Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age, 72716-72717 [E8-28413]
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Federal Register / Vol. 73, No. 231 / Monday, December 1, 2008 / Rules and Regulations
beneficiaries of the increased maximum
guarantee amount for 2009.
DATES: Effective Date: January 1, 2009.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Manager, Regulatory
and Policy Division, Legislative and
Regulatory Department, Pension Benefit
Guaranty Corporation, 1200 K Street,
NW., Washington, DC 20005, 202–326–
4024. (TTY/TDD users may call the
Federal relay service toll-free at 1–800–
877–8339 and ask to be connected to
202–326–4024.)
SUPPLEMENTARY INFORMATION: Section
4022(b) of the Employee Retirement
Income Security Act of 1974 provides
for certain limitations on benefits
guaranteed by the PBGC in terminating
single-employer pension plans covered
under Title IV of ERISA. One of the
limitations, set forth in section
4022(b)(3)(B), is a dollar ceiling on the
amount of the monthly benefit that may
be paid to a plan participant (in the
form of a life annuity beginning at age
65) by the PBGC. The ceiling is equal to
‘‘$750 multiplied by a fraction, the
numerator of which is the contribution
and benefit base (determined under
section 230 of the Social Security Act)
in effect at the time the plan terminates
and the denominator of which is such
contribution and benefit base in effect in
calendar year 1974 [$13,200].’’ This
formula is also set forth in § 4022.22(b)
of the PBGC’s regulation on Benefits
Payable in Terminated Single-Employer
Plans (29 CFR part 4022). Appendix D
to Part 4022 lists, for each year
beginning with 1974, the maximum
guaranteeable benefit payable by the
PBGC to participants in single-employer
plans that have terminated in that year.
Section 230(d) of the Social Security
Act (42 U.S.C. 430(d)) provides special
rules for determining the contribution
and benefit base for purposes of ERISA
section 4022(b)(3)(B). Each year the
Social Security Administration
determines, and notifies the PBGC of,
the contribution and benefit base to be
used by the PBGC under these
provisions, and the PBGC publishes an
amendment to Appendix D to Part 4022
to add the guarantee limit for the
coming year.
The PBGC has been notified by the
Social Security Administration that,
under section 230 of the Social Security
Act, $79,200 is the contribution and
benefit base that is to be used to
calculate the PBGC maximum
guaranteeable benefit for 2009.
Accordingly, the formula under section
4022(b)(3)(B) of ERISA and 29 CFR
4022.22(b) is: $750 multiplied by
$79,200/$13,200. Thus, the maximum
monthly benefit guaranteeable by the
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PBGC in 2009 is $4,500.00 per month in
the form of a life annuity beginning at
age 65. This amendment updates
Appendix D to Part 4022 to add this
maximum guaranteeable amount for
plans that terminate in 2009. (If a
benefit is payable in a different form or
begins at a different age, the maximum
guaranteeable amount is the actuarial
equivalent of $4,500.00 per month.)
General notice of proposed
rulemaking is unnecessary. The
maximum guaranteeable benefit is
determined according to the formula in
section 4022(b)(3)(B) of ERISA, and
these amendments make no change in
its method of calculation but simply list
2009 maximum guaranteeable benefit
amounts for the information of the
public.
The 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
regulation, the Regulatory Flexibility
Act of 1980 does not apply (5 U.S.C.
601(2)).
Issued in Washington, DC, this 21st day of
November, 2008.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension
Benefit Guaranty Corporation.
[FR Doc. E8–28412 Filed 11–28–08; 8:45 am]
BILLING CODE 7709–01–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4044
Allocation of Assets in SingleEmployer Plans; Valuation of Benefits
and Assets; Expected Retirement Age
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
SUMMARY: This rule amends the Pension
Benefit Guaranty Corporation’s
regulation on Allocation of Assets in
Single-Employer Plans by substituting a
new table that applies to any plan being
terminated either in a distress
termination or involuntarily by the
PBGC with a valuation date falling in
2009, and is used to determine expected
List of Subjects in 29 CFR Part 4022
retirement ages for plan participants.
This table is needed in order to compute
Pension insurance, Pensions,
the value of early retirement benefits
Reporting and recordkeeping
and, thus, the total value of benefits
requirements.
under the plan.
■ In consideration of the foregoing, 29
DATES: Effective Date: January 1, 2009.
CFR part 4022 is amended as follows:
FOR FURTHER INFORMATION CONTACT:
PART 4022—BENEFITS PAYABLE IN
Catherine B. Klion, Manager, Regulatory
TERMINATED SINGLE–EMPLOYER
and Policy Division, Legislative and
PLANS
Regulatory Department, Pension Benefit
Guaranty Corporation, 1200 K Street,
■ 1. The authority citation for part 4022
NW., Washington, DC 20005, 202–326–
continues to read as follows:
4024. (TTY/TDD users may call the
Authority: 29 U.S.C. 1302, 1322, 1322b,
Federal relay service toll-free at 1–800–
1341(c)(3)(D), and 1344.
877–8339 and ask to be connected to
202–326–4024.)
■ 2. Appendix D to part 4022 is
SUPPLEMENTARY INFORMATION: The
amended by adding a new entry to the
PBGC’s regulation on Allocation of
end of the table to read as follows. The
Assets in Single-Employer Plans (29
introductory text is reproduced for the
CFR part 4044) sets forth (in subpart B)
convenience of the reader and remains
the methods for valuing plan benefits of
unchanged.
terminating single-employer plans
Appendix D to Part 4022—Maximum
covered under Title IV of the Employee
Guaranteeable Monthly Benefit
Retirement Income Security Act of 1974.
Guaranteed benefits and benefit
The following table lists by year the
maximum guaranteeable monthly benefit
liabilities under a plan that is
payable in the form of a life annuity
undergoing a distress termination must
commencing at age 65 as described by
be valued in accordance with part 4044,
§ 4022.22(b) to a participant in a plan that
subpart B. In addition, when the PBGC
terminated in that year:
terminates an underfunded plan
involuntarily pursuant to ERISA section
Maximum
4042(a), it uses the subpart B valuation
guaranteeable
Year
rules to determine the amount of the
monthly
benefit
plan’s underfunding.
Under § 4044.51(b) of the asset
allocation regulation, early retirement
*
*
*
*
*
benefits are valued based on the annuity
2009 ................................
$4,500.00
starting date, if a retirement date has
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Federal Register / Vol. 73, No. 231 / Monday, December 1, 2008 / Rules and Regulations
been selected, or the expected
retirement age, if the annuity starting
date is not known on the valuation date.
Sections 4044.55 through 4044.57 set
forth rules for determining the expected
retirement ages for plan participants
entitled to early retirement benefits.
Appendix D of part 4044 contains tables
to be used in determining the expected
early retirement ages.
Table I in appendix D (Selection of
Retirement Rate Category) is used to
determine whether a participant has a
low, medium, or high probability of
retiring early. The determination is
based on the year a participant would
reach ‘‘unreduced retirement age’’ (i.e.,
the earlier of the normal retirement age
or the age at which an unreduced
benefit is first payable) and the
participant’s monthly benefit at
unreduced retirement age. The table
applies only to plans with valuation
dates in the current year and is updated
annually by the PBGC to reflect changes
in the cost of living, etc.
Tables II–A, II–B, and II–C (Expected
Retirement Ages for Individuals in the
Low, Medium, and High Categories
respectively) are used to determine the
expected retirement age after the
probability of early retirement has been
determined using Table I. These tables
establish, by probability category, the
expected retirement age based on both
the earliest age a participant could retire
under the plan and the unreduced
retirement age. This expected retirement
age is used to compute the value of the
early retirement benefit and, thus, the
total value of benefits under the plan.
This document amends appendix D to
replace Table I–08 with Table I–09 in
order to provide an updated correlation,
appropriate for calendar year 2009,
between the amount of a participant’s
benefit and the probability that the
participant will elect early retirement.
Table I–09 will be used to value benefits
in plans with valuation dates during
calendar year 2009.
The PBGC has determined that notice
of and public comment on this rule are
impracticable and contrary to the public
interest. Plan administrators need to be
able to estimate accurately the value of
plan benefits as early as possible before
initiating the termination process. For
that purpose, if a plan has a valuation
date in 2009, the plan administrator
needs the updated table being
promulgated in this rule. Accordingly,
the public interest is best served by
issuing this table expeditiously, without
an opportunity for notice and comment,
to allow as much time as possible to
72717
estimate the value of plan benefits with
the proper table for plans with valuation
dates in early 2009.
The 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
regulation, the Regulatory Flexibility
Act of 1980 does not apply (5 U.S.C.
601(2)).
List of Subjects in 29 CFR Part 4044
Pension insurance, Pensions.
In consideration of the foregoing, 29
CFR part 4044 is amended as follows:
■
PART 4044—[AMENDED]
1. The authority citation for part 4044
continues to read as follows:
■
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
2. Appendix D to part 4044 is
amended by removing Table I–08 and
adding in its place Table I–09 to read as
follows:
■
Appendix D to Part 4044—Tables Used
To Determine Expected Retirement Age
TABLE I–09—SELECTION OF RETIREMENT RATE CATEGORY
[For Plans with valuation dates after December 31, 2008, and before January 1, 2010]
Participant’s
retirement rate
category is—
Participant reaches URA in year—
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
or later ............................................................................
1 Table
2 Table
3 Table
*
*
Low 1 if monthly
benefit at URA is
less than—
Medium 2 if
monthly benefit at
URA is—
High 3 if monthly
benefit at URA is
greater than—
From To
552
565
578
591
605
619
633
647
662
677
2,332
2,385
2,440
2,496
2,554
2,612
2,673
2,734
2,797
2,861
2,332
2,385
2,440
2,496
2,554
2,612
2,673
2,734
2,797
2,861
552
565
578
591
605
619
633
647
662
677
II–A.
II–B.
II–C.
*
*
*
DEPARTMENT OF THE INTERIOR
Issued in Washington, DC, this 21st day of
November, 2008.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension
Benefit Guaranty Corporation.
[FR Doc. E8–28413 Filed 11–28–08; 8:45 am]
Office of Surface Mining Reclamation
and Enforcement
30 CFR Part 938
[PA–148–FOR; OSM–2008–0014]
erowe on PROD1PC63 with RULES
BILLING CODE 7709–01–P
Pennsylvania Regulatory Program
Office of Surface Mining
Reclamation and Enforcement (OSM),
Interior.
AGENCY:
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Final rule; approval of
Amendment.
ACTION:
SUMMARY: We are approving an
amendment to the Pennsylvania
regulatory program (the Pennsylvania
program) under the Surface Mining
Control and Reclamation Act of 1977
(SMCRA or the Act). The revisions
relate to blasting for the development of
shafts for underground mines and to
blasting regulations in 25 Pa. Code
Chapters 87, 88, 89, and 210.
DATES: Effective Date: December 1, 2008.
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]]>Agencies
[Federal Register Volume 73, Number 231 (Monday, December 1, 2008)]
[Rules and Regulations]
[Pages 72716-72717]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-28413]
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4044
Allocation of Assets in Single-Employer Plans; Valuation of
Benefits and Assets; Expected Retirement Age
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the Pension Benefit Guaranty Corporation's
regulation on Allocation of Assets in Single-Employer Plans by
substituting a new table that applies to any plan being terminated
either in a distress termination or involuntarily by the PBGC with a
valuation date falling in 2009, and is used to determine expected
retirement ages for plan participants. This table is needed in order to
compute the value of early retirement benefits and, thus, the total
value of benefits under the plan.
DATES: Effective Date: January 1, 2009.
FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Manager,
Regulatory and Policy Division, Legislative and Regulatory Department,
Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington,
DC 20005, 202-326-4024. (TTY/TDD users may call the Federal relay
service toll-free at 1-800-877-8339 and ask to be connected to 202-326-
4024.)
SUPPLEMENTARY INFORMATION: The PBGC's regulation on Allocation of
Assets in Single-Employer Plans (29 CFR part 4044) sets forth (in
subpart B) the methods for valuing plan benefits of terminating single-
employer plans covered under Title IV of the Employee Retirement Income
Security Act of 1974. Guaranteed benefits and benefit liabilities under
a plan that is undergoing a distress termination must be valued in
accordance with part 4044, subpart B. In addition, when the PBGC
terminates an underfunded plan involuntarily pursuant to ERISA section
4042(a), it uses the subpart B valuation rules to determine the amount
of the plan's underfunding.
Under Sec. 4044.51(b) of the asset allocation regulation, early
retirement benefits are valued based on the annuity starting date, if a
retirement date has
[[Page 72717]]
been selected, or the expected retirement age, if the annuity starting
date is not known on the valuation date. Sections 4044.55 through
4044.57 set forth rules for determining the expected retirement ages
for plan participants entitled to early retirement benefits. Appendix D
of part 4044 contains tables to be used in determining the expected
early retirement ages.
Table I in appendix D (Selection of Retirement Rate Category) is
used to determine whether a participant has a low, medium, or high
probability of retiring early. The determination is based on the year a
participant would reach ``unreduced retirement age'' (i.e., the earlier
of the normal retirement age or the age at which an unreduced benefit
is first payable) and the participant's monthly benefit at unreduced
retirement age. The table applies only to plans with valuation dates in
the current year and is updated annually by the PBGC to reflect changes
in the cost of living, etc.
Tables II-A, II-B, and II-C (Expected Retirement Ages for
Individuals in the Low, Medium, and High Categories respectively) are
used to determine the expected retirement age after the probability of
early retirement has been determined using Table I. These tables
establish, by probability category, the expected retirement age based
on both the earliest age a participant could retire under the plan and
the unreduced retirement age. This expected retirement age is used to
compute the value of the early retirement benefit and, thus, the total
value of benefits under the plan.
This document amends appendix D to replace Table I-08 with Table I-
09 in order to provide an updated correlation, appropriate for calendar
year 2009, between the amount of a participant's benefit and the
probability that the participant will elect early retirement. Table I-
09 will be used to value benefits in plans with valuation dates during
calendar year 2009.
The PBGC has determined that notice of and public comment on this
rule are impracticable and contrary to the public interest. Plan
administrators need to be able to estimate accurately the value of plan
benefits as early as possible before initiating the termination
process. For that purpose, if a plan has a valuation date in 2009, the
plan administrator needs the updated table being promulgated in this
rule. Accordingly, the public interest is best served by issuing this
table expeditiously, without an opportunity for notice and comment, to
allow as much time as possible to estimate the value of plan benefits
with the proper table for plans with valuation dates in early 2009.
The 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 regulation, the Regulatory Flexibility Act of 1980 does not apply
(5 U.S.C. 601(2)).
List of Subjects in 29 CFR Part 4044
Pension insurance, Pensions.
0
In consideration of the foregoing, 29 CFR part 4044 is amended as
follows:
PART 4044--[AMENDED]
0
1. 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
2. Appendix D to part 4044 is amended by removing Table I-08 and adding
in its place Table I-09 to read as follows:
Appendix D to Part 4044--Tables Used To Determine Expected Retirement
Age
Table I-09--Selection of Retirement Rate Category
[For Plans with valuation dates after December 31, 2008, and before January 1, 2010]
----------------------------------------------------------------------------------------------------------------
Low \1\ if High \3\ if
Participant's monthly benefit Medium \2\ if monthly benefit
Participant reaches URA in year-- retirement rate at URA is less monthly benefit at URA is greater
category is-- than-- at URA is-- than--From To
----------------------------------------------------------------------------------------------------------------
2010................................ 552 552 2,332 2,332
2011................................ 565 565 2,385 2,385
2012................................ 578 578 2,440 2,440
2013................................ 591 591 2,496 2,496
2014................................ 605 605 2,554 2,554
2015................................ 619 619 2,612 2,612
2016................................ 633 633 2,673 2,673
2017................................ 647 647 2,734 2,734
2018................................ 662 662 2,797 2,797
2019 or later....................... 677 677 2,861 2,861
----------------------------------------------------------------------------------------------------------------
\1\ Table II-A.
\2\ Table II-B.
\3\ Table II-C.
* * * * *
Issued in Washington, DC, this 21st day of November, 2008.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension Benefit Guaranty Corporation.
[FR Doc. E8-28413 Filed 11-28-08; 8:45 am]
BILLING CODE 7709-01-P
