82 FR 59515 - 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 240 (December 15, 2017)
Federal Register Volume 82, Issue 240 (December 15, 2017)
| Page Range | 59515-59517 | |
| FR Document | 2017-26963 |
[Federal Register Volume 82, Number 240 (Friday, December 15, 2017)] [Rules and Regulations] [Pages 59515-59517] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-26963] ======================================================================= ----------------------------------------------------------------------- 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 January 2018 and interest assumptions under the asset allocation regulation for valuation dates in the first quarter of 2018. 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 January 1, 2018. FOR FURTHER INFORMATION 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.) SUPPLEMENTARY INFORMATION: PBGC's regulations on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) and Benefits Payable in [[Page 59516]] 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 website (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 January 2018, and updates the asset allocation interest assumptions for the first quarter (January through March) of 2018. The first quarter 2018 interest assumptions under the allocation regulation will be 2.39 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 fourth quarter of 2017, this represents no change in the select period (the period during which the select rate, the initial rate, applies), an increase of 0.05 percent in the select rate, and a decrease of 0.03 percent in the ultimate rate, the final rate. The January 2018 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 December 2017, these 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 January 2018, 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 291 is added at the end of the table to read as follows: 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 291............................ 1-1-18 2-1-18 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 291 is added at the end of the table to read as follows: 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 291............................ 1-1-18 2-1-18 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- [[Page 59517]] 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 January-March 2018 is added at the end of the table to read as follows: Appendix B to Part 4044--Interest Rates Used to Value Benefits * * * * * -------------------------------------------------------------------------------------------------------------------------------------------------------- The values of it are: For valuation dates occurring in the month-- ----------------------------------------------------------------------------------------------- it for t = it for t = it for t = -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * January-March 2018...................................... 0.0239 1-20 0.0260 >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. 2017-26963 Filed 12-14-17; 8:45 am] BILLING CODE 7709-02-P
![Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Rules and Regulations 59515
We continue to revise and update the Executive Order 12866, as ■ 2. Amend appendix 1 to subpart P of
listings on a regular basis, including Supplemented by Executive Order part 404 by revising items 2, 5, 6, and
those body systems not affected by this 13563 9 of the introductory text before part A
final rule.2 We intend to update the four to read as follows:
We consulted with the Office of
listings affected by this final rule as
Management and Budget (OMB) and Appendix 1 to Subpart P of Part 404—
quickly as possible, but may not be able
determined that this final rule does not Listing of Impairments
to publish final rules revising these
meet the requirements for a significant * * * * *
listings by the current expiration dates.
regulatory action under Executive Order 2. Musculoskeletal System (1.00 and
Therefore, we are extending the current
12866, as supplemented by Executive 101.00): January 27, 2020.
expiration dates for the above listed
Order 13563. Therefore, OMB did not * * * * *
body systems.
review it. We also determined that this 5. Cardiovascular System (4.00 and
Regulatory Procedures final rule meets the plain language 104.00): January 27, 2020.
requirement of Executive Order 12866. 6. Digestive System (5.00 and 105.00):
Justification for Final Rule
January 27, 2020.
Regulatory Flexibility Act
We follow the Administrative * * * * *
Procedure Act (APA) rulemaking We certify that this final rule does not 9. Skin Disorders (8.00 and 108.00):
procedures specified in 5 U.S.C. 553 in have a significant economic impact on January 27, 2020.
promulgating regulations. Section a substantial number of small entities * * * * *
702(a)(5) of the Social Security Act, 42 because it affects only individuals. [FR Doc. 2017–27086 Filed 12–14–17; 8:45 am]
U.S.C. 902(a)(5). Generally, the APA Therefore, a regulatory flexibility BILLING CODE 4191–02–P
requires that an agency provide prior analysis is not required under the
notice and opportunity for public Regulatory Flexibility Act, as amended.
comment before issuing a final Paperwork Reduction Act PENSION BENEFIT GUARANTY
regulation. The APA provides CORPORATION
exceptions to the notice-and-comment These rules do not create any new or
requirements when an agency finds affect any existing collections and, 29 CFR Parts 4022 and 4044
there is good cause for dispensing with therefore, do not require Office of
such procedures because they are Management and Budget approval Allocation of Assets in Single-
impracticable, unnecessary, or contrary under the Paperwork Reduction Act. Employer Plans; Benefits Payable in
to the public interest. (Catalog of Federal Domestic Assistance Terminated Single-Employer Plans;
Program Nos. 96.001, Social Security- Interest Assumptions for Valuing and
We have determined that good cause Disability Insurance; 96.002, Social Security- Paying Benefits
exists for dispensing with the notice and Retirement Insurance; 96.004, Social
public comment procedures. 5 U.S.C. Security-Survivors Insurance; 96.006, AGENCY: Pension Benefit Guaranty
553(b)(B). This final rule only extends Supplemental Security Income) Corporation.
the date on which four body system ACTION: Final rule.
listings will no longer be effective. It List of Subjects in 20 CFR Part 404
makes no substantive changes to our Administrative practice and SUMMARY: This final rule amends the
rules. Our current regulations 3 provide procedure, Blind, Disability benefits, Pension Benefit Guaranty Corporation’s
that we may extend, revise, or Old-age, Survivors and Disability regulations on Benefits Payable in
promulgate the body system listings Insurance, Reporting and recordkeeping Terminated Single-Employer Plans and
again. Therefore, we have determined requirements, Social Security. Allocation of Assets in Single-Employer
that opportunity for prior comment is Plans to prescribe interest assumptions
unnecessary, and we are issuing this Nancy A. Berryhill, under the benefit payments regulation
regulation as a final rule. Acting Commissioner of Social Security. for valuation dates in January 2018 and
interest assumptions under the asset
In addition, for the reasons cited For the reasons set out in the
allocation regulation for valuation dates
above, we find good cause for preamble, we are amending appendix 1
in the first quarter of 2018. The interest
dispensing with the 30-day delay in the to subpart P of part 404 of chapter III of
assumptions are used for valuing and
effective date of this final rule. 5 U.S.C. title 20 of the Code of Federal
paying benefits under terminating
553(d)(3). We are not making any Regulations as set forth below.
single-employer plans covered by the
substantive changes to the listings in pension insurance system administered
these body systems. Without an PART 404—FEDERAL OLD-AGE,
SURVIVORS AND DISABILITY by PBGC.
extension of the expiration dates for
INSURANCE DATES: Effective January 1, 2018.
these listings, we will not have the
criteria we need to assess medical FOR FURTHER INFORMATION CONTACT:
(1950– ) Daniel S. Liebman (Liebman.daniel@
impairments in these four body systems
at step three of the sequential evaluation PBGC.gov), Acting Assistant General
Subpart P—[Amended]
processes. We therefore find it is in the Counsel for Regulatory Affairs, Pension
public interest to make this final rule ■ 1. The authority citation for subpart P Benefit Guaranty Corporation, 1200 K
effective on the publication date. of part 404 continues to read as follows: Street NW, Washington, DC 20005, 202–
326–4400 ext. 6510. (TTY/TDD users
Authority: Secs. 202, 205(a)–(b) and (d)–
nshattuck on DSK9F9SC42PROD with RULES
2 Since we last extended the expiration dates of
may call the Federal relay service toll
(h), 216(i), 221(a), (i), and (j), 222(c), 223, free at 1–800–877–8339 and ask to be
the listings affected by this rule in August 2016 (81
FR 51101), we have published final rules revising
225, and 702(a)(5) of the Social Security Act connected to 202–326–4400 ext. 6510.)
the medical criteria for evaluating mental disorders (42 U.S.C. 402, 405(a)–(b) and (d)–(h), 416(i),
421(a), (i), and (j), 422(c), 423, 425, and SUPPLEMENTARY INFORMATION: PBGC’s
(81 FR 66137 (2016)) and HIV infection (81 FR
86915 (2016)). 902(a)(5)); sec. 211(b), Pub. L. 104–193, 110 regulations on Allocation of Assets in
3 See the first sentence of appendix 1 to subpart Stat. 2105, 2189; sec. 202, Pub. L. 108–203, Single-Employer Plans (29 CFR part
P of part 404 of 20 CFR. 118 Stat. 509 (42 U.S.C. 902 note). 4044) and Benefits Payable in
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![Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Rules and Regulations 59517
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 * * * * *
for January–March 2018 is added at the
■ 4. The authority citation for part 4044
continues to read as follows: end of the table to read as follows:
The values of it are:
For valuation dates occurring in the
month— it for t = it for t = it for t =
* * * * * * *
January–March 2018 ................................ 0.0239 1–20 0.0260 >20 N/A N/A
Issued in Washington, DC. SUPPLEMENTARY INFORMATION: The Coast DEPARTMENT OF HOMELAND
Daniel S. Liebman, Guard will enforce the special local SECURITY
Acting Assistant General Counsel for regulations in 33 CFR 100.1101 for the
Regulatory Affairs, Pension Benefit Guaranty San Diego Parade of Lights in San Diego Coast Guard
Corporation. Bay Bay, CA in 33 CFR 100.1101, Table
[FR Doc. 2017–26963 Filed 12–14–17; 8:45 am] 1, Item 5 of that section from 4:30 p.m. 33 CFR Part 117
BILLING CODE 7709–02–P until 8:30 p.m. on December 17, 2017. [Docket No. USCG–2016–0776]
This enforcement action is being taken
RIN 1625–AA09
to provide for the safety of life on
DEPARTMENT OF HOMELAND navigable waterways during the event. Drawbridge Operation Regulation;
SECURITY The Coast Guard’s regulation for Ashley River, Charleston, SC
recurring marine events in the San
Coast Guard AGENCY: Coast Guard, DHS.
Diego Captain of the Port Zone
identifies the regulated entities and area ACTION: Final rule.
33 CFR Part 100
for this event. Under the provisions of SUMMARY: The Coast Guard is modifying
[Docket No. USCG–2017–0916] 33 CFR 100.1101, persons and vessels the operating schedule that governs the
are prohibited from anchoring, blocking, US17 Highway Bridges (Ashley River
Special Local Regulation; Southern
loitering, or impeding within this Bridges), across the Ashley River, miles
California Annual Marine Events for
regulated area, unless authorized by the 2.4 and 2.5, in Charleston, SC. This rule
the San Diego Captain of the Port
Captain of the Port, or his designated requires a bridge tender to be present
Zone—San Diego Parade of Lights
representative. The Coast Guard may be during daytime hours only from 9 a.m.
AGENCY: Coast Guard, DHS. assisted by other Federal, State, or local to 4 p.m. daily for on signal openings.
ACTION: Notice of enforcement of law enforcement agencies in enforcing All other times a 12 hour advanced
regulation. this regulation. notification is required. This
This document is issued under modification provides relief to vehicle
SUMMARY: The Coast Guard will enforce traffic congestion with minimal effect
the San Diego Parade of Lights special authority of 5 U.S.C. 552(a) and 33 CFR
100.1101. In addition to this document on navigation.
local regulations on the waters of San
in the Federal Register, the Coast Guard DATES: This rule is effective January 16,
Diego Bay, California on December 17,
2017. These special local regulations are will provide the maritime community 2018.
necessary to provide for the safety of the with advance notification of this ADDRESSES: To view documents
participants, crew, spectators, sponsor enforcement period via the Local Notice mentioned in this preamble as being
vessels, and general users of the to Mariners, Broadcast Notice to available in the docket, go to http://
waterway. During the enforcement Mariners, and local advertising by the www.regulations.gov. Type USCG–
period, persons and vessels are event sponsor. 2016–0776 in the ‘‘SEARCH’’ box and
prohibited from anchoring, blocking, click ‘‘SEARCH.’’ Click on Open Docket
If the Captain of the Port Sector San Folder on the line associated with this
loitering, or impeding within this
Diego or his designated representative rulemaking.
regulated area unless authorized by the
determines that the regulated area need FOR FURTHER INFORMATION CONTACT: If
Captain of the Port, or his designated
not be enforced for the full duration you have questions on this rule, call or
representative.
stated on this document, he or she may email LT Justin Heck, Coast Guard
DATES: The regulations in 33 CFR use a Broadcast Notice to Mariners or
100.1101 will be enforced from 4:30 Sector Charleston, SC, Waterways
other communications coordinated with Management Division; telephone 843–
p.m. through 8:30 p.m. on December 17, the event sponsor to grant general
2017 for Item 5 in Table 1 of § 100.1101. 740–3184, email justin.c.heck@uscg.mil.
permission to enter the regulated area. SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT: If
Dated: December 5, 2017.
nshattuck on DSK9F9SC42PROD with RULES
you have questions about this I. Table of Abbreviations
publication of enforcement, call or J.R. Buzzella,
CFR Code of Federal Regulations
email Lieutenant Junior Grade Briana Captain, U.S. Coast Guard, Captain of the
DHS Department of Homeland Security
Biagas, Waterways Management, U.S. Port San Diego. FR Federal Register
Coast Guard Sector San Diego, CA; [FR Doc. 2017–27111 Filed 12–14–17; 8:45 am] OMB Office of Management and Budget
telephone (619) 278–7656, email BILLING CODE 9110–04–P NPRM Notice of Proposed Rulemaking
D11MarineEventsSD@uscg.mil. (Advance, Supplemental)
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Document Created: 2017-12-15 03:37:39
Document Modified: 2017-12-15 03:37:39
| 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 January 1, 2018. | |
| 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 59515 | |
| 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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