80 FR 48688 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 80, Issue 157 (August 14, 2015)
Federal Register Volume 80, Issue 157 (August 14, 2015)
| Page Range | 48688-48689 | |
| FR Document | 2015-20064 |
[Federal Register Volume 80, Number 157 (Friday, August 14, 2015)] [Rules and Regulations] [Pages 48688-48689] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-20064] ======================================================================= ----------------------------------------------------------------------- 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 September 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 September 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 September 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 September 2015 interest assumptions under the benefit payments regulation will be 1.25 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 August 2015, these interest assumptions represent a decrease 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 payment of benefits under plans with valuation dates during September 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 263, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 263 9-1-15 10-1-15 1.25 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 263, as set forth below, is added to the table. Appendix C to Part 4022--Lump Sum Interest Rates for Private-Sector Payments * * * * * [[Page 48689]] -------------------------------------------------------------------------------------------------------------------------------------------------------- For plans with a valuation date Immediate Deferred annuities (percent) Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------ On or after Before (percent) i1 i2 i3 n1 n2 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 263 9-1-15 10-1-15 1.25 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- Issued in Washington, DC, on this 6th day of August 2015. Judith Starr, General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2015-20064 Filed 8-13-15; 8:45 am] BILLING CODE 7709-01-P
![48688 Federal Register / Vol. 80, No. 157 / Friday, August 14, 2015 / Rules and Regulations
allow those students to receive 877–8339 and ask to be connected to impracticable and contrary to the public
continued educational and cultural 202–326–4024.) interest. This finding is based on the
programming offered by the Department SUPPLEMENTARY INFORMATION: PBGC’s need to determine and issue new
for a period of one additional year. regulation on Benefits Payable in interest assumptions promptly so that
Terminated Single-Employer Plans (29 the assumptions can reflect current
Mara Tekach,
CFR part 4022) prescribes actuarial market conditions as accurately as
Deputy Assistant Secretary for Professional possible.
Exchanges, Bureau of Educational and
assumptions—including interest
Cultural Affairs. assumptions—for paying plan benefits Because of the need to provide
under terminating single-employer immediate guidance for the payment of
[FR Doc. 2015–19586 Filed 8–13–15; 8:45 am]
plans covered by title IV of the benefits under plans with valuation
BILLING CODE 4710–05–P
Employee Retirement Income Security dates during September 2015, PBGC
Act of 1974. The interest assumptions in finds that good cause exists for making
the regulation are also published on the assumptions set forth in this
PBGC’s Web site (http://www.pbgc.gov). amendment effective less than 30 days
PENSION BENEFIT GUARANTY PBGC uses the interest assumptions in after publication.
CORPORATION Appendix B to Part 4022 to determine PBGC has determined that this action
29 CFR Part 4022 whether a benefit is payable as a lump is not a ‘‘significant regulatory action’’
sum and to determine the amount to under the criteria set forth in Executive
Benefits Payable in Terminated Single- pay. Appendix C to Part 4022 contains Order 12866.
Employer Plans; Interest Assumptions interest assumptions for private-sector Because no general notice of proposed
for Paying Benefits pension practitioners to refer to if they rulemaking is required for this
wish to use lump-sum interest rates amendment, the Regulatory Flexibility
AGENCY: Pension Benefit Guaranty determined using PBGC’s historical Act of 1980 does not apply. See 5 U.S.C.
Corporation. methodology. Currently, the rates in 601(2).
ACTION: Final rule. Appendices B and C of the benefit
payment regulation are the same. List of Subjects in 29 CFR Part 4022
SUMMARY: This final rule amends the The interest assumptions are intended Employee benefit plans, Pension
Pension Benefit Guaranty Corporation’s to reflect current conditions in the insurance, Pensions, Reporting and
regulation on Benefits Payable in financial and annuity markets. recordkeeping requirements.
Terminated Single-Employer Plans to Assumptions under the benefit
payments regulation are updated In consideration of the foregoing, 29
prescribe interest assumptions under
monthly. This final rule updates the CFR part 4022 is amended as follows:
the regulation for valuation dates in
September 2015. The interest benefit payments interest assumptions PART 4022—BENEFITS PAYABLE IN
assumptions are used for paying for September 2015.1 TERMINATED SINGLE-EMPLOYER
benefits under terminating single- The September 2015 interest
PLANS
employer plans covered by the pension assumptions under the benefit payments
insurance system administered by regulation will be 1.25 percent for the ■ 1. The authority citation for part 4022
PBGC. period during which a benefit is in pay continues to read as follows:
status and 4.00 percent during any years
DATES: Effective September 1, 2015. preceding the benefit’s placement in pay Authority: 29 U.S.C. 1302, 1322, 1322b,
FOR FURTHER INFORMATION CONTACT: 1341(c)(3)(D), and 1344.
status. In comparison with the interest
Catherine B. Klion (Klion.Catherine@ assumptions in effect for August 2015, ■ 2. In appendix B to part 4022, Rate Set
pbgc.gov), Assistant General Counsel for these interest assumptions represent a 263, as set forth below, is added to the
Regulatory Affairs, Pension Benefit decrease of 0.25 percent in the table.
Guaranty Corporation, 1200 K Street immediate annuity rate and are
NW., Washington, DC 20005, 202–326– Appendix B to Part 4022—Lump Sum
otherwise unchanged.
4024. (TTY/TDD users may call the PBGC has determined that notice and Interest Rates for PBGC Payments
Federal relay service toll-free at 1–800– public comment on this amendment are * * * * *
For plans with a Deferred annuities
Immediate
valuation date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
263 9–1–15 10–1–15 1.25 4.00 4.00 4.00 7 8
■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum
263, as set forth below, is added to the Interest Rates for Private-Sector
table. Payments
* * * * *
tkelley on DSK3SPTVN1PROD with RULES
1 Appendix B to PBGC’s regulation on Allocation
benefits under terminating covered single-employer ERISA section 4044. Those assumptions are
of Assets in Single-Employer Plans (29 CFR part plans for purposes of allocation of assets under updated quarterly.
4044) prescribes interest assumptions for valuing
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![Federal Register / Vol. 80, No. 157 / Friday, August 14, 2015 / Rules and Regulations 48689
For plans with a Deferred annuities
Immediate
valuation date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
263 9–1–15 10–1–15 1.25 4.00 4.00 4.00 7 8
Issued in Washington, DC, on this 6th day have questions on viewing the docket, DEPARTMENT OF HOMELAND
of August 2015. call Ms. Cheryl Collins, Program SECURITY
Judith Starr, Manager, Docket Operations, telephone
General Counsel, Pension Benefit Guaranty (202) 366–9826. Coast Guard
Corporation.
[FR Doc. 2015–20064 Filed 8–13–15; 8:45 am]
SUPPLEMENTARY INFORMATION: The Smith 33 CFR Part 117
BILLING CODE 7709–01–P
Point Bridge, mile 6.1, across Narrow
Bay, has a vertical clearance in the [Docket No. USCG–2015–0765]
closed position of 18 feet at mean high
Drawbridge Operation Regulation;
water and 19 feet at mean low water. Townsend Gut, Boothbay and
DEPARTMENT OF HOMELAND
The existing bridge operating Southport, Maine
SECURITY
regulations are found at 33 CFR
Coast Guard 117.799(d). AGENCY: Coast Guard, DHS.
The waterway is transited by seasonal ACTION:Notice of deviation from
33 CFR Part 117 recreational vessels of various sizes. drawbridge regulation.
[Docket No. USCG–2015–0710] The Community Family Literacy SUMMARY: The Coast Guard has issued a
Project, Inc. requested a temporary temporary deviation from the operating
Drawbridge Operation Regulation; deviation from the normal operating schedule that governs the Southport (SR
Narrow Bay, Suffolk County, NY schedule to facilitate the 5K Run for 27) Bridge, across Townsend Gut, mile
AGENCY: Coast Guard, DHS. Literacy. 0.7, at Boothbay and Southport, Maine.
Under this temporary deviation the This deviation is necessary to facilitate
ACTION:Notice of deviation from
Smith Point Bridge may remain in the replacement of the bridge wedge motor.
drawbridge regulation.
closed position for one hour between 9 This deviation allows the bridge to
SUMMARY: The Coast Guard has issued a a.m. and 10 a.m. on Saturday September remain in the closed position for 24
temporary deviation from the operating hours.
12, 2015.
schedule that governs the operation of DATES: This deviation is effective from
the Smith Point Bridge across Narrow There are no alternate routes for
vessel traffic; however, vessels that can 7 a.m. on October 5, 2015 through 7 a.m.
Bay, mile 6.1, at Suffolk County, New on October 6, 2015.
York. This deviation is necessary to pass under the closed draws during this
closure may do so at all times. The ADDRESSES: The docket for this
accommodate the 5K Run for Literacy. deviation, [USCG–2015–0765] is
This deviation allows the bridge to bridge may be opened in the event of an
emergency. available at http://www.regulations.gov.
remain in the closed position for one Type the docket number in the
hour. The Coast Guard will inform the users ‘‘SEARCH’’ box and click ‘‘SEARCH.’’
DATES: This deviation is effective from of the waterways through our Local and Click on Open Docket Folder on the line
9 a.m. through 10 a.m. on September 12, Broadcast Notice to Mariners of the associated with this deviation. You may
2015. change in operating schedule for the also visit the Docket Management
ADDRESSES: The docket for this bridge so that vessels can arrange their Facility in Room W12–140, on the
deviation, [USCG–2015–0710] is transits to minimize any impact caused ground floor of the Department of
available at http://www.regulations.gov. by the temporary deviation. Transportation West Building, 1200
Type the docket number in the In accordance with 33 CFR 117.35(e), New Jersey Avenue SE., Washington,
‘‘SEARCH’’ box and click ‘‘SEARCH.’’ the drawbridge must return to its regular DC 20590, between 9 a.m. and 5 p.m.,
Click on Open Docket Folder on the line operating schedule immediately at the Monday through Friday, except Federal
associated with this deviation. You may end of the effective period of this holidays.
also visit the Docket Management temporary deviation. This deviation FOR FURTHER INFORMATION CONTACT: If
Facility in Room W12–140, on the from the operating regulations is you have questions on this temporary
ground floor of the Department of authorized under 33 CFR 117.35. deviation, contact Mr. Joe M. Arca,
Transportation West Building, 1200 Project Officer, First Coast Guard
New Jersey Avenue SE., Washington, Dated: August 5, 2015. District, telephone (212) 514–4336,
DC 20590, between 9 a.m. and 5 p.m., C.J. Bisignano, email joe.m.arca@uscg.mil. If you have
Monday through Friday, except Federal Supervisory Bridge Management Specialist, questions on viewing the docket, call
holidays. First Coast Guard District. Ms. Cheryl Collins, Program Manager,
tkelley on DSK3SPTVN1PROD with RULES
FOR FURTHER INFORMATION CONTACT: If [FR Doc. 2015–20117 Filed 8–13–15; 8:45 am] Docket Operations, telephone (202)
you have questions on this temporary BILLING CODE 9110–04–P 366–9826.
deviation, call or email Ms. Judy K. SUPPLEMENTARY INFORMATION: The
Leung-Yee, Project Officer, First Coast Southport (SR 27) Bridge, mile 0.7,
Guard District, telephone (212) 514– across the Townsend Gut has a vertical
4330, judy.k.leung-yee@uscg.mil. If you clearance in the closed position of 10
VerDate Sep<11>2014 20:18 Aug 13, 2015 Jkt 235001 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 E:\FR\FM\14AUR1.SGM 14AUR1](https://thefederalregister.org/doc/80_FR_48845/page/2.svg)
Document Created: 2018-02-23 10:59:24
Document Modified: 2018-02-23 10:59:24
| 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 September 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 48688 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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