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The PBGC has proposed amending its regulation on Administrative Review of Agency Decisions (29 CFR part 4003) to clarify that the PBGC’s Appeals Board may refer certain categories of appeals to other PBGC departments for a written response and to remove determinations under ERISA §4022A from the scope of part 4003. The proposed rule would also make a number of minor clarifying and technical changes. Comments on the proposed regulation must be submitted on or before December 17, 2007.
The PBGC administers the pension plan termination insurance program under Title IV of ERISA. Under the PBGC’s regulation for Administrative Review of Agency Decisions, persons aggrieved by certain PBGC determinations may appeal to the agency’s Appeals Board. The proposed regulation would amend PBGC Reg. §4003.58 to clarify that the Appeals Board may refer certain appeals to other PBGC departments or Appeals Board staff for a response. Appeals that would be subject to referral include those that: (1) request an explanation of a covered initial benefit determination, (2) dispute specific data used in a covered initial determination, such as date of hire, date of retirement, date of termination of employment, length of service, compensation, marital status, and the form of benefit elected; or (3) request an explanation of the limits on benefits payable by the PBGC.
ERISA §4022A sets forth the PBGC’s guarantee for multiemployer pension plan benefits. A multiemployer plan is considered insolvent if the plan is unable to pay benefits (at least equal to the PBGC’s guaranteed benefit limit) when due. The plan must repay this financial assistance in accordance with terms and conditions specified by the PBGC. Unlike the situation with single-employer plans, however, the PBGC does not trustee or otherwise assume responsibility for the liabilities of a financially troubled multiemployer plan. As a result, the PBGC does not issue determinations as to the benefit entitlement of participants and beneficiaries. Accordingly, the PBGC proposes to amend PBGC Reg. §4003.1(b)(6) and (7) to remove the reference to ERISA §4022A , which would have the effect of removing determinations under ERISA §4022A from the scope of administrative review under part 4003.
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