80 FR 13239 - Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 80, Issue 49 (March 13, 2015)
Federal Register Volume 80, Issue 49 (March 13, 2015)
| Page Range | 13239-13241 | |
| FR Document | 2015-05780 |
[Federal Register Volume 80, Number 49 (Friday, March 13, 2015)] [Rules and Regulations] [Pages 13239-13241] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-05780] ======================================================================= ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION 29 CFR Parts 4022 and 4044 Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits AGENCY: Pension Benefit Guaranty Corporation. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule amends the Pension Benefit Guaranty Corporation's regulations on Benefits Payable in Terminated Single- Employer Plans and Allocation of Assets in Single-Employer Plans to prescribe interest assumptions under the benefit payments regulation for valuation dates in April 2015 and interest assumptions under the asset allocation regulation for valuation dates in the second quarter of 2015. The interest assumptions are used for valuing and paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective April 1, 2015. [[Page 13240]] FOR FURTHER INFORMATION CONTACT: Catherine B. Klion ([email protected]), Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005, 202-326-4024. (TTY/TDD users may call the Federal relay service toll free at 1-800-877-8339 and ask to be connected to 202-326-4024.) SUPPLEMENTARY INFORMATION: PBGC's regulations on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) and Benefits Payable in Terminated Single-Employer Plans (29 CFR part 4022) prescribe actuarial assumptions--including interest assumptions--for valuing and paying plan benefits under terminating single-employer plans covered by title IV of the Employee Retirement Income Security Act of 1974. The interest assumptions in the regulations are also published on PBGC's Web site (http://www.pbgc.gov). The interest assumptions in Appendix B to Part 4044 are used to value benefits for allocation purposes under ERISA section 4044. PBGC uses the interest assumptions in Appendix B to Part 4022 to determine whether a benefit is payable as a lump sum and to determine the amount to pay. Appendix C to Part 4022 contains interest assumptions for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using PBGC's historical methodology. Currently, the rates in Appendices B and C of the benefit payment regulation are the same. The interest assumptions are intended to reflect current conditions in the financial and annuity markets. Assumptions under the asset allocation regulation are updated quarterly; assumptions under the benefit payments regulation are updated monthly. This final rule updates the benefit payments interest assumptions for April 2015 and updates the asset allocation interest assumptions for the second quarter (April through June) of 2015. The second quarter 2015 interest assumptions under the allocation regulation will be 2.71 percent for the first 20 years following the valuation date and 2.78 percent thereafter. In comparison with the interest assumptions in effect for the first quarter of 2015, these interest assumptions represent no change in the select period (the period during which the select rate (the initial rate) applies), a decrease of 0.18 percent in the select rate, and a decrease of 0.34 percent in the ultimate rate (the final rate). The April 2015 interest assumptions under the benefit payments regulation will be 0.75 percent for the period during which a benefit is in pay status and 4.00 percent during any years preceding the benefit's placement in pay status. In comparison with the interest assumptions in effect for March 2015, these interest assumptions represent an increase of 0.25 percent in the immediate annuity rate and are otherwise unchanged. PBGC has determined that notice and public comment on this amendment are impracticable and contrary to the public interest. This finding is based on the need to determine and issue new interest assumptions promptly so that the assumptions can reflect current market conditions as accurately as possible. Because of the need to provide immediate guidance for the valuation and payment of benefits under plans with valuation dates during April 2015, PBGC finds that good cause exists for making the assumptions set forth in this amendment effective less than 30 days after publication. PBGC has determined that this action is not a ``significant regulatory action'' under the criteria set forth in Executive Order 12866. Because no general notice of proposed rulemaking is required for this amendment, the Regulatory Flexibility Act of 1980 does not apply. See 5 U.S.C. 601(2). List of Subjects 29 CFR Part 4022 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. 29 CFR Part 4044 Employee benefit plans, Pension insurance, Pensions. In consideration of the foregoing, 29 CFR parts 4022 and 4044 are amended as follows: PART 4022--BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS 0 1. The authority citation for part 4022 continues to read as follows: Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344. 0 2. In appendix B to part 4022, Rate Set 258, as set forth below, is added to the table. Appendix B to Part 4022--Lump Sum Interest Rates for PBGC Payments * * * * * ---------------------------------------------------------------------------------------------------------------- For plans with a valuation Deferred annuities (percent) date Immediate ------------------------------------- Rate set -------------------------------- annuity rate On or after Before (percent) i1 i2 i3 n1 n2 ---------------------------------------------------------------------------------------------------------------- * * * * * * * 258...................... 4-1-15 5-1-15 0.75 4.00 4.00 4.00 7 8 ---------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 258, as set forth below, is added to the table. Appendix C to Part 4022--Lump Sum Interest Rates for Private-Sector Payments * * * * * ---------------------------------------------------------------------------------------------------------------- For plans with a valuation Deferred annuities (percent) date Immediate ------------------------------------- Rate set -------------------------------- annuity rate On or after Before (percent) i1 i2 i3 n1 n2 ---------------------------------------------------------------------------------------------------------------- * * * * * * * 258...................... 4-1-15 5-1-15 0.75 4.00 4.00 4.00 7 8 ---------------------------------------------------------------------------------------------------------------- [[Page 13241]] PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS 0 4. The authority citation for part 4044 continues to read as follows: Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362. 0 5. In appendix B to part 4044, a new entry for April-June 2015, as set forth below, is added to the table. Appendix B to Part 4044--Interest Rates Used to Value Benefits * * * * * ---------------------------------------------------------------------------------------------------------------- The values of it are: For valuation dates ----------------------------------------------------------------------------------- occurring in the month-- it for t = it for t = it for t = ---------------------------------------------------------------------------------------------------------------- * * * * * * * April-June 2015............. 0.0271 1-20 0.0278 >20 N/A N/A ---------------------------------------------------------------------------------------------------------------- Issued in Washington, DC, on this 6th day of March 2015. Judith Starr, General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2015-05780 Filed 3-12-15; 8:45 am] BILLING CODE 7709-02-P
![Federal Register / Vol. 80, No. 49 / Friday, March 13, 2015 / Rules and Regulations 13239
required for a transfer of a section 1256 interest and amortizable bond premium, rule in section 6049 and the regulations
option that is a covered security: a broker may report a net amount of thereunder, a payor must determine
(i) The original basis of the option; stated interest that reflects the offset of whether a tax-exempt obligation was
and the stated interest payment by the issued with OID and the amount of OID
(ii) The fair market value of the option amount of amortizable bond premium that accrues for each relevant period. As
as of the end of the prior calendar year. allocable to the payment. In this case, prescribed by section 1288(b)(1), OID on
(f) Additional information required the broker must not report the a tax-exempt obligation is determined
for a debt instrument. In addition to the amortizable bond premium as a separate without regard to the de minimis rules
information required in § 1.6045A– item. This paragraph (b) also applies to in section 1273(a)(3) and § 1.1273–1(d).
1(b)(3) for a transfer of a debt instrument amortizable bond premium on a tax- (b) Acquisition premium. A payor is
that is a covered security, the transferor exempt obligation, which is required to required to report acquisition premium
must provide the last date on or before be amortized under section 171. amortization on a tax-exempt obligation
the transfer date that the transferor (c) Reporting of acquisition premium in accordance with the rules in
made an adjustment for a particular amortization. A broker must report the § 1.6049–9(c) as if section 1272 applied
item (for example, the last date on or amount of any acquisition premium to a tax-exempt obligation. See
before the transfer date that bond amortization that reduces the amount of paragraph (a) of this section to
premium was amortized). This original issue discount includible in determine the amount of OID allocable
paragraph (f) applies to a transfer that income by the customer during a to an accrual period.
occurs on or after June 30, 2015. calendar year. For a debt instrument (c) Effective/applicability date. This
(g) Expiration date. The applicability acquired on or after January 1, 2015, a section applies to a tax-exempt
of this section expires on or before broker must use the rules in § 1.1272– obligation acquired on or after January
March 12, 2018. 2(b)(4) to determine the amount of 1, 2017.
■ Par. 6. Section 1.6049–5 is amended acquisition premium amortization. (d) Expiration date. The applicability
by adding a sentence after the third However, for a debt instrument acquired of this section expires on or before
sentence in paragraph (f) to read as on or after January 1, 2014, and before March 12, 2018.
follows: January 1, 2015, if a customer timely
notifies the broker in accordance with John Dalrymple,
§ 1.6049–5 Interest and original issue § 1.6045–1(n)(5), a broker may use the Deputy Commissioner for Services and
discount subject to reporting after rules in § 1.1272–3 to determine the Enforcement.
December 31, 1982. Approved: February 19, 2015.
amount of acquisition premium
* * * * * amortization. Instead of reporting a Mark J. Mazur,
(f) * * * However, see § 1.6049–9 for gross amount for both original issue Assistant Secretary of the Treasury (Tax
the reporting of premium for a debt discount and acquisition premium Policy).
instrument acquired on or after January amortization, a broker may report a net [FR Doc. 2015–05648 Filed 3–12–15; 8:45 am]
1, 2014. * * * amount of original issue discount that BILLING CODE 4830–01–P
* * * * * reflects the offset of the original issue
■ Par. 7. Section 1.6049–9 is added to discount includible in income by the
read as follows: customer for the calendar year by the PENSION BENEFIT GUARANTY
amount of acquisition premium CORPORATION
§ 1.6049–9 Premium subject to reporting allocable to the original issue discount.
for a debt instrument acquired on or after
January 1, 2014.
In this case, the broker must not report 29 CFR Parts 4022 and 4044
the acquisition premium amortization as
(a) General rule. Notwithstanding a separate item. See § 1.6049–10T for Allocation of Assets in Single-
§ 1.6049–5(f), for a debt instrument the reporting of acquisition premium on Employer Plans; Benefits Payable in
acquired on or after January 1, 2014, if a tax-exempt obligation. Terminated Single-Employer Plans;
a broker (as defined in § 1.6045–1(a)(1)) Interest Assumptions for Valuing and
is required to file a statement for the § 1.6049–9T [Removed] Paying Benefits
debt instrument under § 1.6049–6, the ■ Par. 8. Section 1.6049–9T is removed.
broker generally must report any bond AGENCY: Pension Benefit Guaranty
■ Par. 9. Section 1.6049–10T is added to Corporation.
premium (as defined in § 1.171–1(d)) or read as follows:
acquisition premium (as defined in ACTION: Final rule.
§ 1.1272–2(b)(3)) for the calendar year. § 1.6049–10T Reporting of original issue
This section, however, only applies to a discount on a tax-exempt obligation SUMMARY: This final rule amends the
debt instrument that is a covered (temporary). Pension Benefit Guaranty Corporation’s
security as defined in § 1.6045–1(a)(15). (a) In general. For purposes of section regulations on Benefits Payable in
(b) Reporting of bond premium 6049, a payor (as defined in § 1.6049– Terminated Single-Employer Plans and
amortization. Unless a broker has been 4(a)(2)) of original issue discount (OID) Allocation of Assets in Single-Employer
notified in writing in accordance with on a tax-exempt obligation (as defined Plans to prescribe interest assumptions
§ 1.6045–1(n)(5) that a customer does in section 1288(b)(2)) is required to under the benefit payments regulation
not want to amortize bond premium report the daily portions of OID on the for valuation dates in April 2015 and
under section 171, the broker must obligation as if the daily portions of OID interest assumptions under the asset
report the amount of any amortizable that accrued during a calendar year allocation regulation for valuation dates
bond premium allocable to a stated were paid to the holder (or holders) of in the second quarter of 2015. The
tkelley on DSK3SPTVN1PROD with RULES
interest payment made to the customer the obligation in the calendar year. The interest assumptions are used for
during the calendar year. See §§ 1.171– amount of the daily portions of OID that valuing and paying benefits under
2 and 1.171–3 to determine the amount accrues during a calendar year is terminating single-employer plans
of amortizable bond premium allocable determined as if section 1272 and covered by the pension insurance
to a stated interest payment. Instead of § 1.1272–1 applied to a tax-exempt system administered by PBGC.
reporting a gross amount for both stated obligation. Notwithstanding any other DATES: Effective April 1, 2015.
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PART 4044—ALLOCATION OF Authority: 29 U.S.C. 1301(a), 1302(b)(3), Appendix B to Part 4044—Interest
ASSETS IN SINGLE-EMPLOYER 1341, 1344, 1362. Rates Used to Value Benefits
PLANS * * * * *
■ 5. In appendix B to part 4044, a new
■ 4. The authority citation for part 4044 entry for April–June 2015, as set forth
continues to read as follows: below, is added to the table.
The values of it are:
For valuation dates occurring in the month—
it for t = it for t = it for t =
* * * * * * *
April–June 2015 ................................................................ 0.0271 1–20 0.0278 >20 N/A N/A
Issued in Washington, DC, on this 6th day New Jersey Avenue SE., Washington, allowing the work to be performed, to
of March 2015. DC 20590, between 9 a.m. and 5 p.m., ensure dependable future operation of
Judith Starr, Monday through Friday, except Federal the drawbridge. Vessels able to pass
General Counsel, Pension Benefit Guaranty holidays. through the drawbridge in the closed
Corporation. FOR FURTHER INFORMATION CONTACT: If position may do so at any time. The
[FR Doc. 2015–05780 Filed 3–12–15; 8:45 am] you have questions on this temporary drawbridge will not be able to open for
BILLING CODE 7709–02–P deviation, call or email David H. emergencies. Alternative paths for
Sulouff, Chief, Bridge Section, Eleventh recreational vessel traffic are available
Coast Guard District; telephone 510– via Little Potato Slough and Georgiana
DEPARTMENT OF HOMELAND 437–3516, email David.H.Sulouff@ Slough. Alternative paths for land traffic
SECURITY uscg.mil. If you have questions on are also available. The Coast Guard will
viewing the docket, call Cheryl Collins, inform waterway users of this temporary
Coast Guard Program Manager, Docket Operations, deviation via our Local and Broadcast
telephone 202–366–9826. Notices to Mariners, to minimize
33 CFR Part 117 SUPPLEMENTARY INFORMATION: California resulting navigational impacts.
Department of Transportation has In accordance with 33 CFR 117.35(e),
[Docket No. USCG–2014–0966]
requested a temporary change to the the drawbridge must return to its regular
Drawbridge Operation Regulation; operation of the California Department operating schedule immediately at the
Mokelumne River, East Isleton, CA of Transportation highway drawbridge end of the effective period of this
across the Mokelumne River, mile 3.0, temporary deviation. This deviation
AGENCY: Coast Guard, DHS. at East Isleton, CA. The drawbridge from the operating regulations is
ACTION:Notice of deviation from navigation span provides approximately authorized under 33 CFR 117.35.
drawbridge regulation. 7 feet vertical clearance above Mean Dated: February 27, 2015.
High Water in the closed-to-navigation D.H. Sulouff,
SUMMARY: The Coast Guard has issued a position. In accordance with 33 CFR
temporary deviation from the operating District Bridge Chief, Eleventh Coast Guard
117.175(a), the draw opens on signal District.
schedule that governs the California from November 1 through April 30 from
Department of Transportation highway [FR Doc. 2015–05745 Filed 3–12–15; 8:45 am]
9 a.m. to 5 p.m.; and from May 1
drawbridge across the Mokelumne through October 31 from 6 a.m. to 10
BILLING CODE 9110–04–P
River, mile 3.0, at East Isleton, CA. The p.m., except that during the following
deviation is necessary to allow the periods the draw need only open for
bridge owner to perform structural DEPARTMENT OF HOMELAND
recreational vessels on the hour, 20 SECURITY
repair work to the bridge. This deviation minutes past the hour, and 40 minutes
allows the bridge to remain in the past the hour: Saturdays, 10 a.m. until Coast Guard
closed-to-navigation position during the 2 p.m.; Sundays, 11 a.m. until 6 p.m.;
deviation period. and Memorial Day, Fourth of July and 33 CFR Part 165
DATES: This deviation is effective Labor Day 11 a.m. until 6 p.m. At all
without actual notice from March 13, [Docket Number USCG–2015–0076]
other times the drawbridge shall open
2015 through 10 p.m. on May 29, 2015. on signal if at least 4 hours notice is RIN 1625–AA00
For the purposes of enforcement, actual given. Navigation on the waterway is
notice will be used from 5 a.m. on commercial and recreational. Safety Zone; Tuscaloosa Regional Air
March 2, 2015, until March 13, 2015. The drawspan will be secured in the Show; Black Warrior River;
ADDRESSES: The docket for this closed-to-navigation position from 5 Tuscaloosa, AL
deviation, [USCG–2014–0966], is a.m. on March 2, 2015 to 10 p.m. on AGENCY: Coast Guard, DHS.
available at http://www.regulations.gov. May 29, 2015, due to replacement of ACTION: Temporary final rule.
Type the docket number in the bridge deck and rehabilitation of the
‘‘SEARCH’’ box and click ‘‘SEARCH.’’ bridge control house. This temporary SUMMARY: The Coast Guard is
tkelley on DSK3SPTVN1PROD with RULES
Click on Open Docket Folder on the line deviation has been coordinated with the establishing a temporary safety zone
associated with this deviation. You may waterway users. Caltrans work plan and encompassing the waters of the Black
also visit the Docket Management dates have been tailored to produce the Warrior River in Tuscaloosa, AL. This
Facility in Room W12–140 on the least possible impacts to waterway action is necessary for the safeguard of
ground floor of the Department of traffic, land traffic, businesses and participants and spectators, including
Transportation West Building, 1200 potential flood response plans, while all crews, vessels, and persons on
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Document Created: 2015-12-18 11:42:28
Document Modified: 2015-12-18 11:42:28
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective April 1, 2015. | |
| Contact | Catherine B. Klion ([email protected]), Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005, 202-326-4024. (TTY/TDD users may call the Federal relay service toll free at 1-800-877-8339 and ask to be connected to 202-326-4024.) | |
| FR Citation | 80 FR 13239 | |
| CFR Citation | 29
CFR
4022 29 CFR 4044 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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