82 FR 38597 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 82, Issue 156 (August 15, 2017)
Federal Register Volume 82, Issue 156 (August 15, 2017)
| Page Range | 38597-38598 | |
| FR Document | 2017-17075 |
[Federal Register Volume 82, Number 156 (Tuesday, August 15, 2017)] [Rules and Regulations] [Pages 38597-38598] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-17075] ======================================================================= ----------------------------------------------------------------------- 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 September 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 September 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 terminated 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 September 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 September 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 August 2017, these assumptions represent an increase of 0.25 percent in the immediate rate 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 September 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 287, as set forth below, is added to the table. Appendix B to Part 4022--Lump Sum Interest Rates for PBGC Payments * * * * * [[Page 38598]] -------------------------------------------------------------------------------------------------------------------------------------------------------- For plans with a valuation date Immediate Deferred annuities (percent) Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------ On or after Before (percent) i i i n n -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 287 9-1-17 10-1-17 1.00 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In Appendix C to part 4022, Rate Set 287, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 287 9-1-17 10-1-17 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. 2017-17075 Filed 8-14-17; 8:45 am] BILLING CODE 7709-02-P
![Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Rules and Regulations 38597
or the blend in paragraph (a)(2) of this PENSION BENEFIT GUARANTY benefit payments interest assumptions
section. CORPORATION for September 2017.1
The September 2017 interest
(2) The additive or a safflower oil
29 CFR Part 4022 assumptions under the benefit payments
blend containing the additive for use in
regulation will be 1.00 percent for the
animal food meets the following Benefits Payable in Terminated Single- period during which a benefit is in pay
specifications: Employer Plans; Interest Assumptions status and 4.00 percent during any years
(i) Crude fat content of the GLA for Paying Benefits preceding the benefit’s placement in pay
safflower oil or its blend is not less than status. In comparison with the interest
AGENCY: Pension Benefit Guaranty assumptions in effect for August 2017,
99.5 percent.
Corporation. these assumptions represent an increase
(ii) GLA content is between 400 and
ACTION: Final rule. of 0.25 percent in the immediate rate
450 milligrams (mg) GLA per gram of and are otherwise unchanged.
the GLA safflower oil or its blend. PBGC has determined that notice and
SUMMARY: This final rule amends the
(iii) Total content of stearidonic acid Pension Benefit Guaranty Corporation’s public comment on this amendment are
and cis, cis-6,9-octadecadienoic acid in regulation on Benefits Payable in impracticable and contrary to the public
the GLA safflower oil or its blend must Terminated Single-Employer Plans to interest. This finding is based on the
not exceed a total of 0.3 percent. prescribe interest assumptions under need to determine and issue new
the regulation for valuation dates in interest assumptions promptly so that
(3) Addition of GLA safflower oil, or the assumptions can reflect current
September 2017. The interest
its blend, to complete dry adult market conditions as accurately as
assumptions are used for paying
maintenance dog food must meet the possible.
benefits under terminating single-
following: employer plans covered by the pension Because of the need to provide
(i) Addition of the oil or its blend insurance system administered by immediate guidance for the payment of
cannot provide more than 36 mg GLA PBGC. benefits under plans with valuation
per kilogram body weight of the dog per dates during September 2017, PBGC
DATES: Effective September 1, 2017. finds that good cause exists for making
day in more than 86 mg of the GLA
safflower oil or its blend. This FOR FURTHER INFORMATION CONTACT: the assumptions set forth in this
maximum addition rate of the GLA Deborah C. Murphy (Murphy.Deborah@ amendment effective less than 30 days
pbgc.gov), Assistant General Counsel for after publication.
safflower oil, or its blend, is 0.3 percent
Regulatory Affairs, Pension Benefit PBGC has determined that this action
of a complete dry adult maintenance
Guaranty Corporation, 1200 K Street is not a ‘‘significant regulatory action’’
dog food containing 3,600 kilocalories under the criteria set forth in Executive
of metabolizable energy per kilogram of NW., Washington, DC 20005, 202–326–
4400 ext. 3451. (TTY/TDD users may Order 12866.
food as-fed. Because no general notice of proposed
call the Federal relay service toll-free at
(ii) Adjustments must be made for dog 1–800–877–8339 and ask to be rulemaking is required for this
food formulas of different caloric connected to 202–326–4400, ext. 3451.) amendment, the Regulatory Flexibility
density and/or that are fed to specific Act of 1980 does not apply. See 5 U.S.C.
weights, breeds, or dogs of different SUPPLEMENTARY INFORMATION: PBGC’s 601(2).
activity levels to meet the requirements regulation on Benefits Payable in
Terminated Single-Employer Plans (29 List of Subjects in 29 CFR Part 4022
of this paragraph.
CFR part 4022) prescribes actuarial Employee benefit plans, Pension
(b) To assure safe use of the additive, assumptions—including interest insurance, Pensions, Reporting and
in addition to other information assumptions—for paying plan benefits recordkeeping requirements.
required by the Federal Food, Drug, and under terminated single-employer plans In consideration of the foregoing, 29
Cosmetic Act, the label and labeling of covered by title IV of the Employee CFR part 4022 is amended as follows:
the additive shall bear the following: Retirement Income Security Act of 1974.
(1) The name, gamma-linolenic acid The interest assumptions in the PART 4022—BENEFITS PAYABLE IN
regulation are also published on PBGC’s TERMINATED SINGLE-EMPLOYER
(GLA) safflower oil.
Web site (http://www.pbgc.gov). PLANS
(2) A guarantee for the minimum PBGC uses the interest assumptions in
content of gamma-linolenic acid. ■ 1. The authority citation for part 4022
Appendix B to part 4022 to determine
continues to read as follows:
(3) Adequate directions for use such whether a benefit is payable as a lump
that the finished animal food complies sum and to determine the amount to Authority: 29 U.S.C. 1302, 1322, 1322b,
pay. Appendix C to part 4022 contains 1341(c)(3)(D), and 1344.
with the provisions of paragraph (a)(3)
of this section. interest assumptions for private-sector ■ 2. In Appendix B to part 4022, Rate
pension practitioners to refer to if they Set 287, as set forth below, is added to
Dated: August 4, 2017.
wish to use lump-sum interest rates the table.
Anna K. Abram, determined using PBGC’s historical
Deputy Commissioner for Policy, Planning, Appendix B to Part 4022—Lump Sum
methodology. Currently, the rates in
Legislation, and Analysis. Interest Rates for PBGC Payments
Appendices B and C of the benefit
* * * * *
jstallworth on DSKBBY8HB2PROD with RULES
[FR Doc. 2017–17214 Filed 8–14–17; 8:45 am] payment regulation are the same.
BILLING CODE 4164–01–P The interest assumptions are intended 1 Appendix B to PBGC’s regulation on Allocation
to reflect current conditions in the of Assets in Single-Employer Plans (29 CFR part
financial and annuity markets. 4044) prescribes interest assumptions for valuing
Assumptions under the benefit benefits under terminating covered single-employer
plans for purposes of allocation of assets under
payments regulation are updated ERISA section 4044. Those assumptions are
monthly. This final rule updates the updated quarterly.
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![38598 Federal Register / Vol. 82, No. 156 / Tuesday, August 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
* * * * * * *
287 9–1–17 10–1–17 1.00 4.00 4.00 4.00 7 8
■ 3. In Appendix C to part 4022, Rate Appendix C to Part 4022—Lump Sum
Set 287, as set forth below, is added to Interest Rates for Private-Sector
the 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
* * * * * * *
287 9–1–17 10–1–17 1.00 4.00 4.00 4.00 7 8
Issued in Washington, DC. Folder on the line associated with this persons and property in the vicinity of
Deborah Chase Murphy, rule. the area from potential hazards present
Assistant General Counsel for Regulatory FOR FURTHER INFORMATION CONTACT: If with the Rubber Ducky Regatta marine
Affairs, Pension Benefit Guaranty you have questions on this rule, call or event on this navigable waterway. This
Corporation. email LT Kyle D. Berry, Sector Mobile, special local regulation must be
[FR Doc. 2017–17075 Filed 8–14–17; 8:45 am] Waterways Management Division, U.S. established by August 26, 2017 and we
BILLING CODE 7709–02–P Coast Guard; telephone 251–441–5940, lack sufficient time to provide a
email kyle.d.berry@uscg.mil. reasonable comment period and then
SUPPLEMENTARY INFORMATION: consider those comments before issuing
DEPARTMENT OF HOMELAND the rule.
I. Table of Abbreviations We are issuing this rule, and under 5
SECURITY
CFR Code of Federal Regulations U.S.C. 553(d)(3), the Coast Guard finds
Coast Guard COTP Captain of the Port Mobile that good cause exists for making it
DHS Department of Homeland Security effective less than 30 days after
33 CFR Part 100 FR Federal Register publication in the Federal Register.
NPRM Notice of proposed rulemaking Delaying the effective date of this rule
[Docket Number USCG–2017–0710] PATCOM Patrol Commander would be contrary to public interest
§ Section because immediate action is needed to
RIN 1625–AA08 U.S.C. United States Code respond to the potential safety hazards
Special Local Regulation; Mobile River, II. Background Information and associated with this event.
Mobile, AL Regulatory History III. Legal Authority and Need for Rule
The Coast Guard is issuing this The Coast Guard is issuing this rule
AGENCY: Coast Guard, DHS.
temporary rule without prior notice and under authority in 33 U.S.C. 1233. The
ACTION: Temporary final rule. opportunity to comment pursuant to Captain of the Port Mobile (COTP) has
SUMMARY: The Coast Guard is authority under section 4(a) of the determined that potential hazards
establishing a temporary special local Administrative Procedure Act (APA) (5 associated with the marine event on
regulation on the Mobile River, Mobile, U.S.C. 553(b)). This provision August 26, 2017 will be a safety concern
AL. The special local regulation is authorizes an agency to issue a rule for anyone within the area of the Mobile
needed to protect the persons without prior notice and opportunity to River, Mobile, AL encompassing a half-
participating in the Rubber Ducky comment when the agency for good mile radius of a point near 30°41′24.8″
Regatta marine event. This rule restricts cause finds that those procedures are N., 88°2′12.9″ W. This rule is needed to
transit into, through, and within the ‘‘impracticable, unnecessary, or contrary protect participants, spectators, and
regulated area unless specifically to the public interest.’’ Under 5 U.S.C. other persons and vessels during the
authorized by the Captain of the Port 553(b)(B), the Coast Guard finds that marine event on navigable waters.
Mobile. good cause exists for not publishing a
notice of proposed rulemaking (NPRM) IV. Discussion of the Rule
DATES: This rule is effective from 9 a.m. with respect to this rule because it is This rule establishes a special local
jstallworth on DSKBBY8HB2PROD with RULES
until 1 p.m. on August 26, 2017. impracticable. We did not receive notice regulation on August 26, 2017, which
ADDRESSES: To view documents of the event until July 13, 2017. After a will be enforced between the hours of 9
mentioned in this preamble as being thorough review of the details for this a.m. and 1 p.m. The special local
available in the docket, go to http:// event, including the number of regulation takes place on the Mobile
www.regulations.gov, type USCG–2017– anticipated spectators, the Coast Guard River, Mobile AL, encompassing a half-
0710 in the ‘‘SEARCH’’ box and click determined that a special local mile radius of a point at approximate
‘‘SEARCH.’’ Click on Open Docket regulation was needed to protect location 30°41′24.8″ N., 88°2′12.9″ W.
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Document Created: 2017-08-15 01:12:38
Document Modified: 2017-08-15 01:12:38
| 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 September 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 38597 |
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