View Information Collection Request (ICR) Package

OMB Control No: 1212-0074	ICR Reference No: 202112-1212-002
Status: Historical Active	Previous ICR Reference No: 202106-1212-004
Agency/Subagency: PBGC	Agency Tracking No:
Title: Special Financial Assistance by PBGC
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR: No
Type of Review Request: Emergency	Approval Requested By: 07/09/2021
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/07/2021
	Date Received in OIRA: 12/03/2021
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	01/31/2022	01/31/2022	01/31/2022
Responses	122	0	122
Time Burden (Hours)	723	0	723
Cost Burden (Dollars)	1,946,600	0	1,946,600

Abstract: The President signed into law on March 11, 2021, the American Rescue Plan (ARP) Act of 2021 (P.L. 117-2). ARP creates a special financial assistance (SFA) program to provide support to financially troubled multiemployer plans. Section 9704 of ARP added new section 4262 of to the Employee Retirement Income Security Act of 1974 (ERISA), which sets forth the requirements for the SFA program including specifying which plans are eligible to apply, the cutoff date for applications, actuarial assumptions, determinations on applications, restrictions and conditions on plans that receive SFA, and the requirements for certain plans with suspended benefits to reinstate those benefits and provide make-up payments to restore previously suspended benefits. Unlike financial assistance under section 4261 of ERISA, which is provided in the form of a loan and in periodic payments, a plan receiving SFA under section 4262 has no obligation to repay SFA, and PBGC must pay SFA in the form of a single, lump sum payment. Section 4262(c) of ERISA requires PBGC to prescribe in regulations or other guidance the requirements for SFA applications within 120 days of March 11, 2021. PBGC guidance contains information collection requirements necessary to implement the SFA program and to provide proper stewardship of taxpayer funds. These information requirements include: • An application for SFA (including calculating the amount of SFA) that the plan sponsor of an eligible multiemployer plan must file with PBGC to receive payment of SFA. PBGC needs the information in the application to review a plan’s eligibility for SFA, priority group status (if applicable), and amount of requested SFA. • An Annual Statement of Compliance (with the restrictions and conditions under section 4262 of ERISA and 29 CFR part 4262) that a plan that has received SFA is required to file with PBGC. PBGC needs the information in the Annual Statement of Compliance to ensure that a plan is compliant with the imposed restrictions and conditions. • A notice of reinstatement that a plan sponsor of a plan with benefits that were suspended under sections 305(e)(9) or 4245(a) of ERISA must issue to participants and beneficiaries whose benefits are reinstated. Participants and beneficiaries need the notice of reinstatement to better understand the calculation and timing of their reinstated benefits and, if applicable, make-up payments. • A request for a determination from PBGC for approval for an exception under certain circumstances for SFA conditions under § 4262.16 relating to reductions in contributions, transfers or mergers, and settlement of withdrawal liability. PBGC needs the information required for a request for determination to determine whether to approve an exception from the specified condition.

Emergency Justfication: The American Rescue Plan (ARP) Act of 2021 (P.L. 117-2) was signed into law on March 11, 2021. Section 9704 of ARP added a new section 4262 of the Employee Retirement Income Security Act of 1974 (ERISA). Section 4262(c) requires the Pension Benefit Guaranty Corporation (PBGC) to issue regulations or guidance setting forth requirements for special financial assistance (SFA) applications within 120 days of the date of enactment of ARP, and under section 4262(d) of ERISA, PBGC may prioritize applications of certain plans during the first 2 years after March 11, 2021. Section 4262(l) of ERISA permits PBGC to provide for how SFA and earnings thereon are to be invested, and section 4262(m) permits PBGC, in consultation with the Secretary of the Treasury, to impose reasonable conditions by regulation or other guidance on an eligible multiemployer plan that receives SFA. Section 4262(k) requires plans with suspended benefits to reinstate those benefits and provide for make-up payments. PBGC is issuing an interim final rule on July 9, 2021 (120 days after enactment of ARP), and this accompanying information collection request (ICR) includes the application requirements and instructions necessary for the sponsor of an eligible plan to apply for SFA. It also includes an annual compliance statement, requests for a determination with respect to certain conditions of SFA, and a notice to participants and beneficiaries whose benefits will be reinstated. All components of this ICR are necessary or helpful for plan sponsors to know before applying for SFA and therefore integral to the application process. Following the normal clearance procedure for this ICR is likely to result in public harm. Delaying review of this ICR would be contrary to the policy of ARP to allow plans to begin applying immediately for SFA on issuance of a rule or guidance by PBGC. In particular, soon-to-be insolvent plans and already insolvent plans would be permitted to apply for SFA on July 9 as the first priority group. If plans are unable to apply immediately, then SFA will be delayed, soon-to-be insolvent plans will become insolvent, and benefits for participants and beneficiaries in those plans will be reduced. For plans already insolvent with participant benefits that were already reduced, any delay will result in those participants having to wait longer to have their benefits reinstated and to receive their make-up payments. Accordingly, PBGC requests emergency processing, under 5 CFR 1320.13, of this ICR.

Authorizing Statute(s): PL: Pub.L. 117 - 2 9704 Name of Law: American Rescue Plan Act of 2021

Citations for New Statutory Requirements: US Code: 29 USC 1432 Name of Law: American Rescue Plan Act of 2021

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking
	Other Documents for OIRA Review

Federal Register Notices & Comments
Did the Agency receive public comments on this ICR? No

Number of Information Collection (IC) in this ICR: 4

IC Title	Form No.	Form Name
Annual compliance statement	SFA 300
Application for Special Financial Assistance	SFA 100, SFA 201, SFA 202, SFA 203, SFA 204, SFA 205, SFA 206, SFA 207, SFA 208
Notice of reinstatement
Requests for determination

ICR Summary of Burden

	Total Approved	Previously Approved
Annual Number of Responses	122	122
Annual Time Burden (Hours)	723	723
Annual Cost Burden (Dollars)	1,946,600	1,946,600

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement:

Annual Cost to Federal Government: $16,700,000

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination. Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination. Yes

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

Agency Contact: Melissa Rifkin 202 326-4400 rifkin.melissa@pbgc.gov

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