83 FR 15946 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 83, Issue 72 (April 13, 2018)
Federal Register Volume 83, Issue 72 (April 13, 2018)
| Page Range | 15946-15948 | |
| FR Document | 2018-07466 |
[Federal Register Volume 83, Number 72 (Friday, April 13, 2018)] [Rules and Regulations] [Pages 15946-15948] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-07466] ======================================================================= ----------------------------------------------------------------------- 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 May 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 May 1, 2018. FOR FURTHER INFORMATION CONTACT: Hilary Duke (duke.hilary@pbgc.gov), Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 20005, 202-326- 4400 ext. 3839. (TTY 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: 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 [[Page 15947]] 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 May 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 May 2018 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 April 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 May 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 295 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 Deferred annuities (percent) date Immediate ----------------------------------------------------------- Rate set ---------------------------- annuity rate On or after Before (percent) i i i n n -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 295............................................ 5-1-18 6-1-18 1.00 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 295 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 Deferred annuities (percent) date Immediate ----------------------------------------------------------- Rate set ---------------------------- annuity rate On or after Before (percent) i i i n n -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 295............................................ 5-1-18 6-1-18 1.00 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- Issued in Washington, DC. Hilary Duke, Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2018-07466 Filed 4-12-18; 8:45 am] BILLING CODE 7709-02-P
![15946 Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Rules and Regulations
Airbus Helicopters Model AS350B2 and within the defined design integrity (2) The occurrence of any hazardous
AS350B3 helicopters, as changed, requirements. failure condition is extremely remote;
comply with the noise certification and
Comments
requirements of 14 CFR part 36. (3) The occurrence of any major
The FAA issues special conditions, as No comments were received in failure condition is remote.
defined in 14 CFR 11.19, in accordance response to the Notice of proposed (c) Information concerning an unsafe
with § 11.38 and they become part of the special conditions No. 27–043–SC (82 system operating condition must be
type certification basis under § 21.101. FR 57685, December 7, 2017). The provided in a timely manner to the crew
closing date for comments was January to enable them to take appropriate
Novel or Unusual Design Features 22, 2018. Accordingly, the special corrective action. An appropriate alert
The Airbus Helicopters Model conditions are adopted as proposed. must be provided if immediate pilot
AS350B2 and AS350B3 helicopter Applicability awareness and immediate or subsequent
incorporates the following novel or corrective action is required. Systems
unusual design features: A GFC 600H As discussed above, these special and controls, including indications and
AP/SCAS. This GFC 600H AP/SCAS conditions are applicable to Airbus annunciations, must be designed to
performs non-critical control functions. Helicopters Model AS350B2 and minimize crew errors which could
The GFC 600H AP/SCAS is a two or AS350B3 helicopters. Should Garmin create additional hazards.
three axis system with the following apply at a later date for an STC to Issued in Fort Worth, Texas, on March 30,
novel functions: Limit cueing, level modify any other model included on 2018.
mode, and hover assist. Type Certificate Number H9EU to Jorge Castillo,
incorporate the same novel or unusual
Discussion Acting Manager, Rotorcraft Standards
design feature, these special conditions Branch, Policy and Innovation Division
These special conditions clarify the would apply to that model as well. Aircraft Certification Service.
requirement to perform a proper failure Conclusion [FR Doc. 2018–07655 Filed 4–12–18; 8:45 am]
analysis and also recognizes that the BILLING CODE 4910–13–P
severity of failures can vary. Current This action affects only certain novel
industry standards and practices or unusual design features on two
recognize five failure condition model helicopters. It is not a rule of
general applicability and affects only PENSION BENEFIT GUARANTY
categories: Catastrophic, Hazardous, CORPORATION
Major, Minor, and No-Safety Effect. the applicant who applied to the FAA
These special conditions address the for approval of these features.
29 CFR Part 4022
safety requirement for systems whose List of Subjects in 14 CFR Part 27
failures could result in catastrophic or Benefits Payable in Terminated Single-
hazardous/severe-major failure Aircraft, Aviation safety, Reporting Employer Plans; Interest Assumptions
conditions and for complex systems and recordkeeping requirements. for Paying Benefits
whose failures could result in major The authority citation for these
failure conditions. special conditions is as follows: AGENCY: Pension Benefit Guaranty
To comply with the provisions of the Corporation.
Authority: 49 U.S.C. 106(g), 40113, 44701,
special conditions, we require that 44702, 44704. ACTION: Final rule.
Garmin provide the FAA with a systems
The Special Conditions SUMMARY: This final rule amends the
safety assessment (SSA) for the final
Pension Benefit Guaranty Corporation’s
GFC 600H AP/SCAS installation Accordingly, pursuant to the
regulation on Benefits Payable in
configuration that adequately address authority delegated to me by the
Terminated Single-Employer Plans to
the safety objectives established by a Administrator, the following special
prescribe interest assumptions under
functional hazard assessment (FHA) and conditions are issued as part of the type
the regulation for valuation dates in
a preliminary system safety assessment certification basis for Airbus Helicopters
May 2018. The interest assumptions are
(PSSA), including the fault tree analysis Model AS350B2 and AS350B3
used for paying benefits under
(FTA). This ensures that all failure helicopters modified by Garmin
terminating single-employer plans
conditions and their resulting effects are International, Inc. (Garmin).
covered by the pension insurance
adequately addressed for the installed Instead of the requirements of 14 CFR
system administered by PBGC.
GFC 600H AP/SCAS. The SSA process, 27.1309(b) and (c), the following must
FHA, PSSA, and FTA are all parts of the be met for certification of the Garmin DATES: Effective May 1, 2018.
overall safety assessment process Flight Control 600H autopilot with FOR FURTHER INFORMATION CONTACT:
discussed in FAA Advisory Circular 27– stability and control augmentation Hilary Duke (duke.hilary@pbgc.gov),
1B, Certification of Normal Category system: Assistant General Counsel for
Rotorcraft, and Society of Automotive (a) The equipment and systems must Regulatory Affairs, Pension Benefit
Engineers document Aerospace be designed and installed so that any Guaranty Corporation, 1200 K Street
Recommended Practice 4761, equipment and system does not NW, Washington, DC 20005, 202–326–
Guidelines and Methods for Conducting adversely affect the safety of the 4400 ext. 3839. (TTY users may call the
the Safety Assessment Process on Civil rotorcraft or its occupants. Federal relay service toll-free at 1–800–
Airborne Systems and Equipment. (b) The rotorcraft systems and 877–8339 and ask to be connected to
These special conditions require that associated components considered 202–326–4400, ext. 3839.)
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the GFC 600H AP/SCAS installed on separately and in relation to other SUPPLEMENTARY INFORMATION: PBGC’s
Airbus Helicopters Model AS350B2 and systems, must be designed and installed regulation on Benefits Payable in
Model AS350B3 helicopters meet the so that: Terminated Single-Employer Plans (29
requirements to adequately address the (1) The occurrence of any catastrophic CFR part 4022) prescribes actuarial
failure effects identified by the FHA, failure condition is extremely assumptions—including interest
and subsequently verified by the SSA, improbable; assumptions—for paying plan benefits
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![Federal Register / Vol. 83, No. 72 / Friday, April 13, 2018 / Rules and Regulations 15947
under terminated single-employer plans will be 1.00 percent for the period Because no general notice of proposed
covered by title IV of the Employee during which a benefit is in pay status rulemaking is required for this
Retirement Income Security Act of 1974. and 4.00 percent during any years amendment, the Regulatory Flexibility
The interest assumptions in the preceding the benefit’s placement in pay Act of 1980 does not apply. See 5 U.S.C.
regulation are also published on PBGC’s status. In comparison with the interest 601(2).
website (http://www.pbgc.gov). assumptions in effect for April 2018,
List of Subjects in 29 CFR Part 4022
PBGC uses the interest assumptions in these assumptions are unchanged.
appendix B to part 4022 to determine PBGC has determined that notice and Employee benefit plans, Pension
whether a benefit is payable as a lump public comment on this amendment are insurance, Pensions, Reporting and
sum and to determine the amount to impracticable and contrary to the public recordkeeping requirements.
pay. Appendix C to part 4022 contains interest. This finding is based on the In consideration of the foregoing, 29
interest assumptions for private-sector need to determine and issue new CFR part 4022 is amended as follows:
pension practitioners to refer to if they interest assumptions promptly so that
wish to use lump-sum interest rates the assumptions can reflect current PART 4022—BENEFITS PAYABLE IN
determined using PBGC’s historical market conditions as accurately as TERMINATED SINGLE-EMPLOYER
methodology. Currently, the rates in possible. PLANS
appendices B and C of the benefit Because of the need to provide
payment regulation are the same. ■ 1. The authority citation for part 4022
immediate guidance for the payment of
continues to read as follows:
The interest assumptions are intended benefits under plans with valuation
to reflect current conditions in the dates during May 2018, PBGC finds that Authority: 29 U.S.C. 1302, 1322, 1322b,
financial and annuity markets. good cause exists for making the 1341(c)(3)(D), and 1344.
Assumptions under the benefit assumptions set forth in this ■ 2. In appendix B to part 4022, Rate Set
payments regulation are updated amendment effective less than 30 days 295 is added at the end of the table to
monthly. This final rule updates the after publication. read as follows:
benefit payments interest assumptions PBGC has determined that this action
for May 2018.1 is not a ‘‘significant regulatory action’’ Appendix B to Part 4022—Lump Sum
The May 2018 interest assumptions under the criteria set forth in Executive Interest Rates for PBGC Payments
under the benefit payments regulation Order 12866. * * * * *
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
295 5–1–18 6–1–18 1.00 4.00 4.00 4.00 7 8
■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum
295 is added at the end of the table to Interest Rates for Private-Sector
read as follows: Payments
* * * * *
For plans with a valuation Immediate Deferred annuities
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
295 5–1–18 6–1–18 1.00 4.00 4.00 4.00 7 8
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory
Affairs, Pension Benefit Guaranty
Corporation.
[FR Doc. 2018–07466 Filed 4–12–18; 8:45 am]
BILLING CODE 7709–02–P
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1 Appendix B to PBGC’s regulation on Allocation
of Assets in Single-Employer Plans (29 CFR part benefits under terminating covered single-employer ERISA section 4044. Those assumptions are
4044) prescribes interest assumptions for valuing plans for purposes of allocation of assets under updated quarterly.
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DEPARTMENT OF HOMELAND southeast portion of Port Canaveral of the U.S. Army Corps of Engineers
SECURITY Harbor’s Middle Basin. This waterfront (USACE) to revise the restricted area
area is located on Cape Canaveral Air outlined in 33 CFR 334.530 to match the
Coast Guard Force Station (CCAFS), a U.S. Air Force Coast Guard’s expanded security zone.
military installation. Additionally, the The Coast Guard intends to make a
33 CFR Part 165 northern and northeast portion of the recommendation to USACE to revise the
Middle Basin’s waterfront is located restricted area in 33 CFR 334.530. There
[Docket Number USCG–2017–0146]
almost entirely on CCAFS property, and are no changes in the regulatory text of
RIN 1625–AA87 within this area are piers utilized by the this rule from the proposed rule in the
U.S. Air Force and U.S. Army. CCAFS NPRM.
Security Zones; Port Canaveral Harbor, routinely conducts operations critical to
Cape Canaveral Air Force Station, FL national security. This rule expands the geographical
The U.S. Navy requested an boundaries of the current regulated area
AGENCY: Coast Guard, DHS. amendment to the current regulation in in 33 CFR 165.705(b) to include the
ACTION: Final rule. 33 CFR 165.705(b) to expand the navigable waters of the Port Canaveral
geographical boundaries to include the Harbor’s Middle Basin. This revision
SUMMARY: The Coast Guard is revising a northern and northeastern portion of the redesignates § 165.705(b) to new
security zone to extend the geographical Middle Basin of Port Canaveral Harbor § 165.705(a)(2).
boundaries of the permanent security in order to ensure the safety and
zone at Port Canaveral Harbor. This The rule also made the following
security of military assets and
action is necessary to ensure the infrastructure along the entire CCAFS amendments: (1) Changed the title of the
security of vessels, facilities, and the waterfront. In response, on October 3, existing regulation in 33 CFR 165.705
surrounding areas within this zone. This 2017, the Coast Guard published a from ‘‘Port Canaveral Harbor, Cape
regulation prohibits persons and vessels notice of proposed rulemaking (NPRM) Canaveral, Florida’’ to ‘‘Security Zones:
from entering, transiting through, entitled, ‘‘Security Zones; Port Port Canaveral Harbor, Cape Canaveral
anchoring in, or remaining within the Canaveral Harbor, Cape Canaveral Air Air Force Station, FL;’’ (2) added a new
security zone unless authorized by the Force Station, FL’’ (82 FR 46007). There paragraph (c) and changed the title to
Captain of the Port (COTP) Jacksonville we stated why we issued the NPRM, ‘‘Regulations;’’ (3) redesignated existing
or a designated representative. and invited comments on our proposed paragraph (d) as new paragraph (c)(1)
DATES: This rule is effective May 14, regulatory action related to revising the with minor non-substantive changes; (4)
2018. security zone. During the comment redesignated existing paragraph (c) as
period that ended November 3, 2017, we new paragraph (c)(2) with minor non-
ADDRESSES: To view documents received 3 comments. substantive changes; (5) and added a
mentioned in this preamble as being
III. Legal Authority and Need for Rule new paragraph (c)(3). Lastly, we added
available in the docket, go to http://
www.regulations.gov, type USCG–2017– a new paragraph (b), entitled
The Coast Guard is issuing this rule ‘‘Definitions’’ to define the term
0146 in the ‘‘SEARCH’’ box and click under authority 33 U.S.C. 1231. The
‘‘SEARCH.’’ Click on Open Docket ‘‘designated representative.’’
COTP Jacksonville has determined it is
Folder on the line associated with this necessary to expand the security zone in V. Regulatory Analyses
rule. the Middle Basin of Port Canaveral
FOR FURTHER INFORMATION CONTACT: If Harbor to ensure the security of military We developed this rule after
you have questions on this rule, call or assets and waterfront facilities from considering numerous statutes and
email Lieutenant Allan Storm, Sector destruction, loss, or injury from Executive orders related to rulemaking.
Jacksonville, Waterways Management sabotage or other subversive acts, Below we summarize our analyses
Division, U.S. Coast Guard; telephone accidents or other causes of a similar based on a number of these statutes and
(904) 714–7616, email Allan.H.Storm@ nature. Executive orders, and we discuss First
uscg.mil. Amendment rights of protestors.
IV. Discussion of Comments, Changes,
SUPPLEMENTARY INFORMATION: and the Rule A. Regulatory Planning and Review
I. Table of Abbreviations As noted above, we received 3
Executive Orders 12866 and 13563
comments on our NPRM published
CFR Code of Federal Regulations direct agencies to assess the costs and
DHS Department of Homeland Security October 3, 2017. One comment was in
support of the rule. The other two benefits of available regulatory
FR Federal Register alternatives and, if regulation is
NPRM Notice of proposed rulemaking comments provided recommendations
and feedback to the rule. One comment necessary, to select regulatory
§ Section
U.S.C. United States Code provided a recommendation to conduct approaches that maximize net benefits.
a safety study to ensure that the Executive Order 13771 directs agencies
II. Background Information and to control regulatory costs through a
likelihood for a collision has not
Regulatory History budgeting process. This rule has not
increased. The Coast Guard does not
On October 3, 1988, the Coast Guard intend to conduct a safety study for the been designated a ‘‘significant
published a final rule creating a revised security zone, as there have regulatory action,’’ under Executive
permanent security zone at Port been no safety concerns raised during Order 12866. Accordingly, this rule has
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Canaveral Harbor, Cape Canaveral, discussions within the port community; not been reviewed by the Office of
Florida, entitled, ‘‘Security Zone; Port including the Canaveral Pilots Management and Budget (OMB), and
Canaveral Harbor, Cape Canaveral, FL’’ Association, the Canaveral Port pursuant to OMB guidance it is exempt
(53 FR 38718) to safeguard the Authority, U.S. Navy, and Brevard from the requirements of Executive
waterfront and military assets along the County Sheriff’s Office. The other Order 13771.
U.S. Navy’s Poseidon Wharf inside the comment inquired about the inclusion
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Document Created: 2018-04-13 00:17:59
Document Modified: 2018-04-13 00:17:59
| 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 May 1, 2018. | |
| Contact | Hilary Duke ([email protected]), Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 20005, 202-326- 4400 ext. 3839. (TTY 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 Citation | 83 FR 15946 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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