81 FR 2088 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 81, Issue 10 (January 15, 2016)
Federal Register Volume 81, Issue 10 (January 15, 2016)
| Page Range | 2088-2089 | |
| FR Document | 2016-00725 |
[Federal Register Volume 81, Number 10 (Friday, January 15, 2016)] [Rules and Regulations] [Pages 2088-2089] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-00725] ======================================================================= ----------------------------------------------------------------------- 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 February 2016. The interest assumptions are used for paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective February 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 February 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. --------------------------------------------------------------------------- The February 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 January 2016, 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 [[Page 2089]] 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 February 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 268, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * -------------------------------------------------------------------------------------------------------------------------------------------------------- 268 2-1-16 3-1-16 1.25 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 268, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * -------------------------------------------------------------------------------------------------------------------------------------------------------- 268 2-1-16 3-1-16 1.25 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- Issued in Washington, DC, on this 11th day of January 2016. Philip R. Hertz, Deputy General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2016-00725 Filed 1-14-16; 8:45 am] BILLING CODE 7709-02-P
![2088 Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Rules and Regulations
Sections 12.104 through 12.104i also under section 36B of the Internal insurance system administered by
issued under 19 U.S.C. 2612; Revenue Code. PBGC.
* * * * * Need for Correction DATES: Effective February 1, 2016.
§ 12.104g [Amended] As published, the final regulations FOR FURTHER INFORMATION CONTACT:
(TD 9745) contains an error that may Catherine B. Klion (Klion.Catherine@
■ 2. In § 12.104g, paragraph (a), the table pbgc.gov), Assistant General Counsel for
is amended in the entry for Italy by prove to be misleading and is in need
of clarification. Regulatory Affairs, Pension Benefit
removing the reference to ‘‘CBP Dec. Guaranty Corporation, 1200 K Street
11–03’’ and adding in its place ‘‘CBP List of Subjects in 26 CFR Part 1 NW., Washington, DC 20005, 202–326–
Dec. 16–02’’. 4024. (TTY/TDD users may call the
Income taxes, Reporting and
R. Gil Kerlikowske, recordkeeping requirements. Federal relay service toll-free at 1–800–
Commissioner, U.S. Customs and Border 877–8339 and ask to be connected to
Protection. Correction of Publication 202–326–4024.)
Approved: January 12, 2016. Accordingly, 26 CFR part 1 is SUPPLEMENTARY INFORMATION: PBGC’s
Timothy E. Skud, corrected by making the following regulation on Benefits Payable in
Deputy Assistant Secretary of the Treasury. correcting amendment: Terminated Single-Employer Plans (29
[FR Doc. 2016–00735 Filed 1–14–16; 8:45 am] CFR part 4022) prescribes actuarial
PART 1—INCOME TAXES assumptions—including interest
BILLING CODE 9111–14–P
■ Paragraph 1. The authority citation assumptions—for paying plan benefits
for part 1 continues to read in part as under terminating single-employer
follows: plans covered by title IV of the
DEPARTMENT OF THE TREASURY
Employee Retirement Income Security
Authority: 26 U.S.C. 7805 * * * Act of 1974. The interest assumptions in
Internal Revenue Service
■ Par. 2. Section 1.36B–3 is amended by the regulation are also published on
26 CFR Part 1 revising paragraph (d)(2)(i)(A) to read as PBGC’s Web site (http://www.pbgc.gov).
follows: PBGC uses the interest assumptions in
[TD 9745] Appendix B to Part 4022 to determine
RIN 1545–BL43 § 1.36B–3 Computing the premium whether a benefit is payable as a lump
assistance credit amount. sum and to determine the amount to
Minimum Value of Eligible Employer- * * * * * pay. Appendix C to Part 4022 contains
Sponsored Plans and Other Rules (d) * * * interest assumptions for private-sector
Regarding the Health Insurance (2) * * * pension practitioners to refer to if they
Premium Tax Credit; Correction (i) * * * wish to use lump-sum interest rates
(A) The enrollment premiums for the determined using PBGC’s historical
AGENCY: Internal Revenue Service (IRS), month (reduced by any amounts that methodology. Currently, the rates in
Treasury. were refunded); or Appendices B and C of the benefit
ACTION: Final regulations; correcting * * * * * payment regulation are the same.
amendment. The interest assumptions are intended
Martin V. Franks,
SUMMARY: This document contains to reflect current conditions in the
Chief, Publications and Regulations Branch, financial and annuity markets.
corrections to final regulations (TD Legal Processing Division, Associate Chief
9745) that were published in the Counsel, (Procedure and Administration).
Assumptions under the benefit
Federal Register on Friday, December payments regulation are updated
[FR Doc. 2016–00701 Filed 1–14–16; 8:45 am]
18, 2015 (80 FR 78971). The final monthly. This final rule updates the
BILLING CODE 4830–01–P
regulations are on the health insurance benefit payments interest assumptions
premium tax credit enacted by the for February 2016.1
Patient Protection and Affordable Care The February 2016 interest
PENSION BENEFIT GUARANTY assumptions under the benefit payments
Act and the Health Care and Education CORPORATION
Reconciliation Act of 2010, as amended regulation will be 1.25 percent for the
by the Medicare and Medicaid period during which a benefit is in pay
29 CFR Part 4022
Extenders Act of 2010, the status and 4.00 percent during any years
Comprehensive 1099 Taxpayer Benefits Payable in Terminated Single- preceding the benefit’s placement in pay
Protection and Repayment of Exchange Employer Plans; Interest Assumptions status. In comparison with the interest
Subsidy Overpayments Act of 2011, and for Paying Benefits assumptions in effect for January 2016,
the Department of Defense and Full these interest assumptions are
Year Continuing Appropriations Act, AGENCY: Pension Benefit Guaranty unchanged.
2011. Corporation. PBGC has determined that notice and
ACTION: Final rule. public comment on this amendment are
DATES: This correction is effective impracticable and contrary to the public
January 15, 2016 and applicable SUMMARY: This final rule amends the interest. This finding is based on the
December 18, 2015. Pension Benefit Guaranty Corporation’s need to determine and issue new
FOR FURTHER INFORMATION CONTACT: regulation on Benefits Payable in interest assumptions promptly so that
Shareen Pflanz at (202) 317–4718 (not a Terminated Single-Employer Plans to
Lhorne on DSK5TPTVN1PROD with RULES
toll-free number). prescribe interest assumptions under 1 Appendix B to PBGC’s regulation on Allocation
SUPPLEMENTARY INFORMATION: the regulation for valuation dates in of Assets in Single-Employer Plans (29 CFR part
February 2016. The interest 4044) prescribes interest assumptions for valuing
Background assumptions are used for paying benefits under terminating covered single-employer
plans for purposes of allocation of assets under
The final regulations (TD 9745) that benefits under terminating single- ERISA section 4044. Those assumptions are
are the subject of this correction are employer plans covered by the pension updated quarterly.
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![Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Rules and Regulations 2089
the assumptions can reflect current Because no general notice of proposed PART 4022—BENEFITS PAYABLE IN
market conditions as accurately as rulemaking is required for this TERMINATED SINGLE-EMPLOYER
possible. amendment, the Regulatory Flexibility PLANS
Because of the need to provide Act of 1980 does not apply. See 5 U.S.C.
immediate guidance for the payment of 601(2). ■ 1. The authority citation for part 4022
benefits under plans with valuation continues to read as follows:
dates during February 2016, PBGC finds List of Subjects in 29 CFR Part 4022
Authority: 29 U.S.C. 1302, 1322, 1322b,
that good cause exists for making the Employee benefit plans, Pension 1341(c)(3)(D), and 1344.
assumptions set forth in this insurance, Pensions, Reporting and ■ 2. In appendix B to part 4022, Rate Set
amendment effective less than 30 days recordkeeping requirements. 268, as set forth below, is added to the
after publication. table.
PBGC has determined that this action In consideration of the foregoing, 29
is not a ‘‘significant regulatory action’’ CFR part 4022 is amended as follows: Appendix B to Part 4022—Lump Sum
under the criteria set forth in Executive Interest Rates For PBGC Payments
Order 12866. * * * * *
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
268 2–1–16 3–1–16 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
268, 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
* * * * * * *
268 2–1–16 3–1–16 1.25 4.00 4.00 4.00 7 8
Issued in Washington, DC, on this 11th day schedule that governs the Montlake deviation, call or email Mr. Steven
of January 2016. Bridge across the Lake Washington Ship Fischer, Bridge Administrator,
Philip R. Hertz, Canal, mile 5.2, at Seattle, WA. The Thirteenth Coast Guard District;
Deputy General Counsel, Pension Benefit deviation is necessary to allow the telephone 206–220–7282, email d13-pf-
Guaranty Corporation. bridge to operate in single leaf mode d13bridges@uscg.mil.
[FR Doc. 2016–00725 Filed 1–14–16; 8:45 am] during day light hours, and a full
closure (both bascule leafs in the closed- SUPPLEMENTARY INFORMATION:
BILLING CODE 7709–02–P
to-navigation position) during night Washington Department of
time hours while work crews replace Transportation has requested a
DEPARTMENT OF HOMELAND bridge decking. This deviation allows a temporary deviation from the operating
SECURITY single leaf opening with a one hour schedule for the Montlake Bridge across
advance notice during the day, and the Lake Washington Ship Canal, at
Coast Guard remains in the closed-to-navigation mile 5.2, at Seattle, WA. The deviation
position at night. is necessary to accommodate work
33 CFR Part 117 DATES: This deviation is effective from crews conducting timely bridge deck
[Docket No. USCG–2016–0021] 6 a.m. on February 27, 2016 to 6 p.m. repairs.
on February 28, 2016. The Montlake Bridge in the closed
Drawbridge Operation Regulation; ADDRESSES: The docket for this position provides 30 feet of vertical
Lake Washington Ship Canal, Seattle, deviation, [USCG–2016–0021] is clearance throughout the navigation
WA available at http://www.regulations.gov. channel, and 46 feet of vertical
Lhorne on DSK5TPTVN1PROD with RULES
AGENCY: Coast Guard, DHS. Type the docket number in the clearance throughout the center 60 feet
‘‘SEARCH’’ box and click ‘‘SEARCH.’’ of the bridge; vertical clearance
ACTION:Notice of deviation from
Click on Open Docket Folder on the line references to the Mean Water Level of
drawbridge regulation.
associated with this deviation. Lake Washington. When half the span is
SUMMARY: The Coast Guard has issued a FOR FURTHER INFORMATION CONTACT: If open with a single leaf, 46 feet of
temporary deviation from the operating you have questions on this temporary vertical clearance will be reduced
VerDate Sep<11>2014 15:13 Jan 14, 2016 Jkt 238001 PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 E:\FR\FM\15JAR1.SGM 15JAR1](https://thefederalregister.org/doc/81_FR_2098/page/2.svg)
Document Created: 2018-02-02 12:31:58
Document Modified: 2018-02-02 12:31:58
| 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 February 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 | 81 FR 2088 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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