82 FR 43299 - 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 178 (September 15, 2017)
Federal Register Volume 82, Issue 178 (September 15, 2017)
| Page Range | 43299-43301 | |
| FR Document | 2017-19525 |
[Federal Register Volume 82, Number 178 (Friday, September 15, 2017)] [Rules and Regulations] [Pages 43299-43301] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-19525] ======================================================================= ----------------------------------------------------------------------- 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 October 2017 and interest assumptions under the asset allocation regulation for valuation dates in the fourth 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 October 1, 2017. FOR FURTHER INFORMATION CONTACT: Daniel S. Liebman ([email protected]), Acting Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K [[Page 43300]] Street NW., Washington, DC 20005, 202-326-4400 ext. 6510. (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. 6510.) 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 October 2017 and updates the asset allocation interest assumptions for the fourth quarter (October through December) of 2017. The fourth quarter 2017 interest assumptions under the allocation regulation will be 2.34 percent for the first 20 years following the valuation date and 2.63 percent thereafter. In comparison with the interest assumptions in effect for the third quarter of 2017, these interest assumptions represent no change in the select period (the period during which the select rate, the initial rate, applies), a decrease of 0.10 percent in the select rate, and a decrease of 0.11 percent in the ultimate rate, the final rate. The October 2017 interest assumptions under the benefit payments regulation will be 0.75 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 September 2017, these interest assumptions represent a 0.25 percent decrease 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 valuation and payment of benefits under plans with valuation dates during October 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 288, as set forth below, is added to the table. Appendix B to Part 4022--Lump Sum Interest Rates for PBGC 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 288 10-1-17 11-1-17 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 288, 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 288 10-1-17 11-1-17 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- [[Page 43301]] 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 October-December 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-- it for t = it for t = it for t = ---------------------------------------------------------------------------------------------------------------- * * * * * * * October-December 2017........ 0.0234 1-20 0.0263 >20 N/A N/A ---------------------------------------------------------------------------------------------------------------- Issued in Washington, DC. Daniel S. Liebman, Acting Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2017-19525 Filed 9-14-17; 8:45 am] BILLING CODE 7709-02-P
![Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Rules and Regulations 43299
shipments of Washington apricots. After Vegetable and Specialty Crops. No List of Subjects in 7 CFR Part 922
an open discussion with growers, changes in those requirements as a Apricots, Marketing agreements,
handlers, and industry personnel, the result of this action are necessary. Reporting and recordkeeping
Committee established a crop estimate Should any changes become necessary, requirements.
for the 2017–2018 fiscal period of 6,000 they would be submitted to OMB for For the reasons set forth in the
tons. The Committee considered the approval. preamble, 7 CFR part 922 is amended as
crop estimate, the recommended 2017–
This action imposes no additional follows:
2018 fiscal period expenses, and the
Committee’s financial reserve when it reporting or recordkeeping requirements
on either small or large Washington PART 922—APRICOTS GROWN IN
recommended the assessment rate DESIGNATED COUNTIES IN
decrease. apricot handlers. As with all Federal
marketing order programs, reports and WASHINGTON
Prior to arriving at this budget and
assessment rate, the Committee forms are periodically reviewed to ■ 1. The authority citation for part 922
considered information from various reduce information requirements and continues to read as follows:
sources, such as a presentation from duplication by industry and public
Authority: 7 U.S.C. 601–674.
representatives of the Washington Stone sector agencies.
Fruit Commission and comments from AMS is committed to complying with ■ 2. Section 922.235 is revised to read
other industry participants. Alternative the E-Government Act, to promote the as follows:
expenditure levels and assessment rates use of the internet and other § 922.235 Assessment rate.
were discussed by these groups, based information technologies to provide
upon the relative value of various On and after April 1, 2017, an
increased opportunities for citizen assessment rate of $1.00 per ton is
activities to the apricot industry. The access to Government information and
Committee ultimately determined that established for Washington apricots
services, and for other purposes. handled in the production area.
the recommended budget was
appropriate and that assessments at USDA has not identified any relevant Dated: September 11, 2017.
$1.00 per ton, along with interest Federal rules that duplicate, overlap, or Bruce Summers,
income and the authorized reserve fund, conflict with this rule. Acting Administrator, Agricultural Marketing
would generate sufficient revenue to A small business guide on complying Service.
meet those budgeted expenses. with fruit, vegetable, and specialty crop [FR Doc. 2017–19553 Filed 9–14–17; 8:45 am]
A review of historical information and marketing agreements and orders may BILLING CODE 3410–02–P
preliminary information pertaining to be viewed at: http://www.ams.usda.gov/
the upcoming fiscal period indicates rules-regulations/moa/small-businesses.
that the grower price for the 2017–2018 Any questions about the compliance PENSION BENEFIT GUARANTY
season could range between $800 and guide should be sent to Richard Lower CORPORATION
$1,600 per ton of apricots. Therefore, at the previously mentioned address in
the estimated assessment revenue for 29 CFR Parts 4022 and 4044
the FOR FURTHER INFORMATION CONTACT
the 2017–2018 fiscal period as a
section.
percentage of total grower revenue Allocation of Assets in Single-
could range between 0.06 and 0.13 After consideration of all relevant Employer Plans; Benefits Payable in
percent. material presented, including the Terminated Single-Employer Plans;
This action decreases the assessment information and recommendation Interest Assumptions for Valuing and
obligation imposed on handlers. submitted by the Committee and other Paying Benefits
Assessments are applied uniformly on available information, it is hereby found
all handlers, and some of the costs may that this rule, as hereinafter set forth, AGENCY: Pension Benefit Guaranty
be passed on to growers. However, will tend to effectuate the declared Corporation.
decreasing the assessment rate reduces policy of the Act. ACTION: Final rule.
the burden on handlers, and may reduce Pursuant to 5 U.S.C. 553, it is also
the burden on growers. In addition, the SUMMARY: This final rule amends the
found and determined upon good cause Pension Benefit Guaranty Corporation’s
Committee’s meeting was widely
that it is impracticable, unnecessary, regulations on Benefits Payable in
publicized throughout the Washington
and contrary to the public interest to Terminated Single-Employer Plans and
apricot industry and all interested
persons were invited to attend the give preliminary notice prior to putting Allocation of Assets in Single-Employer
meeting and participate in Committee this rule into effect, and that good cause Plans to prescribe interest assumptions
deliberations on all issues. Like all exists for not postponing the effective under the benefit payments regulation
Committee meetings, the May 3, 2017, date of this rule until 30 days after for valuation dates in October 2017 and
meeting was a public meeting and all publication in the Federal Register interest assumptions under the asset
entities, both large and small, were able because: (1) This action decreases the allocation regulation for valuation dates
to express views on this issue. Finally, assessment rate for assessable apricots in the fourth quarter of 2017. The
interested persons are invited to submit beginning with the 2017–2018 fiscal interest assumptions are used for
comments on this interim rule, period; (2) handlers are aware of this valuing and paying benefits under
including the regulatory and action which was unanimously terminating single-employer plans
informational impacts of this action on recommended by the Committee at a covered by the pension insurance
system administered by PBGC.
mstockstill on DSK30JT082PROD with RULES
small businesses. public meeting and is similar to other
In accordance with the Paperwork assessment rate actions issued in past DATES: Effective October 1, 2017.
Reduction Act of 1995, (44 U.S.C. years; and (3) this interim rule provides FOR FURTHER INFORMATION CONTACT:
Chapter 35), the order’s information a 60-day comment period, and all Daniel S. Liebman (Liebman.daniel@
collection requirements have been comments timely received will be PBGC.gov), Acting Assistant General
previously approved by OMB and considered prior to finalization of this Counsel for Regulatory Affairs, Pension
assigned OMB No. 0581–0178; rule. Benefit Guaranty Corporation, 1200 K
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![Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Rules and Regulations 43301
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 * * * * *
entry for October–December 2017, as set
■ 4. The authority citation for part 4044
continues to read as follows: forth below, is added to the table.
The values of it are:
For valuation dates occurring in the months—
it for t = it for t = it for t =
* * * * * * *
October–December 2017 ................................................. 0.0234 1–20 0.0263 >20 N/A N/A
Issued in Washington, DC. Coast Guard; telephone 251–441–5940, plans to conduct a fireworks display
Daniel S. Liebman, email Kyle.D.Berry@uscg.mil. launched from shore on the Tombigbee
Acting Assistant General Counsel for SUPPLEMENTARY INFORMATION: River located near mile marker (MM)
Regulatory Affairs, Pension Benefit Guaranty 216.0, in Demopolis, AL on September
Corporation. I. Table of Acronyms 16, 2017. Therefore, the Coast Guard has
[FR Doc. 2017–19525 Filed 9–14–17; 8:45 am] CFR Code of Federal Regulations determined that a safety zone is needed
BILLING CODE 7709–02–P COTP Captain of the Port Sector Mobile to protect the public, mariners, and
FR Federal Register vessels from the potential hazards
NPRM Notice of proposed rulemaking associated with a barge-based fireworks
§ Section display on and over the waterway.
DEPARTMENT OF HOMELAND U.S.C. United States Code
SECURITY IV. Discussion of the Rule
II. Background Information and
Coast Guard Regulatory History The Coast Guard is establishing a
temporary safety zone encompassing all
The Coast Guard is issuing this waters extending the entire width of the
33 CFR Part 165 temporary final rule without prior Tombigbee River from MM 215.5 to MM
[Docket Number USCG–2017–0786] notice and opportunity to comment 216.5, near Demopolis, AL from 8 p.m.
pursuant to authority under section 4(a) through 10 p.m. on September 16, 2017.
RIN 1625–AA00 of the Administrative Procedure Act The location and duration of this safety
(APA) (5 U.S.C. 553(b)). This provision zone is intended to protect persons and
Safety Zone; Tombigbee River, authorizes an agency to issue a rule
Demopolis, AL vessels during the fireworks display
without prior notice and opportunity to taking place over this navigable
AGENCY: Coast Guard, DHS. comment when the agency for good waterway. No person or vessel will be
ACTION: Temporary final rule. cause finds that those procedures are permitted to enter or transit within the
‘‘impracticable, unnecessary, or contrary safety zone, unless specifically
SUMMARY: The Coast Guard is to the public interest.’’ Under 5 U.S.C. authorized by the Captain of the Port
establishing a temporary safety zone for 553(b)(3)(B), the Coast Guard finds that Sector Mobile (COTP) or a designated
all navigable waters of the Tombigbee good cause exists for not publishing a representative. The COTP may be
River from mile marker (MM) 215.5 to notice of proposed rulemaking (NPRM) contacted by telephone at 251–441–
MM 216.5, near Demopolis, AL. This with respect to this rule because it is 5976.
action is necessary to protect persons impracticable. It is impracticable to
and property on navigable waters during publish an NPRM because we must V. Regulatory Analyses
a fireworks display taking place on or establish this safety zone by September We developed this rule after
over the waterway. Entry into or 16, 2017 and lack sufficient time to considering numerous statutes and
transiting in this zone is prohibited to provide a reasonable comment period Executive orders related to rulemaking.
all vessels, mariners, and persons unless and then consider those comments Below we summarize our analyses
specifically authorized by the Captain of before issuing the rule. based on a number of these statutes and
the Port Sector Mobile (COTP) or a We are issuing this rule, and under 5 Executive orders.
designated representative. U.S.C. 553(d)(3), the Coast Guard finds
that good cause exists for making this A. Regulatory Planning and Review
DATES: This rule is effective from 8 p.m.
rule effective less than 30 days after Executive Orders 12866 and 13563
through 10 p.m. on September 16, 2017.
publication in the Federal Register. direct agencies to assess the costs and
ADDRESSES: To view documents benefits of available regulatory
Delaying the effective date to provide a
mentioned in this preamble as being full 30 days’ notice is contrary to public alternatives and, if regulation is
available in the docket, go to http:// interest because immediate action is necessary, to select regulatory
www.regulations.gov, type USCG–2017– needed to protect persons and vessels approaches that maximize net benefits.
0786 in the ‘‘SEARCH’’ box and click from safety hazards associated with the Executive Order 13771 directs agencies
mstockstill on DSK30JT082PROD with RULES
‘‘SEARCH.’’ Click on Open Docket fireworks display over this navigable to control regulatory costs through a
Folder on the line associated with this waterway. budgeting process. This rule has not
rule. been designated a ‘‘significant
FOR FURTHER INFORMATION CONTACT: If III. Legal Authority and Need for Rule regulatory action,’’ under Executive
you have questions on this rule, call or The legal basis and authorities for this Order 12866. Accordingly, this rule has
email LT Kyle D. Berry, Sector Mobile, rule are found in 33 U.S.C. 1231. The not been reviewed by the Office of
Waterways Management Division, U.S. Marengo County Historical Society Management and Budget (OMB), and
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Document Created: 2017-09-15 00:18:26
Document Modified: 2017-09-15 00:18:26
| 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 October 1, 2017. | |
| Contact | Daniel S. Liebman ([email protected]), Acting Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005, 202-326-4400 ext. 6510. (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. 6510.) | |
| FR Citation | 82 FR 43299 | |
| 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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