83 FR 1553 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 83, Issue 9 (January 12, 2018)
Federal Register Volume 83, Issue 9 (January 12, 2018)
| Page Range | 1553-1555 | |
| FR Document | 2018-00348 |
[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)] [Rules and Regulations] [Pages 1553-1555] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-00348] ======================================================================= ----------------------------------------------------------------------- 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 February 2018. The interest assumptions are used for paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective February 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- [[Page 1554]] 326-4400 ext. 6510. (TTY/ASCII 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 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 website (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 February 2018.\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 February 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 January 2018, 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 payment of benefits under plans with valuation dates during February 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 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 292 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 292 2-1-18 3-1-18 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 292 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 292 2-1-18 3-1-18 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- [[Page 1555]] Issued in Washington, DC. Daniel S. Liebman, Acting Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2018-00348 Filed 1-11-18; 8:45 am] BILLING CODE 7709-02-P
![Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 1553
maximum amount provided for by because of the risk of birth defects. (2) The cost-of-living adjustment means the
Federal law; (2) assessed or enforced by Consumption of alcoholic beverages impairs percentage (if any) by which the
an agency pursuant to Federal law; and your ability to drive a car or operate Consumer Price Index for all-urban
machinery, and may cause health problems.
(3) assessed or enforced pursuant to an consumers (CPI–U) for the month of
administrative proceeding or a civil Section 204 of the ABLA also October preceding the date of the
action in the Federal courts. specifies that the Secretary of the adjustment exceeds the CPI–U for the
The Inflation Adjustment Act, as Treasury shall have the power to ensure month of October 1 year before the
amended, requires agencies to adjust the enforcement of the provisions of the month of October preceding the date of
civil monetary penalties by the inflation ABLA and issue regulations to carry out the adjustment.
adjustment described in section 5 of the them out. In addition, section 207 of the The CPI–U in October 2016 was
Inflation Adjustment Act no later than ABLA, codified in 27 U.S.C. 218, 241.729, and the CPI–U in October 2017
January 15 of every year thereafter. The provides that any person who violates was 246.663. The rate of inflation
Act also provides that any increase in a the provisions of the ABLA is subject to between October 2016 and October 2017
civil monetary penalty shall apply only a civil penalty of not more than $10,000, is therefore 2.041 percent. When
to civil monetary penalties, including with each day constituting a separate applied to the current ABLA penalty of
those whose associated violation offense. $20,111, this rate of inflation yields a
predated such an increase, which are Most of the civil monetary penalties raw (unrounded) inflation adjustment of
assessed after the date the increase takes administered by TTB are imposed by $410.46551. Rounded to the nearest
effect. the Internal Revenue Code of 1986, and dollar, the inflation adjustment is $410,
The Inflation Adjustment Act, as thus are not subject to the inflation meaning that the new maximum civil
amended, provides that the inflation adjustment mandated by the Inflation penalty for violations of the ABLA will
adjustment does not apply to civil Adjustment Act. The only civil be $20,521.
monetary penalties under the Internal monetary penalty enforced by TTB that The new maximum civil penalty will
Revenue Code of 1986 or the Tariff Act is subject to the inflation adjustment is apply to all penalties that are assessed
of 1930. the penalty imposed by the ABLA at 27 after January 12, 2018. TTB will also
Alcoholic Beverage Labeling Act U.S.C. 218. update its web page at https://
TTB Regulations www.ttb.gov/regulation_guidance/
The Alcohol and Tobacco Tax and
ablapenalty.html to reflect the adjusted
Trade Bureau (TTB) administers the The TTB regulations implementing penalty.
Federal Alcohol Administration Act the ABLA are found in 27 CFR part 16,
(FAA Act) pursuant to section 1111(d) and the regulations implementing the Dated: January 8, 2018.
of the Homeland Security Act of 2002, Inflation Adjustment Act with respect to Amy R. Greenberg,
codified at 6 U.S.C. 531(d). The the ABLA penalty are found in 27 CFR Director, Regulations and Rulings Division.
Secretary has delegated various 16.33. This section indicates that the [FR Doc. 2018–00417 Filed 1–11–18; 8:45 am]
authorities through Treasury ABLA provides that any person who BILLING CODE 4810–31–P
Department Order 120–01, dated violates the provisions of this part shall
December 10, 2013, (superseding be subject to a civil penalty of not more
Treasury Department Order 120–01, than $10,000, but also states that, PENSION BENEFIT GUARANTY
dated January 24, 2003), to the TTB pursuant to the provisions of the CORPORATION
Administrator to perform the functions Federal Civil Penalties Inflation
and duties in the administration and Adjustment Act of 1990, as amended, 29 CFR Part 4022
enforcement of this law. this civil penalty is subject to periodic
The FAA Act contains the Alcoholic cost-of-living adjustment. Accordingly, Benefits Payable in Terminated Single-
Beverage Labeling Act (ABLA) of 1988, any person who violates the provisions Employer Plans; Interest Assumptions
Public Law 100–690, 27 U.S.C. 213– of 27 CFR part 16 shall be subject to a for Paying Benefits
219a, which was enacted on November civil penalty of not more than the
18, 1988. Section 204 of the ABLA, AGENCY: Pension Benefit Guaranty
amount listed at https://www.ttb.gov/ Corporation.
codified in 27 U.S.C. 215, requires that regulation_guidance/ablapenalty.html.
a health warning statement appear on ACTION: Final rule.
Each day shall constitute a separate
the labels of all containers of alcoholic offense. SUMMARY: This final rule amends the
beverages manufactured, imported, or To adjust the penalty, § 16.33(b) Pension Benefit Guaranty Corporation’s
bottled for sale or distribution in the indicates that TTB will provide notice regulation on Benefits Payable in
United States, as well as on containers in the Federal Register and at the Terminated Single-Employer Plans to
of alcoholic beverages that are website mentioned above of cost-of- prescribe interest assumptions under
manufactured, imported, bottled, or living adjustments to the civil penalty the regulation for valuation dates in
labeled for sale, distribution, or for violations of 27 CFR part 16. February 2018. The interest
shipment to members or units of the assumptions are used for paying
U.S. Armed Forces, including those Penalty Adjustment
benefits under terminating single-
located outside the United States. In this document, TTB is publishing employer plans covered by the pension
The health warning statement its yearly adjustment to the maximum insurance system administered by
requirement applies to containers of ABLA penalty, as required by the PBGC.
alcoholic beverages manufactured, amended Inflation Adjustment Act.
sradovich on DSK3GMQ082PROD with RULES
imported, or bottled for sale or As mentioned earlier, the ABLA DATES: Effective February 1, 2018.
distribution in the United States on or contains a maximum civil monetary FOR FURTHER INFORMATION CONTACT:
after November 18, 1989. The statement penalty. For such penalties, Section 5 of Daniel S. Liebman (liebman.daniel@
reads as follows: the Inflation Adjustment Act indicates pbgc.gov), Acting Assistant General
GOVERNMENT WARNING: (1) According that the inflation adjustment shall be Counsel for Regulatory Affairs, Pension
to the Surgeon General, women should not determined by increasing the maximum Benefit Guaranty Corporation, 1200 K
drink alcoholic beverages during pregnancy penalty by the cost-of-living adjustment. Street NW, Washington, DC 20005, 202–
VerDate Sep<11>2014 15:52 Jan 11, 2018 Jkt 244001 PO 00000 Frm 00039 Fmt 4700 Sfmt 4700 E:\FR\FM\12JAR1.SGM 12JAR1](https://thefederalregister.org/doc/83_FR_1562/page/1.svg)
![Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 1555
Issued in Washington, DC. amended by the Federal Civil Penalties $275.3 In a final rule published on
Daniel S. Liebman, Inflation Adjustment Act Improvements January 31, 2017 (at 82 FR 8813), PBGC
Acting Assistant General Counsel for Act of 2015 and from sections finalized its interim final rule and
Regulatory Affairs, Pension Benefit Guaranty 4002(b)(3), 4071, and 4302 of the adjusted the maximum penalty under
Corporation. Employee Retirement Income Security section 4071 to $2,097 and the
[FR Doc. 2018–00348 Filed 1–11–18; 8:45 am] Act of 1974 (ERISA). maximum penalty under section 4302 to
BILLING CODE 7709–02–P
Major Provisions of the Regulatory $279.4
Action On December 15, 2017, the Office of
PENSION BENEFIT GUARANTY This rule adjusts as required by law Management and Budget issued
CORPORATION the maximum civil penalties that PBGC memorandum M–18–03 on
may assess under sections 4071 and implementation of the 2018 annual
29 CFR Parts 4071 and 4302 4302 of ERISA. The new maximum inflation adjustment pursuant to the
amounts are $2,140 for section 4071 2015 act.5 The memorandum provides
RIN 1212–AB45
penalties and $285 for section 4302 agencies with the cost-of-living
Adjustment of Civil Penalties for penalties. adjustment multiplier for 2018, which is
Inflation Background based on the Consumer Price Index
(CPI–U) for the month of October 2017,
AGENCY: Pension Benefit Guaranty The Pension Benefit Guaranty
not seasonally adjusted. The multiplier
Corporation. Corporation (PBGC) administers title IV
for 2018 is 1.02041. The adjusted
ACTION: Final rule. of the Employee Retirement Income
Security Act of 1974 (ERISA). Title IV maximum amounts are $2,140 for
SUMMARY: The Pension Benefit Guaranty has two provisions that authorize PBGC section 4071 penalties and $285 for
Corporation is required to amend its to assess civil monetary penalties.1 section 4302 penalties.
regulations annually to adjust for Section 4302, added to ERISA by the Compliance With Regulatory
inflation the maximum civil penalty for Multiemployer Pension Plan Requirements
failure to provide certain notices or Amendments Act of 1980, authorizes
other material information and for PBGC to assess a civil penalty of up to The Office of Management and Budget
failure to provide certain multiemployer $100 a day for failure to provide a notice has determined that this rule is not a
plan notices. under subtitle E of title IV of ERISA ‘‘significant regulatory action’’ under
DATES: Effective date: This rule is (dealing with multiemployer plans). Executive Order 12866 and therefore not
effective on January 12, 2018. Section 4071, added to ERISA by the subject to their review. As this is not a
Applicability date: The increases in Omnibus Budget Reconciliation Act of significant regulatory action under E.O.
the civil monetary penalties under 1987, authorizes PBGC to assess a civil 12866, it is not considered an E.O.
sections 4071 and 4302 provided for in penalty of up to $1,000 a day for failure 13771 regulatory action.
this rule apply to such penalties to provide a notice or other material
information under subtitles A, B, and C The Office of Management and Budget
assessed after January 12, 2018.
of title IV and sections 303(k)(4) and also has determined that notice and
FOR FURTHER INFORMATION CONTACT:
306(g)(4) of title I of ERISA. public comment on this final rule are
Stephanie Cibinic, Deputy Assistant
unnecessary because the adjustment of
General Counsel for Regulatory Affairs Adjustment of Civil Penalties civil penalties implemented in the rule
(cibinic.stephanie@pbgc.gov), Office of
On November 2, 2015, the President is required by law. See 5 U.S.C. 553(b).
the General Counsel, Pension Benefit
signed into law the Federal Civil Because no general notice of proposed
Guaranty Corporation, 1200 K Street
Penalties Inflation Adjustment Act
NW, Washington, DC 20005–4026; 202– rulemaking is required for this rule, the
Improvements Act of 2015,2 which
326–4400 extension 6352. (TTY and Regulatory Flexibility Act of 1980 does
requires agencies to adjust civil
TDD users may call the Federal relay not apply. See 5 U.S.C. 601(2).
monetary penalties for inflation and to
service toll-free at 800–877–8339 and
publish the adjustments in the Federal List of Subjects
ask to be connected to 202–326–4400
Register. An initial adjustment was
extension 6352.) 29 CFR Part 4071
required to be made by interim final
SUPPLEMENTARY INFORMATION: rule published by July 1, 2016, and Penalties.
Executive Summary effective by August 1, 2016. Subsequent
adjustments must be promulgated in 29 CFR Part 4302
Purpose of the Regulatory Action January each year after 2016. In an
This rule is needed to carry out the interim final rule published on May 13, Penalties.
requirements of the Federal Civil 2016 (at 81 FR 29765), PBGC adjusted In consideration of the foregoing,
Penalties Inflation Adjustment Act the maximum penalty under section PBGC amends 29 CFR parts 4071 and
Improvements Act of 2015 and Office of 4071 to $2,063 and adjusted the 4302 as follows:
Management and Budget guidance M– maximum penalty under section 4302 to
18–03. The rule adjusts, as required for
3 The Office of Management and Budget issued
2018, the maximum civil penalties 1 Under the Federal Civil Penalties Inflation
under 29 CFR part 4071 and 29 CFR part Adjustment Act of 1990, a penalty is a civil memorandum M–16–06 on implementation of the
sradovich on DSK3GMQ082PROD with RULES
monetary penalty if (among other things) it is for 2015 act, including multipliers to use in the initial
4302 that PBGC may assess for failure to a specific monetary amount or has a maximum adjustment.
provide certain notices or other material amount specified by Federal law. Title IV also 4 The Office of Management and Budget issued
information and certain multiemployer provides (in section 4007) for penalties for late
memorandum M–17–11 on December 16, 2016, on
plan notices. payment of premiums, but those penalties are
neither in a specified amount nor subject to a implementation of the 2015 act, including the cost-
PBGC’s legal authority for this action specified maximum amount. of-living adjustment multiplier for 2017.
comes from the Federal Civil Penalties 2 Sec. 701, Public Law 114–74, 129 Stat. 599–601 5 https://www.whitehouse.gov/wp-content/
Inflation Adjustment Act of 1990 as (Bipartisan Budget Act of 2015). uploads/2017/11/M-18-03.pdf
VerDate Sep<11>2014 15:52 Jan 11, 2018 Jkt 244001 PO 00000 Frm 00041 Fmt 4700 Sfmt 4700 E:\FR\FM\12JAR1.SGM 12JAR1](https://thefederalregister.org/doc/83_FR_1562/page/3.svg)
Document Created: 2018-10-26 09:52:39
Document Modified: 2018-10-26 09:52:39
| 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 February 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/ASCII 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 | 83 FR 1553 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR