Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 22826-22828 [E9-11373]
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22826
Federal Register / Vol. 74, No. 93 / Friday, May 15, 2009 / Rules and Regulations
‘‘required use’’ definition in the
November 17, 2008, final rule. HUD
reviewed and gave careful consideration
to all views expressed. Following
consideration of the comments and
HUD’s further evaluation of the
definition and application of ‘‘required
use’’ HUD has decided to withdraw the
revised definition and, leave in place
the definition of ‘‘required use’’ as
found in HUD’s codified regulations in
24 CFR 3500.2, and which has remained
in effect since the revised definition of
‘‘required use’’ in the November 17,
2008, final rule, had not taken effect.
HUD reiterates its commitment to fair
real estate settlement practices that are
not misleading, prevent abuse, offer
proper disclosures to homebuyers, and
promote choice and competition. HUD’s
intent in revising the definition of
‘‘required use’’ was to clarify its
interpretation of RESPA’s requirements
with respect to transactions involving
affiliated businesses in order to promote
more competition among settlement
service providers. After further
evaluation and consideration of the
concerns voiced by consumers and
industry participants from various fields
about the application of the revised
definition of ‘‘required use,’’ HUD has
concluded that all would benefit by
HUD withdrawing the revised definition
and addressing ‘‘required use’’ through
new rulemaking.
HUD recognizes that the affiliations of
businesses involved in complex home
purchase transactions can themselves be
complex arrangements, and that
consumers may have difficulty
understanding whether there is value in
using affiliated businesses in mortgage
transactions. HUD has determined that
further development of the concept of
‘‘required use’’ is necessary to assure
that, especially in the affiliated business
context, its application protects
consumers by eliminating abusive
practices that increase costs for
unsuspecting consumers. The comments
submitted in response to the March 10,
2009, rule provide HUD with a good
starting point for going forward on this
issue. Consumers and industry and the
public generally will have further
opportunity to offer feedback when
HUD issues a new proposed rule on this
subject.
Although HUD is withdrawing the
revised definition of ‘‘required use,’’ a
definition of ‘‘required use’’ remains
part of HUD’s RESPA regulations. That
definition, which focuses its discount
language on settlement services, is the
one that was in place in HUD’s RESPA
regulations prior to HUD’s issuance of
the November 17, 2008, final rule, and
which has remained in place since the
VerDate Nov<24>2008
14:00 May 14, 2009
Jkt 217001
revised definition of ‘‘required use’’
never took effect. Additionally, although
HUD is withdrawing the revised
definition of ‘‘required use’’, the
withdrawal should not be interpreted to
signal any lessening of HUD oversight or
enforcement of existing statutory and
regulatory provisions in this area. HUD
interprets its definition generally as
aiming to distinguish the features of
legitimate incentives and discounts
offered to consumers from those that
may result in undisclosed or higher
costs to consumers. The public
comments on this subject underscore
the need for greater attention to and
understanding of the treatment of
discounts to consumers under RESPA
and HUD’s RESPA regulations.
With respect to the more specific
issues expressed by commenters on the
subject of ‘‘required use’’, HUD will
defer further discussion of such issues
to any new rulemaking. Generally,
however, HUD notes that it revised the
definition of ‘‘required use’’ to more
effectively realize Congress’s intent in
passing RESPA. RESPA’s principal goal
is consumer protection. RESPA provides
HUD with the requisite authority to
promulgate a revised definition of
‘‘required use’’ that meets the goals of
RESPA and HUD’s mandate to enforce
RESPA. Today’s final rule will enable
HUD to reconsider all of the issues
involved in the application of the
required use concept and to better craft
requirements and limitations that
address the valid concerns raised in the
preceding rulemaking.
IV. Findings and Certifications
Federalism Impact
This rule does not have Federalism
implications and does not impose
substantial direct compliance costs on
state and local governments or preempt
State law within the meaning of
Executive Order 13132 (entitled
‘‘Federalism’’).
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (2 U.S.C. 1531–
1538) (UMRA) requires Federal agencies
to assess the effects of their regulatory
actions on state, local, and tribal
governments and on the private sector.
This rule does not, within the meaning
of the UMRA, impose any Federal
mandates on any state, local, or tribal
governments nor on the private sector.
List of Subjects in 24 CFR Part 3500
Consumer protection, Condominiums,
Housing, Mortgagees, Mortgage
servicing, Reporting and Recordkeeping
requirements.
PO 00000
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Fmt 4700
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Accordingly, 24 CFR part 3500 is
amended as follows:
■
PART 3500—REAL ESTATE
SETTLEMENT PROCEDURES ACT
1. The authority citation for part 3500
continues to read as follows:
■
Authority: 12 U.S.C. 2601 et. seq: 42
U.S.C. 3535(d).
2. Section 3500.1(b)(1) is revised to
read as follows:
■
§ 3500.1
Designation and applicability.
*
*
*
*
*
(b) * * *
(1) Sections 3500.8(b), 3500.17,
3500.21, 3500.22 and 3500.23, and
Appendices E and MS–1 are applicable
commencing January 16, 2009.
*
*
*
*
*
■ 3. Effective July 16, 2009, in § 3500.2,
revise the definition of ‘‘Required use’’
to read as follows:
§ 3500.2
Definitions.
*
*
*
*
*
Required use means a situation in
which a person must use a particular
provider of a settlement service in order
to have access to some distinct service
or property, and the person will pay for
the settlement service of the particular
provider or will pay a charge
attributable, in whole or in part, to the
settlement service. However, the
offering of a package (or combination of
settlement services) or the offering of
discounts or rebates to consumers for
the purchase of multiple settlement
services does not constitute a required
use. Any package or discount must be
optional to the purchaser. The discount
must be a true discount below the prices
that are otherwise generally available,
and must not be made up by higher
costs elsewhere in the settlement
process.
*
*
*
*
*
Dated: May 7, 2009.
Ronald Y. Spraker,
Acting General Deputy Assistant Secretary
for Housing—Deputy Federal Housing
Commissioner.
[FR Doc. E9–11383 Filed 5–12–09; 4:15 pm]
BILLING CODE 4210–67–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.
E:\FR\FM\15MYR1.SGM
15MYR1
22827
Federal Register / Vol. 74, No. 93 / Friday, May 15, 2009 / Rules and Regulations
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 June 2009. Interest assumptions
are also published on PBGC’s Web site
(https://www.pbgc.gov).
DATES: Effective June 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 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). Assumptions under the
asset allocation regulation are updated
quarterly; assumptions under the benefit
payments regulation are updated
monthly. This final rule updates only
the assumptions under the benefit
payments regulation.
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 June 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
methodology for valuation dates during
June 2009.
The interest assumptions that PBGC
will use for its own lump-sum payments
(set forth in Appendix B to part 4022)
will be 3.75 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. These interest assumptions
represent an increase (from those in
effect for May 2009) of 0.25 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
For plans with a valuation date
Rate set
On or after
*
*
*
188 ........................................................................
3. In appendix C to part 4022, Rate Set
188, as set forth below, is added to the
table.
■
14:00 May 14, 2009
Jkt 217001
*
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
188, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
Immediate
annuity rate
(percent)
*
*
i1
*
6–1–09
7–1–09
PO 00000
*
*
Frm 00009
*
Fmt 4700
*
i2
i3
4.00
4.00
*
3.75
4.00
*
Sfmt 4700
*
Deferred annuities
(percent)
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
VerDate Nov<24>2008
Before
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 June 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).
E:\FR\FM\15MYR1.SGM
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22828
Federal Register / Vol. 74, No. 93 / Friday, May 15, 2009 / Rules and Regulations
For plans with a valuation date
Rate set
On or after
*
*
*
188 ........................................................................
Issued in Washington, DC, on this 7th day
of May 2009.
Vincent K. Snowbarger,
Acting Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E9–11373 Filed 5–14–09; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2008–1272]
RIN 1625–AA00
Safety Zone; Underwater Object,
Massachusetts Bay, MA
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
SUMMARY: The Coast Guard is extending
the duration of a temporary safety zone
surrounding the location of the sunken
fishing vessel PATRIOT located
approximately 17 miles northeast of
Scituate, Massachusetts in
Massachusetts Bay. This action is
necessary to ensure that vessels are not
endangered by conducting dredging,
diving, anchoring, fishing or other
activities in this area. This temporary
rulemaking is needed to protect the
environment, the commercial fishing
industry, and the general public from
potential hazards associated with the
underwater object and from the hazards
associated with planned salvage of the
vessel.
DATES: This rule is effective from 11:59
p.m. March 14, 2009 through midnight
May 20, 2009.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket are part of docket USCG–2008–
1272 and are available online by going
to https://www.regulations.gov, selecting
the Advanced Docket Search option on
the right side of the screen, inserting
USCG–2008–1272 in the Docket ID box,
pressing Enter, and then clicking on the
item in the Docket ID column. They are
also available for inspection or copying
two locations: the Docket Management
Facility (M–30), U.S. Department of
VerDate Nov<24>2008
14:00 May 14, 2009
Jkt 217001
Before
*
6–1–09
Immediate
annuity rate
(percent)
Fmt 4700
Sfmt 4700
i2
i3
4.00
4.00
*
3.75
Regulatory Information
The Coast Guard is issuing this
temporary final rule without prior
notice and opportunity to comment
pursuant to authority under section 4(a)
of the Administrative Procedure Act
(APA) (5 U.S.C. 553(b)). This provision
authorizes an agency to issue a rule
without prior notice and opportunity to
comment when the agency for good
cause finds that those procedures are
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ Under 5 U.S.C.
553(b)(B), the Coast Guard finds that
good cause exists for not publishing a
notice of proposed rulemaking (NPRM)
with respect to this rule because initial
immediate action was needed to protect
the public from the hazards posed by an
unknown underwater object located in
Massachusetts Bay. This object was later
identified as the F/V Patriot. The F/V
PATRIOT is located in approximately
95 feet of water 17 miles northeast of
Scituate, Massachusetts. This rule
extends the duration of the existing
safety zone, which would have expired
on May 6, 2009, to ensure, to the extent
practicable, the immediate, continued
protections for the environment, the
commercial fishing industry, and the
general public from the hazards
associated with the F/V PATRIOT,
while investigative efforts continue, risk
mitigation strategies are further
explored and implemented, and salvage
efforts are conducted. Specifically, this
rule is being extended to facilitate and
protect planned commercial salvage
operations, which were unable to be
completed during the prior extension. It
Frm 00010
i1
*
7–1–09
Transportation, West Building Ground
Floor, Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this temporary
rule, call or e-mail Chief Eldridge
McFadden, United States Coast Guard,
Sector Boston, Waterways Management
Division; telephone 617–223–5160, email Eldridge.C.McFadden@uscg.mil. If
you have questions on viewing the
docket, call Renee V. Wright, Program
Manager, Docket Operations, telephone
202–366–9826.
SUPPLEMENTARY INFORMATION:
PO 00000
Deferred annuities
(percent)
4.00
n1
n2
*
7
8
would be contrary to the public interest
for the existing safety zone to lapse on
the eve of such operations.
For the same reasons, 5 U.S.C.
553(d)(3), the Coast Guard finds that
good cause exists for making this rule
effective less than 30 days after
publication in the Federal Register.
Background and Purpose
On January 3, 2009, the F/V
PATRIOT, a 54-foot steel-hull boat, sank
with the loss of two crewmembers
onboard. The vessel was reported to
have an estimated 5000 gallons of fuel
onboard. There were no survivors and
the exact position of the vessel was not
immediately known. On January 8,
2009, the Coast Guard established a
temporary safety zone around a reported
underwater object believed to be the F/
V PATRIOT, located in Massachusetts
Bay approximately 17 miles northeast of
Scituate, Massachusetts, in position
42°24′27.34″ N, 70°27′17.23″ W. This
underwater object created an immediate
and significant danger to the
environment, the commercial fishing
industry, and the general maritime
public, as mariners unaware of its
presence could make contact with the
object and cause damage to their vessel,
equipment below the water or fishing
gear. On January 14, 2009, the Coast
Guard extended the temporary safety
zone until March 14, 2009, while
investigative efforts continued and risk
mitigation strategies were further
explored.
On January 23, 2009, underwater
exploratory operations with
photographic equipment confirmed that
the object was the F/V PATRIOT. The
owners of the vessel intend to conduct
dive and salvage operations on the
vessel. On April 14, 2009, the Coast
Guard received a request to extend the
safety zone until May 6, 2009 in order
to conduct a salvage operation for the
vessel. On May 6, 2009, the Coast Guard
received an additional request to extend
the safety zone as the operations had not
yet been started. The Coast Guard has
agreed to this extension of this zone,
which will help ensure the planned
dive and salvage operations can be
conducted safely.
E:\FR\FM\15MYR1.SGM
15MYR1
]]>Agencies
[Federal Register Volume 74, Number 93 (Friday, May 15, 2009)]
[Rules and Regulations]
[Pages 22826-22828]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-11373]
=======================================================================
-----------------------------------------------------------------------
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.
[[Page 22827]]
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 June 2009. Interest assumptions are also published on PBGC's Web
site (https://www.pbgc.gov).
DATES: Effective June 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). Assumptions under the asset
allocation regulation are updated quarterly; assumptions under the
benefit payments regulation are updated monthly. This final rule
updates only the assumptions under the benefit payments regulation.
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 June 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 methodology for valuation dates during June
2009.
The interest assumptions that PBGC will use for its own lump-sum
payments (set forth in Appendix B to part 4022) will be 3.75 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. These
interest assumptions represent an increase (from those in effect for
May 2009) of 0.25 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 June 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 188, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
188............................................................ 6-1-09 7-1-09 3.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 188, as set forth below, is
added to the table.
Appendix C to Part 4022--Lump Sum Interest Rates for Private-Sector
Payments
* * * * *
[[Page 22828]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation Deferred annuities (percent)
date Immediate ----------------------------------------
Rate set -------------------------------- annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
188............................................................ 6-1-09 7-1-09 3.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 7th day of May 2009.
Vincent K. Snowbarger,
Acting Director, Pension Benefit Guaranty Corporation.
[FR Doc. E9-11373 Filed 5-14-09; 8:45 am]
BILLING CODE 7709-01-P
