82_FR_22371 82 FR 22279 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits

82 FR 22279 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 82, Issue 92 (May 15, 2017)

Page Range22279-22280
FR Document2017-09469

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 June 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 92 (Monday, May 15, 2017) 
[Federal Register Volume 82, Number 92 (Monday, May 15, 2017)]
[Rules and Regulations]
[Pages 22279-22280]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-09469]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 82, No. 92 / Monday, May 15, 2017 / Rules and 
Regulations

[[Page 22279]]



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.

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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 June 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 June 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 June 2017.\1\
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    \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.
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    The June 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 May 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 June 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 284, as set forth below, is 
added to the table.

Appendix B to Part 4022--Lump Sum Interest Rates For PBGC Payments

* * * * *

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                   For plans with a valuation date     Immediate                                 Deferred annuities (percent)
    Rate set     ----------------------------------   annuity rate  ------------------------------------------------------------------------------------
                    On or after         Before         (percent)            i1               i2               i3               n1               n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      * * * * * * *
          284           6-1-17           7-1-17             1.00             4.00             4.00             4.00                7                8
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[[Page 22280]]


0
3. In appendix C to part 4022, Rate Set 284, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      * * * * * * *
          284           6-1-17           7-1-17             1.00             4.00             4.00             4.00                7                8
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC.
Deborah Chase Murphy,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2017-09469 Filed 5-12-17; 8:45 am]
 BILLING CODE 7709-02-P

22279 Rules and Regulations Federal Register Vol. 82, No. 92 Monday, May 15, 2017 This section of the FEDERAL REGISTER SUPPLEMENTARY INFORMATION: PBGC’s need to determine and issue new contains regulatory documents having general regulation on Benefits Payable in interest assumptions promptly so that applicability and legal effect, most of which Terminated Single-Employer Plans (29 the assumptions can reflect current are keyed to and codified in the Code of CFR part 4022) prescribes actuarial market conditions as accurately as Federal Regulations, which is published under assumptions—including interest possible. 50 titles pursuant to 44 U.S.C. 1510. assumptions—for paying plan benefits Because of the need to provide The Code of Federal Regulations is sold by under terminating single-employer immediate guidance for the payment of the Superintendent of Documents. plans covered by title IV of the benefits under plans with valuation Employee Retirement Income Security dates during June 2017, PBGC finds that Act of 1974. The interest assumptions in good cause exists for making the PENSION BENEFIT GUARANTY the regulation are also published on assumptions set forth in this CORPORATION PBGC’s Web site (http://www.pbgc.gov). amendment effective less than 30 days PBGC uses the interest assumptions in after publication. 29 CFR Part 4022 Appendix B to Part 4022 to determine PBGC has determined that this action whether a benefit is payable as a lump is not a ‘‘significant regulatory action’’ Benefits Payable in Terminated Single- sum and to determine the amount to Employer Plans; Interest Assumptions under the criteria set forth in Executive pay. Appendix C to Part 4022 contains Order 12866. for Paying Benefits interest assumptions for private-sector Because no general notice of proposed pension practitioners to refer to if they AGENCY: Pension Benefit Guaranty rulemaking is required for this wish to use lump-sum interest rates Corporation. amendment, the Regulatory Flexibility determined using PBGC’s historical ACTION: Final rule. Act of 1980 does not apply. See 5 U.S.C. methodology. Currently, the rates in 601(2). Appendices B and C of the benefit SUMMARY: This final rule amends the payment regulation are the same. List of Subjects in 29 CFR Part 4022 Pension Benefit Guaranty Corporation’s The interest assumptions are intended regulation on Benefits Payable in to reflect current conditions in the Employee benefit plans, Pension Terminated Single-Employer Plans to financial and annuity markets. insurance, Pensions, Reporting and prescribe interest assumptions under Assumptions under the benefit recordkeeping requirements. the regulation for valuation dates in payments regulation are updated In consideration of the foregoing, 29 June 2017. The interest assumptions are monthly. This final rule updates the CFR part 4022 is amended as follows: used for paying benefits under benefit payments interest assumptions PART 4022—BENEFITS PAYABLE IN terminating single-employer plans for June 2017.1 The June 2017 interest assumptions TERMINATED SINGLE–EMPLOYER covered by the pension insurance under the benefit payments regulation PLANS system administered by PBGC. will be 1.00 percent for the period DATES: Effective June 1, 2017. ■ 1. The authority citation for part 4022 during which a benefit is in pay status FOR FURTHER INFORMATION CONTACT: continues to read as follows: and 4.00 percent during any years Deborah C. Murphy (Murphy.Deborah@ preceding the benefit’s placement in pay Authority: 29 U.S.C. 1302, 1322, 1322b, pbgc.gov), Assistant General Counsel for status. In comparison with the interest 1341(c)(3)(D), and 1344. Regulatory Affairs, Pension Benefit assumptions in effect for May 2017, ■ 2. In appendix B to part 4022, Rate Set Guaranty Corporation, 1200 K Street these interest assumptions are 284, as set forth below, is added to the NW., Washington, DC 20005, 202–326– unchanged. table. 4400 ext. 3451. (TTY/TDD users may PBGC has determined that notice and call the Federal relay service toll-free at public comment on this amendment are Appendix B to Part 4022—Lump Sum 1–800–877–8339 and ask to be impracticable and contrary to the public Interest Rates For PBGC Payments connected to 202–326–4400 ext. 3451.) interest. This finding is based on the * * * * * For plans with a valuation Deferred annuities Immediate date (percent) Rate set annuity rate (percent) On or after Before i1 i2 i3 n1 n2 * * * * * * * 284 6–1–17 7–1–17 1.00 4.00 4.00 4.00 7 8 sradovich on DSK3GMQ082PROD 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 15:54 May 12, 2017 Jkt 241001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\15MYR1.SGM 15MYR1

22280 Federal Register / Vol. 82, No. 92 / Monday, May 15, 2017 / Rules and Regulations ■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum 284, 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 * * * * * * * 284 6–1–17 7–1–17 1.00 4.00 4.00 4.00 7 8 Issued in Washington, DC. Bridge, crossing the Willamette River, DEPARTMENT OF HOMELAND Deborah Chase Murphy, mile 12.4, at Portland, OR, and has SECURITY Assistant General Counsel for Regulatory requested a temporary deviation from Affairs, Pension Benefit Guaranty the operating schedule. The requested Coast Guard Corporation. deviation is to accommodate the Rose [FR Doc. 2017–09469 Filed 5–12–17; 8:45 am] Festival Grand Floral Parade event. To 33 CFR Part 117 BILLING CODE 7709–02–P facilitate this event, the draw of this [Docket No. USCG–2017–0355] bridge will be allowed to be kept in the closed-to-navigation position to marine Drawbridge Operation Regulation; DEPARTMENT OF HOMELAND traffic from 7 a.m. to 2 p.m. on June 10, Lake Washington Ship Canal, Seattle, SECURITY 2017. The Burnside Bridge provides a WA Coast Guard vertical clearance of 41 feet in the AGENCY: Coast Guard, DHS. closed-to-navigation position referenced ACTION:Notice of deviation from 33 CFR Part 117 to Columbia River Datum 0.0. The drawbridge regulation. normal operating schedule is in 33 CFR [Docket No. USCG–2017–0395] 117.897. Waterway usage on this part of SUMMARY: The Coast Guard has issued a the Willamette River includes vessels temporary deviation from the operating Drawbridge Operation Regulation; schedule that governs the Montlake Willamette River at Portland, OR ranging from commercial tug and barge to small pleasure craft. The Coast Guard Bridge across Lake Washington Ship AGENCY: Coast Guard, DHS. Canal, mile 5.2, at Seattle, WA. The contacted all known users of the deviation is necessary to accommodate ACTION:Notice of deviation from Willamette River for comment, and we the Emerald City Bike Ride event. This drawbridge regulation. received no objections for this deviation allows the bridge span to deviation. remain in the closed-to-navigation SUMMARY: The Coast Guard has issued a temporary deviation from the operating Vessels able to pass through the position. schedule that governs the Burnside bridge in the closed-to-navigation DATES: This deviation is effective from Bridge across the Willamette River, mile position may do so at any time. The 6 a.m. to 9 a.m. on May 28, 2017. 12.4, at Portland, OR. This deviation is bridge will be able to open for ADDRESSES: The docket for this necessary to accommodate the annual emergencies, and there is no immediate deviation, [USCG–2017–0355] is Rose Festival Grand Floral Parade event. alternate route for vessels to pass. The available at http://www.regulations.gov. The deviation allows the bridge to Coast Guard will inform the users of the Type the docket number in the remain in the closed-to-navigation waterway, through our Local and ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ position to allow safe roadway Broadcast Notices to Mariners, of the Click on Open Docket Folder on the line movement of event participants. change in operating schedule for the associated with this deviation. DATES: This deviation is effective from bridges so that vessels can arrange their FOR FURTHER INFORMATION CONTACT: If 7 a.m. to 2 p.m. on June 10, 2017. transits to minimize any impact caused you have questions on this temporary ADDRESSES: The docket for this by the temporary deviation. deviation, call or email Mr. Steven deviation, USCG–2017–00395 is In accordance with 33 CFR 117.35(e), Fischer, Bridge Administrator, available at http://www.regulations.gov. Thirteenth Coast Guard District; the drawbridge must return to its regular Type the docket number in the telephone 206–220–7282, email d13-pf- operating schedules immediately at the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ d13bridges@uscg.mil. end of the effective period of this Click on Open Docket Folder on the line SUPPLEMENTARY INFORMATION: The associated with this deviation. temporary deviation. This deviation from the operating regulations is Washington Department of FOR FURTHER INFORMATION CONTACT: If Transportation (bridge owner) has authorized under 33 CFR 117.35. you have questions on this temporary requested a temporary deviation from sradovich on DSK3GMQ082PROD with RULES deviation, call or email Mr. Steven Dated: May 10, 2017. the operating schedule for the Montlake Fischer, Bridge Administrator, Steven M. Fischer, Bridge across Lake Washington Ship Thirteenth Coast Guard District; Bridge Administrator, Thirteenth Coast Guard Canal, at mile 5.2, at Seattle, WA. The telephone 206–220–7282, email d13-pf- District. deviation is necessary to accommodate d13bridges@uscg.mil. [FR Doc. 2017–09724 Filed 5–12–17; 8:45 am] event participates to cross the bridge SUPPLEMENTARY INFORMATION: BILLING CODE 9110–04–P safely. The Montlake Bridge is a double Multnomah County owns the Burnside leaf bascule bridge; and in the closed-to- VerDate Sep<11>2014 15:54 May 12, 2017 Jkt 241001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\15MYR1.SGM 15MYR1


Document Created: 2017-05-13 02:38:40
Document Modified: 2017-05-13 02:38:40
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 June 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 22279 
CFR AssociatedEmployee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements
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