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Federal Register / Vol. 86, No. 5 / Friday, January 8, 2021 / Rules and Regulations
will vary greatly from plan to plan based on the plans industry, benefit formula, and other factors. Three commenters stated that the requirement in the proposed rule that the portion of contribution increases that is funding an increase in future benefit accruals be determined actuarially would cause an increase in administrative costs. As discussed above in section IV.A. of the preamble, the final rule does not adopt this provision.

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Regulatory Flexibility Act The Regulatory Flexibility Act imposes certain requirements with respect to rules that are subject to the notice and comment requirements of section 553b of the Administrative Procedure Act and that are likely to have a significant economic impact on a substantial number of small entities.
Unless an agency determines that a rule is not likely to have a significant economic impact on a substantial number of small entities, section 604 of the Regulatory Flexibility Act requires that the agency present a final regulatory flexibility analysis at the time of the publication of the final regulation describing the impact of the rule on small entities and steps taken to minimize the impact. Small entities include small businesses, organizations, and governmental jurisdictions.
For purposes of the Regulatory Flexibility Act requirements with respect to this final rule, PBGC
considers a small entity to be a plan with fewer than 100 participants. This is substantially the same criterion PBGC
uses in other regulations 11 and is consistent with certain requirements in title I of ERISA 12 and the Code,13 as well as the definition of a small entity that the Department of Labor has used for purposes of the Regulatory Flexibility Act.14
Thus, PBGC believes that assessing the impact of the proposed regulation on small plans is an appropriate substitute for evaluating the effect on small entities. The definition of small entity considered appropriate for this purpose differs, however, from a definition of small business based on size standards promulgated by the Small 11 See, e.g., special rules for small plans under part 4007 Payment of Premiums.
12 See, e.g., section 104a2 of ERISA, which permits the Secretary of Labor to prescribe simplified annual reports for pension plans that cover fewer than 100 participants.
13 See, e.g., section 430g2B of the Code, which permits plans with 100 or fewer participants to use valuation dates other than the first day of the plan year.
14 See, e.g., DOLs final rule on Prohibited Transaction Exemption Procedures, 76 FR 66637, 66644 Oct. 27, 2011.

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Business Administration 13 CFR
121.201 pursuant to the Small Business Act. PBGC therefore requested comments on the appropriateness of the size standard used in evaluating the impact on small entities of the proposed amendments. PBGC did not receive any such comments.
On the basis of its definition of small entity, PBGC certifies under section 605b of the Regulatory Flexibility Act 5 U.S.C. 601 et seq. that the amendments in this final rule will not have a significant economic impact on a substantial number of small entities.
Based on data for recent premium filings, PBGC estimates that only 38
plans of the approximately 1,400 plans covered by PBGCs multiemployer program are small plans, and that only about 14 of those plans will be impacted by this final rule. Furthermore, plan sponsors may, but are not required to, use the simplified methods under the final rule. As shown above, plans that use the simplified methods will have administrative savings. The final rule will not impose costs on plans.
Accordingly, as provided in section 605
of the Regulatory Flexibility Act 5
U.S.C. 601 et seq., sections 603 and 604
do not apply.
List of Subjects 20 CFR Part 4001
Business and industry, Employee benefit plans, Pension insurance.
20 CFR Part 4204
Employee benefit plans, Pension insurance, Reporting and recordkeeping requirements.
20 CFR Part 4206
Employee benefit plans, Pension insurance.
20 CFR Part 4207
Employee benefit plans, Pension insurance.
29 CFR Part 4211
Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements.
29 CFR Part 4219
Employee benefit plans, Pension insurance, Reporting and recordkeeping requirements.
For the reasons given above, PBGC
amends 29 CFR parts 4001, 4204, 4206, 4207, 4211 and 4219 as follows:
PART 4001TERMINOLOGY

Authority: 29 U.S.C. 1301, 1302b3.

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Amended
2. In 4001.2, amend the definition of Nonforfeitable benefit by removing will be considered forfeitable. and adding in its place are considered forfeitable.

PART 4204VARIANCES FOR SALE
OF ASSETS
3. The authority citation for part 4204
continues to read as follows:

Authority: 29 U.S.C. 1302b3, 1384c.

4. In 4204.2, add in alphabetical order a definition for Unfunded vested benefits to read as follows:

4204.2

Definitions.

Unfunded vested benefits means, as described in section 4213c of ERISA, the amount by which the value of nonforfeitable benefits under the plan exceeds the value of the assets of the plan.
4204.12

Amended
5. In 4204.12:
a. Amend the first sentence by removing for the purposes of section and adding in its place for the purposes of section 304b3A of ERISA and section; and b. Remove the second sentence.

PART 4206ADJUSTMENT OF
LIABILITY FOR A WITHDRAWAL
SUBSEQUENT TO A PARTIAL
WITHDRAWAL
6. The authority citation for part 4206
continues to read as follows:

Authority: 29 U.S.C. 1302b3 and 1386b.

7. In 4206.2, add in alphabetical order a definition for Unfunded vested benefits to read as follows:

4206.2

Definitions.

Unfunded vested benefits means, as described in section 4213c of ERISA, the amount by which the value of nonforfeitable benefits under the plan exceeds the value of the assets of the plan.
PART 4207REDUCTION OR WAIVER
OF COMPLETE WITHDRAWAL
LIABILITY
8. The authority citation for part 4207
continues to read as follows:

Authority: 29 U.S.C. 1302b3, 1387.

1. The authority citation for part 4001
continues to read as follows:

PO 00000

4001.2

9. In 4207.2, add in alphabetical order a definition for Unfunded vested benefits to read as follows:

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