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B-334972
February 10, 2023
The Honorable Bernard Sanders
Chairman
The Honorable Invoice Cassidy
Rating Member
Committee on Well being, Schooling, Labor, and Pensions
United States Senate
The Honorable Virginia Foxx
Chairwoman
The Honorable Bobby Scott
Rating Member
Committee on Schooling and the Workforce
Home of Representatives
Topic: Pension Profit Warranty Company: Particular Monetary Help by PBGC—Withdrawal Legal responsibility Situation Exception
Pursuant to part 801(a)(2)(A) of title 5, United States Code, that is our report on a serious rule promulgated by the Pension Profit Warranty Company (PBGC) entitled “Particular Monetary Help by PBGC—Withdrawal Legal responsibility Situation Exception” (RIN: 1212-AB53). We obtained the rule on January 26, 2023. It was printed within the Federal Register as a closing rule on January 26, 2023. 88 Fed. Reg. 4900. The efficient date is January 26, 2023.
In response to PBGC, this closing rule considerations the necessities for particular monetary help (SFA) purposes and associated restrictions and situations pursuant to the American Rescue Plan (ARP) Act of 2021.[1] PBGC said that the rule offers a 30-day remark interval on the situation requiring a phased recognition of SFA in a plan’s dedication of withdrawal legal responsibility. Moreover, PBGC said that it’s amending its SFA regulation with the intention to add an exception course of for the situations regarding withdrawal legal responsibility.
The Congressional Evaluate Act (CRA) requires a 60-day delay within the efficient date of a serious rule from the date of publication within the Federal Register or receipt of the rule by Congress, whichever is later. 5 U.S.C. § 801(a)(3)(A). The 60-day delay in efficient date may be waived, nevertheless, if the company finds for good trigger that delay is impracticable, pointless, or opposite to the general public curiosity, and the company incorporates an announcement of the findings and its causes within the issued rule. 5 U.S.C. § 808(2). On this closing rule, PBGC said that due to the pressing want for the SFA program to distribute acceptable monetary help to eligible plans rapidly, PBGC decided that the rule should take impact on January 26, 2023. In response to PBGC, this efficient date permits eligible plans to use for an exception from the withdrawal legal responsibility situations and apply for SFA with out pointless delay. Below these circumstances, PBGC said that it has decided that the general public curiosity is finest served by making the rule efficient on January 26, 2023. Moreover, PBGC said that it doesn’t need to unduly delay offering monetary help to plans.
Enclosed is our evaluation of PBGC’s compliance with the procedural steps required by part 801(a)(1)(B)(i) via (iv) of title 5 with respect to the rule. When you have any questions on this report or want to contact GAO officers chargeable for the analysis work regarding the subject material of the rule, please contact Shari Brewster, Assistant Common Counsel, at (202) 512-6398.
Shirley A. Jones
Managing Affiliate Common Counsel
Enclosure
cc: Stephanie Cibinic
Deputy Assistant Common Counsel
Regulatory Affairs
Pension Profit Warranty Company
ENCLOSURE
REPORT UNDER 5 U.S.C. § 801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
PENSION BENEFIT GUARANTY CORPORATION
ENTITLED
“SPECIAL FINANCIAL ASSISTANCE BY PBGC—
WITHDRAWAL LIABILITY CONDITION EXCEPTION”
(RIN: 1212-AB53)
(i) Price-benefit evaluation
The Pension Profit Warranty Company (PBGC) assessed the potential advantages, prices, and transfers related to this closing rule. In its evaluation of the rule’s estimated influence, PBGC said that it estimates the rule might lower total particular monetary help (SFA) program transfers by $1 to $2 billion. Moreover, PBGC said that the rule will improve the power of plans, based mostly on their particular details and circumstances, to retain employers and reduce the chance that the receipt of SFA might induce employers to withdraw from these plans.
(ii) Company actions related to the Regulatory Flexibility Act (RFA), 5 U.S.C. §§ 603–605, 607, and 609
PBGC said that as a result of it’s not publishing a normal discover of proposed rulemaking beneath 5 U.S.C. § 553(b), the necessities of the RFA don’t apply.
(iii) Company actions related to sections 202–205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. §§ 1532–1535
In its submission to us, PBGC indicated that the Act was not relevant to this closing rule.
(iv) Different related data or necessities beneath acts and govt orders
Administrative Process Act, 5 U.S.C. §§ 551 et seq.
The Act offers that discover and remark necessities don’t apply when an company, for good trigger, finds that they’re impracticable, pointless, or opposite to the general public curiosity. 5 U.S.C. § 553(b). PBGC said that good trigger exists for making this closing rule efficient with out complying with the Act’s discover and remark necessities as a result of the general public curiosity is finest served by issuing the rule expeditiously. PBGC famous that Congress expressed a transparent urgency for PBGC to implement an SFA program to get acceptable help to eligible plans as rapidly as doable.
Paperwork Discount Act (PRA), 44 U.S.C. §§ 3501–3520
PBGC decided that this closing rule incorporates data assortment necessities beneath the Act. Within the rule, PBGC said that it’s submitting modifications to the gathering of data, beforehand authorized beneath Workplace of Administration and Funds (OMB) Management Quantity 1212-0074, to OMB for assessment and approval beneath the Act. PBGC estimated the mixture common annual hour burden for the subsequent 3 years to be 878.6 hours for employer and fund workplace administrative, clerical, and supervisory time. Moreover, PBGC estimated the mixture common annual price burden for the subsequent 3 years to be $2,130,400, for about 5,326 contract hours assuming a median hourly price of $400 for work achieved by exterior actuaries and attorneys. PBGC famous that the precise hour burden and value burden per plan could differ relying on plan measurement and different elements.
Statutory authorization for the rule
PBGC promulgated this closing rule pursuant to sections 1302(b)(3) and 1432 of title 29, United States Code.
Government Order No. 12866 (Regulatory Planning and Evaluate)
PBGC said on this closing rule that OMB has decided that the rule is economically important beneath the Order and has subsequently reviewed the rule beneath the Order.
Government Order No. 13132 (Federalism)
In its submission to us, PBGC indicated that the Order shouldn’t be relevant to this closing rule.
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