81 FR 63414 - Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 81, Issue 179 (September 15, 2016)
Federal Register Volume 81, Issue 179 (September 15, 2016)
| Page Range | 63414-63416 | |
| FR Document | 2016-22172 |
[Federal Register Volume 81, Number 179 (Thursday, September 15, 2016)] [Rules and Regulations] [Pages 63414-63416] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-22172] ======================================================================= ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION 29 CFR Parts 4022 and 4044 Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits AGENCY: Pension Benefit Guaranty Corporation. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule amends the Pension Benefit Guaranty Corporation's regulations on Benefits Payable in Terminated Single- Employer Plans and Allocation of Assets in Single-Employer Plans to prescribe interest assumptions under the benefit payments regulation for valuation dates in October 2016 and interest assumptions under the asset allocation regulation for valuation dates in the fourth quarter of 2016. The interest assumptions are used for valuing and paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective October 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 regulations on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) and Benefits Payable in Terminated Single-Employer Plans (29 CFR part 4022) prescribe actuarial assumptions--including interest assumptions--for valuing and 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 regulations 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. 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 [[Page 63415]] 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 asset allocation regulation are updated quarterly; assumptions under the benefit payments regulation are updated monthly. This final rule updates the benefit payments interest assumptions for October 2016 and updates the asset allocation interest assumptions for the fourth quarter (October through December) of 2016. The fourth quarter 2016 interest assumptions under the allocation regulation will be 1.98 percent for the first 20 years following the valuation date and 2.67 percent thereafter. In comparison with the interest assumptions in effect for the third quarter of 2016, these interest assumptions represent no change in the select period (the period during which the select rate (the initial rate) applies), a decrease of 0.52 percent in the select rate, and a decrease of 0.18 percent in the ultimate rate (the final rate). The October 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 September 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 valuation and payment of benefits under plans with valuation dates during October 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 29 CFR Part 4022 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. 29 CFR Part 4044 Employee benefit plans, Pension insurance, Pensions. In consideration of the foregoing, 29 CFR parts 4022 and 4044 are 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 276, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 276 10-1-16 11-1-16 0.50 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 276, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 276 10-1-16 11-1-16 0.50 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS 0 4. The authority citation for part 4044 continues to read as follows: Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362. 0 5. In appendix B to part 4044, a new entry for October-December 2016, as set forth below, is added to the table. Appendix B to Part 4044--Interest Rates Used to Value Benefits * * * * * [[Page 63416]] ---------------------------------------------------------------------------------------------------------------- The values of it are: For valuation dates ----------------------------------------------------------------------------------- occurring in the month-- it for t = it for t = it for t = ---------------------------------------------------------------------------------------------------------------- * * * * * * * October-December 2016....... 0.0198 1-20 0.0267 >20 N/A N/A ---------------------------------------------------------------------------------------------------------------- Issued in Washington, DC, by Judith Starr, General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2016-22172 Filed 9-14-16; 8:45 am] BILLING CODE 7709-02-P
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petition for review of an ALJ’s decision (b) A final order is not subject to PENSION BENEFIT GUARANTY
at any time before that decision becomes judicial review in any criminal or other CORPORATION
final by filing a written withdrawal with civil proceeding.
the ARB. The ALJ or the ARB, as the 29 CFR Parts 4022 and 4044
(c) If a timely petition for review is
case may be, will determine whether to filed, the record of a case, including the
approve the withdrawal of the Allocation of Assets in Single-
record of proceedings before the ALJ, Employer Plans; Benefits Payable in
objections or the petition for review. If
will be transmitted by the ARB, or the Terminated Single-Employer Plans;
the ALJ approves a request to withdraw
ALJ, as the case may be, to the Interest Assumptions for Valuing and
objections to the Assistant Secretary’s
findings and/or order, and there are no appropriate court pursuant to the Paying Benefits
other pending objections, the Assistant Federal Rules of Appellate Procedure
AGENCY: Pension Benefit Guaranty
Secretary’s findings and/or order will and the local rules of such court.
Corporation.
become the final order of the Secretary. § 1986.113 Judicial enforcement. ACTION: Final rule.
If the ARB approves a request to
withdraw a petition for review of an ALJ Whenever any person has failed to SUMMARY: This final rule amends the
decision, and there are no other pending comply with a preliminary order of Pension Benefit Guaranty Corporation’s
petitions for review of that decision, the reinstatement or a final order, including regulations on Benefits Payable in
ALJ’s decision will become the final one approving a settlement agreement Terminated Single-Employer Plans and
order of the Secretary. If objections or a issued under SPA, the Secretary may Allocation of Assets in Single-Employer
petition for review are withdrawn file a civil action seeking enforcement of Plans to prescribe interest assumptions
because of settlement, the settlement the order in the United States district under the benefit payments regulation
must be submitted for approval in court for the district in which the for valuation dates in October 2016 and
accordance with paragraph (d) of this violation was found to have occurred. interest assumptions under the asset
section. allocation regulation for valuation dates
(d)(1) Investigative settlements. At any
§ 1986.114 District court jurisdiction of in the fourth quarter of 2016. The
retaliation complaints under SPA. interest assumptions are used for
time after the filing of a SPA complaint
and before the findings and/or order are (a) If there is no final order of the valuing and paying benefits under
objected to or become a final order by terminating single-employer plans
Secretary, 210 days have passed since
operation of law, the case may be settled covered by the pension insurance
the filing of the complaint, and there is
if the Assistant Secretary, the system administered by PBGC.
no showing that there has been delay
complainant, and the respondent agree DATES: Effective October 1, 2016.
due to the bad faith of the complainant,
to a settlement. The Assistant FOR FURTHER INFORMATION CONTACT:
the complainant may bring an action at
Secretary’s approval of a settlement law or equity for de novo review in the Deborah C. Murphy (Murphy.Deborah@
reached by the respondent and the PBGC.gov), Assistant General Counsel
appropriate district court of the United
complainant demonstrates the Assistant for Regulatory Affairs, Pension Benefit
States, which will have jurisdiction over
Secretary’s consent and achieves the Guaranty Corporation, 1200 K Street
such an action without regard to the
consent of all three parties. NW., Washington, DC 20005, 202–326–
amount in controversy. The action shall, 4400 ext. 3451. (TTY/TDD users may
(2) Adjudicatory settlements. At any at the request of either party to such call the Federal relay service toll free at
time after the filing of objections to the action, be tried by the court with a jury. 1–800–877–8339 and ask to be
Assistant Secretary’s findings and/or
(b) Within seven days after filing a connected to 202–326–4400 ext. 3451.)
order, the case may be settled if the
complaint in federal court, a SUPPLEMENTARY INFORMATION: PBGC’s
participating parties agree to a
complainant must file with the regulations on Allocation of Assets in
settlement and the settlement is
approved by the ALJ if the case is before Assistant Secretary, the ALJ, or the ARB, Single-Employer Plans (29 CFR part
the ALJ or by the ARB, if the ARB has depending on where the proceeding is 4044) and Benefits Payable in
accepted the case for review. A copy of pending, a copy of the file-stamped Terminated Single-Employer Plans (29
the settlement will be filed with the ALJ complaint. A copy of the complaint also CFR part 4022) prescribe actuarial
or the ARB as the case may be. must be served on the OSHA official assumptions—including interest
who issued the findings and/or assumptions—for valuing and paying
(e) Any settlement approved by the plan benefits under terminating single-
preliminary order, the Assistant
Assistant Secretary, the ALJ, or the ARB employer plans covered by title IV of
will constitute the final order of the Secretary, and the Associate Solicitor,
Division of Occupational Safety and the Employee Retirement Income
Secretary and may be enforced in a Security Act of 1974. The interest
United States district court pursuant to Health, U.S. Department of Labor.
assumptions in the regulations are also
49 U.S.C. 31105(e), as incorporated by § 1986.115 Special circumstances; waiver published on PBGC’s Web site (http://
46 U.S.C. 2114(b). of rules. www.pbgc.gov).
The interest assumptions in Appendix
§ 1986.112 Judicial review. In special circumstances not B to Part 4044 are used to value benefits
(a) Within 60 days after the issuance contemplated by the provisions of the for allocation purposes under ERISA
of a final order under §§ 1986.109 and rules in this part, or for good cause section 4044. PBGC uses the interest
1986.110, any person adversely affected shown, the ALJ or the ARB on review assumptions in Appendix B to Part 4022
or aggrieved by the order may file a may, upon application, after three days to determine whether a benefit is
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petition for review of the order in the notice to all parties, waive any rule or payable as a lump sum and to determine
court of appeals of the United States for issue such orders as justice or the the amount to pay. Appendix C to Part
the circuit in which the violation administration of SPA requires. 4022 contains interest assumptions for
allegedly occurred or the circuit in [FR Doc. 2016–21758 Filed 9–14–16; 8:45 am] private-sector pension practitioners to
which the complainant resided on the BILLING CODE 4510–26–P refer to if they wish to use lump-sum
date of the violation. interest rates determined using PBGC’s
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The values of it are:
For valuation dates occurring in the month—
it for t = it for t = it for t =
* * * * * * *
October–December 2016 ................................................. 0.0198 1–20 0.0267 >20 N/A N/A
Issued in Washington, DC, by DHS Department of Homeland Security within this area. This rule is needed to
Judith Starr, FR Federal Register help ensure the safety of persons and
General Counsel, Pension Benefit Guaranty NPRM Notice of proposed rulemaking recreational boats during the event on
Corporation. § Section the navigable waters within the special
U.S.C. United States Code
[FR Doc. 2016–22172 Filed 9–14–16; 8:45 am] MM Mile Marker
local regulation.
BILLING CODE 7709–02–P
IV. Discussion of the Rule
II. Background Information and
Regulatory History This rule establishes a special local
DEPARTMENT OF HOMELAND regulation that will be enforced from 10
The Coast Guard is issuing this a.m. until 7 p.m. on September 24, 2016
SECURITY
temporary rule without prior notice and and September 25, 2016. The special
Coast Guard opportunity to comment pursuant to local regulation will cover all navigable
authority under section 4(a) of the waters near mile marker 4.5 on the
33 CFR Part 165 Administrative Procedure Act (APA) (5 Morgan City Port Allen alternate route
U.S.C. 553(b)). This provision extending 1000 feet north and south
[Docket Number USCG–2016–0757] authorizes an agency to issue a rule from Russo’s boat launch in Morgan
RIN 1625–AA08 without prior notice and opportunity to City. The duration of the zone is
comment when the agency for good intended to protect spectators, vessels,
Special Local Regulation; Atchafalaya cause finds that those procedures are and the marine environment in these
River, Morgan City, LA ‘‘impracticable, unnecessary, or contrary navigable waters while the speed races
AGENCY: Coast Guard, DHS. to the public interest.’’ Under 5 U.S.C. occur. No vessel or person will be
553(b)(B), the Coast Guard finds that permitted to enter the special local
ACTION: Temporary final rule. good cause exists for not publishing a regulation without obtaining permission
SUMMARY: The Coast Guard is notice of proposed rulemaking (NPRM) from the COTP or a designated
establishing a special local regulation with respect to this rule because the representative.
for all navigable waters, near mile Coast Guard did not receive notice of
the request until July 25, 2016. V. Regulatory Analyses
marker 4.5 of the Morgan City Port
Allen route to extend north and south Completing the NPRM process would We developed this rule after
1000 feet of Russo’s boat launch on the delay the immediate action needed to considering numerous statutes and
Atchafalaya River. The special local protect spectators and vessels from Executive orders related to rulemaking.
regulation is necessary to protect hazards associated with the boat races. Below we summarize our analyses
participants and spectators from the It is impracticable to publish an NPRM based on a number of these statutes and
hazards associated with the Battle of the because we must establish this special Executive Orders, and we discuss First
Basin power boat race. Entry of vessels local regulation by September 24, 2016. Amendment rights of protestors.
or persons into this zone is prohibited We are issuing this rule, and under 5
U.S.C. 553(d)(3), the Coast Guard finds A. Regulatory Planning and Review
unless specifically authorized by the
Captain of the Port Morgan City or a that good cause exists for making it Executive Orders 12866 and 13563
designated representative. effective less than 30 days after direct agencies to assess the costs and
DATES: This rule is effective from 10 publication in the Federal Register. benefits of available regulatory
a.m. on September 24, 2016 through 7 Providing 30 days notice for this alternatives and, if regulation is
p.m. September 25, 2016. occurrence would unnecessarily delay necessary, to select regulatory
the effective date and would be approaches that maximize net benefits.
ADDRESSES: To view documents
impracticable based on the limited time Executive Order 13563 emphasizes the
mentioned in this preamble as being
frame, as well as be contrary to public importance of quantifying both costs
available in the docket, go to http://
interest because immediate action is and benefits, of reducing costs, of
www.regulations.gov, type USCG–2016–
needed to protect spectators from the harmonizing rules, and of promoting
0757 in the ‘‘SEARCH’’ box and click
potential safety hazards associated with flexibility. This rule has not been
‘‘SEARCH.’’ Click on Open Docket
the high speed boat races. designated a ‘‘significant regulatory
Folder on the line associated with this
action,’’ under Executive Order 12866.
rule. III. Legal Authority and Need for Rule Accordingly, it has not been reviewed
FOR FURTHER INFORMATION CONTACT: If
The Coast Guard is issuing this rule by the Office of Management and
you have questions on this rule, contact under authority in 33 U.S.C. 1233. The Budget.
LTJG Vanessa Taylor, Marine Safety Captain of the Port Morgan City (COTP) This regulatory action determination
Unit Morgan City, U.S. Coast Guard; has determined that potential hazards is based on the size, location, duration,
rmajette on DSK2TPTVN1PROD with RULES
telephone 985–380–5334, email associated with the combination of and specific times of enforcement for
Vanessa.R.Taylor@uscg.mil. recreational and commercial vessels and the special local regulation. The limited
SUPPLEMENTARY INFORMATION: a high speed boat racing event starting duration of the zone is intended to
I. Table of Abbreviations at 10 a.m. and lasting until 7 p.m. on protect personnel, vessels, and the
September 24, 2016 and September 25, marine environment in these navigable
CFR Code of Federal Regulations 2016 is a safety concern for anyone waters while the high speed boat races
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Document Created: 2018-02-09 13:18:01
Document Modified: 2018-02-09 13:18:01
| 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 October 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 63414 | |
| CFR Citation | 29
CFR
4022 29 CFR 4044 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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