83 FR 64280 - Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 83, Issue 240 (December 14, 2018)
Federal Register Volume 83, Issue 240 (December 14, 2018)
| Page Range | 64280-64282 | |
| FR Document | 2018-26849 |
[Federal Register Volume 83, Number 240 (Friday, December 14, 2018)] [Rules and Regulations] [Pages 64280-64282] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-26849] ======================================================================= ----------------------------------------------------------------------- PENSION BENEFIT GUARANTY CORPORATION 29 CFR Parts 4022 and 4044 Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits AGENCY: Pension Benefit Guaranty Corporation. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule amends the Pension Benefit Guaranty Corporation's regulations on Benefits Payable in Terminated Single- Employer Plans and Allocation of Assets in Single-Employer Plans to prescribe interest assumptions under the benefit payments regulation for valuation dates in January 2019 and interest assumptions under the asset allocation regulation for valuation dates in the first quarter of 2019. The interest assumptions are used for valuing and paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective January 1, 2019. FOR FURTHER INFORMATION CONTACT: Melissa Rifkin ([email protected]), Attorney, Regulatory Affairs Division, Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 20005, 202-326-4400, ext. 6563. (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. 6563.) SUPPLEMENTARY INFORMATION: PBGC's regulations on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) and Benefits Payable in Terminated Single-Employer Plans (29 CFR part 4022) prescribe actuarial assumptions--including interest assumptions--for valuing and paying plan benefits under terminating single-employer plans covered by title IV of the Employee Retirement Income Security Act of 1974 (ERISA). The interest assumptions in the regulations are also published on PBGC's website (http://www.pbgc.gov). The interest assumptions in appendix B to part 4044 are used to value benefits for allocation purposes under ERISA section 4044. 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 asset allocation regulation are updated quarterly; assumptions under the benefit payments regulation are updated monthly. This final rule updates the benefit payments interest assumptions for January 2019 and updates the asset allocation interest assumptions for the first quarter (January through March) of 2019. The first quarter 2019 interest assumptions under the allocation regulation will be 3.09 percent for the first 20 years following the valuation date and 2.84 percent thereafter. In comparison with the interest assumptions in effect for the fourth quarter of 2018, these interest assumptions represent no change in the select period (the period during which the select rate (the initial rate) applies), an increase of 0.25 percent in the select [[Page 64281]] rate, and an increase of 0.08 percent in the ultimate rate (the final rate). The January 2019 interest assumptions under the benefit payments regulation will be 1.50 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 December 2018, these interest assumptions represent no change in the immediate rate and no changes in i1, i2, or i3. 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 valuation and payment of benefits under plans with valuation dates during January 2019, 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 29 CFR Part 4022 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. 29 CFR Part 4044 Employee benefit plans, Pension insurance, Pensions. In consideration of the foregoing, 29 CFR parts 4022 and 4044 are 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 303 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 303 1-1-19 2-1-19 1.50 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 303 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 303 1-1-19 2-1-19 1.50 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS 0 4. 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 5. In appendix B to part 4044, an entry for ``January-March 2019'' is added at the end of the table to read as follows: Appendix B to Part 4044--Interest Rates Used to Value Benefits * * * * * ---------------------------------------------------------------------------------------------------------------- The values of i are: For valuation dates ----------------------------------------------------------------------------------- occurring in the month-- i for t = i for t = i for t = ---------------------------------------------------------------------------------------------------------------- * * * * * * * January-March 2019.......... 0.0309 1-20 0.0284 >20 N/A N/A ---------------------------------------------------------------------------------------------------------------- [[Page 64282]] Issued in Washington, DC. Hilary Duke, Assistant General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2018-26849 Filed 12-13-18; 8:45 am] BILLING CODE 7709-02-P
![64280 Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Rules and Regulations
Zena Road, just northwest of Bethel; (4) Proceed north along Oak Grove pension insurance system administered
then Road for 1.7 miles to the intersection of by PBGC.
(13) Follow the 200-foot contour line the road with Zena Road; then DATES: Effective January 1, 2019.
easterly and then southerly until its first (5) Proceed east on Zena Road for
FOR FURTHER INFORMATION CONTACT:
intersection with Zena Road, and then approximately 0.25 mile to the second
follow Zena Road west approximately intersection of the road with the 200- Melissa Rifkin (rifkin.melissa@
0.25 mile to its southern intersection foot elevation contour; then PBGC.gov), Attorney, Regulatory Affairs
with Oak Grove Road, south of Bethel; (6) Proceed northwest along the 200- Division, Pension Benefit Guaranty
then foot elevation contour to the Corporation, 1200 K Street NW,
intersection of the elevation contour Washington, DC 20005, 202–326–4400,
* * * * * ext. 6563. (TTY users may call the
(15) Follow Frizzell Road west for with Oak Grove Road; then
(7) Proceed north along Oak Grove Federal relay service toll free at 1–800–
approximately 0.25 mile to its first 877–8339 and ask to be connected to
intersection with the 200-foot contour Road (which becomes Old Bethel Road)
approximately 7.75 miles to the 202–326–4400, ext. 6563.)
line, then
(16) Follow the 200-foot contour line intersection of the road with Patty Lane; SUPPLEMENTARY INFORMATION: PBGC’s
generally south, crossing onto the then regulations on Allocation of Assets in
Rickreall, Oregon, map, until the (8) Proceed west in a straight line for Single-Employer Plans (29 CFR part
contour line intersects the beginning a total of 10.8 miles, crossing over the 4044) and Benefits Payable in
point. Ballston map and onto the Sheridan Terminated Single-Employer Plans (29
map, to the intersection of the line with CFR part 4022) prescribe actuarial
■ 3. Subpart C is amended by adding
State Highway 18; then assumptions—including interest
§ 9.265 to read as follows:
(9) Proceed southwest along State assumptions—for valuing and paying
§ 9.265 Van Duzer Corridor. Highway 18 for 0.3 miles to the plan benefits under terminating single-
(a) Name. The name of the viticultural intersection of the highway with Red employer plans covered by title IV of
area described in this section is ‘‘Van Prairie Road; then the Employee Retirement Income
Duzer Corridor’’. For purposes of part 4 (10) Proceed south along Red Prairie Security Act of 1974 (ERISA). The
of this chapter, ‘‘Van Duzer Corridor’’ is Road for approximately 5.3 miles, interest assumptions in the regulations
a term of viticultural significance. returning to the beginning point. are also published on PBGC’s website
(b) Approved maps. The five United Signed: October 9, 2018.
(http://www.pbgc.gov).
States Geological Survey (USGS) John J. Manfreda,
The interest assumptions in appendix
1:24,000 scale topographic maps used to B to part 4044 are used to value benefits
Administrator.
determine the boundary of the Van for allocation purposes under ERISA
Approved: December 4, 2018. section 4044. PBGC uses the interest
Duzer Corridor viticultural area are
Timothy E. Skud, assumptions in appendix B to part 4022
titled:
(1) Sheridan, Oreg., 1956; revised Deputy Assistant Secretary (Tax, Trade, and to determine whether a benefit is
Tariff Policy). payable as a lump sum and to determine
1992;
[FR Doc. 2018–27017 Filed 12–13–18; 8:45 am] the amount to pay. Appendix C to part
(2) Ballston, Oreg., 1956; revised
1992; BILLING CODE 4810–31–P 4022 contains interest assumptions for
(3) Dallas, Oreg., 1974; photorevised private-sector pension practitioners to
1986; refer to if they wish to use lump-sum
(4) Amity, Oreg., 1957; revised 1993; PENSION BENEFIT GUARANTY interest rates determined using PBGC’s
and CORPORATION historical methodology. Currently, the
(5) Rickreall, Oreg., 1969; rates in appendices B and C of the
photorevised 1976; 29 CFR Parts 4022 and 4044 benefit payment regulation are the same.
(c) Boundary. The Van Duzer Corridor The interest assumptions are intended
Allocation of Assets in Single- to reflect current conditions in the
viticultural area is located in Polk and
Employer Plans; Benefits Payable in financial and annuity markets.
Yamhill Counties, in Oregon. The
Terminated Single-Employer Plans; Assumptions under the asset allocation
boundary of the Van Duzer Corridor
Interest Assumptions for Valuing and regulation are updated quarterly;
viticultural area is as described below:
Paying Benefits assumptions under the benefit payments
(1) The beginning point is on the
Sheridan map at the intersection of AGENCY: Pension Benefit Guaranty regulation are updated monthly. This
State Highway 22 and Red Prairie Road. Corporation. final rule updates the benefit payments
From the beginning point, proceed ACTION: Final rule.
interest assumptions for January 2019
southeasterly along State Highway 22 and updates the asset allocation interest
for a total of 12.4 miles, crossing over SUMMARY: This final rule amends the assumptions for the first quarter
the Ballston and Dallas maps and onto Pension Benefit Guaranty Corporation’s (January through March) of 2019.
the Rickreall map, to the intersection of regulations on Benefits Payable in The first quarter 2019 interest
the highway with the 200-foot elevation Terminated Single-Employer Plans and assumptions under the allocation
contour west of the Oak Knoll Golf Allocation of Assets in Single-Employer regulation will be 3.09 percent for the
Course; then Plans to prescribe interest assumptions first 20 years following the valuation
(2) Proceed north on the 200-foot under the benefit payments regulation date and 2.84 percent thereafter. In
elevation contour, crossing onto the for valuation dates in January 2019 and comparison with the interest
amozie on DSK3GDR082PROD with RULES
Amity map, to the third intersection of interest assumptions under the asset assumptions in effect for the fourth
the elevation contour with Frizzell allocation regulation for valuation dates quarter of 2018, these interest
Road; then in the first quarter of 2019. The interest assumptions represent no change in the
(3) Proceed east on Frizzell Road for assumptions are used for valuing and select period (the period during which
0.3 mile to the intersection of the road paying benefits under terminating the select rate (the initial rate) applies),
with Oak Grove Road; then single-employer plans covered by the an increase of 0.25 percent in the select
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![64282 Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Rules and Regulations
Issued in Washington, DC. to clarify visible emissions (VE) and Maryland’s February 28, 2018
Hilary Duke, continuous opacity monitor (COM) withdrawal letter looked incomplete.
Assistant General Counsel, Pension Benefit requirements for MWCs and Portland EPA Response: Upon receipt of the
Guaranty Corporation. cement plants. The formal SIP revision comment, EPA checked and confirmed
[FR Doc. 2018–26849 Filed 12–13–18; 8:45 am] (SIP Revision 16–04) was submitted by that the second page of the letter was
BILLING CODE 7709–02–P Maryland on May 10, 2016. On February inadvertently excluded from the docket.
28, 2018, the Maryland Department of EPA notes that the substance of the
the Environment (MDE) Secretary Ben letter was contained in the first page of
ENVIRONMENTAL PROTECTION Grumbles submitted a clarification letter the letter, which was included in the
AGENCY to EPA Regional Administrator Cosmo docket. The first page explained that
Servidio, withdrawing definitions for Maryland was withdrawing the
40 CFR Part 52 continuous burning and operating time, definitions of continuous burning and
COMAR 26.11.01.01B(8–1) and (27–1), operating time from EPA’s consideration
[EPA–R03–OAR–2018–0490; FRL–9987–81– respectively, from SIP Revision 16–04. as SIP revisions.
Region 3]
These definitions are no longer part of ‘‘The purpose of this letter is to request a
Air Plan Approval; Maryland; SIP Revision 16–04 and are not pending clarification to the Maryland SIP Rev #16–04,
Continuous Opacity Monitoring before EPA. to withdraw two definitions under COMAR
Requirements for Municipal Waste 26.11.01.01 Definitions from EPA’s
II. Summary of SIP Revision and EPA consideration. Please remove the following
Combustors and Cement Plants Analysis two definitions from EPA’s consideration for
AGENCY: Environmental Protection The SIP revision consisted of inclusion into Maryland’s SIP as part of SIP
Agency (EPA). revisions to COMAR 26.11.01.10, Rev #16–04:
Continuous Opacity Monitoring COMAR 26.11.01.01.8:
ACTION: Final rule. 1. (8–1) Continuous Burning
Requirements. Under COMAR
2. (27–1) Operating Time’’
SUMMARY: The Environmental Protection 26.11.01.10A, Applicability and The omitted second page contained only
Agency (EPA) is approving a state Exceptions, MDE added a new section, the following closing language:
implementation plan (SIP) revision COMAR 26.11.01.10A(6), regarding ‘‘. . . SIP submittal (enclosed) is an exact
submitted by the State of Maryland (SIP requirements for alternative visible duplicate of the official hard copy. If you
Revision 16–04). This revision pertains emissions limits. Under COMAR have any questions concerning this SIP
to clarifying continuous opacity 26.11.01.10B, General Requirements for action, please feel free to call me at (41 0)
monitoring requirements and visible COMs, MDE amended COMAR 537–3084 or Mr. George (Tad) S. Aburn, Jr.,
emission standards for municipal waste 26.11.01.10B(3) to clarify that a COM Director of the Air and Radiation
combustors (MWCs) and Portland must comply with the applicable Administration, at 410–537–3255.
cement plants. This action is being requirements in 40 CFR part 51, Sincerely, Ben Grumbles, Secretary.
taken under the Clean Air Act (CAA). appendix P in its entirety. Also under Enclosure
COMAR 26.11.01.10B, MDE added new cc: Mr. George (Tad) S. Aburn Jr., Director,
DATES: This final rule is effective on
sections COMAR 26.11.01.10B(5) and Air and Radiation Administration; Ms.
January 14, 2019. Cristina Fernandez, Director, Air
ADDRESSES: EPA has established a
26.11.01.10B(6) to clarify COM
Protection Division, EPA Region Ill’’
docket for this action under Docket ID requirements for the owners and
Although all the relevant substantive
Number EPA–R03–OAR–2018–0490. All operators of cement kilns and clinker information was contained in the first
documents in the docket are listed on coolers that are operating COMs and the
page of the letter, which was include in
the http://www.regulations.gov website. owners and operators of MWCs that are the docket, EPA rectified the omission
Although listed in the index, some required to install and operate COMs,
respectively. MDE repealed as quickly as possible. EPA posted
information is not publicly available, Maryland’s complete two-page letter,
e.g., confidential business information 26.11.01.10F, regarding redundant
COMs requirements for fuel burning dated February 28, 2018, to Docket ID
(CBI) or other information whose No. EPA–R03–OAR–2018–0490, at
disclosure is restricted by statute. equipment, and is requesting its
removal from the SIP. Finally, MDE http://www.regulations.gov, on
Certain other material, such as September 4, 2018. The public comment
copyrighted material, is not placed on amended COMAR 26.11.08, Control of
Incinerators, to add a new section D to period ran from August 23, 2018 until
the internet and will be publicly September 24, 2018.
available only in hard copy form. regulation .04, Visible Emissions.
EPA evaluated these amendments and Comment: The commenter also stated
Publicly available docket materials are that EPA’s NPRM was hard to
found that they help to clarify
available through http:// understand, writing, ‘‘I can’t follow
requirements for COMs. Therefore, they
www.regulations.gov, or please contact which COMAR applies to what COMAR
are approvable. Other specific
the person identified in the FOR FURTHER because of what redundancies, changes,
requirements of Maryland’s SIP
INFORMATION CONTACT section for or what have you.’’
Revision 16–04 and the rationale for
additional availability information. EPA Response: There were numerous
EPA’s proposed action are explained in
FOR FURTHER INFORMATION CONTACT: the NPRM and will not be restated here. changes discussed in EPA’s August 23,
Maria A. Pino, (215) 814–2181, or by 2018 NPRM, which readers may find
email at pino.maria@epa.gov. III. Summary of Public Comments and hard to follow. However, in section II of
SUPPLEMENTARY INFORMATION:
EPA Responses the NPRM, Summary of SIP Revision
On September 1, 2018, EPA received and EPA Analysis, EPA set out a section
amozie on DSK3GDR082PROD with RULES
I. Background adverse comments from one anonymous by section accounting of the proposed
On August 23, 2018 (83 FR 42624), commenter. changes to Maryland’s SIP. In addition,
EPA published a notice of proposed Comment: The commenter observed in Docket ID No. EPA–R03–OAR–2018–
rulemaking (NPRM) for the State of that in the docket for this rulemaking, 0490, at http://www.regulations.gov,
Maryland. In the NPRM, EPA proposed Docket ID No. EPA–R03–OAR–2018– there are numerous documents that are
approval of a revision to Maryland’s SIP 0490, at http://www.regulations.gov, part of Maryland’s SIP Revision
VerDate Sep<11>2014 16:07 Dec 13, 2018 Jkt 247001 PO 00000 Frm 00060 Fmt 4700 Sfmt 4700 E:\FR\FM\14DER1.SGM 14DER1](https://thefederalregister.org/doc/83_FR_64520/page/3.svg)
Document Created: 2018-12-14 03:49:29
Document Modified: 2018-12-14 03:49:29
| 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 January 1, 2019. | |
| Contact | Melissa Rifkin ([email protected]), Attorney, Regulatory Affairs Division, Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 20005, 202-326-4400, ext. 6563. (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. 6563.) | |
| FR Citation | 83 FR 64280 | |
| CFR Citation | 29
CFR
4022 29 CFR 4044 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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