83 FR 40453 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 83, Issue 158 (August 15, 2018)
Federal Register Volume 83, Issue 158 (August 15, 2018)
| Page Range | 40453-40454 | |
| FR Document | 2018-17351 |
[Federal Register Volume 83, Number 158 (Wednesday, August 15, 2018)] [Rules and Regulations] [Pages 40453-40454] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-17351] ======================================================================= ----------------------------------------------------------------------- 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 September 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 September 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 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 September 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 September 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 August 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 September 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. [[Page 40454]] 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 299 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 299 9-1-18 10-1-18 1.25 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 299 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 299 9-1-18 10-1-18 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. 2018-17351 Filed 8-14-18; 8:45 am] BILLING CODE 7709-02-P
![Federal Register / Vol. 83, No. 158 / Wednesday, August 15, 2018 / Rules and Regulations 40453
and results in no more than de minimis PART 416—SUPPLEMENTAL PBGC uses the interest assumptions in
costs. SECURITY INCOME FOR THE AGED, appendix B to part 4022 to determine
BLIND, AND DISABLED whether a benefit is payable as a lump
Regulatory Flexibility Act
sum and to determine the amount to
We certify that this final rule will not Subpart N—[Amended] pay. Appendix C to part 4022 contains
have a significant economic impact on interest assumptions for private-sector
a substantial number of small entities ■ 3. The authority citation for subpart N pension practitioners to refer to if they
because it affects individuals only. continues to read as follows: wish to use lump-sum interest rates
Therefore, the Regulatory Flexibility Authority: Secs. 702(a)(5), 1631, and 1633 determined using PBGC’s historical
Act, as amended, does not require us to of the Social Security Act (42 U.S.C. methodology. Currently, the rates in
prepare a regulatory flexibility analysis. 902(a)(5), 1383, and 1383b); sec. 202, Pub. L. appendices B and C of the benefit
108–203, 118 Stat. 509 (42 U.S.C. 902 note). payment regulation are the same.
Paperwork Reduction Act The interest assumptions are intended
§ 416.1442 [Amended]
These rules do not create any new or to reflect current conditions in the
affect any existing collections and, ■ 4. In § 416.1442, remove paragraph financial and annuity markets.
therefore, do not require Office of (g). Assumptions under the benefit
Management and Budget approval [FR Doc. 2018–17547 Filed 8–14–18; 8:45 am] payments regulation are updated
under the Paperwork Reduction Act. BILLING CODE 4191–02–P monthly. This final rule updates the
(Catalog of Federal Domestic Assistance benefit payments interest assumptions
Program Nos. 96.001, Social Security— for September 2018.1
Disability Insurance; 96.002, Social PENSION BENEFIT GUARANTY The September 2018 interest
Security—Retirement Insurance; 96.004, CORPORATION assumptions under the benefit payments
Social Security—Survivors Insurance; regulation will be 1.25 percent for the
96.006, Supplemental Security Income.) 29 CFR Part 4022 period during which a benefit is in pay
List of Subjects status and 4.00 percent during any years
Benefits Payable in Terminated Single- preceding the benefit’s placement in pay
20 CFR Part 404 Employer Plans; Interest Assumptions status. In comparison with the interest
Administrative practice and for Paying Benefits assumptions in effect for August 2018,
procedure; Blind; Disability benefits; these assumptions represent no change
AGENCY: Pension Benefit Guaranty in the immediate rate and are otherwise
Old-age, Survivors and Disability Corporation.
Insurance; Reporting and recordkeeping unchanged.
ACTION: Final rule. PBGC has determined that notice and
requirements; Social security.
public comment on this amendment are
20 CFR Part 416 SUMMARY: This final rule amends the impracticable and contrary to the public
Pension Benefit Guaranty Corporation’s interest. This finding is based on the
Administrative practice and regulation on Benefits Payable in
procedure; Reporting and recordkeeping need to determine and issue new
Terminated Single-Employer Plans to interest assumptions promptly so that
requirements; Supplemental Security prescribe interest assumptions under
Income (SSI). the assumptions can reflect current
the regulation for valuation dates in market conditions as accurately as
September 2018. The interest possible.
Nancy A. Berryhill,
assumptions are used for paying Because of the need to provide
Acting Commissioner of Social Security. benefits under terminating single- immediate guidance for the payment of
For the reasons stated in the employer plans covered by the pension benefits under plans with valuation
preamble, we are amending subpart J of insurance system administered by dates during September 2018, PBGC
part 404 and subpart N of part 416 of PBGC. finds that good cause exists for making
Chapter III of title 20 of the Code of DATES: Effective September 1, 2018. the assumptions set forth in this
Federal Regulations as set forth below: amendment effective less than 30 days
FOR FURTHER INFORMATION CONTACT:
Hilary Duke (duke.hilary@pbgc.gov), after publication.
PART 404—FEDERAL OLD–AGE, PBGC has determined that this action
SURVIVORS AND DISABILITY Assistant General Counsel for
Regulatory Affairs, Pension Benefit is not a ‘‘significant regulatory action’’
INSURANCE under the criteria set forth in Executive
Guaranty Corporation, 1200 K Street
(1950– ) NW, Washington, DC 20005, 202–326– Order 12866.
4400 ext. 3839. (TTY users may call the Because no general notice of proposed
Subpart J—[Amended] Federal relay service toll-free at 1–800– rulemaking is required for this
877–8339 and ask to be connected to amendment, the Regulatory Flexibility
■ 1. The authority citation for subpart J 202–326–4400, ext. 3839.) Act of 1980 does not apply. See 5 U.S.C.
of part 404 continues to read as follows: 601(2).
SUPPLEMENTARY INFORMATION: PBGC’s
Authority: Secs. 201(j), 204(f), 205(a)–(b), regulation on Benefits Payable in List of Subjects in 29 CFR Part 4022
(d)–(h), and (j), 221, 223(i), 225, and 702(a)(5) Terminated Single-Employer Plans (29
of the Social Security Act (42 U.S.C. 401(j), Employee benefit plans, Pension
404(f), 405(a)–(b), (d)–(h), and (j), 421, 423(i),
CFR part 4022) prescribes actuarial insurance, Pensions, Reporting and
425, and 902(a)(5)); sec. 5, Pub. L. 97–455, 96 assumptions—including interest recordkeeping requirements.
assumptions—for paying plan benefits
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Stat. 2500 (42 U.S.C. 405 note); secs. 5, 6(c)–
(e), and 15, Pub. L. 98–460, 98 Stat. 1802 (42 under terminated single-employer plans 1 Appendix B to PBGC’s regulation on Allocation
U.S.C. 421 note); sec. 202, Pub. L. 108–203, covered by title IV of the Employee of Assets in Single-Employer Plans (29 CFR part
118 Stat. 509 (42 U.S.C. 902 note). Retirement Income Security Act of 1974. 4044) prescribes interest assumptions for valuing
benefits under terminating covered single-employer
The interest assumptions in the plans for purposes of allocation of assets under
§ 404.942 [Amended]
regulation are also published on PBGC’s ERISA section 4044. Those assumptions are
■ 2. In § 404.942, remove paragraph (g). website (http://www.pbgc.gov). updated quarterly.
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![40454 Federal Register / Vol. 83, No. 158 / Wednesday, August 15, 2018 / Rules and Regulations
In consideration of the foregoing, 29 PART 4022—BENEFITS PAYABLE IN ■ 2. In appendix B to part 4022, Rate Set
CFR part 4022 is amended as follows: TERMINATED SINGLE-EMPLOYER 299 is added at the end of the table to
PLANS read as follows:
■ 1. The authority citation for part 4022 Appendix B to Part 4022—Lump Sum
continues to read as follows: Interest Rates For PBGC Payments
Authority: 29 U.S.C. 1302, 1322, 1322b, * * * * *
1341(c)(3)(D), and 1344.
For plans with a valuation date Deferred annuities
Immediate (percent)
Rate set annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
* * * * * * *
299 9–1–18 10–1–18 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
299 is added at the end of the table to Interest Rates For Private-Sector
read as follows: Payments
* * * * *
For plans with a valuation date Deferred annuities
Immediate (percent)
Rate set annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
* * * * * * *
299 9–1–18 10–1–18 1.25 4.00 4.00 4.00 7 8
Issued in Washington, DC. ADDRESSES: The docket for this Vessels able to pass through the bridge
Hilary Duke, deviation, USCG–2018–0782, is in the closed position may do so at
Assistant General Counsel for Regulatory available at http://www.regulations.gov. anytime. The bridge will be able to open
Affairs, Pension Benefit Guaranty Type the docket number in the for emergencies and there is no
Corporation. ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ immediate alternate route for vessels to
[FR Doc. 2018–17351 Filed 8–14–18; 8:45 am] Click on Open Docket Folder on the line pass. The Coast Guard will also inform
BILLING CODE 7709–02–P associated with this deviation. the users of the waterway through our
FOR FURTHER INFORMATION CONTACT: If Local and Broadcast Notices to Mariners
you have questions on this temporary of the change in operating schedule for
DEPARTMENT OF HOMELAND deviation, call or email Carl T. Hausner, the bridge so that vessel operators can
SECURITY Chief, Bridge Section, Eleventh Coast arrange their transits to minimize any
Guard District; telephone 510–437– impact caused by the temporary
Coast Guard 3516, email Carl.T.Hausner@uscg.mil. deviation.
SUPPLEMENTARY INFORMATION: The In accordance with 33 CFR 117.35(e),
33 CFR Part 117
California Department of Transportation the drawbridge must return to its regular
[Docket No. USCG–2018–0782] has requested a temporary change to the operating schedule immediately at the
operation of the Tower Drawbridge, end of the effective period of this
Drawbridge Operation Regulation; mile 59.0, over Sacramento River, at
Sacramento River, Sacramento, CA temporary deviation. This deviation
Sacramento, CA. The drawbridge
from the operating regulations is
AGENCY: Coast Guard, DHS. navigation span provides a vertical
clearance of 30 feet above Mean High authorized under 33 CFR 117.35.
ACTION:Notice of deviation from
drawbridge regulation. Water in the closed-to-navigation Dated: August 9, 2018.
position. The draw operates as required Carl T. Hausner,
SUMMARY: The Coast Guard has issued a by 33 CFR 117.189(a). Navigation on the District Bridge Chief, Eleventh Coast Guard
temporary deviation from the operating waterway is commercial and District.
schedule that governs the Tower recreational. [FR Doc. 2018–17522 Filed 8–14–18; 8:45 am]
Drawbridge across the Sacramento The drawspan will be secured in the
BILLING CODE 9110–04–P
River, mile 59.0, at Sacramento, CA. The closed-to-navigation position from 7
deviation is necessary to allow a.m. to 9 p.m. on August 25, 2018, to
daltland on DSKBBV9HB2PROD with RULES
commercial filming. This deviation allow filming and a photoshoot for
allows the bridge to remain in the commercial advertisement. This
closed-to-navigation position. temporary deviation has been
DATES: This deviation is effective from coordinated with the waterway users.
7 a.m. through 9 p.m. on August 25, No objections to the proposed
2018. temporary deviation were raised.
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Document Created: 2018-08-15 01:26:57
Document Modified: 2018-08-15 01:26:57
| 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 September 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 40453 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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