82_FR_60551 82 FR 60308 - Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age

82 FR 60308 - Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age

PENSION BENEFIT GUARANTY CORPORATION

Federal Register Volume 82, Issue 243 (December 20, 2017)

Page Range60308-60309
FR Document2017-27361

This rule amends the Pension Benefit Guaranty Corporation's regulation on Allocation of Assets in Single-Employer Plans by substituting a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2018. This table is needed to compute the value of early retirement benefits and, thus, the total value of benefits under a plan.

Federal Register, Volume 82 Issue 243 (Wednesday, December 20, 2017) 
[Federal Register Volume 82, Number 243 (Wednesday, December 20, 2017)]
[Rules and Regulations]
[Pages 60308-60309]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27361]


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PENSION BENEFIT GUARANTY CORPORATION

29 CFR Part 4044


Allocation of Assets in Single-Employer Plans; Valuation of 
Benefits and Assets; Expected Retirement Age

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule amends the Pension Benefit Guaranty Corporation's 
regulation on Allocation of Assets in Single-Employer Plans by 
substituting a new table for determining expected retirement ages for 
participants in pension plans undergoing distress or involuntary 
termination with valuation dates falling in 2018. This table is needed 
to compute the value of early retirement benefits and, thus, the total 
value of benefits under a plan.

DATES: This rule is effective January 1, 2018.

FOR FURTHER INFORMATION CONTACT: Hilary Duke ([email protected]), 
Attorney, Regulatory Affairs Division, Office of the General Counsel, 
Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 
20005, 202-326-4400 ext. 3839. (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. 3839.)

SUPPLEMENTARY INFORMATION: The Pension Benefit Guaranty Corporation 
(PBGC) administers the pension plan termination insurance program under 
Title IV of the Employee Retirement Income Security Act of 1974 
(ERISA). PBGC's regulation on Allocation of Assets in Single-Employer 
Plans (29 CFR part 4044) sets forth (in subpart B) the methods for 
valuing plan benefits of terminating single-employer plans covered 
under Title IV. Guaranteed benefits and benefit liabilities under a 
plan that is undergoing a distress termination must be valued in 
accordance with subpart B of part 4044. In addition, when PBGC 
terminates an underfunded plan involuntarily pursuant to ERISA section 
4042(a), it uses the subpart B valuation rules to determine the amount 
of the plan's underfunding.
    Under Sec.  4044.51(b) of the asset allocation regulation, early 
retirement benefits are valued based on the annuity starting date, if a 
retirement date has been selected, or the expected retirement age, if 
the annuity starting date is not known on the valuation date. Sections 
4044.55 through 4044.57 set forth rules for determining the expected 
retirement ages for plan participants entitled to early retirement 
benefits. Appendix D of part 4044 contains tables to be used in 
determining the expected early retirement ages.
    Table I in appendix D (Selection of Retirement Rate Category) is 
used to determine whether a participant has a low, medium, or high 
probability of retiring early. The determination is based on the year a 
participant would reach ``unreduced retirement age'' (i.e., the earlier 
of the normal retirement age or the age at which an unreduced benefit 
is first payable) and the participant's monthly benefit at unreduced 
retirement age. The table applies only to plans with valuation dates in 
the current year and is updated annually by PBGC to reflect changes in 
the cost of living, etc.
    Tables II-A, II-B, and II-C (Expected Retirement Ages for 
Individuals in the Low, Medium, and High Categories respectively) are 
used to determine the expected retirement age after the probability of 
early retirement has been determined using Table I. These tables 
establish, by probability category, the expected retirement age based 
on both the earliest age a participant could retire under the plan and 
the unreduced retirement age. This expected retirement age is used to 
compute the value of the early retirement benefit and, thus, the total 
value of benefits under the plan.
    This document amends appendix D to replace Table I-17 with Table I-
18 to provide an updated correlation, appropriate for calendar year 
2018, between the amount of a participant's benefit and the probability 
that the participant will elect early retirement. Table I-18 will be 
used to value benefits in plans with valuation dates during calendar 
year 2018.
    PBGC has determined that notice of, and public comment on, this 
rule are impracticable and contrary to the public interest. Plan 
administrators need to be able to estimate accurately the value of plan 
benefits as early as possible before initiating the termination 
process. For that purpose, if a plan has a valuation date in 2018, the 
plan administrator needs the updated table being promulgated in this 
rule. Accordingly, PBGC finds that the public interest is best served 
by issuing this table expeditiously, without an opportunity for notice 
and comment, and that good cause exists for making the table set forth 
in this amendment effective less than 30 days after publication to 
allow as much time as possible to estimate the value of plan benefits 
with the proper table for plans with valuation dates in early 2018.
    PBGC has determined that this action is not a ``significant 
regulatory action'' under the criteria set forth in Executive Order 
12866 and Executive Order 13771.
    Because no general notice of proposed rulemaking is required for 
this regulation, the Regulatory Flexibility Act of 1980 does not apply 
(5 U.S.C. 601(2)).

List of Subjects in 29 CFR Part 4044

    Employee benefit plans, Pension insurance.

    In consideration of the foregoing, 29 CFR part 4044 is amended as 
follows:

PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS

0
1. 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
2. Appendix D to part 4044 is amended by removing Table I-17 and adding 
in its place Table I-18 to read as follows:

Appendix D to Part 4044--Tables Used To Determine Expected Retirement 
Age

[[Page 60309]]



                                Table I-18--Selection of Retirement Rate Category
              [For plans with valuation dates after December 31, 2017, and before January 1, 2019]
----------------------------------------------------------------------------------------------------------------
                                                            Participant's Retirement Rate Category is--
                                                 ---------------------------------------------------------------
                                                    Low \1\ if     Medium \2\ if monthly benefit    High \3\ if
      If participant reaches URA in year--            monthly               at URA is--               monthly
                                                    benefit at   --------------------------------   benefit at
                                                   URA is  less                                       URA is
                                                      than--          From--           To--       greater than--
----------------------------------------------------------------------------------------------------------------
2019............................................             647             647           2,734           2,734
2020............................................             662             662           2,797           2,797
2021............................................             678             678           2,862           2,862
2022............................................             693             693           2,927           2,927
2023............................................             709             709           2,995           2,995
2024............................................             725             725           3,064           3,064
2025............................................             742             742           3,134           3,134
2026............................................             759             759           3,206           3,206
2027............................................             777             777           3,280           3,280
2028 or later...................................             794             794           3,355           3,355
----------------------------------------------------------------------------------------------------------------
\1\ Table II-A.
\2\ Table II-B.
\3\ Table II-C.

* * * * *

    Issued in Washington, DC, by:
Daniel S. Liebman,
Acting Assistant General Counsel for Regulatory Affairs, Pension 
Benefit Guaranty Corporation.
[FR Doc. 2017-27361 Filed 12-19-17; 8:45 am]
 BILLING CODE 7709-02-P

60308 Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Rules and Regulations (3) Appropriate analysis and non- free at 1–800–877–8339 and ask to be early retirement benefit and, thus, the clinical testing must validate the connected to 202–326–4400 ext. 3839.) total value of benefits under the plan. electromagnetic compatibility (EMC) SUPPLEMENTARY INFORMATION: The This document amends appendix D to and wireless performance of the device. Pension Benefit Guaranty Corporation replace Table I–17 with Table I–18 to (4) Appropriate software verification, (PBGC) administers the pension plan provide an updated correlation, validation, and hazard analysis must be termination insurance program under appropriate for calendar year 2018, performed. Title IV of the Employee Retirement between the amount of a participant’s (5) Software display must include an Income Security Act of 1974 (ERISA). benefit and the probability that the estimate of the cumulative error PBGC’s regulation on Allocation of participant will elect early retirement. associated with estimated blood loss Assets in Single-Employer Plans (29 Table I–18 will be used to value benefits values. CFR part 4044) sets forth (in subpart B) in plans with valuation dates during (6) Labeling must include: the methods for valuing plan benefits of calendar year 2018. (i) Warnings, cautions, and limitations terminating single-employer plans PBGC has determined that notice of, needed for safe use of the device; covered under Title IV. Guaranteed (ii) A detailed summary of the and public comment on, this rule are benefits and benefit liabilities under a impracticable and contrary to the public performance testing pertinent to use of plan that is undergoing a distress the device, including a description of interest. Plan administrators need to be termination must be valued in able to estimate accurately the value of the bias and variance the device accordance with subpart B of part 4044. exhibited during testing; plan benefits as early as possible before In addition, when PBGC terminates an initiating the termination process. For (iii) The validated surgical materials, underfunded plan involuntarily range of hemoglobin mass, software, that purpose, if a plan has a valuation pursuant to ERISA section 4042(a), it date in 2018, the plan administrator hardware, and accessories that the uses the subpart B valuation rules to device is intended to be used with; and needs the updated table being determine the amount of the plan’s promulgated in this rule. Accordingly, (iv) EMC and wireless technology underfunding. instructions and information. PBGC finds that the public interest is Under § 4044.51(b) of the asset best served by issuing this table Dated: December 15, 2017. allocation regulation, early retirement expeditiously, without an opportunity Leslie Kux, benefits are valued based on the annuity for notice and comment, and that good Associate Commissioner for Policy. starting date, if a retirement date has cause exists for making the table set [FR Doc. 2017–27443 Filed 12–19–17; 8:45 am] been selected, or the expected forth in this amendment effective less retirement age, if the annuity starting than 30 days after publication to allow BILLING CODE 4164–01–P date is not known on the valuation date. as much time as possible to estimate the Sections 4044.55 through 4044.57 set value of plan benefits with the proper forth rules for determining the expected table for plans with valuation dates in PENSION BENEFIT GUARANTY retirement ages for plan participants CORPORATION early 2018. entitled to early retirement benefits. Appendix D of part 4044 contains tables PBGC has determined that this action 29 CFR Part 4044 is not a ‘‘significant regulatory action’’ to be used in determining the expected early retirement ages. under the criteria set forth in Executive Allocation of Assets in Single- Order 12866 and Executive Order Employer Plans; Valuation of Benefits Table I in appendix D (Selection of Retirement Rate Category) is used to 13771. and Assets; Expected Retirement Age determine whether a participant has a Because no general notice of proposed AGENCY: Pension Benefit Guaranty low, medium, or high probability of rulemaking is required for this Corporation. retiring early. The determination is regulation, the Regulatory Flexibility ACTION: Final rule. based on the year a participant would Act of 1980 does not apply (5 U.S.C. reach ‘‘unreduced retirement age’’ (i.e., 601(2)). SUMMARY: This rule amends the Pension the earlier of the normal retirement age Benefit Guaranty Corporation’s List of Subjects in 29 CFR Part 4044 or the age at which an unreduced regulation on Allocation of Assets in benefit is first payable) and the Employee benefit plans, Pension Single-Employer Plans by substituting a participant’s monthly benefit at insurance. new table for determining expected unreduced retirement age. The table In consideration of the foregoing, 29 retirement ages for participants in applies only to plans with valuation CFR part 4044 is amended as follows: pension plans undergoing distress or dates in the current year and is updated involuntary termination with valuation annually by PBGC to reflect changes in PART 4044—ALLOCATION OF dates falling in 2018. This table is the cost of living, etc. ASSETS IN SINGLE-EMPLOYER needed to compute the value of early Tables II–A, II–B, and II–C (Expected PLANS retirement benefits and, thus, the total Retirement Ages for Individuals in the value of benefits under a plan. Low, Medium, and High Categories ■ 1. The authority citation for part 4044 DATES: This rule is effective January 1, respectively) are used to determine the continues to read as follows: 2018. expected retirement age after the Authority: 29 U.S.C. 1301(a), 1302(b)(3), FOR FURTHER INFORMATION CONTACT: probability of early retirement has been 1341, 1344, 1362. Hilary Duke (duke.hilary@pbgc.gov), determined using Table I. These tables ■ 2. Appendix D to part 4044 is Attorney, Regulatory Affairs Division, establish, by probability category, the amended by removing Table I–17 and ethrower on DSK3G9T082PROD with RULES Office of the General Counsel, Pension expected retirement age based on both adding in its place Table I–18 to read as Benefit Guaranty Corporation, 1200 K the earliest age a participant could retire follows: Street NW, Washington, DC 20005, 202– under the plan and the unreduced 326–4400 ext. 3839. (TTY/TDD users retirement age. This expected retirement Appendix D to Part 4044—Tables Used may call the Federal relay service toll- age is used to compute the value of the To Determine Expected Retirement Age VerDate Sep<11>2014 16:19 Dec 19, 2017 Jkt 244001 PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 E:\FR\FM\20DER1.SGM 20DER1

Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Rules and Regulations 60309 TABLE I–18—SELECTION OF RETIREMENT RATE CATEGORY [For plans with valuation dates after December 31, 2017, and before January 1, 2019] Participant’s Retirement Rate Category is— Low 1 if Medium 2 if monthly High 3 if If participant reaches URA in year— monthly benefit at URA is— monthly benefit at benefit at URA is URA is less than— From— To— greater than— 2019 ................................................................................................................. 647 647 2,734 2,734 2020 ................................................................................................................. 662 662 2,797 2,797 2021 ................................................................................................................. 678 678 2,862 2,862 2022 ................................................................................................................. 693 693 2,927 2,927 2023 ................................................................................................................. 709 709 2,995 2,995 2024 ................................................................................................................. 725 725 3,064 3,064 2025 ................................................................................................................. 742 742 3,134 3,134 2026 ................................................................................................................. 759 759 3,206 3,206 2027 ................................................................................................................. 777 777 3,280 3,280 2028 or later .................................................................................................... 794 794 3,355 3,355 1 Table II–A. 2 Table II–B. 3 Table II–C. * * * * * relate to the exchange of uncurrent, them, or with a depository institution Issued in Washington, DC, by: bent, partial, fused, and mixed coins. that has a direct relationship with a Daniel S. Liebman, The last amendment to 31 CFR part 100, Federal Reserve Bank. The revisions subpart C, was on August 23, 1999. make clear that a Federal Reserve Bank Acting Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Since then, the United States Mint will redeem uncurrent coins based on Corporation. identified portions of the regulations in the policies described in the Federal need of revision to update redemption Reserve’s Operating Circular 2. [FR Doc. 2017–27361 Filed 12–19–17; 8:45 am] rates and procedures, and to enhance For bent or partial coins, the revisions BILLING CODE 7709–02–P the integrity of the acceptance and update the redemption rates of certain processing of bent and partial United coins to reflect the current values and States coins. The United States Mint compositions of coins being redeemed. DEPARTMENT OF THE TREASURY was also informed that the current For example, in the prior regulation, the structure of part 100 does not meet the redemption rate for one-cent coins was United States Mint orderly codification requirements of 1 $1.4585 per pound; this redemption rate CFR 8.2, 21.8, and 21.9. was derived from the weight of bronze 31 CFR Part 100 The first category of revisions updates one-cent coins (3.11 grams or 0.1097 and improves the redemption process of ounces each), which the United States Exchange of Coin bent and partial coins to enhance Mint has not minted and issued since AGENCY: United States Mint, Treasury. security and ensure the integrity of 1982. In 1983, the United States Mint ACTION: Final rule. United States coinage. The revisions began minting and issuing only copper- establish procedures for certifying plated zinc one-cent coins, which weigh SUMMARY: This final rule revises participants based on submission 2.50 grams or 0.0882 ounces each. Due Treasury regulations relating to the amounts and frequency, sampling to the weight difference, a pound (the exchange of uncurrent, bent, partial, submissions to authenticate material, minimum weight for redemption) of fused, and mixed coins, and to update conducting site visits for certain copper-plated zinc one-cent coins the regulations to comply with the participants, and requiring information contains a higher quantity of coins than requirement for orderly codification. on how the submission came to be bent a pound of bronze one-cent coins. The The revisions include updates to or partial. The revisions also inform revisions make the redemption rate redemption rates and procedures that submitters of required banking $1.8100 for a pound consisting solely of will enhance the integrity of the information. Lastly, the revisions copper-plated zinc one-cent coins. For acceptance and processing of bent and provide the United States Mint bronze one-cent coins, or a mix of both partial United States coins. discretion to cease processing bronze and copper-plated zinc one-cent DATES: Effective Date: January 19, 2018. submissions that appear to be part of an coins, the lower redemption rate of illegal scheme, or contain material that $1.4585 will apply. A similar update is FOR FURTHER INFORMATION CONTACT: is not identifiable as bent or partial made to the redemption rate for $1 Sheila Barnett, Legal Counsel; Office of United States coinage. coins. the Chief Counsel; United States Mint; The second category of revisions The third category of revisions at (202) 354–7624 or sbarnett@ relates to the redemption rates for clarifies that the United States Mint will usmint.treas.gov. uncurrent coins and bent and partial not accept fused coins. The United ethrower on DSK3G9T082PROD with RULES SUPPLEMENTARY INFORMATION: coins that have been withdrawn from States Mint will also not accept mixed circulation. For uncurrent coins, the coins (coins of several alloy categories I. Background revisions clarify the procedure for presented together) for redemption, with The Treasury Regulations appearing redemption by instructing the public to the exception of bent or partial one-cent at 31 CFR part 100, subpart C, are deposit the uncurrent coins with a coins and $1 coins that are presented in promulgated under 31 U.S.C. 5120, and financial institution that will accept mixed years. VerDate Sep<11>2014 16:19 Dec 19, 2017 Jkt 244001 PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 E:\FR\FM\20DER1.SGM 20DER1


Document Created: 2018-10-25 10:56:13
Document Modified: 2018-10-25 10:56:13
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.
DatesThis rule is effective January 1, 2018.
ContactHilary Duke ([email protected]), Attorney, Regulatory Affairs Division, Office of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 20005, 202-326-4400 ext. 3839. (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. 3839.)
FR Citation82 FR 60308 
CFR AssociatedEmployee Benefit Plans and Pension Insurance
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