80 FR 20158 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 80, Issue 72 (April 15, 2015)
Federal Register Volume 80, Issue 72 (April 15, 2015)
| Page Range | 20158-20159 | |
| FR Document | 2015-08636 |
[Federal Register Volume 80, Number 72 (Wednesday, April 15, 2015)] [Rules and Regulations] [Pages 20158-20159] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-08636] ======================================================================= ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION 29 CFR Part 4022 Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits AGENCY: Pension Benefit Guaranty Corporation. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule amends the Pension Benefit Guaranty Corporation's regulation on Benefits Payable in Terminated Single- Employer Plans to prescribe interest assumptions under the regulation for valuation dates in May 2015. The interest assumptions are used for paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective May 1, 2015. FOR FURTHER INFORMATION CONTACT: Catherine B. Klion (Klion.Catherine@pbgc.gov), 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 regulation on Benefits Payable in Terminated Single-Employer Plans (29 CFR part 4022) prescribes actuarial assumptions--including interest assumptions--for 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 regulation are also published on PBGC's Web site (http://www.pbgc.gov). 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 benefit payments regulation are updated monthly. This final rule updates the benefit payments interest assumptions for May 2015.\1\ --------------------------------------------------------------------------- \1\ Appendix B to PBGC's regulation on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) prescribes interest assumptions for valuing benefits under terminating covered single- employer plans for purposes of allocation of assets under ERISA section 4044. Those assumptions are updated quarterly. --------------------------------------------------------------------------- The May 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 April 2015, these interest assumptions are 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 payment of benefits under plans with valuation dates during May 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 in 29 CFR Part 4022 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. In consideration of the foregoing, 29 CFR part 4022 is amended as follows: [[Page 20159]] 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 259, 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 Immediate Deferred annuities (percent) valuation date annuity ---------------------------------------------------------------- Rate set -------------------------- rate On or after Before (percent) i1 i2 i3 n1 n2 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 259............................................. 5-1-15 6-1-15 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 259, 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 Immediate Deferred annuities (percent) valuation date annuity ---------------------------------------------------------------- Rate set -------------------------- rate On or after Before (percent) i1 i2 i3 n1 n2 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 259............................................. 5-1-15 6-1-15 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- Issued in Washington, DC, on this 7th day of April 2015. Judith Starr, General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2015-08636 Filed 4-14-15; 8:45 am] BILLING CODE 7709-02-P
![20158 Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Rules and Regulations
assets, total assets, Tier 1 capital and Statement refers to a subsidiary of a whether a benefit is payable as a lump
total capital of the institution on a pro savings and loan holding company other sum and to determine the amount to
forma basis; than a savings association or a pay. Appendix C to Part 4022 contains
* * * * * subsidiary of a savings association. interest assumptions for private-sector
■ 9. In appendix C to part 225, revise
(b) The Board may exclude any pension practitioners to refer to if they
the heading and, under section 1, revise savings and loan holding company, wish to use lump-sum interest rates
the first undesignated paragraph to read regardless of asset size, from the Policy determined using PBGC’s historical
as follows: Statement under paragraph (a) of this methodology. Currently, the rates in
section if the Board determines that Appendices B and C of the benefit
Appendix C to Part 225—Small Bank such action is warranted for supervisory payment regulation are the same.
Holding Company and Savings and purposes. The interest assumptions are intended
Loan Holding Company Policy By order of the Board of Governors of the to reflect current conditions in the
Statement Federal Reserve System, April 9, 2015. financial and annuity markets.
* * * * * Margaret McCloskey Shanks, Assumptions under the benefit
Deputy Secretary of the Board. payments regulation are updated
1. Applicability of Policy Statement monthly. This final rule updates the
[FR Doc. 2015–08513 Filed 4–14–15; 8:45 am]
This policy statement applies only to bank benefit payments interest assumptions
holding companies with pro forma BILLING CODE 6210–01–P
for May 2015.1
consolidated assets of less than $1 billion
The May 2015 interest assumptions
that (i) are not engaged in significant
nonbanking activities either directly or under the benefit payments regulation
PENSION BENEFIT GUARANTY will be 0.75 percent for the period
through a nonbank subsidiary; (ii) do not CORPORATION
conduct significant off-balance sheet during which a benefit is in pay status
activities (including securitization and asset 29 CFR Part 4022 and 4.00 percent during any years
management or administration) either preceding the benefit’s placement in pay
directly or through a nonbank subsidiary; Benefits Payable in Terminated Single- status. In comparison with the interest
and (iii) do not have a material amount of Employer Plans; Interest Assumptions assumptions in effect for April 2015,
debt or equity securities outstanding (other these interest assumptions are
than trust preferred securities) that are
for Paying Benefits
unchanged.
registered with the Securities and Exchange AGENCY: Pension Benefit Guaranty
Commission. The Board may in its discretion PBGC has determined that notice and
Corporation. public comment on this amendment are
exclude any bank holding company,
regardless of asset size, from the policy ACTION: Final rule. impracticable and contrary to the public
statement if such action is warranted for interest. This finding is based on the
supervisory purposes.1 With the exception of SUMMARY: This final rule amends the need to determine and issue new
section 4 (Additional Application Pension Benefit Guaranty Corporation’s interest assumptions promptly so that
Requirements for Expedited/Waived regulation on Benefits Payable in the assumptions can reflect current
Processing), the policy statement applies to Terminated Single-Employer Plans to market conditions as accurately as
savings and loan holding companies as if prescribe interest assumptions under possible.
they were bank holding companies. the regulation for valuation dates in
Because of the need to provide
* * * * * May 2015. The interest assumptions are
immediate guidance for the payment of
used for paying benefits under
PART 238—SAVINGS AND LOAN benefits under plans with valuation
terminating single-employer plans
HOLDING COMPANIES (REGULATION dates during May 2015, PBGC finds that
covered by the pension insurance
LL) good cause exists for making the
system administered by PBGC.
assumptions set forth in this
DATES: Effective May 1, 2015. amendment effective less than 30 days
■ 10. The authority citation for part 238
continues to read as follows: FOR FURTHER INFORMATION CONTACT: after publication.
Catherine B. Klion (Klion.Catherine@ PBGC has determined that this action
Authority: 5 U.S.C. 552, 559; 12 U.S.C.
pbgc.gov), Assistant General Counsel for is not a ‘‘significant regulatory action’’
1462, 1462a, 1463, 1464, 1467, 1467a, 1468,
1813, 1817, 1829e, 1831i, 1972; 15 U.S.C. 78l. Regulatory Affairs, Pension Benefit under the criteria set forth in Executive
Guaranty Corporation, 1200 K Street Order 12866.
■ 11. Add § 238.9 to subpart A to read
NW., Washington, DC 20005, 202–326– Because no general notice of proposed
as follows:
4024. (TTY/TDD users may call the rulemaking is required for this
§ 238.9 Small Bank Holding Company Federal relay service toll-free at 1–800– amendment, the Regulatory Flexibility
Policy Statement. 877–8339 and ask to be connected to Act of 1980 does not apply. See 5 U.S.C.
(a) The Board’s Small Bank Holding 202–326–4024.) 601(2).
Company Policy Statement (12 CFR part SUPPLEMENTARY INFORMATION: PBGC’s
regulation on Benefits Payable in List of Subjects in 29 CFR Part 4022
225, appendix C) (Policy Statement)
applies to savings and loan holding Terminated Single-Employer Plans (29 Employee benefit plans, Pension
companies as if they were bank holding CFR part 4022) prescribes actuarial insurance, Pensions, Reporting and
companies. To qualify or rely on the assumptions—including interest recordkeeping requirements.
Policy Statement, savings and loan assumptions—for paying plan benefits In consideration of the foregoing, 29
holding companies must meet all under terminating single-employer CFR part 4022 is amended as follows:
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qualifying requirements in the Policy plans covered by title IV of the
Statement as if they were a bank holding Employee Retirement Income Security 1 Appendix B to PBGC’s regulation on Allocation
company. For purposes of applying the Act of 1974. The interest assumptions in of Assets in Single-Employer Plans (29 CFR part
Policy Statement, the term ‘‘nonbank the regulation are also published on 4044) prescribes interest assumptions for valuing
benefits under terminating covered single-employer
subsidiary’’ as used in the Policy PBGC’s Web site (http://www.pbgc.gov). plans for purposes of allocation of assets under
PBGC uses the interest assumptions in ERISA section 4044. Those assumptions are
1 Footnote 1: [Reserved] Appendix B to Part 4022 to determine updated quarterly.
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![Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Rules and Regulations 20159
PART 4022—BENEFITS PAYABLE IN Authority: 29 U.S.C. 1302, 1322, 1322b, Appendix B to Part 4022—Lump Sum
TERMINATED SINGLE–EMPLOYER 1341(c)(3)(D), and 1344. Interest Rates For PBGC Payments
PLANS * * * * *
■ 2. In appendix B to part 4022, Rate Set
■ 1. The authority citation for part 4022 259, as set forth below, is added to the
continues to read as follows: table.
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
259 .................................... 5–1–15 6–1–15 0.75 4.00 4.00 4.00 7 8
■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum
259, as set forth below, is added to the Interest Rates For Private-Sector
table. Payments
* * * * *
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
259 .................................... 5–1–15 6–1–15 0.75 4.00 4.00 4.00 7 8
Issued in Washington, DC, on this 7th day notice and request for comments related Table of Contents for Preamble
of April 2015. to the consolidation of the OCMI, for I. Abbreviations
Judith Starr, OCS activities, and makes other non- II. Regulatory History and Information
General Counsel, Pension Benefit Guaranty substantive changes. This rule will have III. Basis and Purpose
Corporation. no substantive effect on the regulated IV. Discussion of Comments Received
[FR Doc. 2015–08636 Filed 4–14–15; 8:45 am] public. V. Discussion of the Rule
BILLING CODE 7709–02–P VI. Regulatory Analysis
DATES: This rule is effective May 1, A. Regulatory Planning and Review
2015. B. Small Entities
C. Assistance for Small Business
DEPARTMENT OF HOMELAND ADDRESSES: Documents mentioned in D. Collection of Information
SECURITY this preamble as being available in the E. Federalism
docket, are part of docket USCG–2013– F. Unfunded mandates Reform Act
Coast Guard 0491 and are available for inspection or G. Taking of Private Property
copying at the Docket Management H. Civil Justice Reform
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SUMMARY: The Coast Guard is issuing a Coast Guard Headquarters, Office of § Section Symbol
final rule establishing a consolidated Commercial Vessel Compliance; U.S.C. United States Code
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Officer in Charge, Marine Inspection telephone (202) 372–1230, email
(OCMI) for the purposes of inspecting steven.r.keel@uscg.mil. If you have II. Regulatory History and Information
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comments submitted in response to our SUPPLEMENTARY INFORMATION: It is a rule of agency organization,
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Document Created: 2015-12-18 11:12:57
Document Modified: 2015-12-18 11:12:57
| 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 May 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 20158 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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