81 FR 91032 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 81, Issue 242 (December 16, 2016)
Federal Register Volume 81, Issue 242 (December 16, 2016)
| Page Range | 91032-91033 | |
| FR Document | 2016-30098 |
[Federal Register Volume 81, Number 242 (Friday, December 16, 2016)] [Rules and Regulations] [Pages 91032-91033] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-30098] ======================================================================= ----------------------------------------------------------------------- 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 January 2017. The interest assumptions are used for paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. As discussed below, PBGC will publish a separate final rule document dealing with interest assumptions under its regulation on Allocation of Assets in Single- Employer Plans for the first quarter of 2017. 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: 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 January 2017.\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. --------------------------------------------------------------------------- PBGC normally updates the assumptions under the benefit payments regulation for January at the same time as PBGC updates assumptions for the first quarter of the year under its regulation on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) in a single rulemaking document. Because of delays in obtaining data used in setting assumptions under Part 4044 for the first quarter of 2017, PBGC is publishing two separate rulemaking documents to update the benefit payments regulation for January 2017 and the allocation regulation for the first quarter of 2017. The January 2017 interest assumptions under the benefit payments regulation will be 1.25 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 December 2016, these interest assumptions represent an increase in the immediate rate of 0.50 percent 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 January 2017, 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 279, as set forth below, is added to the table. Appendix B to Part 4022--Lump Sum Interest Rates for PBGC Payments * * * * * [[Page 91033]] -------------------------------------------------------------------------------------------------------------------------------------------------------- For plans with a valuation date Immediate Deferred annuities (percent) Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------ On or after Before (percent) i1 i2 i3 n1 n2 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 279 1-1-17 2-1-17 1.25 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 279, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 279 1-1-17 2-1-17 1.25 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- Deborah Chase Murphy, Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2016-30098 Filed 12-15-16; 8:45 am] BILLING CODE 7709-02-P
![91032 Federal Register / Vol. 81, No. 242 / Friday, December 16, 2016 / Rules and Regulations
elections made under § 301.7701–3 that Guaranty Corporation, 1200 K Street The January 2017 interest
are filed on or after September 14, 2015. NW., Washington, DC 20005, 202–326– assumptions under the benefit payments
For guidance with respect to paragraphs 4400 ext. 3451. (TTY/TDD users may regulation will be 1.25 percent for the
(c)(4), (c)(5), and (d)(1) of this section call the Federal relay service toll-free at period during which a benefit is in pay
before this section is applicable, see 1–800–877–8339 and ask to be status and 4.00 percent during any years
§§ 1.6038B–1 and 1.6038B–1T as connected to 202–326–4400 ext. 3451.) preceding the benefit’s placement in pay
contained in 26 CFR part 1 revised as of SUPPLEMENTARY INFORMATION: PBGC’s status. In comparison with the interest
April 1, 2016. regulation on Benefits Payable in assumptions in effect for December
Terminated Single-Employer Plans (29 2016, these interest assumptions
§ 1.6038B–1T [Amended] represent an increase in the immediate
CFR part 4022) prescribes actuarial
■ Par. 24. Section 1.6038B–1T is assumptions—including interest rate of 0.50 percent and are otherwise
amended by removing and reserving assumptions—for paying plan benefits unchanged.
paragraphs (c)(4)(i) through (c)(5) under terminating single-employer PBGC has determined that notice and
introductory text, and (d)(1)(iv) and plans covered by title IV of the public comment on this amendment are
(vii). Employee Retirement Income Security impracticable and contrary to the public
Act of 1974. The interest assumptions in interest. This finding is based on the
John Dalrymple,
the regulation are also published on need to determine and issue new
Deputy Commissioner for Services and
PBGC’s Web site (http://www.pbgc.gov). interest assumptions promptly so that
Enforcement.
PBGC uses the interest assumptions in the assumptions can reflect current
Approved: November 23, 2016.
Appendix B to Part 4022 to determine market conditions as accurately as
Mark J. Mazur, possible.
whether a benefit is payable as a lump
Assistant Secretary of the Treasury (Tax Because of the need to provide
Policy). sum and to determine the amount to
pay. Appendix C to Part 4022 contains immediate guidance for the payment of
[FR Doc. 2016–29791 Filed 12–15–16; 8:45 am] benefits under plans with valuation
interest assumptions for private-sector
BILLING CODE 4830–01–P
pension practitioners to refer to if they dates during January 2017, PBGC finds
wish to use lump-sum interest rates that good cause exists for making the
determined using PBGC’s historical assumptions set forth in this
PENSION BENEFIT GUARANTY methodology. Currently, the rates in amendment effective less than 30 days
CORPORATION Appendices B and C of the benefit after publication.
payment regulation are the same. PBGC has determined that this action
29 CFR Part 4022 is not a ‘‘significant regulatory action’’
The interest assumptions are intended
to reflect current conditions in the under the criteria set forth in Executive
Benefits Payable in Terminated Single- Order 12866.
Employer Plans; Interest Assumptions financial and annuity markets.
Assumptions under the benefit Because no general notice of proposed
for Paying Benefits rulemaking is required for this
payments regulation are updated
AGENCY: Pension Benefit Guaranty monthly. This final rule updates the amendment, the Regulatory Flexibility
Corporation. benefit payments interest assumptions Act of 1980 does not apply. See 5 U.S.C.
ACTION: Final rule. for January 2017.1 601(2).
PBGC normally updates the List of Subjects in 29 CFR Part 4022
SUMMARY: This final rule amends the assumptions under the benefit payments
Pension Benefit Guaranty Corporation’s Employee benefit plans, Pension
regulation for January at the same time
regulation on Benefits Payable in insurance, Pensions, Reporting and
as PBGC updates assumptions for the
Terminated Single-Employer Plans to recordkeeping requirements.
first quarter of the year under its
prescribe interest assumptions under regulation on Allocation of Assets in In consideration of the foregoing, 29
the regulation for valuation dates in Single-Employer Plans (29 CFR part CFR part 4022 is amended as follows:
January 2017. The interest assumptions 4044) in a single rulemaking document.
are used for paying benefits under PART 4022—BENEFITS PAYABLE IN
Because of delays in obtaining data used
terminating single-employer plans TERMINATED SINGLE-EMPLOYER
in setting assumptions under Part 4044
covered by the pension insurance PLANS
for the first quarter of 2017, PBGC is
system administered by PBGC. As publishing two separate rulemaking
discussed below, PBGC will publish a ■ 1. The authority citation for part 4022
documents to update the benefit continues to read as follows:
separate final rule document dealing payments regulation for January 2017
with interest assumptions under its and the allocation regulation for the first Authority: 29 U.S.C. 1302, 1322, 1322b,
regulation on Allocation of Assets in quarter of 2017.
1341(c)(3)(D), and 1344.
Single-Employer Plans for the first ■ 2. In appendix B to part 4022, Rate Set
quarter of 2017. 1 Appendix 279, as set forth below, is added to the
B to PBGC’s regulation on Allocation
DATES: Effective January 1, 2017. of Assets in Single-Employer Plans (29 CFR part table.
FOR FURTHER INFORMATION CONTACT: 4044) prescribes interest assumptions for valuing
benefits under terminating covered single-employer Appendix B to Part 4022—Lump Sum
Deborah C. Murphy (Murphy.Deborah@ plans for purposes of allocation of assets under Interest Rates for PBGC Payments
pbgc.gov), Assistant General Counsel for ERISA section 4044. Those assumptions are
asabaliauskas on DSK3SPTVN1PROD with RULES
Regulatory Affairs, Pension Benefit updated quarterly. * * * * *
VerDate Sep<11>2014 17:15 Dec 15, 2016 Jkt 241001 PO 00000 Frm 00084 Fmt 4700 Sfmt 4700 E:\FR\FM\16DER1.SGM 16DER1](https://thefederalregister.org/doc/81_FR_91274/page/1.svg)
![Federal Register / Vol. 81, No. 242 / Friday, December 16, 2016 / Rules and Regulations 91033
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
279 1–1–17 2–1–17 1.25 4.00 4.00 4.00 7 8
■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum
279, as set forth below, is added to the Interest Rates for Private-Sector
table. Payments
* * * * *
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
279 1–1–17 2–1–17 1.25 4.00 4.00 4.00 7 8
Deborah Chase Murphy, DATES: This rule will be effective SUPPLEMENTARY INFORMATION:
Assistant General Counsel for Regulatory January 17, 2017.
Affairs, Pension Benefit Guaranty I. Background
ADDRESSES: EPA has established a
Corporation. docket for this action under Docket On May 22, 2015, EPA finalized an
[FR Doc. 2016–30098 Filed 12–15–16; 8:45 am] Identification No. EPA–R04–OAR– action (hereafter referred to as the ‘‘SSM
BILLING CODE 7709–02–P 2016–0359. All documents in the docket SIP Action’’) 1 that responded to a Sierra
are listed on the www.regulations.gov Club petition for rulemaking concerning
Web site. Although listed in the index, state rule treatment of excess emissions
ENVIRONMENTAL PROTECTION some information is not publicly by sources during periods of SSM and
AGENCY available, i.e., Confidential Business called for 36 states to submit corrective
Information or other information whose SIP revisions to EPA by November 22,
40 CFR Part 52 disclosure is restricted by statute. 2016. As discussed in that action, EPA
[EPA–R04–OAR–2016–0359; FRL–9956–63– Certain other material, such as determined that Knox County
Region 4] copyrighted material, is not placed on Regulation 32.1(C) 2 is inconsistent with
the Internet and will be publicly the fundamental requirements of CAA
Air Plan Approval; TN; Revisions to the available only in hard copy form. sections 113(e)(1), 114(c) and 304 and
Knox County Portion of the TN SIP Publicly available docket materials are the credible evidence rule 3 and thus
available either electronically through issued a SIP call requiring the State to
AGENCY: Environmental Protection submit a corrective SIP revision
Agency (EPA). www.regulations.gov or in hard copy at
the Air Regulatory Management Section, addressing this provision. See 80 FR
ACTION: Final rule. 33965.
Air Planning and Implementation
SUMMARY: The Environmental Protection Branch, Air, Pesticides and Toxics On January 11, 2016, the State of
Agency (EPA) is approving a State Management Division, U.S. Tennessee submitted a SIP revision,
Implementation Plan (SIP) revision Environmental Protection Agency, pursuant to a request by the Knox
submitted by the State of Tennessee, Region 4, 61 Forsyth Street SW., County Department of Air Quality
through the Tennessee Department of Atlanta, Georgia 30303–8960. EPA Management, to address the SSM SIP
Environment and Conservation (TDEC), requests that if at all possible, you Action with respect to Knox County.
on January 11, 2016. The revision was contact the person listed in the FOR The revision removes the language from
submitted by TDEC on behalf of the FURTHER INFORMATION CONTACT section to Knox County Regulation 32.1(C) that
Knox County Department of Air Quality schedule your inspection. The Regional EPA found to be unlawful in the SSM
Management, which has jurisdiction Office’s official hours of business are SIP Action and replaces it with
over Knox County, Tennessee. The Monday through Friday 8:30 a.m. to ‘‘(Reserved).’’ In a proposed rulemaking
revision that EPA is approving amends 4:30 p.m., excluding Federal holidays. published on September 22, 2016 (81 FR
the Knox County Air Quality FOR FURTHER INFORMATION CONTACT: 65313), EPA proposed to approve that
Management Department’s regulations, Madolyn Sanchez, Air Regulatory
1 See ‘‘State Implementation Plans: Response to
which are part of the Tennessee SIP, to Management Section, Air Planning and
asabaliauskas on DSK3SPTVN1PROD with RULES
Petition for Rulemaking; Restatement and Update of
address EPA’s startup, shutdown, and Implementation Branch, Pesticides and EPA’s SSM Policy Applicable to SIPs; Findings of
malfunction (SSM) SIP call for Knox Toxics Management Division, Region 4, Substantial Inadequacy; and SIP Calls To Amend
County. EPA is approving the January U.S. Environmental Protection Agency, Provisions Applying to Excess Emissions During
11, 2016, SIP revision because the 61 Forsyth Street SW., Atlanta, Georgia Periods of Startup, Shutdown and Malfunction,’’ 80
FR 33839 (June 12, 2015).
Agency has determined that it is in 30303–8960. Ms. Sanchez can be 2 Knox County SIP Regulation 32.1(C) is a
accordance with the requirements for reached via telephone at (404) 562–9644 subsection of Section 32.0, ‘‘Use of Evidence.’’
SIP provisions under the Clean Air Act and via electronic mail at 3 40 CFR 51.212(c); see also ‘‘Credible Evidence
(CAA or Act). sanchez.madolyn@epa.gov. Revisions,’’ 62 FR 8314 (Feb. 24, 1997).
VerDate Sep<11>2014 17:15 Dec 15, 2016 Jkt 241001 PO 00000 Frm 00085 Fmt 4700 Sfmt 4700 E:\FR\FM\16DER1.SGM 16DER1](https://thefederalregister.org/doc/81_FR_91274/page/2.svg)
Document Created: 2018-02-14 09:07:13
Document Modified: 2018-02-14 09:07:13
| 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 91032 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR