PBGC 4062 e comment letter

April 25, 2005 Filed Electronically Legislative and Regulatory Department Pension Benefit Guaranty Corporation 1200 K Street, NW Washington, DC 20005-4026 Re: Proposed rule concerning liability pursuant to ERISA Section 4062(e) Dear Sir or Madam, The American Benefits Council (Council) appreciates the opportunity to comment on the proposed regulations issued on February 25, 2005, relating to computing liability under Section 4063(b) of the Employee Retirement Income Security Act of 1974 (ERISA) when there is a substantial cessation of operations by an employer as described by ERISA Section 4062(e). The Council is a public policy organization representing principally Fortune 500 companies and other organizations that assist employers of all sizes in providing benefits to employees. Collectively, the Council's members either sponsor directly or provide services to retirement and health plans that cover more than 100 million Americans. We would like to start by applauding the Pension Benefit Guaranty Corporation (PBGC) for proposing rules intended to provide more certainty in an area traditionally handled on a case-by-case basis. However, the Council recommends that the PBGC address several areas that we believe need further clarification under the proposed regulation. The Council suggests that additional guidance would be helpful in the following areas discussed in more detail below: (1) cessation of operations, (2) formula ...