82_FR_10737 82 FR 10707 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits

82 FR 10707 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 82, Issue 30 (February 15, 2017)

Page Range10707-10708
FR Document2017-02761

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 March 2017. The interest assumptions are used for paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC.

Federal Register, Volume 82 Issue 30 (Wednesday, February 15, 2017) 
[Federal Register Volume 82, Number 30 (Wednesday, February 15, 2017)]
[Rules and Regulations]
[Pages 10707-10708]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02761]


=======================================================================
-----------------------------------------------------------------------

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 March 2017. The interest assumptions are used 
for paying benefits under terminating single-employer plans covered by 
the pension insurance system administered by PBGC.

DATES: Effective March 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).

[[Page 10708]]

    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 March 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.
---------------------------------------------------------------------------

    The March 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 January 2017, 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 February 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 281 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                                    Deferred annuities (percent)
                                                     date               Immediate  ---------------------------------------------------------------------
                Rate set                 ---------------------------- annuity rate
                                           On or after     Before       (percent)         i             i             i             n             n
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
281.....................................       3-1-17        4-1-17          1.25          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------


0
3. In appendix C to part 4022, Rate Set 281 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                                    Deferred annuities (percent)
                                                     date               Immediate  ---------------------------------------------------------------------
                Rate set                 ---------------------------- annuity rate
                                           On or after     Before       (percent)         i             i             i             n             n
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
281.....................................       3-1-17        4-1-17          1.25          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC, by
Deborah Chase Murphy,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2017-02761 Filed 2-14-17; 8:45 am]
 BILLING CODE 7709-02-P

Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations 10707 the CFTC to be eligible contract a person who is an eligible contract § 260.4d–12 [Amended] participants pursuant to Section participant under Section 1a(12)(C) of ■ 7. Section 260.4d–12 is revised to read 1a(12)(C) of the Commodity Exchange the Commodity Exchange Act as in as follows: Act. Based on our existing information effect prior to July 16, 2011). about the security-based swaps market, (b) The exemption provided in § 260.4d–12 Exemption for security-based including our existing information paragraph (a) of this section does not swaps offered and sold in reliance on about participants in the security-based apply to the provisions of Section 17(a) Securities Act of 1933 Rule 240 (§ 230.240). swaps market, we believe that the of the Act (15 U.S.C. 77q(a)). Any security-based swap offered and interim final rules apply to few, if any, (c) This section will expire on sold in reliance on § 230.240 of this small entities. For this reason, the February 11, 2018. chapter, whether or not issued under an extension of the expiration dates in the indenture, is exempt from the Act. This interim final rules should not have a PART 240—GENERAL RULES AND section will expire on February 11, significant economic impact on a REGULATIONS, SECURITIES 2018. substantial number of small entities. EXCHANGE ACT OF 1934 By the Commission. VI. Statutory Authority and Text of the Dated: February 10, 2017. ■ 3. The authority citation for part 240 Rules and Amendments continues to read, in part, as follows: Brent J. Fields, The amendments described in this Secretary. Authority: 15 U.S.C. 77c, 77d, 77g, 77j, release are being adopted under the [FR Doc. 2017–03121 Filed 2–14–17; 8:45 am] 77s, 77z–2, 77z–3, 77eee, 77ggg, 77nnn, authority set forth in Sections 19 and 28 77sss, 77ttt, 78c, 78c–3, 78c–5, 78d, 78e, 78f, BILLING CODE 8011–01–P of the Securities Act, Sections 12(h), 78g, 78i, 78j, 78j–1, 78k, 78k–1, 78l, 78m, 23(a) and 36 of the Exchange Act, and 78n, 78n–1, 78o, 78o–4, 78o–10, 78p, 78q, Section 304(d) of the Trust Indenture 78q–1, 78s, 78u–5, 78w, 78x, 78ll, 78mm, PENSION BENEFIT GUARANTY 80a–20, 80a–23, 80a–29, 80a–37, 80b–3, 80b– CORPORATION Act. 4, 80b–11, 7201 et seq. and 8302; 7 U.S.C. List of Subjects in 17 CFR Parts 230, 2(c)(2)(E); 12 U.S.C. 5221(e)(3); 18 U.S.C. 29 CFR Part 4022 240 and 260 1350; Pub. L. 111–203, 939A, 124 Stat. 1376 (2010); and Pub. L. 112–106, sec. 503 and Benefits Payable in Terminated Single- Reporting and recordkeeping 602, 126 Stat. 326 (2012), unless otherwise requirements, Securities. Employer Plans; Interest Assumptions noted. for Paying Benefits Text of the Rules and Amendments * * * * * AGENCY: Pension Benefit Guaranty For the reasons set out in the § 240.12a–11 [Amended] Corporation. preamble, the Commission amends 17 ■ 4. Section 240.12a–11 is revised to ACTION: Final rule. CFR parts 230, 240, and 260 as follows: read as follows: SUMMARY: This final rule amends the PART 230—GENERAL RULES AND § 240.12a–11 Exemption of security-based Pension Benefit Guaranty Corporation’s REGULATIONS, SECURITIES ACT OF swaps sold in reliance on Securities Act of regulation on Benefits Payable in 1933 1933 Rule 240 (§ 230.240) from section 12(a) Terminated Single-Employer Plans to of the Act. ■ 1. The authority citation for part 230 prescribe interest assumptions under (a) The provisions of Section 12(a) of the regulation for valuation dates in continues to read, in part, as follows: the Act (15 U.S.C. 78l(a)) do not apply March 2017. The interest assumptions Authority: 15 U.S.C. 77b, 77b note, 77c, to any security-based swap offered and are used for paying benefits under 77d, 77d note, 77f, 77g, 77h, 77j, 77r, 77s, sold in reliance on § 230.240 of this 77z–3, 77sss, 78c, 78d, 78j, 78l, 78m, 78n, terminating single-employer plans chapter. covered by the pension insurance 78o, 78o–7 note, 78t, 78w, 78ll(d), 78mm, 80a–8, 80a–24, 80a–28, 80a–29, 80a–30, and (b) This section will expire on system administered by PBGC. 80a–37, and Pub. L. 112–106, sec. 201(a), sec. February 11, 2018. DATES: Effective March 1, 2017. 401, 126 Stat. 313 (2012), unless otherwise FOR FURTHER INFORMATION CONTACT: § 240.12h–1 [Amended] noted. Deborah C. Murphy (Murphy.Deborah@ * * * * * ■ 5. In § 240.12h–1, paragraph (i) is pbgc.gov), Assistant General Counsel for revised to read as follows: § 230.240 [Amended] Regulatory Affairs, Pension Benefit § 240.12h–1 Exemptions from registration Guaranty Corporation, 1200 K Street ■ 2. Section 230.240 is revised to read under section 12(g) of the Act. NW., Washington, DC 20005, 202–326– as follows: 4400 ext. 3451. (TTY/TDD users may * * * * * § 230.240 Exemption for certain security- (i) Any security-based swap offered call the Federal relay service toll-free at based swaps. and sold in reliance on § 230.240 of this 1–800–877–8339 and ask to be (a) Except as expressly provided in chapter. This section will expire on connected to 202–326–4400 ext. 3451.) paragraph (b) of this section, the Act February 11, 2018. SUPPLEMENTARY INFORMATION: PBGC’s does not apply to the offer or sale of any regulation on Benefits Payable in security-based swap that is: PART 260—GENERAL RULES AND Terminated Single-Employer Plans (29 (1) A security-based swap agreement, REGULATIONS, TRUST INDENTURE CFR part 4022) prescribes actuarial as defined in Section 2A of the Act (15 ACT OF 1939 assumptions—including interest mstockstill on DSK3G9T082PROD with RULES U.S.C. 77b(b)–1) as in effect prior to July assumptions—for paying plan benefits 16, 2011; and ■ 6. The authority citation for part 260 under terminating single-employer (2) Entered into between eligible continues to read as follows: plans covered by title IV of the contract participants (as defined in Authority: 15 U.S.C. 77c, 77ddd, 77eee, Employee Retirement Income Security Section 1a(12) of the Commodity 77ggg, 77nnn, 77sss, 78ll(d), 80b–3, 80b–4, Act of 1974. The interest assumptions in Exchange Act (7 U.S.C. 1a(12)) as in and 80b–11, unless otherwise noted. the regulation are also published on effect prior to July 16, 2011, other than * * * * * PBGC’s Web site (http://www.pbgc.gov). VerDate Sep<11>2014 16:57 Feb 14, 2017 Jkt 241001 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 E:\FR\FM\15FER1.SGM 15FER1

10708 Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations PBGC uses the interest assumptions in status. In comparison with the interest amendment, the Regulatory Flexibility Appendix B to part 4022 to determine assumptions in effect for January 2017, Act of 1980 does not apply. See 5 U.S.C. whether a benefit is payable as a lump these interest assumptions are 601(2). sum and to determine the amount to unchanged. PBGC has determined that notice and List of Subjects in 29 CFR Part 4022 pay. Appendix C to part 4022 contains interest assumptions for private-sector public comment on this amendment are Employee benefit plans, Pension pension practitioners to refer to if they impracticable and contrary to the public insurance, Pensions, Reporting and wish to use lump-sum interest rates interest. This finding is based on the recordkeeping requirements. determined using PBGC’s historical need to determine and issue new In consideration of the foregoing, 29 methodology. Currently, the rates in interest assumptions promptly so that CFR part 4022 is amended as follows: Appendices B and C of the benefit the assumptions can reflect current payment regulation are the same. market conditions as accurately as PART 4022—BENEFITS PAYABLE IN possible. TERMINATED SINGLE-EMPLOYER The interest assumptions are intended Because of the need to provide PLANS to reflect current conditions in the immediate guidance for the payment of financial and annuity markets. benefits under plans with valuation Assumptions under the benefit ■ 1. The authority citation for part 4022 dates during February 2017, PBGC finds continues to read as follows: payments regulation are updated that good cause exists for making the monthly. This final rule updates the assumptions set forth in this Authority: 29 U.S.C. 1302, 1322, 1322b, benefit payments interest assumptions 1341(c)(3)(D), and 1344. amendment effective less than 30 days for March 2017.1 after publication. ■ 2. In appendix B to part 4022, Rate Set The March 2017 interest assumptions PBGC has determined that this action 281 is added to the table to read as under the benefit payments regulation is not a ‘‘significant regulatory action’’ follows: will be 1.25 percent for the period under the criteria set forth in Executive during which a benefit is in pay status Appendix B to Part 4022—Lump Sum Order 12866. and 4.00 percent during any years Because no general notice of proposed Interest Rates for PBGC Payments preceding the benefit’s placement in pay rulemaking is required for this * * * * * For plans with a valuation Deferred annuities Immediate date (percent) Rate set annuity rate (percent) On or after Before i1 i2 i3 n1 n2 * * * * * * * 281 3–1–17 4–1–17 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 281 is added to the table to read as Interest Rates For Private-Sector follows: 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 * * * * * * * 281 3–1–17 4–1–17 1.25 4.00 4.00 4.00 7 8 Issued in Washington, DC, by Deborah Chase Murphy, Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2017–02761 Filed 2–14–17; 8:45 am] BILLING CODE 7709–02–P mstockstill on DSK3G9T082PROD with RULES 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 16:57 Feb 14, 2017 Jkt 241001 PO 00000 Frm 00008 Fmt 4700 Sfmt 9990 E:\FR\FM\15FER1.SGM 15FER1


Document Created: 2017-02-15 00:54:44
Document Modified: 2017-02-15 00:54:44
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective March 1, 2017.
ContactDeborah 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 Citation82 FR 10707 
CFR AssociatedEmployee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR