80 FR 27857 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 80, Issue 94 (May 15, 2015)
Federal Register Volume 80, Issue 94 (May 15, 2015)
| Page Range | 27857-27858 | |
| FR Document | 2015-11858 |
[Federal Register Volume 80, Number 94 (Friday, May 15, 2015)] [Rules and Regulations] [Pages 27857-27858] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-11858] ======================================================================= ----------------------------------------------------------------------- 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 June 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 June 1, 2015. 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 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 June 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 June 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 [[Page 27858]] assumptions in effect for May 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 June 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: 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 260, 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 date Immediate Deferred annuities (percent) Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------ On or after Before (percent) i1 i2 i3 n1 n2 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 260 6-1-15 7-1-15 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 260, 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 date Immediate Deferred annuities (percent) Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------ On or after Before (percent) i1 i2 i3 n1 n2 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 260 6-1-15 7-1-15 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- Issued in Washington, DC, on this 6th day of May 2015. Judith Starr, General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2015-11858 Filed 5-14-15; 8:45 am] BILLING CODE 7709-01-P
![Federal Register / Vol. 80, No. 94 / Friday, May 15, 2015 / Rules and Regulations 27857
approving it, certifies that the rule will requirements under the Paperwork SUMMARY: This final rule amends the
not have a significant economic impact Reduction Act. Pension Benefit Guaranty Corporation’s
on a substantial number of small entities regulation on Benefits Payable in
List of Subjects in 22 CFR Part 51
as defined in 5 U.S.C. 601(6). Terminated Single-Employer Plans to
Passports. prescribe interest assumptions under
Unfunded Mandates Act of 1995
Accordingly, for the reasons stated in the regulation for valuation dates in
This rule will not result in the the preamble, 22 CFR part 51 is June 2015. The interest assumptions are
expenditure by state, local, tribal, or amended as follows: used for paying benefits under
territorial governments, in the aggregate, terminating single-employer plans
or by the private sector, of $100 million PART 51—PASSPORTS covered by the pension insurance
or more in any year and it will not system administered by PBGC.
significantly or uniquely affect small ■ 1. The authority citation for part 51 DATES: Effective June 1, 2015.
governments. Therefore, no actions were continues to read as follows:
FOR FURTHER INFORMATION CONTACT:
deemed necessary under the provisions Authority: 8 U.S.C. 1504; 18 U.S.C. 1621; Catherine B. Klion (Klion.Catherine@
of the Unfunded Mandates Reform Act 22 U.S.C. 211a, 212, 213, 213n (Pub. L. 106– pbgc.gov), Assistant General Counsel for
of 1995, 2 U.S.C. 1501 et seq. 113 Div. B, Sec. 1000(a)(7) [Div. A, Title II,
Regulatory Affairs, Pension Benefit
Sec. 236], 113 Stat. 1536, 1501A–430); 214,
Small Business Regulatory Enforcement 214a, 217a, 218, 2651a, 2671(d)(3), 2705, Guaranty Corporation, 1200 K Street
Fairness Act of 1996 2714, 2721, & 3926; 26 U.S.C. 6039E; 31 NW., Washington, DC 20005, 202–326–
This rule is not a major rule as U.S.C. 9701; 42 U.S.C. 652(k) [Div. B, Title 4024. (TTY/TDD users may call the
defined by section 804 of the Small V of Pub. L. 103–317, 108 Stat. 1760]; E.O. Federal relay service toll-free at 1–800–
Business Regulatory Enforcement 11295, Aug. 6, 1966, FR 10603, 3 CFR, 1966– 877–8339 and ask to be connected to
1970 Comp., p. 570; Sec. 1 of Pub. L. 109– 202–326–4024.)
Fairness Act of 1996, since it will not 210, 120 Stat. 319; Sec. 2 of Pub. L. 109–167,
result in an annual effect on the SUPPLEMENTARY INFORMATION: PBGC’s
119 Stat. 3578; Sec. 5 of Pub. L. 109–472, 120
economy of $100 million or more. See Stat. 3554; Pub. L. 108–447, Div. B, Title IV, regulation on Benefits Payable in
5 U.S.C. 804(2). Dec. 8, 2004, 118 Stat. 2809; Pub. L. 108–458, Terminated Single-Employer Plans (29
118 Stat. 3638, 3823 (Dec. 17, 2004). CFR part 4022) prescribes actuarial
Executive Orders 12866 and 13563 assumptions—including interest
■ 2. Revise paragraph (b) of § 51.3 to assumptions—for paying plan benefits
This rule is not economically
read as follows: under terminating single-employer
significant under Executive Order
12866, section 3(f)(1), because it will not § 51.3 Types of passports. plans covered by title IV of the
have an annual effect on the economy * * * * * Employee Retirement Income Security
of $100 million or more. The (b) Official passport. When authorized Act of 1974. The interest assumptions in
Department expects the rule’s impact on by the Department, an official passport the regulation are also published on
the public to be minimal. The may be issued to: PBGC’s Web site (http://www.pbgc.gov).
Department has reviewed this rule to (1) An official or employee of the U.S. PBGC uses the interest assumptions in
ensure its consistency with the government traveling abroad to carry Appendix B to Part 4022 to determine
regulatory philosophy and principles set out official duties, and family members whether a benefit is payable as a lump
forth in the Executive Orders. of such persons; sum and to determine the amount to
(2) A U.S. government contractor pay. Appendix C to Part 4022 contains
Executive Order 13132 interest assumptions for private-sector
traveling abroad to carry out official
This rule will not have substantial duties on behalf of the U.S. government; pension practitioners to refer to if they
direct effects on the states, on the or wish to use lump-sum interest rates
relationship between the national (3) An official or employee of a state, determined using PBGC’s historical
government and the states, or on the local, tribal, or territorial government methodology. Currently, the rates in
distribution of power and traveling abroad to carry out official Appendices B and C of the benefit
responsibilities among the various duties in support of the U.S. payment regulation are the same.
levels of government. Therefore, in government. The interest assumptions are intended
accordance with section 6 of Executive to reflect current conditions in the
Order 13132, the Department has * * * * * financial and annuity markets.
determined that this rule does not have Patrick F. Kennedy, Assumptions under the benefit
sufficient federalism implications to Undersecretary For Management. payments regulation are updated
require consultations or warrant the [FR Doc. 2015–11687 Filed 5–14–15; 8:45 am] monthly. This final rule updates the
preparation of a federalism summary BILLING CODE 4710–24–P
benefit payments interest assumptions
impact statement. for June 2015.1
The June 2015 interest assumptions
Executive Order 13175—Effect on Tribes
under the benefit payments regulation
The Department of State has PENSION BENEFIT GUARANTY will be 0.75 percent for the period
determined that this rulemaking will CORPORATION during which a benefit is in pay status
not have tribal implications, will not and 4.00 percent during any years
impose substantial direct compliance 29 CFR Part 4022 preceding the benefit’s placement in pay
costs on Indian tribal governments, and status. In comparison with the interest
mstockstill on DSK4VPTVN1PROD with RULES
Benefits Payable in Terminated Single-
will not preempt tribal law.
Employer Plans; Interest Assumptions
Accordingly, Executive Order 13175 1 Appendix B to PBGC’s regulation on Allocation
for Paying Benefits
does not apply to this rulemaking. of Assets in Single-Employer Plans (29 CFR part
4044) prescribes interest assumptions for valuing
Paperwork Reduction Act AGENCY: Pension Benefit Guaranty benefits under terminating covered single-employer
Corporation. plans for purposes of allocation of assets under
This rule does not impose or alter any ERISA section 4044. Those assumptions are
ACTION: Final rule.
reporting or record-keeping updated quarterly.
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![27858 Federal Register / Vol. 80, No. 94 / Friday, May 15, 2015 / Rules and Regulations
assumptions in effect for May 2015, amendment effective less than 30 days PART 4022—BENEFITS PAYABLE IN
these interest assumptions are after publication. TERMINATED SINGLE–EMPLOYER
unchanged. PBGC has determined that this action PLANS
PBGC has determined that notice and is not a ‘‘significant regulatory action’’
public comment on this amendment are under the criteria set forth in Executive ■ 1. The authority citation for part 4022
impracticable and contrary to the public Order 12866. continues to read as follows:
interest. This finding is based on the Because no general notice of proposed
need to determine and issue new rulemaking is required for this Authority: 29 U.S.C. 1302, 1322, 1322b,
interest assumptions promptly so that amendment, the Regulatory Flexibility 1341(c)(3)(D), and 1344.
the assumptions can reflect current Act of 1980 does not apply. See 5 U.S.C.
market conditions as accurately as 601(2). ■ 2. In appendix B to part 4022, Rate Set
possible. 260, as set forth below, is added to the
Because of the need to provide List of Subjects in 29 CFR Part 4022 table.
immediate guidance for the payment of Employee benefit plans, Pension Appendix B to Part 4022—Lump Sum
benefits under plans with valuation insurance, Pensions, Reporting and
Interest Rates for PBGC Payments
dates during June 2015, PBGC finds that recordkeeping requirements.
good cause exists for making the In consideration of the foregoing, 29 * * * * *
assumptions set forth in this CFR part 4022 is amended as follows:
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
260 6–1–15 7–1–15 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
260, 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
* * * * * * *
260 6–1–15 7–1–15 0.75 4.00 4.00 4.00 7 8
Issued in Washington, DC, on this 6th day ACTION: Notice of enforcement of enforced from 7 a.m. through 4 p.m. on
of May 2015. regulation. June 6, 2015.
Judith Starr,
FOR FURTHER INFORMATION CONTACT: If
General Counsel, Pension Benefit Guaranty SUMMARY: The Coast Guard will enforce
Corporation. you have questions on this document,
the Great Western Parker Tube Float
call or email Petty Officer Nick
[FR Doc. 2015–11858 Filed 5–14–15; 8:45 am] marine event and associated waterway
special local regulations from 7 a.m. Bateman, Waterways Management, U.S.
BILLING CODE 7709–01–P
through 4 p.m. on June 6, 2015. This Coast Guard Sector San Diego, CA;
annual marine event occurs in the telephone 619–278–7656, D11-PF-
navigable waters of the Colorado River MarineEventsSanDiego@uscg.mil.
DEPARTMENT OF HOMELAND in Parker, Arizona, covering eight miles SUPPLEMENTARY INFORMATION: The Coast
SECURITY of the waterway from the La Paz County Guard will enforce the special local
Coast Guard Park to the Headgate Dam. This action regulations for the annual Great Western
is necessary to provide for the safety of Parker Tube Float in 33 CFR 100.1102,
33 CFR Part 100 the participants, crew, spectators, safety Table 1, Item 9 from 7 a.m. to 4 p.m. on
vessels, and general users of the June 6, 2015.
[Docket No. USCG–2015–0252] waterway. During the enforcement
period, persons and vessels are Under the provisions of 33 CFR
prohibited from entering into, transiting 100.1102, persons and vessels are
Special Local Regulation; Annual
mstockstill on DSK4VPTVN1PROD with RULES
through, or anchoring within this prohibited from entering into, transiting
Marine Events on the Colorado River,
regulated area unless authorized by the through, or anchoring within this
Between Davis Dam (Bullhead City,
Captain of the Port, or his designated regulated area of the Colorado River
Arizona) and Headgate Dam (Parker,
representative. unless authorized by the Captain of the
Arizona) Within the San Diego Captain
of the Port Zone Port, or his designated representative.
DATES:The regulations in 33 CFR The Coast Guard may be assisted by
AGENCY: Coast Guard, DHS. 100.1102, Table 1, item 9 will be other Federal, State, or local law
VerDate Sep<11>2014 15:07 May 14, 2015 Jkt 235001 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 E:\FR\FM\15MYR1.SGM 15MYR1](https://thefederalregister.org/doc/80_FR_27951/page/2.svg)
Document Created: 2018-02-21 10:27:17
Document Modified: 2018-02-21 10:27:17
| 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 June 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 27857 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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