81 FR 80002 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 81, Issue 220 (November 15, 2016)
Federal Register Volume 81, Issue 220 (November 15, 2016)
| Page Range | 80002-80003 | |
| FR Document | 2016-27384 |
[Federal Register Volume 81, Number 220 (Tuesday, November 15, 2016)] [Rules and Regulations] [Pages 80002-80003] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27384] ======================================================================= ----------------------------------------------------------------------- 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 December 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 December 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 December 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 December 2016 interest assumptions under the benefit payments regulation will be 0.75 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 November 2016, these interest assumptions represent an increase of 0.25 percent in the immediate rate and are otherwise 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 December 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 278, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 278 12-1-16 1-1-17 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- [[Page 80003]] 0 3. In appendix C to part 4022, Rate Set 278, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 278 12-1-16 1-1-17 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- Judith Starr, General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2016-27384 Filed 11-14-16; 8:45 am] BILLING CODE 7709-02-P
![80002 Federal Register / Vol. 81, No. 220 / Tuesday, November 15, 2016 / Rules and Regulations
R–5601H Fort Sill, OK [New] insurance system administered by 2016, these interest assumptions
Boundaries. Beginning at lat. PBGC. represent an increase of 0.25 percent in
34°38′15″ N., long. 98°20′56″ W.; to lat. DATES: Effective December 1, 2016. the immediate rate and are otherwise
34°38′30″ N., long. 98°21′41″ W.; to lat. unchanged.
FOR FURTHER INFORMATION CONTACT:
34°38′50″ N., long. 98°22′06″ W.; to lat. Deborah C. Murphy (Murphy.Deborah@ PBGC has determined that notice and
34°39′53″ N., long. 98°22′16″ W.; to lat. pbgc.gov), Assistant General Counsel for public comment on this amendment are
34°40′47″ N., long. 98°23′07″ W.; thence Regulatory Affairs, Pension Benefit impracticable and contrary to the public
counterclockwise along an arc, 2.6 NM Guaranty Corporation, 1200 K Street interest. This finding is based on the
radius centered at lat. 34°38′18″ N., NW., Washington, DC 20005, 202–326– need to determine and issue new
long. 98°24′07″ W.; to lat. 34°40′11″ N., 4400 ext. 3451. (TTY/TDD users may interest assumptions promptly so that
long. 98°26′18″ W.; to lat. 34°38′15″ N., call the Federal relay service toll-free at the assumptions can reflect current
long. 98°26′19″ W.; to the point of 1–800–877–8339 and ask to be market conditions as accurately as
beginning. connected to 202–326–4400 ext. 3451.) possible.
Designated altitudes. Surface to FL Because of the need to provide
SUPPLEMENTARY INFORMATION: PBGC’s
400. immediate guidance for the payment of
regulation on Benefits Payable in
Time of designation. By NOTAM. benefits under plans with valuation
Terminated Single-Employer Plans (29
Controlling agency. FAA, Fort Worth dates during December 2016, PBGC
CFR part 4022) prescribes actuarial
ARTCC. finds that good cause exists for making
assumptions—including interest
Using agency. U.S. Army, the assumptions set forth in this
assumptions—for paying plan benefits
Commanding General, U.S. Army Fires amendment effective less than 30 days
under terminating single-employer
Center of Excellence (USAFCOE) and after publication.
plans covered by title IV of the
Fort Sill, Fort Sill, OK. PBGC has determined that this action
Employee Retirement Income Security
is not a ‘‘significant regulatory action’’
Issued in Washington, DC, on November 8, Act of 1974. The interest assumptions in
under the criteria set forth in Executive
2016. the regulation are also published on
Order 12866.
Leslie M. Swann, PBGC’s Web site (http://www.pbgc.gov).
PBGC uses the interest assumptions in Because no general notice of proposed
Acting Manager, Airspace Policy Group. rulemaking is required for this
[FR Doc. 2016–27441 Filed 11–14–16; 8:45 am] Appendix B to Part 4022 to determine
whether a benefit is payable as a lump amendment, the Regulatory Flexibility
BILLING CODE 4910–13–P
sum and to determine the amount to Act of 1980 does not apply. See 5 U.S.C.
pay. Appendix C to Part 4022 contains 601(2).
interest assumptions for private-sector List of Subjects in 29 CFR Part 4022
PENSION BENEFIT GUARANTY pension practitioners to refer to if they
CORPORATION Employee benefit plans, Pension
wish to use lump-sum interest rates
insurance, Pensions, Reporting and
determined using PBGC’s historical
29 CFR Part 4022 recordkeeping requirements.
methodology. Currently, the rates in
Appendices B and C of the benefit In consideration of the foregoing, 29
Benefits Payable in Terminated Single- CFR part 4022 is amended as follows:
Employer Plans; Interest Assumptions payment regulation are the same.
for Paying Benefits The interest assumptions are intended
to reflect current conditions in the PART 4022—BENEFITS PAYABLE IN
AGENCY: Pension Benefit Guaranty financial and annuity markets. TERMINATED SINGLE-EMPLOYER
Corporation. Assumptions under the benefit PLANS
ACTION: Final rule. payments regulation are updated ■ 1. The authority citation for part 4022
monthly. This final rule updates the continues to read as follows:
SUMMARY: This final rule amends the benefit payments interest assumptions
Pension Benefit Guaranty Corporation’s for December 2016.1 Authority: 29 U.S.C. 1302, 1322, 1322b,
regulation on Benefits Payable in The December 2016 interest 1341(c)(3)(D), and 1344.
Terminated Single-Employer Plans to assumptions under the benefit payments ■ 2. In appendix B to part 4022, Rate Set
prescribe interest assumptions under regulation will be 0.75 percent for the 278, as set forth below, is added to the
the regulation for valuation dates in period during which a benefit is in pay table.
December 2016. The interest status and 4.00 percent during any years
assumptions are used for paying preceding the benefit’s placement in pay Appendix B to Part 4022—Lump Sum
benefits under terminating single- status. In comparison with the interest Interest Rates For PBGC Payments
employer plans covered by the pension assumptions in effect for November * * * * *
For plans with a Deferred annuities
valuation date Immediate (percent)
Rate set annuity rate
On or (percent)
Before i1 i2 i3 n1 n2
after
* * * * * * *
mstockstill on DSK3G9T082PROD with RULES
278 12–1–16 1–1–17 0.75 4.00 4.00 4.00 7 8
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
VerDate Sep<11>2014 16:28 Nov 11, 2016 Jkt 241001 PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 E:\FR\FM\15NOR1.SGM 15NOR1](https://thefederalregister.org/doc/81_FR_80222/page/1.svg)
![Federal Register / Vol. 81, No. 220 / Tuesday, November 15, 2016 / Rules and Regulations 80003
■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum
278, as set forth below, is added to the Interest Rates For Private-Sector
table. Payments
* * * * *
For plans with a Deferred annuities
valuation date Immediate (percent)
Rate set annuity rate
On or (percent)
Before i1 i2 i3 n1 n2
after
* * * * * * *
278 12–1–16 1–1–17 0.75 4.00 4.00 4.00 7 8
Judith Starr, You may submit comments in one of If you intend to deliver your
General Counsel, Pension Benefit Guaranty four ways (please choose only one of the comments to the Baltimore address, call
Corporation. ways listed) telephone number (410) 786–7195 in
[FR Doc. 2016–27384 Filed 11–14–16; 8:45 am] 1. Electronically. You may submit advance to schedule your arrival with
BILLING CODE 7709–02–P electronic comments on this regulation one of our staff members.
to http://www.regulations.gov. Follow Comments erroneously mailed to the
the ‘‘Submit a comment’’ instructions. addresses indicated as appropriate for
DEPARTMENT OF HEALTH AND 2. By regular mail. You may mail hand or courier delivery may be delayed
HUMAN SERVICES written comments to the following and received after the comment period.
address ONLY: Centers for Medicare & For information on viewing public
Centers for Medicare & Medicaid Medicaid Services, Department of comments, see the beginning of the
Services Health and Human Services, Attention: SUPPLEMENTARY INFORMATION section.
CMS–2345–IFC, P.O. Box 8016, FOR FURTHER INFORMATION CONTACT:
42 CFR Part 447 Baltimore, MD 21244–8016. Wendy Tuttle, (410) 786–8690.
[CMS–2345–IFC] Please allow sufficient time for mailed SUPPLEMENTARY INFORMATION:
comments to be received before the Inspection of Public Comments: All
RIN 0938–AT09 close of the comment period. comments received before the close of
3. By express or overnight mail. You the comment period are available for
Medicaid Program; Covered Outpatient may send written comments to the viewing by the public, including any
Drug; Delay in Change in Definitions of following address ONLY: Centers for personally identifiable or confidential
States and United States Medicare & Medicaid Services, business information that is included in
AGENCY: Centers for Medicare & Department of Health and Human a comment. We post all comments
Medicaid Services (CMS), HHS. Services, Attention: CMS–2345–IFC, received before the close of the
ACTION: Interim final rule with comment Mail Stop C4–26–05, 7500 Security comment period on the following Web
period. Boulevard, Baltimore, MD 21244–1850. site as soon as possible after they have
4. By hand or courier. Alternatively, been received: http://regulations.gov.
SUMMARY: The Covered Outpatient Drug you may deliver (by hand or courier) Follow the search instructions on that
final rule with comment period was your written comments ONLY to the Web site to view public comments.
published in the February 1, 2016 following addresses prior to the close of Comments received timely will be
Federal Register. As part of that final the comment period: also available for public inspection as
rule with comment, we amended the a. For delivery in Washington, DC— they are received, generally beginning
regulatory definitions of ‘‘States’’ and Centers for Medicare & Medicaid approximately 3 weeks after publication
‘‘United States’’ to include the U.S. Services, Department of Health and of a document, at the headquarters of
territories (American Samoa, the Human Services, Room 445–G, Hubert the Centers for Medicare & Medicaid
Northern Mariana Islands, Guam, the H. Humphrey Building, 200 Services, 7500 Security Boulevard,
Commonwealth of Puerto Rico, and the Independence Avenue SW., Baltimore, Maryland 21244, Monday
Virgin Islands) beginning April 1, 2017. Washington, DC 20201. through Friday of each week from 8:30
This interim final rule with comment (Because access to the interior of the a.m. to 4 p.m. To schedule an
period delays the inclusion of the Hubert H. Humphrey Building is not appointment to view public comments,
territories in the definition of ‘‘States’’ readily available to persons without phone 1–800–743–3951.
and ‘‘United States’’ until April 1, 2020. Federal government identification, I. Background
DATES: Effective date: These regulations commenters are encouraged to leave
are effective on November 15, 2016. their comments in the CMS drop slots A. Introduction
Comment date: To be assured located in the main lobby of the The Covered Outpatient Drug final
consideration, comments must be building. A stamp-in clock is available rule with comment period was
received at one of the addresses for persons wishing to retain a proof of published in the February 1, 2016
mstockstill on DSK3G9T082PROD with RULES
provided below, no later than 5 p.m. on filing by stamping in and retaining an Federal Register (81 FR 5170). That
January 17, 2017. extra copy of the comments being filed.) final rule with comment period
ADDRESSES: In commenting, please refer b. For delivery in Baltimore, MD— implemented provisions of section 1927
to file code CMS–2345–IFC. Because of Centers for Medicare & Medicaid of the Social Security Act (the Act) that
staff and resource limitations, we cannot Services, Department of Health and were added by the Patient Protection
accept comments by facsimile (FAX) Human Services, 7500 Security and Affordable Care Act of 2010, as
transmission. Boulevard, Baltimore, MD 21244–1850. amended by the Health Care and
VerDate Sep<11>2014 16:28 Nov 11, 2016 Jkt 241001 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\15NOR1.SGM 15NOR1](https://thefederalregister.org/doc/81_FR_80222/page/2.svg)
Document Created: 2016-11-15 00:48:21
Document Modified: 2016-11-15 00:48:21
| 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 December 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 80002 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR