80 FR 77569 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 80, Issue 240 (December 15, 2015)
Federal Register Volume 80, Issue 240 (December 15, 2015)
| Page Range | 77569-77570 | |
| FR Document | 2015-31568 |
[Federal Register Volume 80, Number 240 (Tuesday, December 15, 2015)] [Rules and Regulations] [Pages 77569-77570] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-31568] ======================================================================= ----------------------------------------------------------------------- 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 January 2016. The interest assumptions are used for paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. As discussed below, PBGC will publish a separate final rule document dealing with interest assumptions under its regulation on Allocation of Assets in Single- Employer Plans for the first quarter of 2016. DATES: Effective January 1, 2016. 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 January 2016.\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. --------------------------------------------------------------------------- PBGC normally updates the assumptions under the benefit payments regulation for January at the same time as PBGC updates assumptions for the first quarter of the year under its regulation on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) in a single rulemaking document. Because of delays in obtaining data used in setting assumptions under Part 4044 for the first quarter of 2016, PBGC is publishing two separate rulemaking documents to update the benefit payments regulation for January 2016 and the allocation regulation for the first quarter of 2016. The January 2016 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 December 2015, these interest assumptions are unchanged. PBGC has determined that notice and public comment on this amendment are [[Page 77570]] 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 January 2016, 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 267, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 267..................................... 1-1-16 2-1-16 1.25 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 267, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * -------------------------------------------------------------------------------------------------------------------------------------------------------- 267..................................... 1-1-16 2-1-16 1.25 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- Issued in Washington, DC, on this 9th day of December, 2015. Judith Starr, General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2015-31568 Filed 12-14-15; 8:45 am] BILLING CODE 7709-02-P
![77569
Rules and Regulations Federal Register
Vol. 80, No. 240
Tuesday, December 15, 2015
This section of the FEDERAL REGISTER Correction assumptions—including interest
contains regulatory documents having general
In the Federal Register of December 1, assumptions—for paying plan benefits
applicability and legal effect, most of which under terminating single-employer
are keyed to and codified in the Code of 2015 (80 FR 74985), on page 74985, in
the second column, the agency title plans covered by title IV of the
Federal Regulations, which is published under Employee Retirement Income Security
50 titles pursuant to 44 U.S.C. 1510. should have been followed by the RIN
0648–BD18. Act of 1974. The interest assumptions in
The Code of Federal Regulations is sold by the regulation are also published on
Authority: 16 U.S.C. 1431 et seq.; 16 U.S.C. PBGC’s Web site (http://www.pbgc.gov).
the Superintendent of Documents. Prices of
470. PBGC uses the interest assumptions in
new books are listed in the first FEDERAL
REGISTER issue of each week. Dated: December 3, 2015. Appendix B to Part 4022 to determine
John Armor, whether a benefit is payable as a lump
Acting Director for the Office of National sum and to determine the amount to
DEPARTMENT OF COMMERCE Marine Sanctuaries. pay. Appendix C to Part 4022 contains
[FR Doc. 2015–31494 Filed 12–14–15; 8:45 am] interest assumptions for private-sector
National Oceanic and Atmospheric pension practitioners to refer to if they
BILLING CODE 3510–NK–P
Administration wish to use lump-sum interest rates
determined using PBGC’s historical
15 CFR Part 922 methodology. Currently, the rates in
PENSION BENEFIT GUARANTY
Appendices B and C of the benefit
[Docket No. 130405335–5999–03] CORPORATION
payment regulation are the same.
29 CFR Part 4022 The interest assumptions are intended
RIN 0648–BD18 to reflect current conditions in the
Benefits Payable in Terminated Single- financial and annuity markets.
Notice of Delay of Discharge Employer Plans; Interest Assumptions Assumptions under the benefit
Requirements for U.S. Coast Guard for Paying Benefits payments regulation are updated
Activities in Greater Farallones and monthly. This final rule updates the
Cordell Bank National Marine AGENCY: Pension Benefit Guaranty benefit payments interest assumptions
Sanctuaries; Correction Corporation. for January 2016.1
ACTION: Final rule. PBGC normally updates the
AGENCY: Office of National Marine assumptions under the benefit payments
Sanctuaries (ONMS), National Ocean SUMMARY: This final rule amends the regulation for January at the same time
Service (NOS), National Oceanic and Pension Benefit Guaranty Corporation’s as PBGC updates assumptions for the
Atmospheric Administration (NOAA), regulation on Benefits Payable in first quarter of the year under its
Department of Commerce (DOC). Terminated Single-Employer Plans to regulation on Allocation of Assets in
ACTION: Final rule; delay of effectiveness prescribe interest assumptions under Single-Employer Plans (29 CFR part
for discharge requirements with regard the regulation for valuation dates in 4044) in a single rulemaking document.
to Coast Guard activities; correction. January 2016. The interest assumptions Because of delays in obtaining data used
are used for paying benefits under in setting assumptions under Part 4044
SUMMARY: The National Oceanic and terminating single-employer plans for the first quarter of 2016, PBGC is
Atmospheric Administration (NOAA) covered by the pension insurance publishing two separate rulemaking
published a document in the Federal system administered by PBGC. As documents to update the benefit
Register of December 1, 2015 discussed below, PBGC will publish a payments regulation for January 2016
concerning the postponement of the separate final rule document dealing and the allocation regulation for the first
discharge requirements for U.S. Coast with interest assumptions under its quarter of 2016.
Guard activities for another 6 months to regulation on Allocation of Assets in The January 2016 interest
provide adequate time for completion of Single-Employer Plans for the first assumptions under the benefit payments
an environmental assessment, and quarter of 2016. regulation will be 1.25 percent for the
subsequent rulemaking, as appropriate. period during which a benefit is in pay
DATES: Effective January 1, 2016.
That document was missing the status and 4.00 percent during any years
associated Rule Identification Number FOR FURTHER INFORMATION CONTACT:
preceding the benefit’s placement in pay
(RIN). Catherine B. Klion (Klion.Catherine@
status. In comparison with the interest
pbgc.gov), Assistant General Counsel for
DATES: Effective on December 15, 2015. assumptions in effect for December
Regulatory Affairs, Pension Benefit
FOR FURTHER INFORMATION CONTACT: 2015, these interest assumptions are
Guaranty Corporation, 1200 K Street
Maria Brown, Greater Farallones unchanged.
NW., Washington, DC 20005, 202–326– PBGC has determined that notice and
National Marine Sanctuary
asabaliauskas on DSK5VPTVN1PROD with RULES
4024. (TTY/TDD users may call the public comment on this amendment are
Superintendent, at Maria.Brown@ Federal relay service toll-free at 1–800–
noaa.gov or 415–561–6622; or Dan 877–8339 and ask to be connected to 1 Appendix B to PBGC’s regulation on Allocation
Howard, Cordell Bank National Marine 202–326–4024.) of Assets in Single-Employer Plans (29 CFR part
Sanctuary Superintendent, at SUPPLEMENTARY INFORMATION: PBGC’s 4044) prescribes interest assumptions for valuing
Dan.Howard@noaa.gov or 415–464– regulation on Benefits Payable in benefits under terminating covered single-employer
5260. plans for purposes of allocation of assets under
Terminated Single-Employer Plans (29 ERISA section 4044. Those assumptions are
SUPPLEMENTARY INFORMATION: CFR part 4022) prescribes actuarial updated quarterly.
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![77570 Federal Register / Vol. 80, No. 240 / Tuesday, December 15, 2015 / Rules and Regulations
impracticable and contrary to the public PBGC has determined that this action PART 4022—BENEFITS PAYABLE IN
interest. This finding is based on the is not a ‘‘significant regulatory action’’ TERMINATED SINGLE-EMPLOYER
need to determine and issue new under the criteria set forth in Executive PLANS
interest assumptions promptly so that Order 12866.
the assumptions can reflect current Because no general notice of proposed ■ 1. The authority citation for part 4022
market conditions as accurately as rulemaking is required for this continues to read as follows:
possible. amendment, the Regulatory Flexibility Authority: 29 U.S.C. 1302, 1322, 1322b,
Act of 1980 does not apply. See 5 U.S.C. 1341(c)(3)(D), and 1344.
Because of the need to provide 601(2).
immediate guidance for the payment of ■ 2. In appendix B to part 4022, Rate Set
benefits under plans with valuation List of Subjects in 29 CFR Part 4022
267, as set forth below, is added to the
dates during January 2016, PBGC finds Employee benefit plans, Pension table.
that good cause exists for making the insurance, Pensions, Reporting and
assumptions set forth in this recordkeeping requirements. Appendix B to Part 4022—Lump Sum
amendment effective less than 30 days In consideration of the foregoing, 29 Interest Rates For PBGC Payments
after publication. 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
* * * * * * *
267 .................................... 1–1–16 2–1–16 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
267, 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
* * * * * * *
267 .................................... 1–1–16 2–1–16 1.25 4.00 4.00 4.00 7 8
Issued in Washington, DC, on this 9th day the vicinity of the Garden State Parkway ADDRESSES: To view documents
of December, 2015. Bridge in Somers Point, NJ. Due to the mentioned in this preamble as being
Judith Starr, severe weather felt in the Mid-Atlantic available in the docket, go to http://
General Counsel, Pension Benefit Guaranty region in the past month the project has www.regulations.gov, type USCG–2015–
Corporation. been delayed by a number of weeks and 1031 in the ‘‘SEARCH’’ box and click
[FR Doc. 2015–31568 Filed 12–14–15; 8:45 am] more time is needed to complete the ‘‘SEARCH.’’ Click on Open Docket
BILLING CODE 7709–02–P critical repairs for the Garden State Folder on the line associated with this
Parkway Bridge. The safety zone will rule.
continue to restrict vessel traffic on a FOR FURTHER INFORMATION CONTACT: If
DEPARTMENT OF HOMELAND portion of the Great Egg Harbor Bay you have questions on this rule, call or
SECURITY while critical girder erection work is email Lieutenant Brennan Dougherty,
being conducted as part of the U.S. Coast Guard, Sector Delaware Bay,
Coast Guard
rehabilitation project of the main Chief Waterways Management Division,
33 CFR Part 165 navigational channel section of the Coast Guard; telephone (215) 271–4851,
bridge. This extension of the temporary email Brennan.P.Dougherty@uscg.mil.
[Docket Number USCG–2015–1031] safety zone is necessary to protect the SUPPLEMENTARY INFORMATION:
RIN 1625–AA00 surrounding public and vessels from the
hazards associated with the bridge I. Table of Abbreviations
asabaliauskas on DSK5VPTVN1PROD with RULES
Safety Zone, Great Egg Harbor Bay; construction operations.
Somers Point, NJ CFR Code of Federal Regulations
DATES: This rule is effective without DHS Department of Homeland Security
AGENCY: Coast Guard, DHS. actual notice from December 15, 2015 E.O. Executive order
ACTION: Temporary final rule. through December 31, 2015. For FR Federal Register
purposes of enforcement, actual notice Pub. L. Public Law
SUMMARY: The Coast Guard is extending § Section
will be used from October 5, 2015
the dates for a temporary safety zone on U.S.C. United States Code
the waters of Great Egg Harbor Bay in through December 15, 2015. COTP Captain of the Port
VerDate Sep<11>2014 16:23 Dec 14, 2015 Jkt 238001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\15DER1.SGM 15DER1](https://thefederalregister.org/doc/80_FR_77809/page/2.svg)
Document Created: 2018-03-02 09:15:44
Document Modified: 2018-03-02 09:15:44
| 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 January 1, 2016. | |
| 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 77569 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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