Justification.withholdinginfo.d1

Justification for No Material or Nonsubstantive Change to Currently-Approved Collection
AGENCY:

Pension Benefit Guaranty Corporation (PBGC)

TITLE:

Locating and Paying Participants

STATUS:

OMB control number 1212-0055; expires October 31, 2021

CONTACT:

Stephanie Cibinic (202-326-4400 ext. 6352)

The Pension Benefit Guaranty Corporation (PBGC) is making a change to instructions in four of its forms
in this ICR. The ICR enables PBGC to pay participants’ benefits under title IV of the Employee
Retirement Income Security Act of 1974 (ERISA).
The change is an update to the currently-approved instructions for the following four forms. The same
update is being made to all four:
1.
2.
3.
4.

Form 700, Participant Application for Benefits — see section 8.
Form 705, Beneficiary Application for Pension Benefits — see section 4.
Form 706, Beneficiary Application for Pension Benefits — see section 5.
Form 719, Election to Withhold Federal Income Tax from Periodic Payments — see section 2.

IRS annually updates federal tax withholding tables to reflect updated withholding amounts. PBGC is
updating the applicable withholding information on the forms where a PBGC customer elects or changes
their federal withholding on annuity payments. This update is being made so that PBGC customers
receive the most current information published by IRS.
Below is a redline of the change, as shown in the Form 700:

8. Federal Tax Election – Complete this section by selecting only one option – A or B or C.
If you live outside the United States, you cannot select Option A. For additional guidance
regarding these options and federal tax withholding, please read page 4 of the enclosure:
Your Benefit, Your Choice. Benefit Options from PBGC. In general, tax laws require PBGC
to withhold federal income tax from your pension payments unless you specifically elect not
to have taxes withheld. If you do not choose an option, if you choose multiple options
or if the option you select is incomplete, we will withhold federal income taxes as if you
were a married individual with three allowances. This means that for the year 2016 2019
we will withhold taxes only if your monthly PBGC benefit is $1,7202,033.00 or more.
The redlined forms have been submitted with this request.

1