Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 63380-63382 [2010-26081]
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63380
Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Rules and Regulations
Executive Order 13132 (Federalism)
DEPARTMENT OF THE TREASURY
The Department has reviewed this
proposed rule in accordance with
Executive Order 13132 regarding
federalism, and has determined that it
does not have ‘‘federalism implications.’’
The rule will not ‘‘have substantial
direct effects on the States, on the
relationship between the national
government and the States, or on the
distribution of power and
responsibilities among the various
levels of government.’’
Internal Revenue Service
Executive Order 12988 (Civil Justice
Reform)
26 CFR Part 1
[TD 9502]
RIN 1545–BF90
Exclusions From Gross Income of
Foreign Corporations; Correction
■
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendment.
§ 1.883–5
AGENCY:
This document contains
corrections to final regulations (TD
9502) that were published in the
Federal Register on Friday, September
17, 2010 (75 FR 56858) under section
883(a) and (c) of the Internal Revenue
Code, concerning the exclusion from
gross income of income derived by
certain foreign corporations from the
international operation of ships or
aircraft.
SUMMARY:
This rule meets the 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.
List of Subjects in 20 CFR Part 701
Longshore and harbor workers,
Organization and functions (government
agencies), Workers’ compensation.
Based on the authority and reasons set
forth in the preamble, 20 CFR chapter VI
is amended to read as follows:
■
This correction is effective on
October 15, 2010, and is applicable on
September 17, 2010.
FOR FURTHER INFORMATION CONTACT:
Patricia A. Bray, (202) 622–3880 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
DATES:
CHAPTER VI—OFFICE OF WORKERS’
COMPENSATION PROGRAMS,
DEPARTMENT OF LABOR
Background
1. Revise the chapter heading of 20
CFR chapter VI to read as shown above.
PART 701—GENERAL;
ADMINISTERING AGENCY;
DEFINITIONS AND USE OF TERMS
The final regulations (TD 9502) that
are the subject of this document are
under section 883 of the Internal
Revenue Code.
Need for Correction
■
2. The authority citation for part 701
is revised to read as follows:
Authority: 5 U.S.C. 301 and 8171 et seq.;
33 U.S.C. 939; 36 D.C. Code 501 et seq.; 42
U.S.C. 1651 et seq.; 43 U.S.C. 1331;
Reorganization Plan No. 6 of 1950, 15 FR
3174, 3 CFR, 1949–1953 Comp., p. 1004, 64
Stat. 1263; Secretary’s Order 10–2009, 74 FR
58834 (Nov. 13, 2009).
■
3. Revise § 701.201 to read as follows:
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§ 701.201 Office of Workers’
Compensation Programs.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendments:
■
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
The Office of Workers’ Compensation
Programs is responsible for
administering the LHWCA and its
extensions.
■
Signed at Washington, DC, this 5th day of
October 2010.
Seth D. Harris,
Deputy Secretary.
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.883–2 is amended by
revising paragraph (f)(4)(ii)(C) to read as
follows:
[FR Doc. 2010–25521 Filed 10–14–10; 8:45 am]
§ 1.883–2 Treatment of publicly-traded
corporations.
BILLING CODE 4510–23–P
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Par. 3. Section 1.883–5 is amended by
revising the heading of paragraph (d) to
read as follows:
Effective/applicability dates.
*
*
*
*
*
(d) Effective/applicability dates.
* * *
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2010–25950 Filed 10–14–10; 8:45 am]
BILLING CODE 4830–01–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions
for Paying Benefits
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
As published, the final regulations
(TD 9502) contain errors that may prove
to be misleading and are in need of
clarification.
■
(f) * * *
(4) * * *
(ii) * * *
(C) The number of days during the
taxable year of the foreign corporation
that such qualified shareholders owned,
directly or indirectly, their shares in the
closely held block of stock.
*
*
*
*
*
*
Fmt 4700
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Sfmt 4700
This final rule amends
Pension Benefit Guaranty Corporation’s
regulation on Benefits Payable in
Terminated Single-Employer Plans to
prescribe interest assumptions under
the regulation for valuation dates in
November 2010. Interest assumptions
are also published on PBGC’s Web site
(https://www.pbgc.gov).
DATES: Effective November 1, 2010.
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
regulation on Benefits Payable in
Terminated Single-Employer Plans (29
CFR part 4022) prescribes actuarial
assumptions—including interest
assumptions—for paying plan benefits
under terminating single-employer
plans covered by title IV of the
Employee Retirement Income Security
Act of 1974.
SUMMARY:
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63381
Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Rules and Regulations
PBGC uses the interest assumptions in
Appendix B to part 4022 to determine
whether a benefit is payable as a lump
sum and to determine the amount to
pay. Appendix C to part 4022 contains
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. Currently, the rates in
Appendices B and C of the benefit
payment regulation are the same.
The interest assumptions are intended
to reflect current conditions in the
financial and annuity markets.
Assumptions under the benefit
payments regulation are updated
monthly. This final rule updates the
benefit payments interest assumptions
for November 2010.1
The November 2010 interest
assumptions under the benefit payments
regulation will be 1.75 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
Rate set
For plans with a valuation
date
On or after
*
status. In comparison with the interest
assumptions in effect for October 2010,
these interest assumptions are
unchanged.
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 payment of
benefits under plans with valuation
dates during November 2010, 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
Before
*
205 ....................................
11–1–10
3. In appendix C to part 4022, Rate Set
205, as set forth below, is added to the
table.
■
*
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Before
*
205 ....................................
11–1–10
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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
205, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
*
*
*
*
i3
*
n1
*
1.75
*
n2
*
4.00
*
4.00
*
4.00
7
8
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
i1
i2
*
12–1–10
1 Appendix B to PBGC’s regulation on Allocation
of Assets in Single-Employer Plans (29 CFR part
4044) prescribes interest assumptions for valuing
VerDate Mar<15>2010
*
For plans with a valuation
date
On or after
In consideration of the foregoing, 29
CFR part 4022 is amended as follows:
■
Appendix C to Part 4022—Lump Sum
Interest Rates For Private-Sector
Payments
*
Rate set
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
i2
i1
*
12–1–10
List of Subjects in 29 CFR Part 4022
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
amendment, the Regulatory Flexibility
Act of 1980 does not apply. See 5 U.S.C.
601(2).
1.75
Frm 00003
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n1
*
4.00
benefits under terminating covered single-employer
plans for purposes of allocation of assets under
PO 00000
i3
Sfmt 9990
n2
*
4.00
4.00
*
7
ERISA section 4044. Those assumptions are
updated quarterly.
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63382
Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Rules and Regulations
Issued in Washington, DC, on this 12th day
of October 2010.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension
Benefit Guaranty Corporation.
[FR Doc. 2010–26081 Filed 10–14–10; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF THE TREASURY
31 CFR Part 103
RIN 1506–AA93
Financial Crimes Enforcement
Network; Amendment to the Bank
Secrecy Act Regulations; Defining
Mutual Funds as Financial Institutions;
Extension of Compliance Date
Financial Crimes Enforcement
Network (‘‘FinCEN’’), Treasury.
ACTION: Final rule; extension of
compliance date.
AGENCY:
FinCEN is issuing this final
rule extending the compliance date for
those provisions in 31 CFR 103.33 that
apply to mutual funds. On April 14,
2010, FinCEN issued a final rule that
included mutual funds within the
general definition of ‘‘financial
institution’’ in regulations implementing
the Bank Secrecy Act (‘‘BSA’’). The final
rule subjects mutual funds to 31 CFR
103.33, which requires the creation,
retention, and transmittal of records or
information for transmittals of funds.
FinCEN is extending, from January 10,
2011 to April 10, 2011, the date on
which mutual funds must begin to
comply with 31 CFR 103.33.
DATES: This final rule is effective on
October 15, 2010. The compliance date
for 31 CFR 103.33 is extended from
January 10, 2011 to April 10, 2011.
FOR FURTHER INFORMATION CONTACT: The
FinCEN regulatory helpline at (800)
949–2732.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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I. Background
On April 14, 2010, FinCEN published
a final rule 1 to include mutual funds
within the general definition of
‘‘financial institution’’ in regulations
implementing the BSA (the ‘‘Final
Rule’’).2 The Final Rule subjects mutual
funds to rules under the BSA on the
filing of Currency Transaction Reports
(‘‘CTRs’’) and on the creation, retention,
1 Amendments to the Bank Secrecy Act
Regulations; Defining Mutual Funds as Financial
Institutions, 75 FR 19241 (April 14, 2010).
2 See 31 CFR 103.11(n)(10) (general definition of
‘‘financial institution’’). The BSA is codified in part
at 31 U.S.C. 5311 et seq. Rules implementing the
BSA are codified at 31 CFR part 103.
VerDate Mar<15>2010
15:58 Oct 14, 2010
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and transmittal of records or
information for transmittals of funds.
Additionally, the Final Rule amends the
definition of mutual fund in the rule
requiring mutual funds to establish antimoney laundering (‘‘AML’’) programs.
The amendment harmonizes the
definition of mutual fund in the AML
program rule with the definitions found
in the other BSA rules to which mutual
funds are subject. Finally, the Final Rule
amends the rule that delegates authority
to examine institutions for compliance
with the BSA. The amendment makes it
clear that FinCEN has not delegated to
the Internal Revenue Service the
authority to examine mutual funds for
compliance with the BSA, but rather to
the U.S. Securities and Exchange
Commission as the Federal functional
regulator of mutual funds.
Section 103.33—The Recordkeeping
and Travel Rule and Related
Recordkeeping Requirements
The Final Rule subjects mutual funds
to requirements relating to the creation
and retention of records for transmittals
of funds, and the requirement to
transmit information on these
transactions to other financial
institutions in the payment chain
(‘‘Recordkeeping and Travel Rule’’).3
The Recordkeeping and Travel Rule
applies to transmittals of funds in
amounts that equal or exceed $3,000,4
and requires the transmittor’s financial
institution to obtain and retain name,
address, and other information on the
transmittor and the transaction.5
Furthermore, the Recordkeeping and
Travel Rule requires the recipient’s
financial institution—and in certain
instances, the transmittor’s financial
institution—to obtain or retain
identifying information on the
recipient.6 The Recordkeeping and
Travel Rule requires that certain
information obtained or retained by the
transmittor’s financial institution
3 See 31 CFR 103.33(f) and (g). Financial
institutions must retain records for a period of five
years. 31 CFR103.38(d).
4 Rules under the BSA define a ‘‘transmittal of
funds’’ and the persons or institutions involved in
a ‘‘transmittal of funds.’’ See 31 CFR 103.11(d), (e),
(q), (r), (s), (v), (w), (cc), (dd), (jj), (kk), (ll), and
(mm). A ‘‘transmittal of funds’’ includes funds
transfers processed by banks, as well as similar
payments where one or more of the financial
institutions processing the payment is not a bank.
If the mutual fund is processing a payment sent by
or to its customer, then the mutual fund would be
either the ‘‘transmittor’s financial institution’’ or the
‘‘recipient’s financial institution.’’
5 See 31 CFR 103.33(f)(1)(i) and (f)(2).
6 See 31 CFR 103.33(f)(3) (information that the
recipient’s financial institution must obtain or
retain).
PO 00000
Frm 00004
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‘‘travel’’ with the transmittal order
through the payment chain.7
Mutual funds are subject to record
retention requirements under the
Investment Company Act of 1940, and
mutual fund transfer agents are subject
to recordkeeping requirements under
the Securities Exchange Act of 1934.8 In
light of these existing regulatory
obligations, FinCEN stated in the notice
of proposed rulemaking that the
requirements of 31 CFR 103.33 and 31
CFR 103.38 would have a de minimus
impact on mutual funds and their
transfer agents.9 Furthermore, rules
under the BSA on the establishment of
customer identification programs by
mutual funds and on the reporting by
mutual funds of suspicious transactions
impose requirements to create and
retain records.10
FinCEN also requested comment on
the anticipated impact of subjecting
mutual funds to the requirements of the
Recordkeeping and Travel Rule. All
three commenters noted that subjecting
mutual funds to the requirements of the
Recordkeeping and Travel Rule will
require mutual funds to implement
changes to their transaction processing
and recordkeeping systems. All
commenters requested additional time
to comply with the Recordkeeping and
Travel Rule. Commenters stated that
such an extension would provide
mutual funds with an opportunity to
implement changes to their transaction
reporting and recordkeeping systems.
Generally, commenters suggested an
extension of between 18 to 24 months.
FinCEN determined that extending the
compliance date with respect to the
requirements of the Recordkeeping and
Travel Rule to 270 days after the rule
7 See 31 CFR 103.33(g) (information that must
‘‘travel’’ with the transmittal order); 31 CFR
103.11(kk) (defining ‘‘transmittal order’’).
Additionally, the Final Rule includes mutual funds
within an existing exception designed to exclude
from the Recordkeeping and Travel Rule’s coverage
funds transfers or transmittal of funds in which
certain categories of financial institution are the
transmittor, originator, recipient, or beneficiary. See
31 CFR 103.33(e)(6)(i) and 31 CFR 103.33(f)(6)(i).
Further, the Final Rule subjects mutual funds to
requirements on the creation and retention of
records for extensions of credit and cross-border
transfers of currency, monetary instruments,
checks, investment securities, and credit. See 31
CFR 103.33(a)–(c). Financial institutions must
retain these records for a period of five years. 31
CFR 103.38(d).
8 See, e.g., 15 U.S.C. 80a–30 (mutual funds); 15
U.S.C. 78q(a)(3) (transfer agents).
9 Amendment to Bank Secrecy Act Regulations;
Defining Mutual Funds as Financial Institutions, 74
FR 26996, 26998 (June 5, 2009).
10 See 31 CFR 103.131 (mutual funds must obtain
and record identifying information for persons
opening new accounts, and verify the identity of
persons opening new accounts); 31 CFR 103.15(c)
(mutual funds must maintain records of
documentation that supports the filing of a SAR).
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]]>Agencies
[Federal Register Volume 75, Number 199 (Friday, October 15, 2010)]
[Rules and Regulations]
[Pages 63380-63382]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-26081]
=======================================================================
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated Single-Employer Plans; Interest
Assumptions for Paying Benefits
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule amends Pension Benefit Guaranty Corporation's
regulation on Benefits Payable in Terminated Single-Employer Plans to
prescribe interest assumptions under the regulation for valuation dates
in November 2010. Interest assumptions are also published on PBGC's Web
site (https://www.pbgc.gov).
DATES: Effective November 1, 2010.
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 regulation on Benefits Payable in
Terminated Single-Employer Plans (29 CFR part 4022) prescribes
actuarial assumptions--including interest assumptions--for paying plan
benefits under terminating single-employer plans covered by title IV of
the Employee Retirement Income Security Act of 1974.
[[Page 63381]]
PBGC uses the interest assumptions in Appendix B to part 4022 to
determine whether a benefit is payable as a lump sum and to determine
the amount to pay. Appendix C to part 4022 contains 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. Currently, the rates in Appendices B and C of
the benefit payment regulation are the same.
The interest assumptions are intended to reflect current conditions
in the financial and annuity markets. Assumptions under the benefit
payments regulation are updated monthly. This final rule updates the
benefit payments interest assumptions for November 2010.\1\
---------------------------------------------------------------------------
\1\ Appendix B to PBGC's regulation on Allocation of Assets in
Single-Employer Plans (29 CFR part 4044) prescribes interest
assumptions for valuing benefits under terminating covered single-
employer plans for purposes of allocation of assets under ERISA
section 4044. Those assumptions are updated quarterly.
---------------------------------------------------------------------------
The November 2010 interest assumptions under the benefit payments
regulation will be 1.75 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. In comparison with the interest
assumptions in effect for October 2010, these interest assumptions are
unchanged.
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 payment
of benefits under plans with valuation dates during November 2010, 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 205, 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 Immediate Deferred annuities (percent)
valuation date annuity ----------------------------------------------------------------
Rate set -------------------------- rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
205............................................. 11-1-10 12-1-10 1.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 205, 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 Immediate Deferred annuities (percent)
valuation date annuity ----------------------------------------------------------------
Rate set -------------------------- rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
205............................................. 11-1-10 12-1-10 1.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 63382]]
Issued in Washington, DC, on this 12th day of October 2010.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension Benefit Guaranty Corporation.
[FR Doc. 2010-26081 Filed 10-14-10; 8:45 am]
BILLING CODE 7709-01-P
