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]

Download as PDF 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]


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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: 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
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