82 FR 13755 - Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 82, Issue 49 (March 15, 2017)
Federal Register Volume 82, Issue 49 (March 15, 2017)
| Page Range | 13755-13756 | |
| FR Document | 2017-04945 |
[Federal Register Volume 82, Number 49 (Wednesday, March 15, 2017)] [Rules and Regulations] [Pages 13755-13756] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-04945] ======================================================================= ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION 29 CFR Parts 4022 and 4044 Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits AGENCY: Pension Benefit Guaranty Corporation. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule amends the Pension Benefit Guaranty Corporation's regulations on Benefits Payable in Terminated Single- Employer Plans and Allocation of Assets in Single-Employer Plans to prescribe interest assumptions under the benefit payments regulation for valuation dates in April 2017 and interest assumptions under the asset allocation regulation for valuation dates in the second quarter of 2017. The interest assumptions are used for valuing and paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective April 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 regulations on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) and Benefits Payable in Terminated Single-Employer Plans (29 CFR part 4022) prescribe actuarial assumptions--including interest assumptions--for valuing and 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 regulations are also published on PBGC's Web site (http://www.pbgc.gov). The interest assumptions in Appendix B to part 4044 are used to value benefits for allocation purposes under ERISA section 4044. 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 asset allocation regulation are updated quarterly; assumptions under the benefit payments regulation are updated monthly. This final rule updates the benefit payments interest assumptions for April 2017 and updates the asset allocation interest assumptions for the second quarter (April through June) of 2017. The second quarter 2017 interest assumptions under the allocation regulation will be 2.15 percent for the first 20 years following the valuation date and 2.60 percent thereafter. In comparison with the interest assumptions in effect for the first quarter of 2017, these interest assumptions represent no change in the select period (the period during which the select rate (the initial rate) applies), an increase of 0.28 percent in the select rate, and an increase of 0.23 percent in the ultimate rate (the final rate). The April 2017 interest assumptions under the benefit payments regulation will be 1.00 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 March 2017, these interest assumptions represent a decrease of 0.25 percent in the immediate rate and no changes in i1, i2, or i3. 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 valuation and payment of benefits under plans with valuation dates during April 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 29 CFR Part 4022 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. 29 CFR Part 4044 Employee benefit plans, Pension insurance, Pensions. In consideration of the foregoing, 29 CFR parts 4022 and 4044 are 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 282, as set forth below, is added to the table. Appendix B to Part 4022--Lump Sum Interest Rates For PBGC Payments * * * * * [[Page 13756]] -------------------------------------------------------------------------------------------------------------------------------------------------------- For plans with a valuation date Immediate Deferred annuities (percent) Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------ On or after Before (percent) i i i n n -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 282 4-1-17 5-1-17 1.00 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 282, 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) i i i n n -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 282 4-1-17 5-1-17 1.00 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS 0 4. 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 5. In appendix B to part 4044, a new entry for April-June 2017, as set forth below, is added to the table. Appendix B to Part 4044--Interest Rates Used to Value Benefits * * * * * ---------------------------------------------------------------------------------------------------------------- The values of i are: For valuation dates ----------------------------------------------------------------------------------- occurring in the month-- i for t = i for t = i for t = ---------------------------------------------------------------------------------------------------------------- * * * * * * * April-June 2017............. 0.0215 1-20 0.0260 >20 N/A N/A ---------------------------------------------------------------------------------------------------------------- Deborah Chase Murphy, Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2017-04945 Filed 3-14-17; 8:45 am] BILLING CODE 7709-02-P
![Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Rules and Regulations 13755
(k) Material Incorporated by Reference FOR FURTHER INFORMATION CONTACT: will be 1.00 percent for the period
(1) The Director of the Federal Register Deborah C. Murphy (Murphy.Deborah@ during which a benefit is in pay status
approved the incorporation by reference PBGC.gov), Assistant General Counsel and 4.00 percent during any years
(IBR) of the service information listed in this for Regulatory Affairs, Pension Benefit preceding the benefit’s placement in pay
paragraph under 5 U.S.C. 552(a) and 1 CFR Guaranty Corporation, 1200 K Street status. In comparison with the interest
part 51. NW., Washington, DC 20005, 202–326– assumptions in effect for March 2017,
(2) You must use this service information
as applicable to do the actions required by
4400 ext. 3451. (TTY/TDD users may these interest assumptions represent a
this AD, unless the AD specifies otherwise. call the Federal relay service toll free at decrease of 0.25 percent in the
(i) Safran Helicopter Engines Alert 1–800–877–8339 and ask to be immediate rate and no changes in i1, i2,
Mandatory Service Bulletin A292 73 0851, connected to 202–326–4400 ext. 3451.) or i3.
Version A, dated January 31, 2017. SUPPLEMENTARY INFORMATION: PBGC’s PBGC has determined that notice and
(ii) Reserved. regulations on Allocation of Assets in
(3) For Safran Helicopter Engines service
public comment on this amendment are
Single-Employer Plans (29 CFR part impracticable and contrary to the public
information identified in this AD, contact
Safran Helicopter Engines, S.A., 40220 4044) and Benefits Payable in interest. This finding is based on the
Tarnos, France; phone: (33) 05 59 74 40 00; Terminated Single-Employer Plans (29 need to determine and issue new
fax: (33) 05 59 74 45 15. CFR part 4022) prescribe actuarial interest assumptions promptly so that
(4) You may view this service information assumptions—including interest the assumptions can reflect current
at FAA, Engine & Propeller Directorate, 1200 assumptions—for valuing and paying market conditions as accurately as
District Avenue, Burlington, MA. For plan benefits under terminating single- possible.
information on the availability of this employer plans covered by title IV of
material at the FAA, call 781–238–7125. Because of the need to provide
the Employee Retirement Income
(5) You may view this service information immediate guidance for the valuation
at the National Archives and Records
Security Act of 1974. The interest
and payment of benefits under plans
Administration (NARA). For information on assumptions in the regulations are also
with valuation dates during April 2017,
the availability of this material at NARA, call published on PBGC’s Web site (http://
PBGC finds that good cause exists for
202–741–6030, or go to: http:// www.pbgc.gov).
www.archives.gov/federal-register/cfr/ibr- The interest assumptions in Appendix making the assumptions set forth in this
locations.html. B to part 4044 are used to value benefits amendment effective less than 30 days
for allocation purposes under ERISA after publication.
Issued in Burlington, Massachusetts, on PBGC has determined that this action
March 8, 2017. section 4044. PBGC uses the interest
assumptions in Appendix B to part 4022 is not a ‘‘significant regulatory action’’
Carlos A. Pestana,
to determine whether a benefit is under the criteria set forth in Executive
Acting Assistant Manager, Engine & Propeller Order 12866.
payable as a lump sum and to determine
Directorate, Aircraft Certification Service.
the amount to pay. Appendix C to part Because no general notice of proposed
[FR Doc. 2017–05236 Filed 3–14–17; 8:45 am]
4022 contains interest assumptions for rulemaking is required for this
BILLING CODE 4910–13–P
private-sector pension practitioners to amendment, the Regulatory Flexibility
refer to if they wish to use lump-sum Act of 1980 does not apply. See 5 U.S.C.
interest rates determined using PBGC’s 601(2).
PENSION BENEFIT GUARANTY historical methodology. Currently, the
CORPORATION rates in Appendices B and C of the List of Subjects
benefit payment regulation are the same. 29 CFR Part 4022
29 CFR Parts 4022 and 4044 The interest assumptions are intended
to reflect current conditions in the Employee benefit plans, Pension
Allocation of Assets in Single- insurance, Pensions, Reporting and
Employer Plans; Benefits Payable in financial and annuity markets.
Assumptions under the asset allocation recordkeeping requirements.
Terminated Single-Employer Plans;
Interest Assumptions for Valuing and regulation are updated quarterly; 29 CFR Part 4044
Paying Benefits assumptions under the benefit payments
regulation are updated monthly. This Employee benefit plans, Pension
AGENCY: Pension Benefit Guaranty final rule updates the benefit payments insurance, Pensions.
Corporation. interest assumptions for April 2017 and In consideration of the foregoing, 29
ACTION: Final rule. updates the asset allocation interest CFR parts 4022 and 4044 are amended
assumptions for the second quarter as follows:
SUMMARY: This final rule amends the (April through June) of 2017.
Pension Benefit Guaranty Corporation’s The second quarter 2017 interest PART 4022—BENEFITS PAYABLE IN
regulations on Benefits Payable in assumptions under the allocation TERMINATED SINGLE-EMPLOYER
Terminated Single-Employer Plans and regulation will be 2.15 percent for the PLANS
Allocation of Assets in Single-Employer first 20 years following the valuation
Plans to prescribe interest assumptions date and 2.60 percent thereafter. In ■ 1. The authority citation for part 4022
under the benefit payments regulation comparison with the interest continues to read as follows:
for valuation dates in April 2017 and assumptions in effect for the first
interest assumptions under the asset Authority: 29 U.S.C. 1302, 1322, 1322b,
quarter of 2017, these interest 1341(c)(3)(D), and 1344.
allocation regulation for valuation dates assumptions represent no change in the
in the second quarter of 2017. The select period (the period during which ■ 2. In appendix B to part 4022, Rate Set
rmajette on DSK30RV082PROD with RULES
interest assumptions are used for the select rate (the initial rate) applies), 282, as set forth below, is added to the
valuing and paying benefits under an increase of 0.28 percent in the select table.
terminating single-employer plans rate, and an increase of 0.23 percent in
covered by the pension insurance Appendix B to Part 4022—Lump Sum
the ultimate rate (the final rate).
system administered by PBGC. The April 2017 interest assumptions Interest Rates For PBGC Payments
DATES: Effective April 1, 2017. under the benefit payments regulation * * * * *
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![13756 Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Rules and Regulations
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
282 4–1–17 5–1–17 1.00 4.00 4.00 4.00 7 8
■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum
282, 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
* * * * * * *
282 4–1–17 5–1–17 1.00 4.00 4.00 4.00 7 8
PART 4044—ALLOCATION OF Authority: 29 U.S.C. 1301(a), 1302(b)(3), Appendix B to Part 4044—Interest
ASSETS IN SINGLE-EMPLOYER 1341, 1344, 1362. Rates Used to Value Benefits
PLANS * * * * *
■ 5. In appendix B to part 4044, a new
■ 4. The authority citation for part 4044 entry for April–June 2017, as set forth
continues to read as follows: below, is added to the table.
The values of it are:
For valuation dates occurring in the month—
it for t = it for t = it for t =
* * * * * * *
April–June 2017 ................................................................ 0.0215 1–20 0.0260 >20 N/A N/A
Deborah Chase Murphy, complete required maintenance The Metro-North Bridge across the
Assistant General Counsel for Regulatory including installation of new timber Mianus River, mile 1.0 at Greenwich,
Affairs, Pension Benefit Guaranty ties, miter rails, and steel repairs. Connecticut is a single-leaf bascule
Corporation. railroad bridge offering mariners a
DATES: This deviation is effective from
[FR Doc. 2017–04945 Filed 3–14–17; 8:45 am] vertical clearance of 20 feet at mean
12:01 a.m. on March 27, 2017 through
BILLING CODE 7709–02–P high water and 27 feet at mean low
12:01 a.m. on May 9, 2017.
water in the closed position. The
ADDRESSES: The docket for this existing drawbridge operating
DEPARTMENT OF HOMELAND deviation, USCG–2017–0085 is available regulations are listed at 33 CFR 117.209.
SECURITY at http://www.regulations.gov. Type the The temporary deviation will allow
docket number in the ‘‘SEARCH’’ box the owner of the Metro-North Bridge to
Coast Guard and click ‘‘SEARCH’’. Click on Open close the span for openings each week
Docket Folder on the line associated beginning 8 a.m. Monday through 4
33 CFR Part 117 with this deviation. p.m. Friday from March 27, 2017 to May
8, 2017. The span will open on signal
[Docket No. USCG–2017–0085] FOR FURTHER INFORMATION CONTACT: If
from 4 p.m. Friday through 8 a.m.
you have questions on this temporary
Monday, provided 24 hours advance
Drawbridge Operation Regulation; deviation, call or email James Moore,
notice is given. The regular operating
Mianus River, Greenwich, CT Bridge Management Specialist, First
schedule for the span will be restored
District Bridge Branch, U.S. Coast
AGENCY: Coast Guard, DHS. April 8, 2017 through April 11, 2017 in
Guard; telephone 212–514–4334, email
ACTION:Notice of deviation from order to accommodate a previously
james.m.moore2@uscg.mil.
drawbridge regulation. scheduled boating event.
SUPPLEMENTARY INFORMATION: The owner Vessels able to pass through the
rmajette on DSK30RV082PROD with RULES
SUMMARY: The Coast Guard has issued a of the bridge, the Connecticut bridge in the closed position may do at
temporary deviation from the operating Department of Transportation, requested anytime. The bridge will be able to open
schedule that governs the Metro-North a temporary deviation in order to for emergencies. There is no alternate
Bridge across the Mianus River, mile 1.0 facilitate maintenance of the bridge route for vessels to pass.
at Greenwich, Connecticut. This including installation of timber ties, The Coast Guard will also inform the
deviation is necessary in order to miter rail replacement, and steel repairs. users of the waterways through our
VerDate Sep<11>2014 17:14 Mar 14, 2017 Jkt 241001 PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 E:\FR\FM\15MRR1.SGM 15MRR1](https://thefederalregister.org/doc/82_FR_13804/page/2.svg)
Document Created: 2017-03-15 06:04:09
Document Modified: 2017-03-15 06:04:09
| 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 April 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 | 82 FR 13755 | |
| CFR Citation | 29
CFR
4022 29 CFR 4044 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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