83 FR 6956 - Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
PENSION BENEFIT GUARANTY CORPORATION Federal Register Volume 83, Issue 33 (February 16, 2018)
Federal Register Volume 83, Issue 33 (February 16, 2018)
| Page Range | 6956-6957 | |
| FR Document | 2018-03227 |
[Federal Register Volume 83, Number 33 (Friday, February 16, 2018)] [Rules and Regulations] [Pages 6956-6957] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-03227] ======================================================================= ----------------------------------------------------------------------- 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 March 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 March 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, 202-326-4400 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 March 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 March 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 February 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 March 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 293 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 293 3-1-18 4-1-18 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- 0 3. In appendix C to part 4022, Rate Set 293 is added at the end of the table to read as follows: [[Page 6957]] 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 -------------------------------------------------------------------------------------------------------------------------------------------------------- * * * * * * * 293 3-1-18 4-1-18 0.75 4.00 4.00 4.00 7 8 -------------------------------------------------------------------------------------------------------------------------------------------------------- Issued in Washington, DC, by Daniel S. Liebman, Acting Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2018-03227 Filed 2-15-18; 8:45 am] BILLING CODE 7709-02-P
![6956 Federal Register / Vol. 83, No. 33 / Friday, February 16, 2018 / Rules and Regulations
Dated: February 12, 2018. Terminated Single-Employer Plans (29 the assumptions can reflect current
Richard E. Ashooh, CFR part 4022) prescribes actuarial market conditions as accurately as
Assistant Secretary for Export assumptions—including interest possible.
Administration. assumptions—for paying plan benefits Because of the need to provide
[FR Doc. 2018–03234 Filed 2–15–18; 8:45 am] under terminated single-employer plans immediate guidance for the payment of
BILLING CODE 3510–33–P covered by title IV of the Employee benefits under plans with valuation
Retirement Income Security Act of 1974. dates during March 2018, PBGC finds
The interest assumptions in the that good cause exists for making the
PENSION BENEFIT GUARANTY regulation are also published on PBGC’s assumptions set forth in this
CORPORATION website (http://www.pbgc.gov). amendment effective less than 30 days
PBGC uses the interest assumptions in after publication.
29 CFR Part 4022 appendix B to part 4022 to determine
whether a benefit is payable as a lump PBGC has determined that this action
sum and to determine the amount to is not a ‘‘significant regulatory action’’
Benefits Payable in Terminated Single-
pay. Appendix C to part 4022 contains under the criteria set forth in Executive
Employer Plans; Interest Assumptions
interest assumptions for private-sector Order 12866.
for Paying Benefits
pension practitioners to refer to if they Because no general notice of proposed
AGENCY: Pension Benefit Guaranty wish to use lump-sum interest rates rulemaking is required for this
Corporation. determined using PBGC’s historical amendment, the Regulatory Flexibility
ACTION: Final rule. methodology. Currently, the rates in Act of 1980 does not apply. See 5 U.S.C.
appendices B and C of the benefit 601(2).
SUMMARY: This final rule amends the
Pension Benefit Guaranty Corporation’s payment regulation are the same. List of Subjects in 29 CFR Part 4022
The interest assumptions are intended
regulation on Benefits Payable in
to reflect current conditions in the Employee benefit plans, Pension
Terminated Single-Employer Plans to
financial and annuity markets. insurance, Pensions, Reporting and
prescribe interest assumptions under
Assumptions under the benefit recordkeeping requirements.
the regulation for valuation dates in
payments regulation are updated In consideration of the foregoing, 29
March 2018. The interest assumptions
monthly. This final rule updates the CFR part 4022 is amended as follows:
are used for paying benefits under
benefit payments interest assumptions
terminating single-employer plans
for March 2018.1 PART 4022—BENEFITS PAYABLE IN
covered by the pension insurance The March 2018 interest assumptions
system administered by PBGC. TERMINATED SINGLE-EMPLOYER
under the benefit payments regulation PLANS
DATES: Effective March 1, 2018. will be 0.75 percent for the period
FOR FURTHER INFORMATION CONTACT: during which a benefit is in pay status ■ 1. The authority citation for part 4022
Daniel S. Liebman (liebman.daniel@ and 4.00 percent during any years continues to read as follows:
pbgc.gov), Acting Assistant General preceding the benefit’s placement in pay
Counsel for Regulatory Affairs, Pension Authority: 29 U.S.C. 1302, 1322, 1322b,
status. In comparison with the interest 1341(c)(3)(D), and 1344.
Benefit Guaranty Corporation, 1200 K assumptions in effect for February 2018,
Street NW, Washington, DC 20005, 202– these assumptions are unchanged. ■ 2. In appendix B to part 4022, Rate Set
326–4400 ext. 6510. (TTY/ASCII users PBGC has determined that notice and 293 is added at the end of the table to
may call the Federal relay service toll- public comment on this amendment are read as follows:
free at 1–800–877–8339 and ask to be impracticable and contrary to the public
connected to 202–326–4400, ext. 6510.) interest. This finding is based on the Appendix B to Part 4022—Lump Sum
SUPPLEMENTARY INFORMATION: PBGC’s need to determine and issue new Interest Rates For PBGC Payments
regulation on Benefits Payable in interest assumptions promptly so that * * * * *
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
293 3–1–18 4–1–18 0.75 4.00 4.00 4.00 7 8
■ 3. In appendix C to part 4022, Rate Set
293 is added at the end of the table to
read as follows:
daltland on DSKBBV9HB2PROD 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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![Federal Register / Vol. 83, No. 33 / Friday, February 16, 2018 / Rules and Regulations 6957
Appendix C to Part 4022—Lump Sum
Interest Rates For Private-Sector
Payments
* * * * *
For plans with a valuation Deferred annuities
Immediate
date (percent)
Rate set annuity rate
(percent)
On or after Before i1 i2 i3 n1 n2
* * * * * * *
293 3–1–18 4–1–18 0.75 4.00 4.00 4.00 7 8
Issued in Washington, DC, by Folder on the line associated with this Immediate implementation is required
Daniel S. Liebman, rule. to protect the public and participants
Acting Assistant General Counsel for FOR FURTHER INFORMATION CONTACT: If from the dangers associated with these
Regulatory Affairs, Pension Benefit Guaranty you have questions on this rule, call or activities.
Corporation. email Petty Officer Matthew Tyson, III. Legal Authority and Need for Rule
[FR Doc. 2018–03227 Filed 2–15–18; 8:45 am] Waterways Management Division, U.S.
The Coast Guard is issuing this rule
BILLING CODE 7709–02–P Coast Guard Sector North Carolina,
under authority in 33 U.S.C. 1233. The
Wilmington, NC; telephone: 910–772–
COTP North Carolina has determined
2221, email: Matthew.I.Tyson@uscg.mil.
that potential hazards associated with
DEPARTMENT OF HOMELAND SUPPLEMENTARY INFORMATION: the Iconic Marine Group Kilo Race
SECURITY scheduled on February 23 and February
I. Table of Abbreviations
24, 2018, with an alternate date
Coast Guard February 25, 2018, is a safety concern
CFR Code of Federal Regulations
DHS Department of Homeland Security for mariners during the high-speed boat
33 CFR Part 100 FR Federal Register race on the Pamlico River near
NPRM Notice of proposed rulemaking Washington, North Carolina. This rule is
[Docket Number USCG–2017–1100] § Section necessary to protect persons and vessels
U.S.C. United States Code
RIN 1625–AA08 from the potential hazards associated
COTP Captain of the Port
with the high-speed boat race.
Special Local Regulation; Pamlico
II. Background Information and IV. Discussion of the Rule
River, Washington, NC
Regulatory History This rule establishes a special local
AGENCY: Coast Guard, DHS. The Coast Guard is issuing this regulation on a portion of the Pamlico
ACTION: Temporary final rule. temporary rule without prior notice and River on February 23 and February 24,
opportunity to comment pursuant to 2018, with an alternate date of February
SUMMARY: The Coast Guard is authority under section 4(a) of the 25, 2018, in the event that weather or
establishing a special local regulation on Administrative Procedure Act (APA) (5 other factors do not allow the race to
the navigable waters of the Pamlico U.S.C. 553(b)). This provision commence on the primary dates. The
River near Washington, North Carolina. authorizes an agency to issue a rule special local regulation will be enforced
This special local regulation is intended without prior notice and opportunity to for approximately one hour between the
to restrict vessel traffic on the Pamlico comment when the agency for good hours of 7 a.m. and noon, when
River during a high-speed boat race. cause finds that those procedures are environmental conditions meet the
This action is intended to restrict vessel ‘‘impracticable, unnecessary, or contrary requirements for the race. The exact
traffic movement in the regulated area to to the public interest.’’ Under 5 U.S.C. times of enforcement will be broadcast
protect participants, spectators, and 553(b)(B), the Coast Guard finds that locally over VHF–FM marine radio. The
property from the hazards posed by good cause exists for not publishing a special local regulation will include all
high-speed boat races. Entry of vessels notice of proposed rulemaking (NPRM) navigable waters of the Pamlico River
or persons into this special local with respect to this rule because the near Washington, North Carolina, from
regulation is prohibited unless Coast Guard was notified about the race approximate positions: Latitude
specifically authorized by the Captain of on December 1, 2017 and there were 35°28′42″ N, longitude 076°59′14″ W,
the Port (COTP) North Carolina or a multiple revisions over the following then northwest to latitude 35°29′53″ N,
designated representative. three weeks. It is impracticable and longitude 077°01′18″ W, then northwest
DATES: This rule is effective from 7 a.m. contrary to the public interest to delay along the shoreline to latitude 35°32′29″
on February 23, 2018, through noon on this action. Waiting for a comment N, longitude 077°03′47″ W, then
February 24, 2018, with an alternate period to run would inhibit the Coast northwest to latitude 35°32′34″ N,
date of February 25, 2018 from 7 a.m. Guard’s ability to protect the public and longitude 077°03′56″ W, then northeast
through noon. participants from the dangers associated to latitude 35°32′42″ N, longitude
daltland on DSKBBV9HB2PROD with RULES
ADDRESSES: To view documents with the high-speed boat race scheduled 077°03′50″ W, then southeast along the
mentioned in this preamble as being to start on February 23, 2018. shoreline to latitude 35°29′06″ N,
available in the docket, go to http:// For the same reasons, the Coast Guard longitude 076°58′48″ W, then southwest
www.regulations.gov, type USCG–2017– finds good cause to make this rule back to the point of origin, a length of
1100 in the ‘‘SEARCH’’ box and click effective less than 30 days after approximately six miles. The duration
‘‘SEARCH.’’ Click on Open Docket publication, under 5 U.S.C. 553(d)(3). of this special local regulation is
VerDate Sep<11>2014 17:46 Feb 15, 2018 Jkt 244001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 E:\FR\FM\16FER1.SGM 16FER1](https://thefederalregister.org/doc/83_FR_6989/page/2.svg)
Document Created: 2018-02-16 00:55:39
Document Modified: 2018-02-16 00:55:39
| 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 March 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 6956 | |
| CFR Associated | Employee Benefit Plans; Pension Insurance; Pensions and Reporting and Recordkeeping Requirements |
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