83 FR 32580 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 83, Issue 135 (July 13, 2018)
Federal Register Volume 83, Issue 135 (July 13, 2018)
| Page Range | 32580-32581 | |
| FR Document | 2018-14974 |
[Federal Register Volume 83, Number 135 (Friday, July 13, 2018)] [Rules and Regulations] [Pages 32580-32581] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-14974] ======================================================================= ----------------------------------------------------------------------- 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 August 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 August 1, 2018. FOR FURTHER INFORMATION 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.) 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. [[Page 32581]] 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 August 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 August 2018 interest assumptions under the benefit payments regulation will be 1.25 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 July 2018, these assumptions represent no change in the immediate rate and are otherwise unchanged. PBGC has determined that notice and public comment on this amendment are impracticable and contrary to the public interest. This finding is based on the need to determine and issue new interest assumptions promptly so that the assumptions can reflect current market conditions as accurately as possible. Because of the need to provide immediate guidance for the payment of benefits under plans with valuation dates during August 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 298 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) i i i n n -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 298 8-1-18 9-1-18 1.25 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 298 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) i i i n n -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 298 8-1-18 9-1-18 1.25 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. 2018-14974 Filed 7-12-18; 8:45 am] BILLING CODE 7709-02-P
![32580 Federal Register / Vol. 83, No. 135 / Friday, July 13, 2018 / Rules and Regulations
enforcement coordination for the of Executive Order 12866 and, therefore, Authority: 5 U.S.C. 301; 28 U.S.C. 509,
Department of Justice and carries out a is not a ‘‘regulation’’ or ‘‘rule’’ as 510, 515–519.
wide range of responsibilities. OIA defined by the order. Accordingly, this ■ 2. In § 0.64–2, revise the final sentence
works closely with its foreign and action has not been reviewed by the to read as follows:
domestic stakeholders to ensure that Office of Management and Budget.
criminals both at home and abroad are § 0.64–2. Delegation respecting transfer of
extradited to face justice. OIA also Executive Order 13132—Federalism offenders to and from foreign countries.
handles thousands of requests for This rule will not have substantial * * * The Assistant Attorney
mutual legal assistance, drafts and direct effects on the States, on the General, Criminal Division, is
comments on legislation and policy, and relationship between the national authorized to re-delegate this authority
participates in litigation related to government and the States, or on within the Criminal Division to the
international cooperation issues. At its distribution of power and Deputy Assistant Attorneys General in
core, international prisoner transfer is responsibilities among the various the Criminal Division and to the
an area of international legal levels of government. Therefore, in Director, the Deputy Directors, and the
cooperation. Having concluded that the accordance with Executive Order 13132, Associate Director supervising the
responsibility for handling international it is determined that this rule does not International Prisoner Transfer Unit of
prisoner transfers more closely relates to have sufficient federalism implications the Office of International Affairs.
the mission of OIA, the Department of to warrant the preparation of a Dated: June 29, 2018.
Justice is moving the International Federalism Assessment. Jefferson B. Sessions III,
Prisoner Transfer Unit from the Office of Attorney General.
Enforcement Operations to OIA. To Executive Order 12988—Civil Justice
Reform [FR Doc. 2018–15047 Filed 7–12–18; 8:45 am]
ensure OIA has the necessary
BILLING CODE 4410–14–P
authorities to find appropriate or This rule was drafted in accordance
inappropriate the transfer of offenders to with the applicable standards set forth
or from a foreign country under certain in sections 3(a) and 3(b)(2) of Executive
treaties, the Department of Justice is PENSION BENEFIT GUARANTY
Order 12988. CORPORATION
modifying its delegation of authority in
28 CFR 0.64–2. This modification will Unfunded Mandates Reform Act of
1995 29 CFR Part 4022
authorize the Assistant Attorney
General for the Criminal Division to re- This rule will not result in the Benefits Payable in Terminated Single-
delegate this authority to the Deputy expenditure by State, local, and tribal Employer Plans; Interest Assumptions
Assistant Attorneys General in the governments, in the aggregate, or by the for Paying Benefits
Criminal Division and to the Director, private sector, of $100,000,000 or more
the Deputy Directors, and the Associate in any one year, and it will not AGENCY: Pension Benefit Guaranty
Director supervising the International significantly or uniquely affect small Corporation.
Prisoner Transfer Unit of the Office of governments. Therefore, no actions were ACTION: Final rule.
International Affairs. This action will deemed necessary under the provisions
promote efficiency, better accomplish SUMMARY: This final rule amends the
of the Unfunded Mandates Reform Act
important law enforcement objectives, Pension Benefit Guaranty Corporation’s
of 1995.
and enhance international relationships regulation on Benefits Payable in
and cooperation. Congressional Review Act Terminated Single-Employer Plans to
prescribe interest assumptions under
Administrative Procedure Act—5 This action pertains to agency
the regulation for valuation dates in
U.S.C. 553 management, personnel, and
August 2018. The interest assumptions
organizations and does not substantially
This rule is a rule of agency are used for paying benefits under
affect the rights or obligations of non-
organization and relates to a matter terminating single-employer plans
agency parties and, accordingly, is not
relating to agency management and is covered by the pension insurance
a ‘‘rule’’ as that term is used by the
therefore exempt from the requirements system administered by PBGC.
Congressional Review Act, 5 U.S.C.
of prior notice and comment and a 30- DATES: Effective August 1, 2018.
804(3)(B). Therefore, the reporting
day delay in the effective date. See 5 FOR FURTHER INFORMATION CONTACT:
requirement of 5 U.S.C. 801 does not
U.S.C. 553(a)(2), (b)(3)(A). Hilary Duke (duke.hilary@pbgc.gov),
apply.
Regulatory Flexibility Act Assistant General Counsel for
List of Subjects in 28 CFR Part 0 Regulatory Affairs, Pension Benefit
A Regulatory Flexibility Analysis is
not required to be prepared for this final Authority delegations (Government Guaranty Corporation, 1200 K Street
rule because the Department was not agencies), Crime, Government NW, Washington, DC 20005, 202–326–
required to publish a general notice of employees, Law enforcement, 4400 ext. 3839. (TTY users may call the
proposed rulemaking for this matter. 5 Organization and functions Federal relay service toll-free at 1–800–
U.S.C. 604(a). (Government agencies), Prisoners. 877–8339 and ask to be connected to
202–326–4400, ext. 3839.)
Executive Order 12866—Regulatory For the reasons stated in the
preamble, title 28, part 0, of the Code of SUPPLEMENTARY INFORMATION: PBGC’s
Planning and Review regulation on Benefits Payable in
Federal Regulations is amended as
sradovich on DSK3GMQ082PROD with RULES
This action has been drafted and follows: Terminated Single-Employer Plans (29
reviewed in accordance with Executive CFR part 4022) prescribes actuarial
Order 12866, Regulatory Planning and PART 0—ORGANIZATION OF THE assumptions—including interest
Review, section 1(b), The Principles of DEPARTMENT OF JUSTICE assumptions—for paying plan benefits
Regulation. This rule is limited to under terminated single-employer plans
agency organization, management, and ■ 1. The authority citation for part 0 covered by title IV of the Employee
personnel as described in section 3(d)(3) continues to read as follows: Retirement Income Security Act of 1974.
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![Federal Register / Vol. 83, No. 135 / Friday, July 13, 2018 / Rules and Regulations 32581
The interest assumptions in the preceding the benefit’s placement in pay Because no general notice of proposed
regulation are also published on PBGC’s status. In comparison with the interest rulemaking is required for this
website (http://www.pbgc.gov). assumptions in effect for July 2018, amendment, the Regulatory Flexibility
PBGC uses the interest assumptions in these assumptions represent no change Act of 1980 does not apply. See 5 U.S.C.
appendix B to part 4022 to determine in the immediate rate and are otherwise 601(2).
whether a benefit is payable as a lump unchanged. List of Subjects in 29 CFR Part 4022
sum and to determine the amount to PBGC has determined that notice and
pay. Appendix C to part 4022 contains Employee benefit plans, Pension
public comment on this amendment are
interest assumptions for private-sector insurance, Pensions, Reporting and
impracticable and contrary to the public
pension practitioners to refer to if they recordkeeping requirements.
interest. This finding is based on the
wish to use lump-sum interest rates need to determine and issue new In consideration of the foregoing, 29
determined using PBGC’s historical interest assumptions promptly so that CFR part 4022 is amended as follows:
methodology. Currently, the rates in the assumptions can reflect current
appendices B and C of the benefit PART 4022—BENEFITS PAYABLE IN
market conditions as accurately as TERMINATED SINGLE-EMPLOYER
payment regulation are the same. possible.
The interest assumptions are intended PLANS
to reflect current conditions in the Because of the need to provide
financial and annuity markets. immediate guidance for the payment of ■ 1. The authority citation for part 4022
Assumptions under the benefit benefits under plans with valuation continues to read as follows:
payments regulation are updated dates during August 2018, PBGC finds Authority: 29 U.S.C. 1302, 1322, 1322b,
monthly. This final rule updates the that good cause exists for making the 1341(c)(3)(D), and 1344.
benefit payments interest assumptions assumptions set forth in this
■ 2. In appendix B to part 4022, Rate Set
for August 2018.1 amendment effective less than 30 days
298 is added at the end of the table to
The August 2018 interest assumptions after publication.
read as follows:
under the benefit payments regulation PBGC has determined that this action
will be 1.25 percent for the period is not a ‘‘significant regulatory action’’ Appendix B to Part 4022—Lump Sum
during which a benefit is in pay status under the criteria set forth in Executive Interest Rates for PBGC Payments
and 4.00 percent during any years Order 12866. * * * * *
For plans with a valuation Immediate Deferred annuities (percent)
date annuity
Rate set rate i1 i2 i3 n1 n2
On or after Before (percent)
* * * * * * *
298 8–1–18 9–1–18 1.25 4.00 4.00 4.00 7 8
■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum
298 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 (percent)
date annuity
Rate set rate i1 i2 i3 n1 n2
On or after Before (percent)
* * * * * * *
298 8–1–18 9–1–18 1.25 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. 2018–14974 Filed 7–12–18; 8:45 am]
BILLING CODE 7709–02–P
sradovich on DSK3GMQ082PROD with RULES
1 Appendix B to PBGC’s regulation on Allocation
benefits under terminating covered single-employer ERISA section 4044. Those assumptions are
of Assets in Single-Employer Plans (29 CFR part plans for purposes of allocation of assets under updated quarterly.
4044) prescribes interest assumptions for valuing
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Document Created: 2018-07-13 01:04:32
Document Modified: 2018-07-13 01:04:32
| 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 August 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 32580 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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