Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 78161-78162 [2010-31616]
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Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Rules and Regulations
DATES:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding an entry
in numerical order to read as follows:
■
Authority: 26 U.S.C. 7805.* * *
Section 1.6012–2 is also issued under the
authority of 26 U.S.C. 6011 and 6012.
Par. 2. Section 1.6012–2 is amended
by adding paragraphs (a)(4) and (5) to
read as follows:
■
§ 1.6012–2 Corporations required to make
returns of income.
(a) * * *
(4) Disclosure of uncertain tax
positions. A corporation required to
make a return under this section shall
attach Schedule UTP, Uncertain Tax
Position Statement, or any successor
form, to such return, in accordance with
forms, instructions, or other appropriate
guidance provided by the IRS.
(5) Effective/applicability date.
Paragraph (a)(4) of this section applies
to returns filed for tax years beginning
on or after January 1, 2010.
*
*
*
*
*
Steven T. Miller
Deputy Commissioner for Services and
Enforcement.
Approved: December 9, 2010.
Michael Mundaca,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2010–31576 Filed 12–13–10; 11:15 am]
BILLING CODE 4830–01–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
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
This final rule amends
Pension Benefit Guaranty Corporation’s
regulations on Benefits Payable in
Terminated Single-Employer Plans and
Allocation of Assets in Single-Employer
Plans to prescribe interest assumptions
under the benefit payments regulation
for valuation dates in January 2011 and
interest assumptions under the asset
allocation regulation for valuation dates
in the first quarter of 2011. Interest
assumptions are also published on
PBGC’s Web site (https://www.pbgc.gov).
emcdonald on DSK2BSOYB1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
16:44 Dec 14, 2010
Jkt 223001
Effective January 1, 2011.
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 on Allocation of Assets in
Single-Employer Plans (29 CFR part
4044) and Benefits Payable in
Terminated Single-Employer Plans (29
CFR part 4022) prescribe actuarial
assumptions—including interest
assumptions—for valuing and paying
plan benefits under terminating singleemployer plans covered by title IV of
the Employee Retirement Income
Security Act of 1974.
The interest assumptions in appendix
B to part 4044 are used to value benefits
for allocation purposes under ERISA
section 4044. 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 asset allocation
regulation are updated quarterly;
assumptions under the benefit payments
regulation are updated monthly. This
final rule updates the benefit payments
interest assumptions for January 2011
and updates the asset allocation interest
assumptions for the first quarter
(January through March) of 2011.
The first-quarter 2011 interest
assumptions under the allocation
regulation will be 4.07 percent for the
first 25 years following the valuation
date and 3.93 percent thereafter. In
comparison with the interest
assumptions in effect for the fourth
quarter of 2010, these interest
assumptions represent no change in the
select period (the period during which
the select rate (the initial rate) applies),
a decrease of 0.41 percent in the select
rate, and a decrease of 0.58 percent in
the ultimate rate (the final rate).
The January 2011 interest
assumptions under the benefit payments
regulation will be 2.25 percent for the
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
78161
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 December
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 valuation
and payment of benefits under plans
with valuation dates during January
2011, 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.
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
207 is added to the table to read as
follows:
■
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
*
E:\FR\FM\15DER1.SGM
*
*
15DER1
*
*
78162
Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Rules and Regulations
Rate set
For plans with a valuation
date
On or after
*
Before
*
207
1–1–11
*
Before
1–1–11
*
*
Immediate
annuity rate
(percent)
*
207
i3
4.00
n1
*
n2
*
*
4.00
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates For Private-Sector
Payments
*
For plans with a valuation
date
i2
*
4.00
2.25
3. In appendix C to part 4022, Rate Set
207 is added to the table to read as
follows:
On or after
i1
*
2–1–11
■
Rate set
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
2–1–11
2.25
*
*
Deferred annuities
(percent)
i1
i2
i3
*
4.00
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 January–March 2011 is added
to the table to read as follows:
*
■
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
*
*
*
*
January–March 2011 ................................................................................
Issued in Washington, DC, on this 13th day
of December 2010.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension
Benefit Guaranty Corporation.
[FR Doc. 2010–31616 Filed 12–14–10; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[Docket No. USCG–2010–1084]
Drawbridge Operation Regulation;
Upper Mississippi River, Clinton, IA
Coast Guard, DHS.
Notice of temporary deviation
from regulations.
emcdonald on DSK2BSOYB1PROD with RULES
AGENCY:
ACTION:
The Commander, Eighth
Coast Guard District, has issued a
temporary deviation from the regulation
governing the operation of the Clinton
Railroad Drawbridge across the Upper
SUMMARY:
VerDate Mar<15>2010
17:13 Dec 14, 2010
Jkt 223001
0.0407
for t =
*
1–25
Mississippi River, mile 518.0, at
Clinton, Iowa. The deviation is
necessary to allow the bridge owner
time to perform preventive maintenance
that is essential to the continued safe
operation of the drawbridge.
Maintenance is scheduled in the winter
and when there is less impact on
navigation; instead of scheduling work
in the summer, when river traffic
increases. This deviation allows the
bridge to open on signal if at least 24
hours advance notice is given.
DATES: This deviation is effective from
12:01 a.m., December 15, 2010 to 9 a.m.,
March 1, 2011.
ADDRESSES: Documents mentioned in
this preamble as being available in the
docket are part of docket USCG–2010–
1084 and are available online by going
to https://www.regulations.gov, inserting
USCG–2010–1084 in the ‘‘Keyword’’ box
and then clicking ‘‘Search’’. They are
also available for inspection or copying
at 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.
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
it
for t =
it
for t =
*
0.0393
*
>25
N/A
N/A
and 5 p.m., Monday through Friday,
except Federal holidays.
If
you have questions on this rule, call or
e-mail Eric A. Washburn, Bridge
Administrator, Western Rivers, Coast
Guard; telephone 314–269–2378, e-mail
Eric.Washburn@uscg.mil. If you have
questions on viewing the docket, call
Renee V. Wright, Program Manager,
Docket Operations, telephone 202–366–
9826.
FOR FURTHER INFORMATION CONTACT:
The Union
Pacific Railroad requested a temporary
deviation for the Clinton Railroad
Drawbridge, across the Upper
Mississippi River, mile 518.0, at
Clinton, Iowa to open on signal if at
least 24 hours advance notice is given
for 77 days from 12:01 a.m., December
15, 2010 to 9 a.m., March 1, 2011 to
allow the bridge owner time for
preventive maintenance. The Clinton
Railroad Drawbridge currently operates
in accordance with 33 CFR 117.5, which
states the general requirement that
drawbridges shall open promptly and
fully for the passage of vessels when a
SUPPLEMENTARY INFORMATION:
E:\FR\FM\15DER1.SGM
15DER1
]]>Agencies
[Federal Register Volume 75, Number 240 (Wednesday, December 15, 2010)]
[Rules and Regulations]
[Pages 78161-78162]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-31616]
=======================================================================
-----------------------------------------------------------------------
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: This final rule amends Pension Benefit Guaranty Corporation's
regulations on Benefits Payable in Terminated Single-Employer Plans and
Allocation of Assets in Single-Employer Plans to prescribe interest
assumptions under the benefit payments regulation for valuation dates
in January 2011 and interest assumptions under the asset allocation
regulation for valuation dates in the first quarter of 2011. Interest
assumptions are also published on PBGC's Web site (https://www.pbgc.gov).
DATES: Effective January 1, 2011.
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 on Allocation of Assets
in Single-Employer Plans (29 CFR part 4044) and Benefits Payable in
Terminated Single-Employer Plans (29 CFR part 4022) prescribe actuarial
assumptions--including interest assumptions--for valuing and paying
plan benefits under terminating single-employer plans covered by title
IV of the Employee Retirement Income Security Act of 1974.
The interest assumptions in appendix B to part 4044 are used to
value benefits for allocation purposes under ERISA section 4044. 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 asset
allocation regulation are updated quarterly; assumptions under the
benefit payments regulation are updated monthly. This final rule
updates the benefit payments interest assumptions for January 2011 and
updates the asset allocation interest assumptions for the first quarter
(January through March) of 2011.
The first-quarter 2011 interest assumptions under the allocation
regulation will be 4.07 percent for the first 25 years following the
valuation date and 3.93 percent thereafter. In comparison with the
interest assumptions in effect for the fourth quarter of 2010, these
interest assumptions represent no change in the select period (the
period during which the select rate (the initial rate) applies), a
decrease of 0.41 percent in the select rate, and a decrease of 0.58
percent in the ultimate rate (the final rate).
The January 2011 interest assumptions under the benefit payments
regulation will be 2.25 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 December 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 valuation
and payment of benefits under plans with valuation dates during January
2011, 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 207 is added to the table to
read as follows:
Appendix B to Part 4022--Lump Sum Interest Rates For PBGC Payments
* * * * *
[[Page 78162]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
207 1-1-11 2-1-11 2.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 207 is added to the table to
read as follows:
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
207 1-1-11 2-1-11 2.25 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 January-March 2011 is
added to the table to read as follows:
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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
January-March 2011............................ 0.0407 1-25 0.0393 >25 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 13th day of December 2010.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension Benefit Guaranty Corporation.
[FR Doc. 2010-31616 Filed 12-14-10; 8:45 am]
BILLING CODE 7709-01-P
