Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 28161-28163 [E9-14003]
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Federal Register / Vol. 74, No. 113 / Monday, June 15, 2009 / Rules and Regulations
entities. This action does not affect any
funding distributed under any of the
programs administered by the FHWA.
For these reasons, the FHWA certifies
that this action would not have a
significant economic impact on a
substantial number of small entities.
Unfunded Mandates Reform Act of 1995
This final rule would not impose
unfunded mandates as defined by the
Unfunded Mandates Reform Act of 1995
(Pub. L. 104–4, 109 Stat. 48). This rule
would not result in the expenditure by
State, local, and tribal governments, in
the aggregate, or by the private sector, of
$128.1 million or more in any one year
(2 U.S.C. 1532).
Executive Order 13132 (Federalism
Assessment)
This action has been analyzed in
accordance with the principles and
criteria contained in Executive Order
13132, and the FHWA has determined
that this action would not have
sufficient federalism implications to
warrant the preparation of a federalism
assessment. The FHWA has also
determined that this action would not
preempt any State law or State
regulation or affect the States’ ability to
discharge traditional State governmental
functions.
Executive Order 13211 (Energy Effects)
We have analyzed this action under
Executive Order 13211, Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use, dated May 18,
2001. We have determined that it is not
a significant energy action under that
order since it is not likely to have a
significant adverse effect on the supply,
distribution, or use of energy. Therefore,
a Statement of Energy Effects is not
required.
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Executive Order 12372
(Intergovernmental Review)
Catalog of Federal Domestic
Assistance Program Number 20.205,
Highway Planning and Construction.
The regulations implementing Executive
Order 12372 regarding
intergovernmental consultation on
Federal programs and activities apply to
this program.
Paperwork Reduction Act
Under the Paperwork Reduction Act
of 1995 (PRA) (44 U.S.C. 3501), Federal
agencies must obtain approval from the
Office of Management and Budget for
each collection of information they
conduct, sponsor, or require through
regulations. The FHWA has determined
that this rule does not contain collection
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of information requirements for the
purposes of the PRA.
Executive Order 12988 (Civil Justice
Reform)
This action meets applicable
standards in sections 3(a) and 3(b)(2) of
Executive Order 12988, Civil Justice
Reform, to minimize litigation,
eliminate ambiguity, and reduce
burden.
Executive Order 13045 (Protection of
Children)
The FHWA has analyzed this rule
under Executive Order 13045,
Protection of Children from
Environmental Health Risks and Safety
Risks. The FHWA certifies that this
action would not cause any
environmental risk to health or safety
that might disproportionately affect
children.
Executive Order 12630 (Taking of
Private Property)
The FHWA has analyzed this rule
under Executive Order 12630,
Governmental Actions and Interface
with Constitutionally Protected Property
Rights. The FHWA does not anticipate
that this action would affect a taking of
private property or otherwise have
taking implications under Executive
Order 12630.
National Environmental Policy Act
The agency has analyzed this action
for the purpose of the National
Environmental Policy Act of 1969 (42
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that this action would not have any
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action listed in the Unified Agenda of
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in the heading of this document can be
used to cross reference this action with
the Unified Agenda.
List of Subjects in 23 CFR Part 634
Design standards, Highways and
roads, incorporation by reference,
Traffic regulations, Workers.
■ In consideration of the foregoing, and
under the authority of 23 U.S.C. 101(a),
109(d), 114(a), 315, and 402(a); Sec.
1402 of Pub. L. 109–59; 23 CFR 1.32;
and 49 CFR 1.48(b), the Interim Final
Rule amending 23 CFR Part 634 that
was published on November 21, 2008 at
73 FR 70593, is adopted as a final rule
without change.
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28161
Issued on: May 14, 2009.
Jeffrey F. Paniati,
Acting Deputy Federal Highway
Administrator.
[FR Doc. E9–13988 Filed 6–12–09; 8:45 am]
BILLING CODE 4910–22–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Parts 4022 and 4044
Allocation of Assets in SingleEmployer Plans; 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 regulations on Allocation
of Assets in Single-Employer Plans and
Benefits Payable in Terminated SingleEmployer Plans prescribe interest
assumptions for valuing and paying
certain benefits under terminating
single-employer plans. This final rule
amends the asset allocation regulation
to adopt interest assumptions for plans
with valuation dates in the third quarter
of 2009 and amends the benefit
payments regulation to adopt interest
assumptions for plans with valuation
dates in July 2009. Interest assumptions
are also published on PBGC’s Web site
(https://www.pbgc.gov).
DATES: Effective July 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 Allocation of Assets in SingleEmployer Plans (29 CFR part 4044) and
the regulation on Benefits Payable in
Terminated Single-Employer Plans (29
CFR part 4022). Assumptions under the
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Federal Register / Vol. 74, No. 113 / Monday, June 15, 2009 / Rules and Regulations
pwalker on PROD1PC71 with RULES
asset allocation regulation are updated
quarterly; assumptions under the benefit
payments regulation are updated
monthly. This final rule updates the
assumptions under the asset allocation
regulation for the third quarter (July
through September) of 2009 and updates
the assumptions under the benefit
payments regulation for July 2009.
The interest assumptions prescribed
under the asset allocation regulation
(found in Appendix B to Part 4044) are
used for the valuation of benefits for
allocation purposes under ERISA
section 4044. 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 privatesector 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 4044 the interest
assumptions for valuing benefits for
allocation purposes in plans with
valuation dates during the third quarter
(July through September) of 2009, (2)
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 July 2009,
and (3) 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
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Jkt 217001
methodology for valuation dates during
July 2009.
The interest assumptions that PBGC
will use for valuing benefits for
allocation purposes (set forth in
Appendix B to part 4044) will be 5.31
percent for the first 20 years following
the valuation date and 5.04 percent
thereafter. By comparison with the
interest assumptions in effect for the
second quarter of 2009, these interest
assumptions represent a decrease of
0.19 percent for the first 20 years
following the valuation date and an
increase of 0.02 percent for all years
thereafter.
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 no change from those in effect
for June 2009. 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 July 2009, PBGC
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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
29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
29 CFR Part 4044
Employee benefit plans, Pension
insurance, Pensions.
■ In consideration of the foregoing, 29
CFR parts 4022 and 4044 are 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
189, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
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28163
Federal Register / Vol. 74, No. 113 / Monday, June 15, 2009 / Rules and Regulations
For plans with a valuation
date
Rate set
On or after
*
Before
*
189
8–1–09
3. In appendix C to part 4022, Rate Set
189, as set forth below, is added to the
table.
■
For plans with a valuation
date
On or after
*
Before
i3
4.00
n1
*
n2
*
*
4.00
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
*
i1
3.75
i2
*
4.00
*
8–1–09
*
Deferred annuities (percent)
Immediate
annuity rate
(percent)
*
7–1–09
i2
*
4.00
3.75
*
189
i1
*
7–1–09
Rate set
Deferred annuities (percent)
Immediate
annuity rate
(percent)
i3
4.00
*
*
*
4.00
7
8
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
PART 4044—ALLOCATION OF
ASSETS IN SINGLE–EMPLOYER
PLANS
Appendix B to Part 4044—Interest
Rates Used To Value Benefits
5. In appendix B to part 4044, a new
entry for July–September 2009, as set
forth below, is added to the table.
*
■
4. The authority citation for part 4044
continues to read as follows:
■
*
*
*
*
The values of it are:
For valuation dates occurring in the months—
it
*
*
*
July–September 2009 ...........................................................
Issued in Washington, DC, on this 9th day
of June 2009.
Vincent K. Snowbarger,
Acting Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E9–14003 Filed 6–12–09; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2009–0462]
RIN 1625–AA00
Safety Zone; Marinette Marine Vessel
Launch, Marinette, WI
Coast Guard, DHS.
Temporary final rule.
AGENCY:
pwalker on PROD1PC71 with RULES
ACTION:
SUMMARY: The Coast Guard is
establishing a temporary safety zone on
Menominee River near Marinette,
Wisconsin. This zone is intended to
restrict vessels from a portion of the
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for t =
*
0.0531
it
*
1–20
Menominee River during a vessel
launching. This temporary safety zone is
necessary to protect the surrounding
public and vessels from the hazards
associated with the vessel launching.
DATES: This rule is effective from 10:45
a.m. until 12:15 p.m. on June 26, 2009.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket are part of docket USCG–2009–
0462 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–2009–0462 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
at two locations: The Docket
Management Facility (M–30), U.S.
Department of 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, and the U.S.
Coast Guard Sector Lake Michigan, 2420
S. Lincoln Memorial Drive, Milwaukee,
WI 53110, between 7 a.m. and 3:30 p.m.,
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for t =
*
>20
0.0504
it
N/A
for t =
*
N/A
Monday through Friday, except Federal
holidays.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this temporary
rule, contact Petty Officer Kraft, U.S.
Coast Guard Sector Lake Michigan;
telephone 414–747–7154, e-mail
Adam.D.Kraft@uscg.mil. If you have
questions on viewing the docket, call
Renee V. Wright, Program Manager,
Docket Operations, telephone 202–366–
9826.
SUPPLEMENTARY INFORMATION:
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 an agency for good
cause finds that those procedures are
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ Under U.S.C.
553(b)(B), the Coast Guard finds that
good cause exists for not publishing a
E:\FR\FM\15JNR1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 113 (Monday, June 15, 2009)]
[Rules and Regulations]
[Pages 28161-28163]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-14003]
=======================================================================
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Parts 4022 and 4044
Allocation of Assets in Single-Employer Plans; 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 regulations on
Allocation of Assets in Single-Employer Plans and Benefits Payable in
Terminated Single-Employer Plans prescribe interest assumptions for
valuing and paying certain benefits under terminating single-employer
plans. This final rule amends the asset allocation regulation to adopt
interest assumptions for plans with valuation dates in the third
quarter of 2009 and amends the benefit payments regulation to adopt
interest assumptions for plans with valuation dates in July 2009.
Interest assumptions are also published on PBGC's Web site (https://www.pbgc.gov).
DATES: Effective July 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 Allocation of Assets in Single-Employer Plans (29 CFR
part 4044) and the regulation on Benefits Payable in Terminated Single-
Employer Plans (29 CFR part 4022). Assumptions under the
[[Page 28162]]
asset allocation regulation are updated quarterly; assumptions under
the benefit payments regulation are updated monthly. This final rule
updates the assumptions under the asset allocation regulation for the
third quarter (July through September) of 2009 and updates the
assumptions under the benefit payments regulation for July 2009.
The interest assumptions prescribed under the asset allocation
regulation (found in Appendix B to Part 4044) are used for the
valuation of benefits for allocation purposes under ERISA section 4044.
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 4044 the interest
assumptions for valuing benefits for allocation purposes in plans with
valuation dates during the third quarter (July through September) of
2009, (2) 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 July 2009, and (3) 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 July 2009.
The interest assumptions that PBGC will use for valuing benefits
for allocation purposes (set forth in Appendix B to part 4044) will be
5.31 percent for the first 20 years following the valuation date and
5.04 percent thereafter. By comparison with the interest assumptions in
effect for the second quarter of 2009, these interest assumptions
represent a decrease of 0.19 percent for the first 20 years following
the valuation date and an increase of 0.02 percent for all years
thereafter.
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 no change from those in effect for June
2009. 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 July 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
29 CFR Part 4022
Employee benefit plans, Pension insurance, Pensions, Reporting and
recordkeeping requirements.
29 CFR Part 4044
Employee benefit plans, Pension insurance, Pensions.
0
In consideration of the foregoing, 29 CFR parts 4022 and 4044 are
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 189, as set forth below, is
added to the table.
Appendix B to Part 4022--Lump Sum Interest Rates for PBGC Payments
* * * * *
[[Page 28163]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
189 7-1-09 8-1-09 3.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 189, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
189 7-1-09 8-1-09 3.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS
0
4. 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
5. In appendix B to part 4044, a new entry for July-September 2009, as
set forth below, is added to the table.
Appendix B to Part 4044--Interest Rates Used To Value Benefits
* * * * *
----------------------------------------------------------------------------------------------------------------
The values of it are:
For valuation dates occurring ----------------------------------------------------------------------------------
in the months-- it for t = it for t = it for t =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
July-September 2009.......... 0.0531 1-20 0.0504 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 9th day of June 2009.
Vincent K. Snowbarger,
Acting Director, Pension Benefit Guaranty Corporation.
[FR Doc. E9-14003 Filed 6-12-09; 8:45 am]
BILLING CODE 7709-01-P
