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]

Download as PDF 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. pwalker on PROD1PC71 with RULES 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 VerDate Nov<24>2008 16:18 Jun 12, 2009 Jkt 217001 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 U.S.C. 4321–4347) and has determined that this action would not have any effect on the quality of the environment. Regulation Identification Number A regulation identification number (RIN) is assigned to each regulatory action listed in the Unified Agenda of Federal Regulations. The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. The RIN contained 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. PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 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 E:\FR\FM\15JNR1.SGM 15JNR1 28162 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 VerDate Nov<24>2008 16:18 Jun 12, 2009 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 PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 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 * E:\FR\FM\15JNR1.SGM * * 15JNR1 * * 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 VerDate Nov<24>2008 16:18 Jun 12, 2009 Jkt 217001 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., PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 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 15JNR1

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]


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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
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