80 FR 79476 - Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing Benefits

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 80, Issue 245 (December 22, 2015)

Page Range		79476-79477
FR Document		2015-32225

This final rule amends the Pension Benefit Guaranty Corporation's regulation on Allocation of Assets in Single-Employer Plans to prescribe interest assumptions under the asset allocation regulation for valuation dates in the first quarter of 2016. The interest assumptions are used for valuing benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. As discussed below, PBGC has published a separate final rule document dealing with interest assumptions under its regulation on Benefits Payable in Terminated Single-Employer Plans for January 2016.

Federal Register, Volume 80 Issue 245 (Tuesday, December 22, 2015)

[Federal Register Volume 80, Number 245 (Tuesday, December 22, 2015)]
[Rules and Regulations]
[Pages 79476-79477]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32225]


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PENSION BENEFIT GUARANTY CORPORATION

29 CFR Part 4044


Allocation of Assets in Single-Employer Plans; Interest 
Assumptions for Valuing Benefits

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Final rule.

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SUMMARY: This final rule amends the Pension Benefit Guaranty 
Corporation's regulation on Allocation of Assets in Single-Employer 
Plans to prescribe interest assumptions under the asset allocation 
regulation for valuation dates in the first quarter of 2016. The 
interest assumptions are used for valuing benefits under terminating 
single-employer plans covered by the pension insurance system 
administered by PBGC. As discussed below, PBGC has published a separate 
final rule document dealing with interest assumptions under its 
regulation on Benefits Payable in Terminated Single-Employer Plans for 
January 2016.

DATES: Effective January 1, 2016.

FOR FURTHER INFORMATION CONTACT: Catherine B. Klion 
([email protected]), Assistant General Counsel for Regulatory 
Affairs, Office of the General Counsel, 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 Allocation of Assets in 
Single-Employer Plans (29 CFR part 4044) prescribes actuarial 
assumptions--including interest assumptions--for valuing 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).
    The interest assumptions in Appendix B to Part 4044 are used to 
value benefits for allocation purposes under ERISA section 4044. 
Assumptions under the asset allocation regulation are updated quarterly 
and are intended to reflect current conditions in the financial and 
annuity markets. This final rule updates the asset allocation interest 
assumptions for the first quarter (January through March) of 2016.
    The first quarter 2016 interest assumptions under the allocation 
regulation will be 2.82 percent for the first 20 years following the 
valuation date and 2.95 percent thereafter. In comparison with the 
interest assumptions in effect for the fourth quarter of 2015, these 
interest assumptions represent no change in the select period (the 
period during which the select rate (the initial rate) applies), an 
increase of 0.36 percent in the select rate, and a decrease of 0.03 
percent in the ultimate rate (the final rate).
    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 
of benefits under plans with valuation dates during the first quarter 
of 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 4044

    Employee benefit plans, Pension insurance, Pensions.

    In consideration of the foregoing, 29 CFR part 4044 is amended as 
follows:

PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS

0
1. The authority citation for part 4044 continues to read as follows:


[[Page 79477]]


    Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.


0
2. In appendix B to part 4044, a new entry for January-March 2016, 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 =
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
January-March 2016..........       0.0282          1-20        0.0295           >20           N/A           N/A
----------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC, on this 17th day of December, 2015.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2015-32225 Filed 12-21-15; 8:45 am]
BILLING CODE 7709-02-P

Federal Register / Vol. 80, No. 245 / Tuesday, December 22, 2015 / Rules and Regulations 79477

Authority: 29 U.S.C. 1301(a), 1302(b)(3), ■ 2. In appendix B to part 4044, a new Appendix B to Part 4044—Interest
1341, 1344, 1362. entry for January–March 2016, as set Rates Used to Value Benefits
forth 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 =

* * * * * * *
January–March 2016 ........................................................ 0.0282 1–20 0.0295 >20 N/A N/A

Issued in Washington, DC, on this 17th day 2013–0760] is available at http:// 2013 (76 FR 1360). On January 2, 2013
of December, 2015. www.regulations.gov. You may submit the Coast Guard extended the
Judith Starr, comments identified by docket number suspension through September 30, 2013
General Counsel, Pension Benefit Guaranty USCG–2013–0760 using the Federal (78 FR 25) and on October 1, 2013 the
Corporation. eRulemaking Portal at http:// Coast Guard extended the suspension
[FR Doc. 2015–32225 Filed 12–21–15; 8:45 am] www.regulations.gov. See the ‘‘Public once again through December 31, 2015
BILLING CODE 7709–02–P Participation and Request for (78 FR 60216).
Comments’’ portion of the In January 2015 the Coast Guard
SUPPLEMENTARY INFORMATION section for published a final rule, titled Vessel
DEPARTMENT OF HOMELAND further instructions on submitting Requirements for Notices of Arrival and
SECURITY comments. Departure, and Automatic Identification
System (80 FR 5282). This rule
FOR FURTHER INFORMATION CONTACT: For
Coast Guard implemented new and updated Notices
information about this document email
of Arrival (NOA) reporting requirements
the Coast Guard via Shelley R. Miller at
33 CFR Part 165 under 33 CFR 160 Subpart C, providing
Shelley.R.Miller@uscg.mil or Captain
an exemption, at 33 CFR 160.204(a)(3),
[Docket Number USCG–2013–0760] Paul E. Dittman at for any vessel required to report
Paul.E.Dittman@uscg.mil or call the movements, its cargo, or the cargo in
RIN 1625–AA11
Coast Guard at 504–671–2330. barges it is towing under 33 CFR
Regulated Navigation Area; Reporting SUPPLEMENTARY INFORMATION: 165.830 after December 31, 2015. This
Requirements for Barges Loaded With I. Table of Abbreviations rule, which was initially proposed in
Certain Dangerous Cargoes, Inland 2008 before the RNA reporting
Rivers, Eighth Coast Guard District; CDC Certain Dangerous Cargo requirements were suspended, relied on
CFR Code of Federal Regulations
Expiration of Stay (Suspension) and the existing reporting requirements at 33
DHS Department of Homeland Security
Administrative Changes E.O. Executive order CFR 165.830 to support the exemption.
FR Federal Register Starting on January 1, 2016, a vessel
AGENCY:Coast Guard, DHS.
IRVMC Inland River Vessel Movement would only be eligible for the
Interim rule; request for
ACTION:
Center exemption if it is required to report its
comments. NOI Notice of intent movements or cargo as specified in
NPRM Notice of proposed rulemaking § 160.204(a)(3).
SUMMARY: Through this interim rule, the Pub. L. Public Law On November 24, 2015, the Coast
Coast Guard is providing administrative RNA Regulated navigation area
changes to the existing reporting Guard published a notice of intent (NOI)
U.S.C. United States Code informing the public that the stay would
requirements under the Regulated
Navigation Area (RNA) applicable to expire on December 31, 2015, and that
II. Background Information and reporting would resume in a limited
barges loaded with certain dangerous Regulatory History
cargoes on the inland rivers in the form (80 FR 73156). This rule makes
The reporting requirements under 33 changes to limit the suspended
Eighth District area of responsibility.
CFR 165.830, ‘‘Regulated Navigation reporting requirements, which would
The current stay of reporting
Area; Reporting Requirements for Barges otherwise come into effect in full on
requirements under the RNA is
Loaded with Certain Dangerous Cargoes, January 1, 2016.
scheduled to expire on December 31,
Inland Rivers, Eighth Coast Guard Also relevant to this interim rule and
2015. This interim rule limits the
District,’’ were initially suspended request for comments is the portion of
reporting requirements in that rule for
(‘‘stayed’’) in January 2011 due to the the January 2015 rule requiring that all
an interim period while also requesting
expiration of the contract for the Inland vessels engaged in the movement of
comments before proposing or finalizing
River Vessel Movement Center (IRVMC). Certain Dangerous Cargos (CDC) have
any long term or permanent revisions to
The IRVMC was the Coast Guard office Class A Automatic Information System
the existing reporting requirements.
responsible for collecting the (AIS) beginning in March 2016, pending
DATES: This interim rule is effective information required by the regulated Office of Management and Budget
beginning January 1, 2016. Comments navigation area (RNA) at § 165.830. (OMB) approval of a collection of
and related material must be received by Upon expiration of the contract for the information associated with that
rmajette on DSK2TPTVN1PROD with RULES

the Coast Guard on or before June 20, IRVMC, the Coast Guard was not able to regulatory requirement. These AIS
2016. See SUPPLEMENTARY INFORMATION receive and process reports. Therefore, requirements provided under 33 CFR
for details on enforcement and the suspension of reporting 164.46, if enforced, may provide an
compliance. requirements was published in the alternative method of reporting that
ADDRESSES: The docket for this interim Federal Register on January 10, 2011 could potentially satisfy the
rule and request for comments, [USCG– and was due to expire on January 15, requirements under 33 CFR 165.830 and

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Document Created: 2015-12-22 02:31:37
Document Modified: 2015-12-22 02:31:37

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, Office of the General Counsel, 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 79476
CFR Associated		Employee Benefit Plans; Pension Insurance and Pensions