81 FR 83137 - Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 81, Issue 224 (November 21, 2016)
Federal Register Volume 81, Issue 224 (November 21, 2016)
| Page Range | 83137-83139 | |
| FR Document | 2016-27986 |
[Federal Register Volume 81, Number 224 (Monday, November 21, 2016)] [Rules and Regulations] [Pages 83137-83139] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27986] ======================================================================= ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION 29 CFR Part 4044 Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age AGENCY: Pension Benefit Guaranty Corporation. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This rule amends the Pension Benefit Guaranty Corporation's regulation on Allocation of Assets in Single-Employer Plans by substituting a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2017. This table is needed in order to compute the value of early retirement benefits and, thus, the total value of benefits under a plan. DATES: Effective January 1, 2017. 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: The Pension Benefit Guaranty Corporation (PBGC) administers the pension plan termination insurance program under [[Page 83138]] Title IV of the Employee Retirement Income Security Act of 1974 (ERISA). PBGC's regulation on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) sets forth (in subpart B) the methods for valuing plan benefits of terminating single-employer plans covered under Title IV. Guaranteed benefits and benefit liabilities under a plan that is undergoing a distress termination must be valued in accordance with subpart B of part 4044. In addition, when PBGC terminates an underfunded plan involuntarily pursuant to ERISA section 4042(a), it uses the subpart B valuation rules to determine the amount of the plan's underfunding. Under Sec. 4044.51(b) of the asset allocation regulation, early retirement benefits are valued based on the annuity starting date, if a retirement date has been selected, or the expected retirement age, if the annuity starting date is not known on the valuation date. Sections 4044.55 through 4044.57 set forth rules for determining the expected retirement ages for plan participants entitled to early retirement benefits. Appendix D of part 4044 contains tables to be used in determining the expected early retirement ages. Table I in appendix D (Selection of Retirement Rate Category) is used to determine whether a participant has a low, medium, or high probability of retiring early. The determination is based on the year a participant would reach ``unreduced retirement age'' (i.e., the earlier of the normal retirement age or the age at which an unreduced benefit is first payable) and the participant's monthly benefit at unreduced retirement age. The table applies only to plans with valuation dates in the current year and is updated annually by the PBGC to reflect changes in the cost of living, etc. Tables II-A, II-B, and II-C (Expected Retirement Ages for Individuals in the Low, Medium, and High Categories respectively) are used to determine the expected retirement age after the probability of early retirement has been determined using Table I. These tables establish, by probability category, the expected retirement age based on both the earliest age a participant could retire under the plan and the unreduced retirement age. This expected retirement age is used to compute the value of the early retirement benefit and, thus, the total value of benefits under the plan. This document amends appendix D to replace Table I-16 with Table I- 17 in order to provide an updated correlation, appropriate for calendar year 2017, between the amount of a participant's benefit and the probability that the participant will elect early retirement. Table I- 17 will be used to value benefits in plans with valuation dates during calendar year 2017. PBGC has determined that notice of, and public comment on, this rule are impracticable and contrary to the public interest. Plan administrators need to be able to estimate accurately the value of plan benefits as early as possible before initiating the termination process. For that purpose, if a plan has a valuation date in 2017, the plan administrator needs the updated table being promulgated in this rule. Accordingly, the public interest is best served by issuing this table expeditiously, without an opportunity for notice and comment, to allow as much time as possible to estimate the value of plan benefits with the proper table for plans with valuation dates in early 2017. 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 regulation, the Regulatory Flexibility Act of 1980 does not apply (5 U.S.C. 601(2)). List of Subjects in 29 CFR Part 4044 Pension insurance, Pensions. In consideration of the foregoing, 29 CFR part 4044 is amended as follows: 0 1. 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 2. Appendix D to part 4044 is amended by removing Table I-16 and adding in its place Table I-17 to read as follows: Appendix D to Part 4044--Tables Used To Determine Expected Retirement Age Table I-17--Selection of Retirement Rate Category [For plans with valuation dates after December 31, 2016, and before January 1, 2018] ---------------------------------------------------------------------------------------------------------------- Participant's Retirement Rate Category is-- --------------------------------------------------------------- Low \1\ if Medium \2\ if monthly benefit High \3\ if If participant reaches URA in year-- monthly at URA is-- monthly benefit at URA -------------------------------- benefit at URA is less than-- is greater From-- To-- than-- ---------------------------------------------------------------------------------------------------------------- 2018............................................ 631 631 2,665 2,665 2019............................................ 645 645 2,724 2,724 2020............................................ 660 660 2,787 2,787 2021............................................ 675 675 2,851 2,851 2022............................................ 691 691 2,916 2,916 2023............................................ 707 707 2,983 2,983 2024............................................ 723 723 3,052 3,052 2025............................................ 740 740 3,122 3,122 2026............................................ 757 757 3,194 3,194 2027 or later................................... 774 774 3,268 3,268 ---------------------------------------------------------------------------------------------------------------- \1\ Table II-A. \2\ Table II-B. \3\ Table II-C. [[Page 83139]] * * * * * Issued in Washington, DC, by: Judith Starr, General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2016-27986 Filed 11-18-16; 8:45 am] BILLING CODE 7709-02-P
![Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations 83137
(v) Exemption (k)(5) is claimed with necessity of which is not readily by the individual contains a record
respect to the requirements of 5 U.S.C. apparent and could only be ascertained pertaining to that individual. The
552a(c)(3) and (d) because this system after a complete review and evaluation application of this provision could
contains investigatory material of all the evidence. This system of compromise the progress of an
compiled solely for determining records is exempt from this requirement investigation concerning the suitability,
suitability, eligibility, and qualifications because in the course of personnel eligibility, and fitness for service of
for Federal employment. To the extent background investigations, the accuracy applicants for Federal employment and
that the disclosure of material would of information obtained or introduced impede a prompt assessment of the
reveal the identity of a source who occasionally may be unclear, or the appropriate access to the Agency’s
furnished information to the information may not be strictly relevant facilities. Although this system would
Government under an express promise or necessary to favorably or unfavorably be exempt from the requirements of
that the identity of the source would be adjudicate a specific investigation at a subsection (f) of the Act, the Agency has
held in confidence, or prior to specific point in time. However, in the promulgated rules which establish
September 27, 1975, under an implied interests of protecting the public trust agency procedures because, under
promise that the identity of the source and national security, it is appropriate certain circumstances, it could be
would be held in confidence, the to retain all information that may aid in appropriate for an individual to have
applicability of exemption (k)(5) will be establishing patterns in such areas as access to all or a portion of that
required to honor promises of criminal conduct, alcohol and drug use, individual’s records in this system of
confidentiality should an individual financial dishonesty, allegiance, foreign records.
request access to or amendment of the preference of influence, and
Dated: Washington, DC, November 9, 2016.
record, or access to the accounting of psychological conditions, that are
By direction of the Board.
disclosures of the record. Similarly, relevant to future personnel security or
personnel investigations may contain suitability determinations. William B. Cowen,
evaluation material used to determine (3) 5 U.S.C. 552a(e)(4)(G) and (H) Federal Register Liaison, National Labor
potential for promotion in the armed require an agency to publish a Federal Relations Board.
services. Application of exemption Register notice concerning its [FR Doc. 2016–27487 Filed 11–18–16; 8:45 am]
(k)(7) is necessary to the extent that the procedures for notifying an individual, BILLING CODE 7545–01–P
disclosure of data would compromise at his/her request, if the system of
the anonymity of a source under an records contains a record pertaining to
express promise that the identity of the him/her, how to gain access to such a PENSION BENEFIT GUARANTY
source would be held in confidence, or, record and how to contest its content. CORPORATION
prior to September 27, 1975, under an Since this system of records is being
implied promise that the identity of the exempted from subsection (f) of the Act, 29 CFR Part 4044
source would be held in confidence. concerning agency rules, and subsection
Both of these exemptions are necessary (d) of the Act, concerning access to Allocation of Assets in Single-
to safeguard the integrity of background records, these requirements are Employer Plans; Valuation of Benefits
investigations by minimizing the threat inapplicable to the extent that this and Assets; Expected Retirement Age
of harm to confidential sources, system of records will be exempt from
AGENCY: Pension Benefit Guaranty
witnesses, and law enforcement subsections (f) and (d) of the Act.
Corporation.
personnel. Additionally, these Although the system would be exempt
from these requirements, the NLRB has ACTION: Final rule.
exemptions reduce the risks of improper
influencing of sources, the destruction published information concerning its SUMMARY: This rule amends the Pension
of evidence, and the fabrication of notification, access, and contest Benefit Guaranty Corporation’s
testimony. procedures because, under certain regulation on Allocation of Assets in
(vi) All information in this system circumstances, it may be appropriate for Single-Employer Plans by substituting a
that meets the criteria articulated in a subject to have access to a portion of new table for determining expected
exemption (k)(6) is exempt from the that individual’s records in this system retirement ages for participants in
requirements of 5 U.S.C. 552a(d), of records. pension plans undergoing distress or
relating to access to and amendment of (4) 5 U.S.C. 552a(e)(4)(I) requires an
involuntary termination with valuation
records by an individual. This agency to publish a Federal Register
dates falling in 2017. This table is
exemption is claimed because portions notice concerning the categories of
needed in order to compute the value of
of this system relate to testing or sources of records in the system of
early retirement benefits and, thus, the
examining materials used solely to records. Exemption from this provision
total value of benefits under a plan.
determine individual qualifications for is necessary to protect the
confidentiality of the sources of DATES: Effective January 1, 2017.
appointment or promotion to the
Federal service. Access to or information, to protect the privacy and FOR FURTHER INFORMATION CONTACT:
amendment to this information by an physical safety of confidential sources Deborah C. Murphy (Murphy.Deborah@
individual would compromise the and witnesses, and to avoid the pbgc.gov), Assistant General Counsel for
objectivity and fairness of the testing or disclosure of investigative techniques Regulatory Affairs, Pension Benefit
examining process. and procedures. Although the system Guaranty Corporation, 1200 K Street
(2) 5 U.S.C. 552a(e)(1) requires an will be exempt from this requirement, NW., Washington, DC 20005, 202–326–
asabaliauskas on DSK3SPTVN1PROD with RULES
agency to maintain in its records only the agency has published source 4400 ext. 3451. (TTY/TDD users may
such information about an individual as information in the accompanying notice call the Federal relay service toll-free at
is relevant and necessary to accomplish in broad generic terms. 1–800–877–8339 and ask to be
a purpose of the agency required by (5) 5 U.S.C. 552a(f) requires an agency connected to 202–326–4400 ext. 3451.)
statute or by executive order of the to promulgate rules which shall SUPPLEMENTARY INFORMATION: The
President. This requirement could establish procedures whereby an Pension Benefit Guaranty Corporation
foreclose investigators from acquiring or individual can be notified in response to (PBGC) administers the pension plan
receiving information the relevance and a request if any system of records named termination insurance program under
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![83138 Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations
Title IV of the Employee Retirement the earlier of the normal retirement age plan benefits as early as possible before
Income Security Act of 1974 (ERISA). or the age at which an unreduced initiating the termination process. For
PBGC’s regulation on Allocation of benefit is first payable) and the that purpose, if a plan has a valuation
Assets in Single-Employer Plans (29 participant’s monthly benefit at date in 2017, the plan administrator
CFR part 4044) sets forth (in subpart B) unreduced retirement age. The table needs the updated table being
the methods for valuing plan benefits of applies only to plans with valuation promulgated in this rule. Accordingly,
terminating single-employer plans dates in the current year and is updated the public interest is best served by
covered under Title IV. Guaranteed annually by the PBGC to reflect changes issuing this table expeditiously, without
benefits and benefit liabilities under a in the cost of living, etc. an opportunity for notice and comment,
plan that is undergoing a distress Tables II–A, II–B, and II–C (Expected to allow as much time as possible to
termination must be valued in Retirement Ages for Individuals in the estimate the value of plan benefits with
accordance with subpart B of part 4044. Low, Medium, and High Categories the proper table for plans with valuation
In addition, when PBGC terminates an respectively) are used to determine the dates in early 2017.
underfunded plan involuntarily expected retirement age after the PBGC has determined that this action
pursuant to ERISA section 4042(a), it probability of early retirement has been is not a ‘‘significant regulatory action’’
uses the subpart B valuation rules to determined using Table I. These tables under the criteria set forth in Executive
determine the amount of the plan’s establish, by probability category, the Order 12866.
underfunding. expected retirement age based on both Because no general notice of proposed
Under § 4044.51(b) of the asset the earliest age a participant could retire rulemaking is required for this
allocation regulation, early retirement under the plan and the unreduced regulation, the Regulatory Flexibility
benefits are valued based on the annuity retirement age. This expected retirement Act of 1980 does not apply (5 U.S.C.
starting date, if a retirement date has age is used to compute the value of the 601(2)).
been selected, or the expected early retirement benefit and, thus, the
retirement age, if the annuity starting total value of benefits under the plan. List of Subjects in 29 CFR Part 4044
date is not known on the valuation date. This document amends appendix D to Pension insurance, Pensions.
Sections 4044.55 through 4044.57 set replace Table I–16 with Table I–17 in
In consideration of the foregoing, 29
forth rules for determining the expected order to provide an updated correlation,
CFR part 4044 is amended as follows:
retirement ages for plan participants appropriate for calendar year 2017,
entitled to early retirement benefits. between the amount of a participant’s ■ 1. The authority citation for part 4044
Appendix D of part 4044 contains tables benefit and the probability that the continues to read as follows:
to be used in determining the expected participant will elect early retirement. Authority: 29 U.S.C. 1301(a), 1302(b)(3),
early retirement ages. Table I–17 will be used to value benefits 1341, 1344, 1362.
Table I in appendix D (Selection of in plans with valuation dates during
■ 2. Appendix D to part 4044 is
Retirement Rate Category) is used to calendar year 2017.
amended by removing Table I–16 and
determine whether a participant has a PBGC has determined that notice of,
adding in its place Table I–17 to read as
low, medium, or high probability of and public comment on, this rule are
follows:
retiring early. The determination is impracticable and contrary to the public
based on the year a participant would interest. Plan administrators need to be Appendix D to Part 4044—Tables Used
reach ‘‘unreduced retirement age’’ (i.e., able to estimate accurately the value of To Determine Expected Retirement Age
TABLE I–17—SELECTION OF RETIREMENT RATE CATEGORY
[For plans with valuation dates after December 31, 2016, and before January 1, 2018]
Participant’s Retirement Rate Category is—
High 3 if
Low 1 if Medium 2 if monthly benefit at
If participant reaches URA in year— monthly URA is—
monthly
benefit at URA
benefit at URA is greater
is less than— From— To— than—
2018 ................................................................................................................. 631 631 2,665 2,665
2019 ................................................................................................................. 645 645 2,724 2,724
2020 ................................................................................................................. 660 660 2,787 2,787
2021 ................................................................................................................. 675 675 2,851 2,851
2022 ................................................................................................................. 691 691 2,916 2,916
2023 ................................................................................................................. 707 707 2,983 2,983
2024 ................................................................................................................. 723 723 3,052 3,052
2025 ................................................................................................................. 740 740 3,122 3,122
2026 ................................................................................................................. 757 757 3,194 3,194
2027 or later .................................................................................................... 774 774 3,268 3,268
asabaliauskas on DSK3SPTVN1PROD with RULES
1 Table II–A.
2 Table II–B.
3 Table II–C.
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![Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Rules and Regulations 83139
* * * * * telephone (215)271–4889, email publication in the Federal Register for
Issued in Washington, DC, by: Tom.J.Simkins@uscg.mil. the reasons we stated above. Delaying
Judith Starr, SUPPLEMENTARY INFORMATION: the effective date of this rule would be
contrary to public interest because the
General Counsel, Pension Benefit Guaranty I. Table of Abbreviations
Corporation.
safety zone is needed to begin on
CFR Code of Federal Regulations November 15, 2016, to protect the
[FR Doc. 2016–27986 Filed 11–18–16; 8:45 am]
DHS Department of Homeland Security public from safety hazards associated
BILLING CODE 7709–02–P FR Federal Register with explosive detonation.
NPRM Notice of proposed rulemaking
§ Section III. Legal Authority and Need for Rule
DEPARTMENT OF HOMELAND U.S.C. United States Code The Coast Guard is issuing this rule
SECURITY COTP Captain of the Port under authority in 33 U.S.C. 1231. The
II. Background Information and Captain of the Port has determined that
Coast Guard potential hazards are associated with
Regulatory History
demolition and pile blasting operations
33 CFR Part 165 In June 2013, demolition work began of the Route 9, Beesley Point Bridge,
on the Route 9, Beesley Point Bridge over the Great Egg Harbor Bay, in
[Docket Number USCG–2016–1011] between Somers Point and Marmora, NJ. Marmora, NJ, from November 15, 2016,
RIN 1625–AA00 Route 52 Construction, the company through November 24, 2016. The rule
performing this demolition work, has will provide a safety buffer around the
Safety Zone; Great Egg Harbor Bay, completed all demolition of the bridge blasting vessel during times of explosive
Marmora, NJ and piles except the portion of the detonation.
AGENCY: Coast Guard, DHS. bridge which has the bascule span The purpose of this rule is to promote
opening for the navigational channel. maritime safety and protect vessels from
ACTION: Temporary final rule.
The removal of the remaining piles, the hazards of bridge demolition and
SUMMARY: The Coast Guard is which are secured to the sea floor bed, pile blasting operations, and to maintain
establishing a temporary safety zone on will be completed by using explosives safety of navigation in the Great Egg
the waters of Great Egg Harbor Bay in after which the piles and debris will be Harbor Bay, in the vicinity of the Route
Marmora, NJ. The safety zone includes removed. The Captain of the Port has 9, Beesley Point Bridge. The rule will
all waters within 500 yards of a blasting determined that potential hazards provide a safety buffer around the crane
vessel and equipment being used to associated with pile blasting operations, and barge while demolition operations
conduct bridge pile blasting operations, beginning on or about November 15, are conducted, and will provide a safety
which is the final phase of the 2016, will be a safety concern for buffer around the blasting vessel during
demolition of the Route 9, Beesley Point anyone operating within 500 yards of times of explosive detonation.
Bridge bascule span. This safety zone pile blasting operations during times of
explosive detonation. IV. Discussion of the Rule
will only be enforced during times of
explosive detonation. The safety zone The Coast Guard is issuing this On November 15, 2016, demolition
will temporarily restrict vessel traffic temporary rule without prior notice and work will begin on the remaining
from transiting or anchoring in a portion opportunity to comment pursuant to portion of the Route 9, Beesley Point
of the Great Egg Harbor Bay while pile authority under section 4(a) of the Bridge, over the Great Egg Harbor Bay,
blasting and removal operations are Administrative Procedure Act (APA) (5 in Marmora, NJ. The Captain of the Port
being conducted to facilitate the U.S.C. 553(b)). This provision has determined that the hazards
removal of bridge piles from the authorizes an agency to issue a rule associated with demolition and pile
demolished Route 9, Beesley Point without prior notice and opportunity to blasting operations requires a safety
Bridge. comment when the agency for good zone.
cause finds that those procedures are The safety zone will be enforced
DATES: This rule is effective without
‘‘impracticable, unnecessary, or contrary starting on or after November 15, 2016,
actual notice from November 21, 2016 only during times of explosive
to the public interest.’’ Under 5 U.S.C.
through November 24, 2016. For the detonation, and encompasses all
553(b)(B), the Coast Guard finds that
purposes of enforcement, actual notice navigable waters in the Great Egg Harbor
good cause exists for not publishing a
will be used from November 15, 2016, Bay within 500 yards of vessels and
notice of proposed rulemaking (NPRM)
until November 21, 2016. During this machinery being used to conduct pile
with respect to this rule because the
period the safety zone will only be blasting and removal operations. The
final details for this event were not
enforced during times of explosive duration of the enforcement of the zone
received by the Coast Guard until
detonation. is intended to protect personnel,
November 8, 2016, and the safety zone
ADDRESSES: To view documents is needed for blasting and demolition vessels, and the marine environment in
mentioned in this preamble as being operations which will begin November these navigable waters while explosive
available in the docket, go to http:// 15, 2016. It is impracticable to publish detonation occurs. There will be two
www.regulations.gov, type USCG–2016– an NPRM and consider comments due blasting events occurring on consecutive
1011 in the ‘‘SEARCH’’ box and click to the short window of time until the days to complete both piers. Actual
‘‘SEARCH.’’ Click on Open Docket operation begins. Allowing this event to dates and times of explosive detonation
asabaliauskas on DSK3SPTVN1PROD with RULES
Folder on the line associated with this go forward without a safety zone in will be published with a combination of
rule. place would expose mariners and the broadcast notice to mariners, local
FOR FURTHER INFORMATION CONTACT: If public to unnecessary dangers notice to mariners, posted warning
you have questions about this rule, call associated with explosive detonation. signs, 500 yard marine traffic safety
or email Marine Science Technician We are issuing this rule, and under 5 zone maintained by the contractors
First Class Tom Simkins, U.S. Coast U.S.C. 553(d)(3), the Coast Guard finds safety boats, a 10 minute, 5 minutes,
Guard, Sector Delaware Bay, Waterways that good cause exists for making it and 1 minute warning made by the
Management Division, Coast Guard; effective less than 30 days after blasting vessel via VHF–FM channel 16,
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Document Created: 2018-02-14 08:34:17
Document Modified: 2018-02-14 08:34:17
| 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 January 1, 2017. | |
| 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 83137 | |
| CFR Associated | Pension Insurance and Pensions |
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