81 FR 70940 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 81, Issue 199 (October 14, 2016)
Federal Register Volume 81, Issue 199 (October 14, 2016)
| Page Range | 70940-70942 | |
| FR Document | 2016-24811 |
[Federal Register Volume 81, Number 199 (Friday, October 14, 2016)] [Rules and Regulations] [Pages 70940-70942] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-24811] ======================================================================= ----------------------------------------------------------------------- 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 [[Page 70941]] prescribe interest assumptions under the regulation for valuation dates in November 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 November 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 November 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 November 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 October 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 November 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 277 is added to the table to read as follows: 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * -------------------------------------------------------------------------------------------------------------------------------------------------------- 277 11-1-16 12-1-16 0.50 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 277 is added to the table to read as follows: 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * -------------------------------------------------------------------------------------------------------------------------------------------------------- 277 11-1-16 12-1-16 0.50 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- [[Page 70942]] Judith Starr, General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2016-24811 Filed 10-13-16; 8:45 am] BILLING CODE 7709-02-P
![70940 Federal Register / Vol. 81, No. 199 / Friday, October 14, 2016 / Rules and Regulations
in areas located throughout the United revoking an election to claim a disaster amended return for the disaster year
States, including Texas and Louisiana. loss in the preceding year. that includes the loss.
(b) Definitions. The following (e) Manner of making election. An
Special Analyses definitions apply for purposes of this election under section 165(i) to deduct
Certain IRS regulations, including section: a disaster loss for the preceding year is
these, are exempt from the requirements (1) A federally declared disaster made on an original federal tax return
of Executive Order 12866, as means any disaster subsequently for the preceding year or an amended
supplemented and reaffirmed by determined by the President of the federal tax return for the preceding year
Executive Order 13563. Therefore, a United States to warrant assistance by in the manner specified by guidance
regulatory impact assessment is not the Federal Government under the issued pursuant to these regulations.
required. It also has been determined Robert T. Stafford Disaster Relief and See paragraph (h) of this section.
that section 553(b) of the Administrative Emergency Assistance Act or a (f) Due date for making election. The
Procedure Act (5 U.S.C. chapter 5) does successor enactment. due date for making the section 165(i)
not apply to these regulations. For (2) A federally declared disaster area election is six months after the due date
applicability of the Regulatory is the area determined to be eligible for for filing the taxpayer’s federal income
Flexibility Act (5 U.S.C. chapter 6), assistance pursuant to the Presidential tax return for the disaster year
please refer to the cross-referencing declaration in paragraph (b)(1) of this (determined without regard to any
notice of proposed rulemaking section. extension of time to file).
published in the Proposed Rules section (3) A disaster loss is a loss occurring
(g) Revocation. Subject to the
in this issue of the Federal Register. in a federally declared disaster area that
requirements in paragraph (d) of this
Pursuant to section 7805(f) of the Code, is attributable to a federally declared
section, a section 165(i) election may be
these temporary regulations will be disaster and that is otherwise allowable
revoked on or before the date that is
submitted to the Chief Counsel for as a deduction for the disaster year
ninety (90) days after the due date for
Advocacy of the Small Business under section 165(a) and §§ 1.165–1
making the election.
Administration for comment on their through 1.165–10.
(4) The disaster year is the taxable (h) Additional guidance. The time and
impact on small business. manner for making and revoking a
year in which a taxpayer sustains a loss
Drafting Information attributable to a federally declared section 165(i) election under paragraphs
disaster. (d), (e), (f), and (g) of this section may
The principal authors of these be modified through guidance
regulations are Daniel Cassano and (5) The preceding year is the taxable
year immediately prior to the disaster published in the Federal Register or in
Christopher Wrobel of the Office of the the Internal Revenue Bulletin (see
Associate Chief Counsel (Income Tax & year.
(c) Scope and effect of election. An § 601.601(d) of this chapter).
Accounting). However, other personnel (i) Effective/applicability date. This
election made pursuant to section 165(i)
from the Treasury Department and the section is effective October 13, 2016 and
for a disaster loss attributable to a
IRS participated in their development. applies to elections, revocations, and
particular disaster applies to the entire
List of Subjects in 26 CFR Part 1 loss sustained by the taxpayer from that any other related actions that can be
disaster during the disaster year. If the made or taken on or after October 13,
Income taxes, Reporting and 2016.
recordkeeping requirements. taxpayer makes a section 165(i) election
with respect to a particular disaster (j) Expiration date. The section
Amendments to the Regulations occurring during the disaster year, the expires October 13, 2019.
Accordingly, 26 CFR part 1 is disaster to which the election relates is John Dalrymple,
amended as follows: deemed to have occurred, and the Deputy Commissioner for Services and
disaster loss to which the election Enforcement.
PART 1— INCOME TAXES applies is deemed to have been Approved: September 19, 2016.
sustained, in the preceding year. Mark J. Mazur,
■ Paragraph 1. The authority citation (d) Requirement to file consistent
for part 1 continues to read in part as returns. A taxpayer may not make a Assistant Secretary of the Treasury (Tax
Policy).
follows: section 165(i) election for a disaster loss
[FR Doc. 2016–24664 Filed 10–13–16; 8:45 am]
Authority: 26 U.S.C. 7805 * * * if the taxpayer claims a deduction (as a
loss, as cost of goods sold, or otherwise) BILLING CODE 4830–01–P
■ Par. 2. Section 1.165–11 is revised to
read as follows: for the same loss for the disaster year.
If a taxpayer has claimed a deduction
§ 1.165–11 Election in respect of losses for a disaster loss for the disaster year PENSION BENEFIT GUARANTY
attributable to a disaster. and the taxpayer wishes to make a CORPORATION
(a) through (j) [Reserved]. For further section 165(i) election with respect to
such loss, the taxpayer must file an 29 CFR Part 4022
guidance, see § 1.165–11T(a) through (j).
■ Par. 3. Section 1.165–11T is added to amended return to remove the
Benefits Payable in Terminated Single-
read as follows: previously deducted loss on or before
Employer Plans; Interest Assumptions
the date that the taxpayer makes the
for Paying Benefits
§ 1.165–11T Election to take disaster loss section 165(i) election for such loss.
deduction for preceding year (temporary). Similarly, if a taxpayer has claimed a AGENCY: Pension Benefit Guaranty
(a) In general. Section 165(i) allows a deduction for a disaster loss for the Corporation.
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taxpayer who has sustained a loss preceding year based on a section 165(i) ACTION: Final rule.
attributable to a federally declared election and the taxpayer wishes to
disaster in a taxable year to elect to revoke that election, the taxpayer must SUMMARY: This final rule amends the
deduct that disaster loss in the file an amended return to remove the Pension Benefit Guaranty Corporation’s
preceding year. This section provides loss for the preceding year on or before regulation on Benefits Payable in
rules and procedures for making and the date the taxpayer files the return or Terminated Single-Employer Plans to
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![70942 Federal Register / Vol. 81, No. 199 / Friday, October 14, 2016 / Rules and Regulations
Judith Starr, 22946), to amend several permanent would impact a small designated area of
General Counsel, Pension Benefit Guaranty safety zones located in the Captain of the COTP San Francisco zone for less
Corporation. the Port San Francisco zone that are than 1 hour during the evening when
[FR Doc. 2016–24811 Filed 10–13–16; 8:45 am] established to protect public safety vessel traffic is normally low. Moreover,
BILLING CODE 7709–02–P during annual firework displays. There the Coast Guard would issue a Local
we stated why we issued the NPRM, Notice to Mariner and Broadcast Notice
and invited comments on our proposed to Mariners via VHF–FM marine
DEPARTMENT OF HOMELAND regulatory action related to the amended channel 16 about the zone, and the rule
SECURITY fireworks safety zones. We received no would allow vessels to seek permission
comments on the NPRM nor did we to enter the zones.
Coast Guard receive a request for public meeting. A
B. Impact on Small Entities
public meeting was not held.
33 CFR Part 165 The Regulatory Flexibility Act of
III. Legal Authority and Need for Rule 1980, 5 U.S.C. 601–612, as amended,
[Docket Number USCG–2016–0154] The Coast Guard is issuing this rule requires Federal agencies to consider
RIN 1625–AA00 under authority in 33 U.S.C. 1231. The the potential impact of regulations on
Captain of the Port San Francisco small entities during rulemaking. The
Safety Zones; San Francisco, CA (COTP) has determined that potential term ‘‘small entities’’ comprises small
hazards associated with the current businesses, not-for-profit organizations
AGENCY: Coast Guard, DHS.
outdated fireworks locations, if not that are independently owned and
ACTION: Final rule. updated, pose safety concerns for event operated and are not dominant in their
SUMMARY: The Coast Guard is amending crew, spectators, participants of the fields, and governmental jurisdictions
several permanent safety zones located event, participating vessels, and other with populations of less than 50,000.
in the Captain of the Port San Francisco users and vessels of the waterway. The Coast Guard certifies under 5 U.S.C.
zone that are established to protect 605(b) that this rule would not have a
IV. Discussion of Comments, Changes,
public safety during annual firework significant economic impact on a
and the Rule
displays. These amendments are substantial number of small entities.
As noted above, we received no While some owners or operators of
necessary to update listed events to
comments on our NPRM published on vessels intending to transit the safety
accurately reflect the firework display
April 19, 2016. There are no changes in zone may be small entities, for the
locations. This regulation prohibits the
the regulatory text of this rule from the reasons stated in section V.A above this
movement of vessels within the
proposed rule in the NPRM. rule would not have a significant
established firework display areas This rule amends Table 1 in economic impact on any vessel owner
unless authorized by the Captain of the § 165.1191 to update three events to or operator.
Port (COTP) San Francisco or a reflect the current event locations. If you think that your business,
designated representative. These events are listed numerically in organization, or governmental
DATES: This rule is effective November Table 1 of this section: (7), (8), (22). jurisdiction qualifies as a small entity
14, 2016. and that this rule would have a
V. Regulatory Analyses
ADDRESSES: To view documents significant economic impact on it,
mentioned in this preamble as being We developed this rule after please submit a comment (see
available in the docket, go to http:// considering numerous statutes and ADDRESSES) explaining why you think it
www.regulations.gov, type USCG–2016– Executive orders related to rulemaking. qualifies and how and to what degree
0154 in the ‘‘SEARCH’’ box and click Below we summarize our analyses this rule would economically affect it.
‘‘SEARCH.’’ Click on Open Docket based on a number of these statutes and Under section 213(a) of the Small
Folder on the line associated with this Executive orders, and we discuss First Business Regulatory Enforcement
rule. Amendment rights of protestors. Fairness Act of 1996 (Pub. L. 104–121),
FOR FURTHER INFORMATION CONTACT: If A. Regulatory Planning and Review we want to assist small entities in
you have questions on this rule, call or understanding this rule. If the rule
Executive Orders 12866 and 13563 would affect your small business,
email Lieutenant Junior Grade Christina
direct agencies to assess the costs and organization, or governmental
Ramirez, U.S. Coast Guard Sector San
benefits of available regulatory jurisdiction and you have questions
Francisco; telephone 415–399–3585,
alternatives and, if regulation is concerning its provisions or options for
email D11-PF-MarineEvents@uscg.mil.
necessary, to select regulatory compliance, please contact the person
SUPPLEMENTARY INFORMATION: approaches that maximize net benefits. listed in the FOR FURTHER INFORMATION
I. Table of Abbreviations Executive Order 13563 emphasizes the CONTACT section. The Coast Guard will
importance of quantifying both costs not retaliate against small entities that
CFR Code of Federal Regulations and benefits, of reducing costs, of
COTP Captain of the Port question or complain about this rule or
DHS Department of Homeland Security
harmonizing rules, and of promoting any policy or action of the Coast Guard.
FR Federal Register flexibility. This NPRM has not been
NPRM Notice of proposed rulemaking designated a ‘‘significant regulatory C. Collection of Information
§ Section action,’’ under Executive Order 12866. This rule would not call for a new
U.S.C. United States Code Accordingly, the NPRM has not been collection of information under the
reviewed by the Office of Management Paperwork Reduction Act of 1995 (44
ehiers on DSK5VPTVN1PROD with RULES
II. Background Information and
and Budget. U.S.C. 3501–3520).
Regulatory History This regulatory action determination
On April 19, 2016 we published a is based on the size, location, duration, D. Federalism and Indian Tribal
notice of proposed rulemaking (NPRM) and time-of-day of each safety zone. Governments
entitled Safety Zones; San Francisco, Vessel traffic would be able to safely A rule has implications for federalism
CA, in the Federal Register (81 FR transit around each safety zone which under Executive Order 13132,
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Document Created: 2016-10-14 00:00:59
Document Modified: 2016-10-14 00:00:59
| 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 November 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 70940 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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