82 FR 27422 - 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 114 (June 15, 2017)
Federal Register Volume 82, Issue 114 (June 15, 2017)
| Page Range | 27422-27423 | |
| FR Document | 2017-12148 |
[Federal Register Volume 82, Number 114 (Thursday, June 15, 2017)] [Rules and Regulations] [Pages 27422-27423] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-12148] ======================================================================= ----------------------------------------------------------------------- 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 July 2017 and interest assumptions under the asset allocation regulation for valuation dates in the third 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 July 1, 2017. FOR FURTHER INFORMATION CONTACT: Deborah C. Murphy (Murphy.Deborah@PBGC.gov), 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 July 2017 and updates the asset allocation interest assumptions for the third quarter (July through September) of 2017. The third quarter 2017 interest assumptions under the allocation regulation will be 2.44 percent for the first 20 years following the valuation date and 2.74 percent thereafter. In comparison with the interest assumptions in effect for the second 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 0.29 percent in the select rate, and an increase of 0.14 percent in the ultimate rate, the final rate. The July 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 June 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 valuation and payment of benefits under plans with valuation dates during July 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 285, as set forth below, is added to the table. Appendix B to Part 4022--Lump Sum Interest Rates for PBGC Payments * * * * * [[Page 27423]] -------------------------------------------------------------------------------------------------------------------------------------------------------- For plans with a valuation date Immediate Deferred annuities (percent) Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------ On or after Before (percent) i i i n n -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 285 7-1-17 8-1-17 1.00 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 285, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 285 7-1-17 8-1-17 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, an entry for July-September 2017, as set forth below, is added to the table. Appendix B to Part 4044--Interest Rates Used To Value Benefits * * * * * ---------------------------------------------------------------------------------------------------------------- The values of it are: For valuation dates ----------------------------------------------------------------------------------- occurring in the months-- i for t = i for t = i for t = ---------------------------------------------------------------------------------------------------------------- * * * * * * * July-September 2017......... 0.0244 1-20 0.0274 >20 N/A N/A ---------------------------------------------------------------------------------------------------------------- Issued in Washington, DC. Deborah Chase Murphy, Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2017-12148 Filed 6-14-17; 8:45 am] BILLING CODE 7709-02-P
![27422 Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations
(l) Material Incorporated by Reference single-employer plans covered by the rate, and an increase of 0.14 percent in
(1) The Director of the Federal Register pension insurance system administered the ultimate rate, the final rate.
approved the incorporation by reference by PBGC. The July 2017 interest assumptions
(IBR) of the service information listed in this DATES: Effective July 1, 2017. under the benefit payments regulation
paragraph under 5 U.S.C. 552(a) and 1 CFR will be 1.00 percent for the period
FOR FURTHER INFORMATION CONTACT:
part 51. during which a benefit is in pay status
(2) You must use this service information Deborah C. Murphy (Murphy.Deborah@
as applicable to do the actions required by PBGC.gov), Assistant General Counsel and 4.00 percent during any years
this AD, unless this AD specifies otherwise. for Regulatory Affairs, Pension Benefit preceding the benefit’s placement in pay
(i) Embraer Service Bulletin 145–28–0030, Guaranty Corporation, 1200 K Street status. In comparison with the interest
Revision 01, dated October 22, 2010. NW., Washington, DC 20005, 202–326– assumptions in effect for June 2017,
(ii) Embraer Service Bulletin 145LEG–28– 4400 ext. 3451. (TTY/TDD users may these interest assumptions are
0032, Revision 01, dated November 20, 2012. call the Federal relay service toll free at unchanged.
(3) For service information identified in 1–800–877–8339 and ask to be PBGC has determined that notice and
this AD, contact Empresa Brasileira de public comment on this amendment are
Aeronautica S.A. (Embraer), Technical
connected to 202–326–4400 ext. 3451.)
SUPPLEMENTARY INFORMATION: PBGC’s impracticable and contrary to the public
Publications Section (PC 060), Av. Brigadeiro
Faria Lima, 2170–Putim–12227–901 São Jose regulations on Allocation of Assets in interest. This finding is based on the
dos Campos–SP–Brasil; telephone +55 12 Single-Employer Plans (29 CFR part need to determine and issue new
3927–5852 or +55 12 3309–0732; fax +55 12 4044) and Benefits Payable in interest assumptions promptly so that
3927–7546; email distrib@embraer.com.br; Terminated Single-Employer Plans (29 the assumptions can reflect current
Internet http://www.flyembraer.com. CFR part 4022) prescribe actuarial market conditions as accurately as
(4) You may view this service information possible.
assumptions—including interest
at the FAA, Transport Airplane Directorate, Because of the need to provide
1601 Lind Avenue SW., Renton, WA. For assumptions—for valuing and paying
plan benefits under terminating single- immediate guidance for the valuation
information on the availability of this
material at the FAA, call 425–227–1221. employer plans covered by title IV of and payment of benefits under plans
(5) You may view this service information the Employee Retirement Income with valuation dates during July 2017,
that is incorporated by reference at the Security Act of 1974. The interest PBGC finds that good cause exists for
National Archives and Records assumptions in the regulations are also making the assumptions set forth in this
Administration (NARA). For information on published on PBGC’s Web site (http:// amendment effective less than 30 days
the availability of this material at NARA, call www.pbgc.gov). after publication.
202–741–6030, or go to: http:// The interest assumptions in appendix PBGC has determined that this action
www.archives.gov/federal-register/cfr/ibr- is not a ‘‘significant regulatory action’’
locations.html.
B to part 4044 are used to value benefits
for allocation purposes under ERISA under the criteria set forth in Executive
Issued in Renton, Washington, on June 2, section 4044. PBGC uses the interest Order 12866.
2017. assumptions in appendix B to part 4022 Because no general notice of proposed
Michael Kaszycki, to determine whether a benefit is rulemaking is required for this
Acting Manager, Transport Airplane payable as a lump sum and to determine amendment, the Regulatory Flexibility
Directorate, Aircraft Certification Service. the amount to pay. Appendix C to part Act of 1980 does not apply. See 5 U.S.C.
[FR Doc. 2017–12168 Filed 6–14–17; 8:45 am] 4022 contains interest assumptions for 601(2).
BILLING CODE 4910–13–P private-sector pension practitioners to
List of Subjects
refer to if they wish to use lump-sum
interest rates determined using PBGC’s 29 CFR Part 4022
PENSION BENEFIT GUARANTY historical methodology. Currently, the Employee benefit plans, Pension
CORPORATION rates in appendices B and C of the insurance, Pensions, Reporting and
benefit payment regulation are the same. recordkeeping requirements.
29 CFR Parts 4022 and 4044 The interest assumptions are intended
to reflect current conditions in the 29 CFR Part 4044
Allocation of Assets in Single- financial and annuity markets.
Employer Plans; Benefits Payable in Employee benefit plans, Pension
Assumptions under the asset allocation insurance, Pensions.
Terminated Single-Employer Plans; regulation are updated quarterly;
Interest Assumptions for Valuing and assumptions under the benefit payments In consideration of the foregoing, 29
Paying Benefits regulation are updated monthly. This CFR parts 4022 and 4044 are amended
final rule updates the benefit payments as follows:
AGENCY: Pension Benefit Guaranty
Corporation. interest assumptions for July 2017 and
PART 4022—BENEFITS PAYABLE IN
ACTION: Final rule. updates the asset allocation interest
TERMINATED SINGLE-EMPLOYER
assumptions for the third quarter (July
SUMMARY: This final rule amends the PLANS
through September) of 2017.
Pension Benefit Guaranty Corporation’s The third quarter 2017 interest ■ 1. The authority citation for part 4022
regulations on Benefits Payable in assumptions under the allocation continues to read as follows:
Terminated Single-Employer Plans and regulation will be 2.44 percent for the
Allocation of Assets in Single-Employer first 20 years following the valuation Authority: 29 U.S.C. 1302, 1322, 1322b,
Plans to prescribe interest assumptions date and 2.74 percent thereafter. In 1341(c)(3)(D), and 1344.
pmangrum on DSK3GDR082PROD with RULES
under the benefit payments regulation comparison with the interest ■ 2. In appendix B to part 4022, Rate Set
for valuation dates in July 2017 and assumptions in effect for the second 285, as set forth below, is added to the
interest assumptions under the asset quarter of 2017, these interest table.
allocation regulation for valuation dates assumptions represent no change in the
in the third quarter of 2017. The interest select period (the period during which Appendix B to Part 4022—Lump Sum
assumptions are used for valuing and the select rate, the initial rate, applies), Interest Rates for PBGC Payments
paying benefits under terminating an increase of 0.29 percent in the select * * * * *
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![Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations 27423
For plans with a valuation Immediate Deferred annuities
date annuity (percent)
Rate set rate
On or after Before (percent) i 1 i 2 i 3 n 1 n 2
* * * * * * *
285 7–1–17 8–1–17 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
285, as set forth below, is added to the Interest Rates for Private-Sector
table. Payments
* * * * *
For plans with a valuation Immediate Deferred annuities
date annuity (percent)
Rate set rate
On or after Before (percent) i 1 i 2 i 3 n 1 n 2
* * * * * * *
285 7–1–17 8–1–17 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, an entry
■ 4. The authority citation for part 4044 for July–September 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 months—
i t for t = i t for t = i t for t =
* * * * * * *
July–September 2017 ....................................................... 0.0244 1–20 0.0274 >20 N/A N/A
Issued in Washington, DC. deviation is necessary to allow the span provides a vertical clearance of 18
Deborah Chase Murphy, bridge owner to make necessary feet above Mean High Water in the
Assistant General Counsel for Regulatory emergency repairs to the bridge. This closed-to-navigation position. In
Affairs, Pension Benefit Guaranty deviation allows the bridge to open with accordance with 33 CFR 117.5, the draw
Corporation. one hour advance notice during the opens on signal. Navigation on the
[FR Doc. 2017–12148 Filed 6–14–17; 8:45 am] deviation period. waterway is commercial, search and
BILLING CODE 7709–02–P DATES: This deviation is effective from rescue, law enforcement, and
7 p.m. on June 16, 2017 to 4 a.m. on July recreational.
1, 2017. The drawspan will require a one hour
DEPARTMENT OF HOMELAND advance notice at three specified
ADDRESSES: The docket for this
SECURITY periods: (1) From 7 p.m. on June 16,
deviation [USCG–2017–0510], is
2017 to 4 a.m. on June 17, 2017; (2) from
available at http://www.regulations.gov.
Coast Guard 8 p.m. on June 24, 2017 to 7 a.m. on
Type the docket number in the
June 25, 2017; and (3) from 7 p.m. on
‘‘SEARCH’’ box and click ‘‘SEARCH.’’
33 CFR Part 117 June 30, 2017 to 4 a.m. on July 1, 2017,
Click on Open Docket Folder on the line
to allow the bridge owner to make
[Docket No. USCG–2017–0510] associated with this deviation.
emergency repairs to the bridge deck. A
FOR FURTHER INFORMATION CONTACT: If one hour advance notice will give
Drawbridge Operation Regulation; you have questions on this temporary enough time for the contractor to clear
Sacramento River, Rio Vista, CA deviation, call or email Carl T. Hausner, away equipment and workers before the
AGENCY: Coast Guard, DHS. Chief, Bridge Section, Eleventh Coast drawspan can safely open for transiting
Guard District; telephone 510–437– vessels. Scaffolding will be installed
ACTION:Notice of deviation from
pmangrum on DSK3GDR082PROD with RULES
3516; email Carl.T.Hausner@uscg.mil. below the bridge deck from June 16,
drawbridge regulation.
SUPPLEMENTARY INFORMATION: The 2017 through July 1, 2017, reducing the
SUMMARY: The Coast Guard has issued a California Department of Transportation vertical clearance by 4 feet, and will
temporary deviation from the operating has requested a temporary change to the extend from the west tower 48 feet into
schedule that governs the Rio Vista operation of the Rio Vista Drawbridge, the navigational channel. This
Drawbridge across the Sacramento mile 12.8, over Sacramento River, at Rio temporary deviation has been
River, mile 12.8, at Rio Vista, CA. The Vista, CA. The drawbridge navigation coordinated with the waterway users.
VerDate Sep<11>2014 17:24 Jun 14, 2017 Jkt 241001 PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 E:\FR\FM\15JNR1.SGM 15JNR1](https://thefederalregister.org/doc/82_FR_27536/page/2.svg)
Document Created: 2017-06-15 01:03:37
Document Modified: 2017-06-15 01:03:37
| 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 July 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 27422 | |
| 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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