80_FR_7997 80 FR 7967 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits

80 FR 7967 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 80, Issue 30 (February 13, 2015)

Page Range7967-7968
FR Document2015-03050

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 March 2015. The interest assumptions are used for paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC.

Federal Register, Volume 80 Issue 30 (Friday, February 13, 2015) 
[Federal Register Volume 80, Number 30 (Friday, February 13, 2015)]
[Rules and Regulations]
[Pages 7967-7968]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03050]



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Rules and Regulations
                                                Federal Register
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having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
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Federal Register / Vol. 80, No. 30 / Friday, February 13, 2015 / 
Rules and Regulations

[[Page 7967]]



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 March 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 March 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 March 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 March 2015 interest assumptions under the benefit payments 
regulation will be 0.50 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 February 2015, these interest assumptions 
represent a decrease of 0.50 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 March 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 257, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
257..................................       3-1-15        4-1-15             0.50          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------



[[Page 7968]]


0
3. In appendix C to part 4022, Rate Set 257, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
257..................................       3-1-15        4-1-15             0.50          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC, on this 6th day of February 2015.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2015-03050 Filed 2-12-15; 8:45 am]
BILLING CODE 7709-02-P

7967 Rules and Regulations Federal Register Vol. 80, No. 30 Friday, February 13, 2015 This section of the FEDERAL REGISTER SUPPLEMENTARY INFORMATION: PBGC’s interest. This finding is based on the contains regulatory documents having general regulation on Benefits Payable in need to determine and issue new applicability and legal effect, most of which Terminated Single-Employer Plans (29 interest assumptions promptly so that are keyed to and codified in the Code of CFR part 4022) prescribes actuarial the assumptions can reflect current Federal Regulations, which is published under assumptions—including interest market conditions as accurately as 50 titles pursuant to 44 U.S.C. 1510. assumptions—for paying plan benefits possible. The Code of Federal Regulations is sold by under terminating single-employer Because of the need to provide the Superintendent of Documents. Prices of plans covered by title IV of the immediate guidance for the payment of new books are listed in the first FEDERAL Employee Retirement Income Security benefits under plans with valuation REGISTER issue of each week. Act of 1974. The interest assumptions in dates during March 2015, PBGC finds the regulation are also published on that good cause exists for making the PBGC’s Web site (http://www.pbgc.gov). assumptions set forth in this PENSION BENEFIT GUARANTY PBGC uses the interest assumptions in amendment effective less than 30 days CORPORATION Appendix B to Part 4022 to determine after publication. whether a benefit is payable as a lump PBGC has determined that this action 29 CFR Part 4022 sum and to determine the amount to is not a ‘‘significant regulatory action’’ pay. Appendix C to Part 4022 contains under the criteria set forth in Executive Benefits Payable in Terminated Single- interest assumptions for private-sector Employer Plans; Interest Assumptions Order 12866. pension practitioners to refer to if they Because no general notice of proposed for Paying Benefits wish to use lump-sum interest rates rulemaking is required for this AGENCY: Pension Benefit Guaranty determined using PBGC’s historical amendment, the Regulatory Flexibility Corporation. methodology. Currently, the rates in Act of 1980 does not apply. See 5 U.S.C. Appendices B and C of the benefit 601(2). ACTION: Final rule. payment regulation are the same. SUMMARY: This final rule amends the The interest assumptions are intended List of Subjects in 29 CFR Part 4022 Pension Benefit Guaranty Corporation’s to reflect current conditions in the Employee benefit plans, Pension regulation on Benefits Payable in financial and annuity markets. insurance, Pensions, Reporting and Terminated Single-Employer Plans to Assumptions under the benefit recordkeeping requirements. prescribe interest assumptions under payments regulation are updated monthly. This final rule updates the In consideration of the foregoing, 29 the regulation for valuation dates in CFR part 4022 is amended as follows: March 2015. The interest assumptions benefit payments interest assumptions are used for paying benefits under for March 2015.1 The March 2015 interest assumptions PART 4022—BENEFITS PAYABLE IN terminating single-employer plans TERMINATED SINGLE-EMPLOYER under the benefit payments regulation covered by the pension insurance PLANS will be 0.50 percent for the period system administered by PBGC. during which a benefit is in pay status ■ 1. The authority citation for part 4022 DATES: Effective March 1, 2015. and 4.00 percent during any years continues to read as follows: FOR FURTHER INFORMATION CONTACT: preceding the benefit’s placement in pay Catherine B. Klion (Klion.Catherine@ status. In comparison with the interest Authority: 29 U.S.C. 1302, 1322, 1322b, pbgc.gov), Assistant General Counsel for 1341(c)(3)(D), and 1344. assumptions in effect for February 2015, Regulatory Affairs, Pension Benefit these interest assumptions represent a ■ 2. In appendix B to part 4022, Rate Set Guaranty Corporation, 1200 K Street decrease of 0.50 percent in the 257, as set forth below, is added to the NW., Washington, DC 20005, 202–326– immediate annuity rate and are table. 4024. (TTY/TDD users may call the otherwise unchanged. Federal relay service toll-free at 1–800– PBGC has determined that notice and Appendix B to Part 4022—Lump Sum 877–8339 and ask to be connected to public comment on this amendment are Interest Rates for PBGC Payments 202–326–4024.) impracticable and contrary to the public * * * * * For plans with a valuation Deferred annuities Immediate date (percent) Rate set annuity rate (percent) On or after Before i1 i2 i3 n1 n2 * * * * * * * 257 ................................ 3–1–15 4–1–15 0.50 4.00 4.00 4.00 7 8 Rmajette on DSK2VPTVN1PROD 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 VerDate Sep<11>2014 11:18 Feb 12, 2015 Jkt 235001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\13FER1.SGM 13FER1

7968 Federal Register / Vol. 80, No. 30 / Friday, February 13, 2015 / Rules and Regulations ■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum 257, 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 * * * * * * * 257 ................................ 3–1–15 4–1–15 0.50 4.00 4.00 4.00 7 8 Issued in Washington, DC, on this 6th day Building, 1200 New Jersey Avenue SE., likelihood of transiting watercraft of February 2015. Washington, DC 20590, between 9 a.m. during the swim competition involving Judith Starr, and 5 p.m., Monday through Friday, a large number of competitors presents General Counsel, Pension Benefit Guaranty except Federal holidays. a significant risk of serious injuries or Corporation. FOR FURTHER INFORMATION CONTACT: If fatalities. [FR Doc. 2015–03050 Filed 2–12–15; 8:45 am] you have questions on this rule, contact C. Discussion of Comments, Changes BILLING CODE 7709–02–P MST1 Joseph McCollum, Prevention and the Final Rule Department, Coast Guard Sector Lake Michigan, Milwaukee, WI at (414) 747– The Captain of the Port Lake DEPARTMENT OF HOMELAND 7148 or by email at Michigan has determined that a safety SECURITY Joseph.P.McCollum@USCG.mil. If you zone is necessary to mitigate the have questions on viewing or submitting aforementioned safety risks. Thus, this Coast Guard material to the docket, call Cheryl rule establishes a safety zone that Collins, Program Manager, Docket encompasses all waters of Milwaukee 33 CFR Part 165 Operations, telephone 202–366–9826. Harbor, including Lakeshore inlet and the Marina at Pier Wisconsin, west of an [Docket No. USCG–2014–0751] SUPPLEMENTARY INFORMATION: imaginary line across the entrance to the RIN 1625–AA00 Table of Acronyms Marina at Pier Wisconsin connecting DHS Department of Homeland Security coordinates 43°02.253′ N., 087°53.623′ Safety Zone; Triathlon National W. and 43°01.737′ N., 087°53.727′ W. FR Federal Register Championships, Milwaukee Harbor, NPRM Notice of Proposed Rulemaking (NAD 83). Milwaukee, Wisconsin TFR Temporary Final Rule This rule will be effective from August 1, 2015, until August 30, 2015. AGENCY: Coast Guard, DHS. A. Regulatory History and Information Additionally, the Coast Guard ACTION: Final rule. On December 30, 2014, The Coast anticipates that this safety zone will be SUMMARY: The Coast Guard is Guard published an NPRM entitled enforced from 10:30 a.m. until 2:30 p.m. establishing a safety zone within Safety Zone; Triathlon National on August 7; from 6:30 a.m. until 4:30 Milwaukee Harbor in Milwaukee, Championships, Milwaukee Harbor, p.m. on August 8, and from 6:30 a.m. Wisconsin. This zone is intended to Milwaukee, Wisconsin in the Federal until 11:30 a.m. on August 9, 2015. This restrict vessels from a portion of Register (79 FR 78369). We did not 2015 enforcement schedule may change, Milwaukee Harbor due to the 2015 receive any comments in response to the and in the event of a change, the Olympic and Sprint Distance National proposed rule. No public meeting was Captain of the Port Lake Michigan will Championships. This safety zone is requested and none was held. issue a Notice of Enforcement with an necessary to protect the surrounding updated enforcement schedule. B. Basis and Purpose The Captain of the Port Lake public and vessels from the hazards associated with the 2015 Olympic and The legal basis for this rule is the Michigan will notify the public that the Sprint Distance National Coast Guard’s authority to establish zone in this rule is or will be enforced Championships. safety zones: 33 U.S.C. 1231; 33 CFR by all appropriate means to the affected 1.05–1, 160.5; Department of Homeland segments of the public including DATES: This final rule is effective from Security Delegation No. 0170.1. publication in the Federal Register as August 1, 2015, until August 30, 2015. In 2014, the Coast Guard was practicable, in accordance with 33 CFR ADDRESSES: Documents mentioned in informed that the Olympic and Sprint 165.7(a). Such means of notification this preamble are part of docket USCG– Distance National Championships are may also include, but are not limited to 2014–0751. To view documents scheduled to return to Milwaukee Broadcast Notice to Mariners or Local mentioned in this preamble as being Harbor in 2015. Within and around Notice to Mariners. available in the docket, go to http:// Milwaukee Harbor at Lakeshore inlet, All persons and vessels shall comply www.regulations.gov, type the docket this event is expected to involve with the instructions of the Captain of Rmajette on DSK2VPTVN1PROD with RULES number in the ‘‘SEARCH’’ box and click thousands of participants competing in the Port Lake Michigan or her ‘‘SEARCH.’’ Click on Open Docket a swim race surrounded by thousands of designated on-scene representative. Folder on the line associated with this spectators. The swim portion of this Entry into, transiting, or anchoring rulemaking. You may also visit the event is anticipated to occur on three within the safety zone is prohibited Docket Management Facility in Room days during the second week of August, unless authorized by the Captain of the W12–140 on the ground floor of the 2015. The Captain of the Port Lake Port Lake Michigan or her designated Department of Transportation West Michigan has determined that the on-scene representative. The Captain of VerDate Sep<11>2014 11:18 Feb 12, 2015 Jkt 235001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\13FER1.SGM 13FER1


Document Created: 2015-12-18 13:17:38
Document Modified: 2015-12-18 13:17:38
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective March 1, 2015.
ContactCatherine 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 Citation80 FR 7967 
CFR AssociatedEmployee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements
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