Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 2863-2864 [E9-832]
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Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Rules and Regulations
of information collection requirements
contained in a final rule.
DATES: The final rule published in the
Federal Register on November 17, 2008
(73 FR 67934) has been approved by
OMB and is effective January 16, 2009.
The current expiration date for OMB
authorization for this information
collection is December 31, 2011.
ADDRESSES: Written comments
regarding the burden-hour estimates or
other aspects of the information
collection requirements contained in 29
CFR part 825 may be submitted to:
Administrator, Wage and Hour Division,
Room S3502, 200 Constitution Avenue,
NW., Washington DC 20210.
FOR FURTHER INFORMATION CONTACT:
Richard M. Brennan, Director, Division
of Interpretations and Regulatory
Analysis, Wage and Hour Division,
Employment Standards Administration,
U.S. Department of Labor, Room S–
3506, 200 Constitution Avenue, NW.,
Washington, DC 20210; telephone: (202)
693–0051 (this is not a toll-free
number).
Questions of interpretation and/or
enforcement of regulations referenced in
this notice may be directed to the
nearest Wage and Hour Division (WHD)
District Office. Locate the nearest office
by calling the WHD toll-free help line at
(866) 4US–WAGE ((866) 487–9243)
between 8 a.m. and 5 p.m. in your local
time zone, or log onto the WHD’s Web
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SUPPLEMENTARY INFORMATION: The Office
of Management and Budget (OMB) has
approved under the PRA information
collection requirements contained in
recently revised final regulations under
the Family and Medical Leave Act
published by the Department of Labor in
the Federal Register on November 17,
2008. See 73 FR 67934. The preamble to
the new regulations stated an effective
date of January 18, 2009; however, the
OMB had not yet provided a PRArequired approval for the revised
information collection requirements
contained in the revised FMLA rules at
the time of their publication. 44 U.S.C.
VerDate Nov<24>2008
16:34 Jan 15, 2009
Jkt 217001
3507(a)(2). An agency may not conduct
an information collection unless it has
a currently valid OMB approval;
therefore, in accordance with the PRA,
the effective date of the information
collection requirements in the revised
regulations was delayed until the OMB
approved them under the PRA. 44
U.S.C. 3506(c)(1)(B)(iii)(V). On
December 14, 2008, the OMB approved
the Department’s information collection
request under Control Number 1215–
0181; thus, giving effect to the
requirements, as announced and
published in the Federal Register on
November 17, 2008, under the PRA. The
current expiration date for OMB
authorization for this information
collection is December 31, 2011.
Dated: January 9, 2009.
Victoria A. Lipnic,
Assistant Secretary, Employment Standards
Administration.
Alexander J. Passantino,
Acting Administrator, Wage and Hour
Division.
[FR Doc. E9–674 Filed 1–15–09; 8:45 am]
BILLING CODE 4510–27–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions
for Valuing and Paying Benefits
AGENCY: Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
SUMMARY: Pension Benefit Guaranty
Corporation’s regulation on Benefits
Payable in Terminated Single-Employer
Plans prescribes interest assumptions
for valuing and paying certain benefits
under terminating single-employer
plans. This final rule amends the benefit
payments regulation to adopt interest
assumptions for plans with valuation
dates in February 2009. As discussed
below, this final rule does not address
the interest assumptions under PBGC’s
regulation on Allocation of Assets in
Single-Employer Plans. Interest
assumptions are also published on
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective February 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–
PO 00000
Frm 00107
Fmt 4700
Sfmt 4700
2863
877–8339 and ask to be connected to
202–326–4024.)
PBGC’s
regulations prescribe actuarial
assumptions—including interest
assumptions—for valuing and paying
plan benefits of terminating singleemployer plans covered by title IV of
the Employee Retirement Income
Security Act of 1974. The interest
assumptions are intended to reflect
current conditions in the financial and
annuity markets.
These interest assumptions are found
in two PBGC regulations: the regulation
on Benefits Payable in Terminated
Single-Employer Plans (29 CFR Part
4022) and the regulation on Allocation
of Assets in Single-Employer Plans (29
CFR Part 4044). Before 2009, PBGC
updated the assumptions under the two
regulations each month in a single
rulemaking document. In a final rule
published in the Federal Register on
December 29, 2008 (at 73 FR 79362),
PBGC announced a change in its
practice for determining the interest
assumptions for use under the asset
allocation regulation. As explained in
the preamble to that final rule (73 FR
79362 at 79363), the new practice leads
to assumptions that remain unchanged
within a calendar quarter. Accordingly,
the assumptions published December
29, 2008, remain in effect for January,
February, and March 2009, and need not
be updated for February 2009. Thus this
final rule document updates the benefit
payments regulation only. Similarly,
future updates to the asset allocation
regulation will be made quarterly rather
than monthly; between quarterly
updates of the asset allocation
regulation, only the benefit payment
regulation will be updated each month.
Two sets of interest assumptions are
prescribed under the benefit payments
regulation: (1) A set for PBGC to use to
determine whether a benefit is payable
as a lump sum and to determine lumpsum amounts to be paid by PBGC (found
in Appendix B to Part 4022), and (2) a
set for private-sector pension
practitioners to refer to if they wish to
use lump-sum interest rates determined
using PBGC’s historical methodology
(found in Appendix C to Part 4022).
This amendment (1) adds to
Appendix B to Part 4022 the interest
assumptions for PBGC to use for its own
lump-sum payments in plans with
valuation dates during February 2009,
and (2) adds to Appendix C to Part 4022
the interest assumptions for privatesector pension practitioners to refer to if
they wish to use lump-sum interest rates
determined using PBGC’s historical
SUPPLEMENTARY INFORMATION:
E:\FR\FM\16JAR1.SGM
16JAR1
2864
Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Rules and Regulations
methodology for valuation dates during
February 2009.
The interest assumptions that PBGC
will use for its own lump-sum payments
(set forth in Appendix B to part 4022)
will be 3.00 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. These interest assumptions
represent a decrease (from those in
effect for January 2009) of 1.00 percent
in the immediate annuity rate and are
otherwise unchanged. For private-sector
payments, the interest assumptions (set
forth in Appendix C to part 4022) will
be the same as those used by PBGC for
determining and paying lump sums (set
forth in Appendix B to part 4022).
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
Rate set
For plans with a valuation
date
On or after
*
Before
3. In appendix C to part 4022, Rate Set
184, as set forth below, is added to the
table.
For plans with a valuation
date
On or after
*
Before
*
184
i1
BILLING CODE 7709–01–P
DEPARTMENT OF DEFENSE
*
*
*
i1
*
4.00
3.00
ACTION:
i2
n2
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7
8
n1
i3
4.00
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n2
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4.00
SUMMARY: This final rule removes the
DoD’s rule concerning the management
and operation of the Defense
Acquisition Regulations (DAR) System.
The part has served the purpose for
which it was intended for the Code of
Federal Regulations, and is no longer
necessary.
Effective Date: January 16, 2009.
A copy of
the current DoD Instruction may be
obtained from https://www.dtic.mil/whs/
directives/corres/pdf/500035p.pdf.
PO 00000
Frm 00108
Fmt 4700
*
7
8
List of Subjects in 32 CFR Part 160
Final rule.
Armed forces; government
procurement.
PART 160—[REMOVED]
Accordingly, by the authority of 10
U.S.C. 301, 32 CFR part 160 is removed.
■
Dated: January 12, 2009.
Patricia L. Toppings,
OSD Federal Register Liaison Officer,
Department of Defense.
[FR Doc. E9–877 Filed 1–15–09; 8:45 am]
BILLING CODE 5001–06–P
Department of Defense.
Jkt 217001
n1
Deferred annuities
(percent)
SUPPLEMENTARY INFORMATION:
18:43 Jan 15, 2009
*
*
[DoD Instruction 5000.35]
VerDate Nov<24>2008
*
4.00
32 CFR Part 160
sroberts on PROD1PC70 with RULES
*
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Ms.
Patricia L. Toppings at 703–696–5284.
AGENCY:
*
i3
FOR FURTHER INFORMATION CONTACT:
Defense Acquisition Regulations
(DAR) System
*
4.00
*
Immediate
annuity rate
(percent)
DATES:
Office of the Secretary
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
Appendix C to Part 4022—Lump Sum
Interest Rates For Private-Sector
Payments
3–1–09
Issued in Washington, DC, on this 12th day
of January 2009.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension
Benefit Guaranty Corporation.
[FR Doc. E9–832 Filed 1–15–09; 8:45 am]
2. In appendix B to part 4022, Rate Set
184, as set forth below, is added to the
table.
■
i2
*
4.00
3.00
*
2–1–09
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
Rate set
1. The authority citation for part 4022
continues to read as follows:
■
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).
3–1–09
■
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
PBGC has determined that this action
is not a ‘‘significant regulatory action’’
under the criteria set forth in Executive
Order 12866.
*
2–1–09
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
■ In consideration of the foregoing, 29
CFR part 4022 is amended as follows:
Because of the need to provide
immediate guidance for the valuation
and payment of benefits in plans with
valuation dates during February 2009,
PBGC finds that good cause exists for
making the assumptions set forth in this
amendment effective less than 30 days
after publication.
*
184
List of Subjects in 29 CFR Part 4022
need to determine and issue new
interest assumptions promptly so that
the assumptions can reflect current
market conditions as accurately as
possible.
Sfmt 4700
E:\FR\FM\16JAR1.SGM
16JAR1
]]>Agencies
[Federal Register Volume 74, Number 11 (Friday, January 16, 2009)]
[Rules and Regulations]
[Pages 2863-2864]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-832]
=======================================================================
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated Single-Employer Plans; Interest
Assumptions for Valuing and Paying Benefits
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: Pension Benefit Guaranty Corporation's regulation on Benefits
Payable in Terminated Single-Employer Plans prescribes interest
assumptions for valuing and paying certain benefits under terminating
single-employer plans. This final rule amends the benefit payments
regulation to adopt interest assumptions for plans with valuation dates
in February 2009. As discussed below, this final rule does not address
the interest assumptions under PBGC's regulation on Allocation of
Assets in Single-Employer Plans. Interest assumptions are also
published on PBGC's Web site (https://www.pbgc.gov).
DATES: Effective February 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: PBGC's regulations prescribe actuarial
assumptions--including interest assumptions--for valuing and paying
plan benefits of terminating single-employer plans covered by title IV
of the Employee Retirement Income Security Act of 1974. The interest
assumptions are intended to reflect current conditions in the financial
and annuity markets.
These interest assumptions are found in two PBGC regulations: the
regulation on Benefits Payable in Terminated Single-Employer Plans (29
CFR Part 4022) and the regulation on Allocation of Assets in Single-
Employer Plans (29 CFR Part 4044). Before 2009, PBGC updated the
assumptions under the two regulations each month in a single rulemaking
document. In a final rule published in the Federal Register on December
29, 2008 (at 73 FR 79362), PBGC announced a change in its practice for
determining the interest assumptions for use under the asset allocation
regulation. As explained in the preamble to that final rule (73 FR
79362 at 79363), the new practice leads to assumptions that remain
unchanged within a calendar quarter. Accordingly, the assumptions
published December 29, 2008, remain in effect for January, February,
and March 2009, and need not be updated for February 2009. Thus this
final rule document updates the benefit payments regulation only.
Similarly, future updates to the asset allocation regulation will be
made quarterly rather than monthly; between quarterly updates of the
asset allocation regulation, only the benefit payment regulation will
be updated each month.
Two sets of interest assumptions are prescribed under the benefit
payments regulation: (1) A set for PBGC to use to determine whether a
benefit is payable as a lump sum and to determine lump-sum amounts to
be paid by PBGC (found in Appendix B to Part 4022), and (2) a set for
private-sector pension practitioners to refer to if they wish to use
lump-sum interest rates determined using PBGC's historical methodology
(found in Appendix C to Part 4022).
This amendment (1) adds to Appendix B to Part 4022 the interest
assumptions for PBGC to use for its own lump-sum payments in plans with
valuation dates during February 2009, and (2) adds to Appendix C to
Part 4022 the interest assumptions for private-sector pension
practitioners to refer to if they wish to use lump-sum interest rates
determined using PBGC's historical
[[Page 2864]]
methodology for valuation dates during February 2009.
The interest assumptions that PBGC will use for its own lump-sum
payments (set forth in Appendix B to part 4022) will be 3.00 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. These
interest assumptions represent a decrease (from those in effect for
January 2009) of 1.00 percent in the immediate annuity rate and are
otherwise unchanged. For private-sector payments, the interest
assumptions (set forth in Appendix C to part 4022) will be the same as
those used by PBGC for determining and paying lump sums (set forth in
Appendix B to part 4022).
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 in plans with valuation dates during February
2009, 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.
0
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 184, as set forth below, is
added to the table.
Appendix B to Part 4022--Lump Sum Interest Rates For PBGC Payments
* * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation Deferred annuities (percent)
date Immediate -----------------------------------------------------------------------------
Rate set -------------------------------- annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
184 2-1-09 3-1-09 3.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 184, 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 Deferred annuities (percent)
date Immediate -----------------------------------------------------------------------------
Rate set -------------------------------- annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
184 2-1-09 3-1-09 3.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 12th day of January 2009.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension Benefit Guaranty Corporation.
[FR Doc. E9-832 Filed 1-15-09; 8:45 am]
BILLING CODE 7709-01-P
