimates that the 

recordkeeping requirement of the rule 

requires approximately 1 hour annually 

of clerical time per fund, for a total of 

408 hours for all funds. 

The staff estimates that 5 percent of 

these 1,633 funds (or 82) terminate an 

exchange offer or make a material 

change to the terms of their exchange 

offer each year, requiring the fund to 

comply with the notice requirement of 

the rule. The staff estimates that 

complying with the notice requirement 

of the rule requires approximately 1 

hour of attorney time and 2 hours of 

clerical time per fund, for a total of 

approximately 246 hours for all funds to 

comply with the notice requirement.1

The staff estimates that such notices 

will be enclosed with other written 

materials sent to shareholders, such as 

annual shareholder reports or account 

statements, and therefore any burdens 

associated with mailing required notices 

are accounted for in the burdens 

associated with Form N–1A registration 

statements for funds. The recordkeeping 

and notice requirements together 

therefore impose a total burden of 654 

hours on all funds.2 The total number of 

respondents is 490, each responding 

once a year.3 The burdens associated 

with the disclosure requirement of the 

rule are accounted for in the burdens 

associated with the Form N–1A 

registration statement for funds. 

The estimate of average burden hours 

is made solely for the purposes of the 

Paperwork Reduction Act, and is not 

derived from a comprehensive or even 

a representative survey or study of the 

costs of Commission rules and forms. 

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. 

Written comments are requested on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information has practical utility; (b) the 

accuracy of the Commission’s estimate 

of the burden(s) of the collection of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

in writing within 60 days of this 

publication. 

Please direct your written comments 

to Pamela Dyson, Acting Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O Remi 

Pavlik-Simon, 100 F Street NE., 

Washington, DC 20549; or send an email 

to: PRA_Mailbox@sec.gov. 

Dated: January 6, 2015. 

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2015–00228 Filed 1–9–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

31408; 812–14266] 

Context Capital Advisers, LLC and 

Context Capital Funds; Notice of 

Application 

January 6, 2015. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice of an application under 

section 6(c) of the Investment Company 

Act of 1940 (‘‘Act’’) for an exemption 

from section 15(a) of the Act and rule 

18f–2 under the Act, as well as from 

certain disclosure requirements. 

SUMMARY OF APPLICATION: Applicants 

request an order that would permit them 

to enter into and materially amend 

subadvisory agreements without 

shareholder approval and would grant 

relief from certain disclosure 

requirements. 

APPLICANTS: Context Capital Advisers, 

LLC (‘‘Context Capital’’ or the 

‘‘Adviser’’) and Context Capital Funds 

(the ‘‘Trust’’ and collectively with 

Context Capital, the ‘‘Applicants’’). 

FILING DATES: The application was filed 

January 14, 2014 and amended on May 

21, 2014 and September 19, 2014. 

HEARING OR NOTIFICATION OF HEARING: An 

order granting the application will be 

issued unless the Commission orders a 

hearing. Interested persons may request 

a hearing by writing to the 

Commission’s Secretary and serving 

applicants with a copy of the request, 

personally or by mail. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on February 2, 2015 and 

should be accompanied by proof of 

service on the applicants, in the form of 

an affidavit or, for lawyers, a certificate 

of service. Pursuant to rule 0–5 under 

the Act, hearing requests should state 

the nature of the writer’s interest, any 

facts bearing upon the desirability of a 


tkelley on DSK3SPTVN1PROD with NOTICES