Questions_and_Answers_-_Set__4.docx

Questions and Answers Emerging Market Equities Investment Management Services (Continuation from the third set of questions)

1. Question 42: Attachment A, Volume II – Phase 1, C: We would like to include in our RFP response a Collective Investment Trust that relies on the securities law exemption provided under 3(c)(11) of the Investment Company Act. Section 3(c)(11) of the 1940 Act requires that investors be qualified pension plans. We would like to confirm whether or not the assets being invested by the PBGC in connection with this RFP are assets of qualified plans or, alternatively, assets of the PBGC that are not plan assets.

Response 42: PBGC’s Trust Fund consists of (1) assets attributable to terminated tax-qualified defined benefit plans for which PBGC has become statutory trustee, and (2) assets transferred to PBGC under section 4050 of ERISA from terminated tax-qualified defined benefit plans. Thus, the assets being invested by the PBGC in connection with this RFP consist only of assets of terminated qualified defined benefit pension plans.

2. Question 43. Please confirm that each of the Revolving Fund and Trust Fund is either a “tax-qualified plan” within the meaning of Section 401(a) of the Internal Revenue Code or a governmental plan within the meaning of Section 414(d) or 818(a)(6) of the Internal Revenue Code?

Response 43: PBGC’s Trust Fund consists of (1) assets attributable to terminated tax-qualified defined benefit plans for which PBGC has become statutory trustee, and (2) assets transferred to PBGC under section 4050 of ERISA from terminated tax-qualified defined benefit plans. While the Trust Fund is not a qualified plan, because it consists only of assets attributable to terminated tax-qualified defined benefit plans, its assets are treated in the same manner as qualified plan assets under the Internal Revenue Code. See Rev. Rul. 2011-1. Finally, consistent with the foregoing, the Trust Fund is not a governmental plan under section 414(d) or 818(a)(6) of the Internal Revenue Code.

Note: PBGC anticipates posting the remainder of the questions during the week of June 30, 2014.