81 FR 53921 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 81, Issue 157 (August 15, 2016)
Federal Register Volume 81, Issue 157 (August 15, 2016)
| Page Range | 53921-53922 | |
| FR Document | 2016-19295 |
[Federal Register Volume 81, Number 157 (Monday, August 15, 2016)] [Rules and Regulations] [Pages 53921-53922] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-19295] ======================================================================= ----------------------------------------------------------------------- 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 September 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 September 1, 2016. FOR FURTHER INFORMATION CONTACT: Deborah C. Murphy ([email protected]), Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005, 202-326-4400 ext. 3451. (TTY/TDD users may call the Federal relay service toll-free at 1-800-877-8339 and ask to be connected to 202-326-4400 ext. 3451.) 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 September 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 September 2016 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 August 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 September 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 275, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 275 9-1-16 10-1-16 0.50 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 275, as set forth below, is added to the table. Appendix C to Part 4022--Lump Sum Interest Rates for Private-Sector Payments * * * * * [[Page 53922]] -------------------------------------------------------------------------------------------------------------------------------------------------------- For plans with a valuation date Immediate Deferred annuities (percent) Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------ On or after Before (percent) i1 i2 i3 n1 n2 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 275 9-1-16 10-1-16 0.50 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- Judith Starr, General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2016-19295 Filed 8-12-16; 8:45 am] BILLING CODE 7709-02-P
![Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Rules and Regulations 53921
archaeological or ethnological material ask to be connected to 202–326–4400 interest. This finding is based on the
that are subject to import restrictions. ext. 3451.) need to determine and issue new
SUPPLEMENTARY INFORMATION: PBGC’s interest assumptions promptly so that
R. Gil Kerlikowske,
regulation on Benefits Payable in the assumptions can reflect current
Commissioner, U.S. Customs and Border
Protection. Terminated Single-Employer Plans (29 market conditions as accurately as
CFR part 4022) prescribes actuarial possible.
Approved: August 11, 2016.
assumptions—including interest Because of the need to provide
Timothy E. Skud,
assumptions—for paying plan benefits immediate guidance for the payment of
Deputy Assistant Secretary of the Treasury.
under terminating single-employer benefits under plans with valuation
[FR Doc. 2016–19491 Filed 8–11–16; 4:15 pm] dates during September 2016, PBGC
plans covered by title IV of the
BILLING CODE 9111–14–P Employee Retirement Income Security finds that good cause exists for making
Act of 1974. The interest assumptions in the assumptions set forth in this
the regulation are also published on amendment effective less than 30 days
PENSION BENEFIT GUARANTY PBGC’s Web site (http://www.pbgc.gov). after publication.
CORPORATION PBGC uses the interest assumptions in PBGC has determined that this action
Appendix B to Part 4022 to determine is not a ‘‘significant regulatory action’’
29 CFR Part 4022 whether a benefit is payable as a lump under the criteria set forth in Executive
Benefits Payable in Terminated Single- sum and to determine the amount to Order 12866.
Employer Plans; Interest Assumptions pay. Appendix C to Part 4022 contains Because no general notice of proposed
for Paying Benefits interest assumptions for private-sector rulemaking is required for this
pension practitioners to refer to if they amendment, the Regulatory Flexibility
AGENCY: Pension Benefit Guaranty wish to use lump-sum interest rates Act of 1980 does not apply. See 5 U.S.C.
Corporation. determined using PBGC’s historical 601(2).
ACTION: Final rule. methodology. Currently, the rates in
Appendices B and C of the benefit List of Subjects in 29 CFR Part 4022
SUMMARY: This final rule amends the payment regulation are the same.
Pension Benefit Guaranty Corporation’s Employee benefit plans, Pension
The interest assumptions are intended insurance, Pensions, Reporting and
regulation on Benefits Payable in to reflect current conditions in the
Terminated Single-Employer Plans to recordkeeping requirements.
financial and annuity markets.
prescribe interest assumptions under Assumptions under the benefit In consideration of the foregoing, 29
the regulation for valuation dates in payments regulation are updated CFR part 4022 is amended as follows:
September 2016. The interest monthly. This final rule updates the
assumptions are used for paying PART 4022—BENEFITS PAYABLE IN
benefit payments interest assumptions TERMINATED SINGLE-EMPLOYER
benefits under terminating single- for September 2016.1
employer plans covered by the pension PLANS
The September 2016 interest
insurance system administered by assumptions under the benefit payments
PBGC. ■ 1. The authority citation for part 4022
regulation will be 0.50 percent for the continues to read as follows:
DATES: Effective September 1, 2016. period during which a benefit is in pay
FOR FURTHER INFORMATION CONTACT: status and 4.00 percent during any years Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
Deborah C. Murphy preceding the benefit’s placement in pay
(Murphy.Deborah@pbgc.gov), Assistant status. In comparison with the interest ■ 2. In appendix B to part 4022, Rate Set
General Counsel for Regulatory Affairs, assumptions in effect for August 2016, 275, as set forth below, is added to the
Pension Benefit Guaranty Corporation, these interest assumptions are table.
1200 K Street NW., Washington, DC unchanged.
20005, 202–326–4400 ext. 3451. (TTY/ PBGC has determined that notice and Appendix B to Part 4022—Lump Sum
TDD users may call the Federal relay public comment on this amendment are Interest Rates for PBGC Payments
service toll-free at 1–800–877–8339 and impracticable and contrary to the public * * * * *
For plans with a valuation Deferred annuities (percent)
Immediate
date
Rate set annuity rate
(percent) i1 i2 i3 n1 n2
On or after Before
* * * * * * *
275 9–1–16 10–1–16 0.50 4.00 4.00 4.00 7 8
■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum
275, as set forth below, is added to the Interest Rates for Private-Sector
table. Payments
* * * * *
sradovich on DSK3GMQ082PROD 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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![53922 Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Rules and Regulations
For plans with a valuation Deferred annuities (percent)
Immediate
date
Rate set annuity rate
(percent) i1 i2 i3 n1 n2
On or after Before
* * * * * * *
275 9–1–16 10–1–16 0.50 4.00 4.00 4.00 7 8
Judith Starr, 5410.20 will be made available at http:// ‘‘SEARCH.’’ Click on Open Docket
General Counsel, Pension Benefit Guaranty www.dtic.mil/whs/directives/corres/pdf/ Folder on the line associated with this
Corporation. 541020p.pdf. rule.
[FR Doc. 2016–19295 Filed 8–12–16; 8:45 am] FOR FURTHER INFORMATION CONTACT: If
List of Subjects in 32 CFR Part 237a
BILLING CODE 7709–02–P you have questions on this rule, call or
Armed forces; Business and industry. email Chief Kristina Gauthier,
PART 237a—[REMOVED] Waterways Management, U.S. Coast
DEPARTMENT OF DEFENSE Guard; telephone 671–355–4866, email
Accordingly, by the authority of 5 Kristina.M.Gauthier@uscg.mil.
Office of the Secretary U.S.C. 301, 32 CFR part 237a is SUPPLEMENTARY INFORMATION:
removed.
32 CFR Part 237a I. Table of Abbreviations
Dated: August 9, 2016.
[Docket ID: DOD–2016–OS–0084] Aaron Siegel, CFR Code of Federal Regulations
COTP Captain of the Port
RIN 0790–AI94 Alternate OSD Federal Register Liaison DHS Department of Homeland Security
Officer, Department of Defense. FR Federal Register
Public Affairs Liaison With Industry [FR Doc. 2016–19345 Filed 8–12–16; 8:45 am] NPRM Notice of proposed rulemaking
AGENCY: Assistant to the Secretary of BILLING CODE 5001–06–P § Section
U.S.C. United States Code
Defense for Public Affairs, DoD.
ACTION: Final rule. II. Background Information and
DEPARTMENT OF HOMELAND Regulatory History
SUMMARY: This final rule removes SECURITY
regulations concerning Public Affairs The Coast Guard is issuing this
liaison with industry. These Code of Coast Guard temporary rule without prior notice and
Federal Regulations (CFR) provisions opportunity to comment pursuant to
are outdated and no longer accurate or 33 CFR Part 165 authority under section 4(a) of the
applicable as written. The guidance, as Administrative Procedure Act (APA) (5
[Docket Number USCG–2016–0644] U.S.C. 553(b)). This provision
revised, sets forth internal standards for
how DoD employees should reach out RIN 1625–AA00 authorizes an agency to issue a rule
and engage with industry. With respect without prior notice and opportunity to
to the visual information portion, it is Safety Zone; Apra Outer Harbor, Naval comment when the agency for good
essentially a collection and discussion Base Guam cause finds that those procedures are
of currently applicable intellectual ‘‘impracticable, unnecessary, or contrary
AGENCY: Coast Guard, DHS. to the public interest.’’ Under 5 U.S.C.
property law that does not create any
ACTION: Temporary final rule. 553(b)(B), the Coast Guard finds that
new public duties or obligations.
Therefore, these regulations are good cause exists for not publishing a
SUMMARY: The Coast Guard is notice of proposed rulemaking (NPRM)
removed from the CFR. establishing a temporary safety zone for with respect to this rule because doing
DATES: This rule is effective on August navigable waters of Apra Harbor, Guam so would be impracticable. The final
15, 2016. in the vicinity of San Luis Beach, details for this operation were not
FOR FURTHER INFORMATION CONTACT: Sumay Cove and Commadores Cut. The known to the Coast Guard until there
Patricia Toppings at 571–372–0485. safety zone is needed to protect was insufficient time remaining before
SUPPLEMENTARY INFORMATION: This rule
personnel, vessels, and the marine the event to publish an NPRM. Thus,
will be reported in future status updates environment from vessel operations in delaying the effective date of this rule to
as part of DoD’s retrospective plan the area. Entry of vessels or persons into wait for a comment period to run would
under Executive Order 13563 completed this zone is prohibited unless be impracticable because it would
in August 2011. DoD’s full plan can be specifically authorized by the Captain of inhibit the Coast Guard’s ability to
accessed at: http://www.regulations.gov/ the Port Guam. protect vessels and waterway users from
#!docketDetail;D=DOD-2011-OS-0036. DATES: This rule is effective without the hazards associated with the
It has been determined that actual notice from August 15, 2016 operation.
publication of this CFR part removal for through 7 p.m. August 31, 2016. For the We are issuing this rule, and under 5
public comment is impracticable, purposes of enforcement, actual notice U.S.C. 553(d)(3), the Coast Guard finds
sradovich on DSK3GMQ082PROD with RULES
unnecessary, and contrary to public will be used from 7 a.m. July 31, 2016 that good cause exists for making it
interest since it is based on removing through August 15, 2016. effective less than 30 days after
DoD internal policies and procedures ADDRESSES: To view documents publication in the Federal Register. For
that are publically available on the mentioned in this preamble as being the same reasons discussed in the
Department’s issuance Web site. Once available in the docket, go to http:// preceding paragraph, waiting for a 30
signed, a copy of DoD’s internal www.regulations.gov, type USCG–2016– day notice period to run would be
guidance contained in DoD Instruction 0644 in the ‘‘SEARCH’’ box and click impracticable.
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Document Created: 2016-08-13 02:22:45
Document Modified: 2016-08-13 02:22:45
| 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 September 1, 2016. | |
| Contact | Deborah C. Murphy ([email protected]), Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005, 202-326-4400 ext. 3451. (TTY/TDD users may call the Federal relay service toll-free at 1-800-877-8339 and ask to be connected to 202-326-4400 ext. 3451.) | |
| FR Citation | 81 FR 53921 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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