81 FR 22184 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 81, Issue 73 (April 15, 2016)
Federal Register Volume 81, Issue 73 (April 15, 2016)
| Page Range | 22184-22185 | |
| FR Document | 2016-08773 |
[Federal Register Volume 81, Number 73 (Friday, April 15, 2016)] [Rules and Regulations] [Pages 22184-22185] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-08773] ======================================================================= ----------------------------------------------------------------------- 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 May 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 May 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 May 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 May 2016 interest assumptions under the benefit payments regulation will be 1.00 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 April 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 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 May 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 271, 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) i i i n n -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 271 5-1-16 6-1-16 1.00 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 271, as set forth below, is added to the table. Appendix C to Part 4022--Lump Sum Interest Rates for Private-Sector Payments * * * * * [[Page 22185]] -------------------------------------------------------------------------------------------------------------------------------------------------------- For plans with a valuation date Immediate Deferred annuities (percent) Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------ On or after Before (percent) i i i n n -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 271 5-1-16 6-1-16 1.00 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- Issued in Washington, DC, on this 11th day of April 2016. Judith Starr, General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2016-08773 Filed 4-14-16; 8:45 am] BILLING CODE 7709-02-P
![22184 Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Rules and Regulations
BIA will publish a final rule with SUPPLEMENTARY INFORMATION: PBGC’s need to determine and issue new
technical revisions. regulation on Benefits Payable in interest assumptions promptly so that
Dated: April 12, 2016. Terminated Single-Employer Plans (29 the assumptions can reflect current
Lawrence S. Roberts,
CFR part 4022) prescribes actuarial market conditions as accurately as
assumptions—including interest possible.
Acting Assistant Secretary—Indian Affairs.
assumptions—for paying plan benefits Because of the need to provide
[FR Doc. 2016–08776 Filed 4–14–16; 8:45 am] under terminating single-employer immediate guidance for the payment of
BILLING CODE 4337–15–P plans covered by title IV of the benefits under plans with valuation
Employee Retirement Income Security dates during May 2016, PBGC finds that
Act of 1974. The interest assumptions in good cause exists for making the
the regulation are also published on assumptions set forth in this
PENSION BENEFIT GUARANTY PBGC’s Web site (http://www.pbgc.gov). amendment effective less than 30 days
CORPORATION PBGC uses the interest assumptions in after publication.
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’’
Benefits Payable in Terminated Single- sum and to determine the amount to under the criteria set forth in Executive
Employer Plans; Interest Assumptions pay. Appendix C to Part 4022 contains Order 12866.
for Paying Benefits interest assumptions for private-sector Because no general notice of proposed
pension practitioners to refer to if they rulemaking is required for this
AGENCY: Pension Benefit Guaranty wish to use lump-sum interest rates amendment, the Regulatory Flexibility
Corporation. determined using PBGC’s historical Act of 1980 does not apply. See 5 U.S.C.
ACTION: Final rule. methodology. Currently, the rates in 601(2).
Appendices B and C of the benefit
SUMMARY: This final rule amends the payment regulation are the same. List of Subjects in 29 CFR Part 4022
Pension Benefit Guaranty Corporation’s The interest assumptions are intended Employee benefit plans, Pension
regulation on Benefits Payable in to reflect current conditions in the insurance, Pensions, Reporting and
Terminated Single-Employer Plans to financial and annuity markets. recordkeeping requirements.
prescribe interest assumptions under Assumptions under the benefit
payments regulation are updated In consideration of the foregoing, 29
the regulation for valuation dates in CFR part 4022 is amended as follows:
May 2016. The interest assumptions are monthly. This final rule updates the
used for paying benefits under benefit payments interest assumptions
PART 4022—BENEFITS PAYABLE IN
terminating single-employer plans for May 2016.1
TERMINATED SINGLE-EMPLOYER
covered by the pension insurance The May 2016 interest assumptions
under the benefit payments regulation PLANS
system administered by PBGC.
will be 1.00 percent for the period ■ 1. The authority citation for part 4022
DATES: Effective May 1, 2016. during which a benefit is in pay status continues to read as follows:
FOR FURTHER INFORMATION CONTACT: and 4.00 percent during any years
Catherine B. Klion (Klion.Catherine@ preceding the benefit’s placement in pay Authority: 29 U.S.C. 1302, 1322, 1322b,
pbgc.gov), Assistant General Counsel for status. In comparison with the interest 1341(c)(3)(D), and 1344.
Regulatory Affairs, Pension Benefit assumptions in effect for April 2016, ■ 2. In appendix B to part 4022, Rate Set
Guaranty Corporation, 1200 K Street these interest assumptions are 271, as set forth below, is added to the
NW., Washington, DC 20005, 202–326– unchanged. table.
4024. (TTY/TDD users may call the PBGC has determined that notice and
Federal relay service toll-free at 1–800– public comment on this amendment are Appendix B to Part 4022—Lump Sum
877–8339 and ask to be connected to impracticable and contrary to the public Interest Rates for PBGC Payments
202–326–4024.) interest. This finding is based on the * * * * *
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
271 5–1–16 6–1–16 1.00 4.00 4.00 4.00 7 8
■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum
271, as set forth below, is added to the Interest Rates for Private-Sector
table. Payments
* * * * *
jstallworth on DSK7TPTVN1PROD 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. 81, No. 73 / Friday, April 15, 2016 / Rules and Regulations 22185
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
271 5–1–16 6–1–16 1.00 4.00 4.00 4.00 7 8
Issued in Washington, DC, on this 11th day Public Law 114–102 (HIFPA), into law. the Regulations, and which are subject
of April 2016. Section 102(a)(1) of HIFPA requires the to prohibitions or strict conditions on
Judith Starr, President, within 120 days of the the opening or maintaining of
General Counsel, Pension Benefit Guaranty enactment of HIFPA, to prescribe correspondent or payable-through
Corporation. regulations to prohibit or impose strict accounts as set forth in § 566.201(b) of
[FR Doc. 2016–08773 Filed 4–14–16; 8:45 am] conditions on the opening or the Regulations, will be listed on the
BILLING CODE 7709–02–P maintaining in the United States of a Hizballah Financial Sanctions
correspondent account or a payable- Regulations List (HFSR List) on OFAC’s
through account by a foreign financial Web site (www.treasury.gov/ofac) on the
DEPARTMENT OF THE TREASURY institution that the President Counter Terrorism Sanctions page and
determines, on or after December 18, published in the Federal Register.
Office of Foreign Assets Control 2015, engages in one or more of the Subpart C of the Regulations defines
following activities: (1) Knowingly key terms used throughout the
31 CFR Part 566 facilitating a significant transaction or Regulations, and subpart D contains
transactions for Hizballah; (2) interpretive sections regarding the
Hizballah Financial Sanctions knowingly facilitating a significant Regulations. Section 566.404 of subpart
Regulations transaction or transactions of a person D of the Regulations sets forth the types
identified on the List of Specially of factors that, as a general matter, the
AGENCY: Office of Foreign Assets
Designated Nationals and Blocked Secretary of the Treasury will consider
Control, Treasury.
Persons (SDN List) maintained by in determining, for purposes of
ACTION: Final rule. paragraph (a) of § 566.201, whether
OFAC, the property and interests in
SUMMARY: The Department of the property of which are blocked pursuant transactions or financial services are
Treasury’s Office of Foreign Assets to the International Emergency significant.
Control (OFAC) is adding new part 566 Economic Powers Act (50 U.S.C. 1701 et Transactions otherwise prohibited
to 31 CFR chapter V to implement the seq.) for acting on behalf of or at the under the Regulations but found to be
Hizballah International Financing direction of, or being owned or consistent with U.S. policy may be
Prevention Act of 2015, which requires controlled by, Hizballah; (3) knowingly authorized by the general licenses
the President to prescribe certain engaging in money laundering to carry contained in subpart E of the
regulations. out an activity described in (1) or (2); or Regulations or by a specific license
(4) knowingly facilitating a significant issued pursuant to the procedures
DATES: Effective: April 15, 2016. transaction or transactions or providing described in subpart E of 31 CFR part
FOR FURTHER INFORMATION CONTACT: The significant financial services to carry out 501. Subpart E of the Regulations
Department of the Treasury’s Office of an activity described in (1), (2), or (3). includes a general license in § 566.504
Foreign Assets Control: Assistant Pursuant to Presidential authorizing transactions related to
Director for Licensing, tel.: 202–622– Memorandum of March 18, 2016: winding down and closing a
2480, Assistant Director for Regulatory Delegation of Functions Under Sections correspondent account or a payable-
Affairs, tel.: 202–622–4855, Assistant 102(a), 102(c), 204, and 302 of HIFPA, through account. Section 566.504
Director for Sanctions Compliance & the President delegated certain authorizes transactions related to
Evaluation, tel.: 202–622–2490; or the functions and authorities, with respect closing a correspondent account or
Department of the Treasury’s Office of to the determinations provided for payable-through account for a foreign
the Chief Counsel (Foreign Assets therein, to the Secretary of the Treasury, financial institution whose name is
Control), Office of the General Counsel, in consultation with the Secretary of added to the HFSR List during the 10-
tel.: 202–622–2410. State. In furtherance of HIFPA’s day period beginning on the effective
SUPPLEMENTARY INFORMATION: requirement and the Presidential date of the prohibition in § 566.201.
delegation of functions and authorities This general license includes a reporting
Electronic and Facsimile Availability noted above, OFAC is promulgating the requirement pursuant to which a U.S.
This document and additional Hizballah Financial Sanctions financial institution that maintained a
information concerning OFAC are Regulations, 31 CFR part 566 (the correspondent account or a payable-
available from OFAC’s Web site ‘‘Regulations’’). through account for a foreign financial
(www.treasury.gov/ofac). Certain general Subpart A of the Regulations clarifies institution whose name is added to the
information pertaining to OFAC’s the relation of this part to other laws HFSR List must file a report with OFAC
sanctions programs also is available via and regulations. Subpart B of the that provides full details on the closing
jstallworth on DSK7TPTVN1PROD with RULES
facsimile through a 24-hour fax-on- Regulations implements section 102(a) of each such account within 30 days of
demand service, tel.: 202–622–0077. of HIFPA. The names of foreign the closure of the account. The report
financial institutions that are must include complete information on
Background determined by the Secretary of the all transactions processed or executed in
On December 18, 2015, the President Treasury, in consultation with the winding down and closing the account.
signed the Hizballah International Secretary of State, to engage in the Subpart F of the Regulations refers to
Financing Prevention Act of 2015, activities described in § 566.201(a) of subpart C of part 501 for recordkeeping
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Document Created: 2016-04-15 00:55:36
Document Modified: 2016-04-15 00:55:36
| 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 May 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 22184 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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