Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 91032-91033 [2016-30098]
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91032
Federal Register / Vol. 81, No. 242 / Friday, December 16, 2016 / Rules and Regulations
elections made under § 301.7701–3 that
are filed on or after September 14, 2015.
For guidance with respect to paragraphs
(c)(4), (c)(5), and (d)(1) of this section
before this section is applicable, see
§§ 1.6038B–1 and 1.6038B–1T as
contained in 26 CFR part 1 revised as of
April 1, 2016.
§ 1.6038B–1T
[Amended]
Par. 24. Section 1.6038B–1T is
amended by removing and reserving
paragraphs (c)(4)(i) through (c)(5)
introductory text, and (d)(1)(iv) and
(vii).
■
John Dalrymple,
Deputy Commissioner for Services and
Enforcement.
Approved: November 23, 2016.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2016–29791 Filed 12–15–16; 8:45 am]
BILLING CODE 4830–01–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions
for Paying Benefits
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
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
January 2017. The interest assumptions
are used for paying benefits under
terminating single-employer plans
covered by the pension insurance
system administered by PBGC. As
discussed below, PBGC will publish a
separate final rule document dealing
with interest assumptions under its
regulation on Allocation of Assets in
Single-Employer Plans for the first
quarter of 2017.
DATES: Effective January 1, 2017.
FOR FURTHER INFORMATION CONTACT:
Deborah C. Murphy (Murphy.Deborah@
pbgc.gov), Assistant General Counsel for
Regulatory Affairs, Pension Benefit
asabaliauskas on DSK3SPTVN1PROD with RULES
SUMMARY:
VerDate Sep<11>2014
17:15 Dec 15, 2016
Jkt 241001
Guaranty Corporation, 1200 K Street
NW., Washington, DC 20005, 202–326–
4400 ext. 3451. (TTY/TDD users may
call the Federal relay service toll-free at
1–800–877–8339 and ask to be
connected to 202–326–4400 ext. 3451.)
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 terminating 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 Web site (https://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 January 2017.1
PBGC normally updates the
assumptions under the benefit payments
regulation for January at the same time
as PBGC updates assumptions for the
first quarter of the year under its
regulation on Allocation of Assets in
Single-Employer Plans (29 CFR part
4044) in a single rulemaking document.
Because of delays in obtaining data used
in setting assumptions under Part 4044
for the first quarter of 2017, PBGC is
publishing two separate rulemaking
documents to update the benefit
payments regulation for January 2017
and the allocation regulation for the first
quarter of 2017.
The January 2017 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 December
2016, these interest assumptions
represent an increase in the immediate
rate of 0.50 percent 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 January 2017, 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
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.
2. In appendix B to part 4022, Rate Set
279, as set forth below, is added to the
table.
■
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.
PO 00000
Frm 00084
Fmt 4700
Sfmt 4700
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
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91033
Federal Register / Vol. 81, No. 242 / Friday, December 16, 2016 / Rules and Regulations
For plans with a valuation
date
Rate set
On or after
*
Before
*
279
1–1–17
*
Before
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1–1–17
40 CFR Part 52
[EPA–R04–OAR–2016–0359; FRL–9956–63–
Region 4]
Air Plan Approval; TN; Revisions to the
Knox County Portion of the TN SIP
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:
The Environmental Protection
Agency (EPA) is approving a State
Implementation Plan (SIP) revision
submitted by the State of Tennessee,
through the Tennessee Department of
Environment and Conservation (TDEC),
on January 11, 2016. The revision was
submitted by TDEC on behalf of the
Knox County Department of Air Quality
Management, which has jurisdiction
over Knox County, Tennessee. The
revision that EPA is approving amends
the Knox County Air Quality
Management Department’s regulations,
which are part of the Tennessee SIP, to
address EPA’s startup, shutdown, and
malfunction (SSM) SIP call for Knox
County. EPA is approving the January
11, 2016, SIP revision because the
Agency has determined that it is in
accordance with the requirements for
SIP provisions under the Clean Air Act
(CAA or Act).
SUMMARY:
Jkt 241001
4.00
*
n1
*
*
4.00
n2
*
7
8
n1
n2
*
Deferred annuities
(percent)
i1
i2
*
4.00
4.00
i3
*
This rule will be effective
January 17, 2017.
ADDRESSES: EPA has established a
docket for this action under Docket
Identification No. EPA–R04–OAR–
2016–0359. All documents in the docket
are listed on the www.regulations.gov
Web site. Although listed in the index,
some information is not publicly
available, i.e., Confidential Business
Information or other information whose
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the Internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available either electronically through
www.regulations.gov or in hard copy at
the Air Regulatory Management Section,
Air Planning and Implementation
Branch, Air, Pesticides and Toxics
Management Division, U.S.
Environmental Protection Agency,
Region 4, 61 Forsyth Street SW.,
Atlanta, Georgia 30303–8960. EPA
requests that if at all possible, you
contact the person listed in the FOR
FURTHER INFORMATION CONTACT section to
schedule your inspection. The Regional
Office’s official hours of business are
Monday through Friday 8:30 a.m. to
4:30 p.m., excluding Federal holidays.
FOR FURTHER INFORMATION CONTACT:
Madolyn Sanchez, Air Regulatory
Management Section, Air Planning and
Implementation Branch, Pesticides and
Toxics Management Division, Region 4,
U.S. Environmental Protection Agency,
61 Forsyth Street SW., Atlanta, Georgia
30303–8960. Ms. Sanchez can be
reached via telephone at (404) 562–9644
and via electronic mail at
sanchez.madolyn@epa.gov.
DATES:
ENVIRONMENTAL PROTECTION
AGENCY
asabaliauskas on DSK3SPTVN1PROD with RULES
Immediate
annuity rate
(percent)
1.25
BILLING CODE 7709–02–P
17:15 Dec 15, 2016
*
*
[FR Doc. 2016–30098 Filed 12–15–16; 8:45 am]
VerDate Sep<11>2014
*
2–1–17
Deborah Chase Murphy,
Assistant General Counsel for Regulatory
Affairs, Pension Benefit Guaranty
Corporation.
i3
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
For plans with a valuation
date
i2
*
4.00
1.25
3. In appendix C to part 4022, Rate Set
279, as set forth below, is added to the
table.
On or after
i1
*
2–1–17
■
Rate set
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
PO 00000
Frm 00085
Fmt 4700
Sfmt 4700
*
4.00
*
7
8
SUPPLEMENTARY INFORMATION:
I. Background
On May 22, 2015, EPA finalized an
action (hereafter referred to as the ‘‘SSM
SIP Action’’) 1 that responded to a Sierra
Club petition for rulemaking concerning
state rule treatment of excess emissions
by sources during periods of SSM and
called for 36 states to submit corrective
SIP revisions to EPA by November 22,
2016. As discussed in that action, EPA
determined that Knox County
Regulation 32.1(C) 2 is inconsistent with
the fundamental requirements of CAA
sections 113(e)(1), 114(c) and 304 and
the credible evidence rule 3 and thus
issued a SIP call requiring the State to
submit a corrective SIP revision
addressing this provision. See 80 FR
33965.
On January 11, 2016, the State of
Tennessee submitted a SIP revision,
pursuant to a request by the Knox
County Department of Air Quality
Management, to address the SSM SIP
Action with respect to Knox County.
The revision removes the language from
Knox County Regulation 32.1(C) that
EPA found to be unlawful in the SSM
SIP Action and replaces it with
‘‘(Reserved).’’ In a proposed rulemaking
published on September 22, 2016 (81 FR
65313), EPA proposed to approve that
1 See ‘‘State Implementation Plans: Response to
Petition for Rulemaking; Restatement and Update of
EPA’s SSM Policy Applicable to SIPs; Findings of
Substantial Inadequacy; and SIP Calls To Amend
Provisions Applying to Excess Emissions During
Periods of Startup, Shutdown and Malfunction,’’ 80
FR 33839 (June 12, 2015).
2 Knox County SIP Regulation 32.1(C) is a
subsection of Section 32.0, ‘‘Use of Evidence.’’
3 40 CFR 51.212(c); see also ‘‘Credible Evidence
Revisions,’’ 62 FR 8314 (Feb. 24, 1997).
E:\FR\FM\16DER1.SGM
16DER1
]]>Agencies
[Federal Register Volume 81, Number 242 (Friday, December 16, 2016)]
[Rules and Regulations]
[Pages 91032-91033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30098]
=======================================================================
-----------------------------------------------------------------------
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 January 2017. The interest assumptions are used
for paying benefits under terminating single-employer plans covered by
the pension insurance system administered by PBGC. As discussed below,
PBGC will publish a separate final rule document dealing with interest
assumptions under its regulation on Allocation of Assets in Single-
Employer Plans for the first quarter of 2017.
DATES: Effective January 1, 2017.
FOR FURTHER INFORMATION CONTACT: Deborah C. Murphy
(Murphy.Deborah@pbgc.gov), Assistant General Counsel for Regulatory
Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW.,
Washington, DC 20005, 202-326-4400 ext. 3451. (TTY/TDD users may call
the Federal relay service toll-free at 1-800-877-8339 and ask to be
connected to 202-326-4400 ext. 3451.)
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 terminating 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 Web site
(https://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 January 2017.\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.
---------------------------------------------------------------------------
PBGC normally updates the assumptions under the benefit payments
regulation for January at the same time as PBGC updates assumptions for
the first quarter of the year under its regulation on Allocation of
Assets in Single-Employer Plans (29 CFR part 4044) in a single
rulemaking document. Because of delays in obtaining data used in
setting assumptions under Part 4044 for the first quarter of 2017, PBGC
is publishing two separate rulemaking documents to update the benefit
payments regulation for January 2017 and the allocation regulation for
the first quarter of 2017.
The January 2017 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 December 2016, these interest assumptions
represent an increase in the immediate rate of 0.50 percent 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 January 2017, 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 279, as set forth below, is
added to the table.
Appendix B to Part 4022--Lump Sum Interest Rates for PBGC Payments
* * * * *
[[Page 91033]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
279 1-1-17 2-1-17 1.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 279, as set forth below, is
added to the table.
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
279 1-1-17 2-1-17 1.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Deborah Chase Murphy,
Assistant General Counsel for Regulatory Affairs, Pension Benefit
Guaranty Corporation.
[FR Doc. 2016-30098 Filed 12-15-16; 8:45 am]
BILLING CODE 7709-02-P
