Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 13883-13884 [2011-6054]
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13883
Federal Register / Vol. 76, No. 50 / Tuesday, March 15, 2011 / Rules and Regulations
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 April 2011 and
interest assumptions under the asset
allocation regulation for valuation dates
in the second quarter of 2011. Interest
assumptions are also published on
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective April 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
SUMMARY:
Rate set
For plans with a valuation
date
On or after
*
erowe on DSK5CLS3C1PROD with RULES
210
Before
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 April 2011 and
updates the asset allocation interest
assumptions for the second quarter
(April through June) of 2011.
The second-quarter 2011 interest
assumptions under the allocation
regulation will be 3.96 percent for the
first 20 years following the valuation
date and 4.32 percent thereafter. In
comparison with the interest
assumptions in effect for the first
quarter of 2011, these interest
assumptions represent a decrease of five
years in the select period (the period
during which the select rate (the initial
rate) applies), a decrease of 0.11 percent
in the select rate, and an increase of 0.39
percent in the ultimate rate (the final
rate).
The April 2011 interest assumptions
under the benefit payments regulation
will be 2.50 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 March 2011,
these interest assumptions are
unchanged.
PBGC has determined that notice and
public comment on this amendment are
impracticable and contrary to the public
Jkt 223001
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
210, 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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Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
13:15 Mar 14, 2011
29 CFR Part 4022
i2
*
4.00
2.50
3. In appendix C to part 4022, Rate Set
210, as set forth below, is added to the
table.
■
VerDate Mar<15>2010
i1
*
5–1–11
List of Subjects
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
4–1–11
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 April 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).
*
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7
8
13884
Federal Register / Vol. 76, No. 50 / Tuesday, March 15, 2011 / Rules and Regulations
For plans with a valuation
date
Rate set
On or after
*
Before
*
210
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
i1
*
4.00
*
4–1–11
5–1–11
2.50
i2
i3
4.00
n1
*
n2
*
*
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 April–June 2011, 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
*
*
*
April–June 2011 ................................................................
Issued in Washington, DC, on this 10th day
of March 2011.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension
Benefit Guaranty Corporation.
[FR Doc. 2011–6054 Filed 3–14–11; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 100
[Docket No. USCG–2010–1094]
RIN 1625–AA08
Special Local Regulation for Marine
Event; Temporary Change of Dates for
Recurring Marine Event in the Fifth
Coast Guard District
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
The Coast Guard is
temporarily changing the enforcement
period of special local regulations for a
recurring marine event in the Fifth
Coast Guard District. These regulations
apply to four recurring marine events
that conduct a rescue at sea
demonstration, an air show, a
swimming competition, and power boat
races. Special local regulations are
necessary to provide for the safety of life
on navigable waters during these events.
This action is intended to restrict vessel
traffic in a portion of the Severn River
at Annapolis, MD, the Chester River
near Chestertown, MD, and Prospect
Bay at Kent Island, MD during the
events.
erowe on DSK5CLS3C1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
13:15 Mar 14, 2011
Jkt 223001
for t =
it
for t =
1–20
*
0.0432
> 20
*
0.0396
This rule is effective from April
1, 2011 through September 1, 2011.
ADDRESSES: Comments and material
received from the public, as well as
documents mentioned in this preamble
as being available in the docket, are part
of docket USCG–2010–1094 and are
available online by going to https://
www.regulations.gov, inserting USCG–
2010–1094 in the ‘‘Keyword’’ box, and
then clicking ‘‘Search.’’ This material is
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.
and 5 p.m., Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this temporary
rule, call or e-mail Mr. Ronald L. Houck,
Project Manager, Coast Guard Sector
Baltimore Waterways Management
Division, telephone 410–576–2674,
email Ronald.L.Houck@uscg.mil. If you
have questions on viewing the docket,
call Renee V. Wright, Program Manager,
Docket Operations, telephone 202–366–
9826.
SUPPLEMENTARY INFORMATION:
DATES:
Regulatory Information
On January 11, 2011, we published a
notice of proposed rulemaking (NPRM)
entitled ‘‘Special Local Regulation for
Marine Event; Temporary Change of
Dates for Recurring Marine Event in the
Fifth Coast Guard District’’ in the
Federal Register (76 FR 7). We received
no comments on the proposed rule. No
public meeting was requested, and none
was held.
PO 00000
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for t =
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N/A
Basis and Purpose
Marine events are frequently held on
the navigable waters within the
boundary of the Fifth Coast Guard
District. The on water activities that
typically comprise marine events
include sailing regattas, power boat
races, swim races and holiday parades.
For a description of the geographical
area of Coast Guard Sector Baltimore—
Captain of the Port Zone, please see 33
CFR 3.25.
This regulation temporarily changes
the enforcement period of special local
regulations for recurring marine events
within the Fifth Coast Guard District.
This regulation applies to four marine
events previously published at 33 CFR
100.501, Table to § 100.501.
The first event is the annual ‘‘Safety
at Sea Seminar,’’ sponsored by the U.S.
Naval Academy, on the waters of the
Severn River at Annapolis, MD. The
regulation at 33 CFR 100.501 is effective
annually for the Safety at Sea Seminar
marine event. The event consists of
demonstrations of at sea rescues
including surface and air platforms held
on and above the waters of the Severn
River in Annapolis, MD. Visual distress
signal devices will be used and a
helicopter with small boats will be
operating before a large fleet of spectator
crafts. Therefore, to ensure the safety of
participants and support vessels, 33
CFR 100.501 would be enforced for the
duration of the event. Under provisions
of 33 CFR 100.501, from 11 a.m. to 1:30
p.m. on April 2, 2011, vessels may not
enter the regulated area unless they
receive permission from the Coast
Guard Patrol Commander. Vessel traffic
may be allowed to transit the regulated
E:\FR\FM\15MRR1.SGM
15MRR1
]]>Agencies
[Federal Register Volume 76, Number 50 (Tuesday, March 15, 2011)]
[Rules and Regulations]
[Pages 13883-13884]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-6054]
[[Page 13883]]
=======================================================================
-----------------------------------------------------------------------
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 April 2011 and interest assumptions under the asset allocation
regulation for valuation dates in the second quarter of 2011. Interest
assumptions are also published on PBGC's Web site (https://www.pbgc.gov).
DATES: Effective April 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 April 2011 and
updates the asset allocation interest assumptions for the second
quarter (April through June) of 2011.
The second-quarter 2011 interest assumptions under the allocation
regulation will be 3.96 percent for the first 20 years following the
valuation date and 4.32 percent thereafter. In comparison with the
interest assumptions in effect for the first quarter of 2011, these
interest assumptions represent a decrease of five years in the select
period (the period during which the select rate (the initial rate)
applies), a decrease of 0.11 percent in the select rate, and an
increase of 0.39 percent in the ultimate rate (the final rate).
The April 2011 interest assumptions under the benefit payments
regulation will be 2.50 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 March 2011, 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 April
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
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 210, 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 valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
210 4-1-11 5-1-11 2.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 210, as set forth below, is
added to the table.
Appendix C to Part 4022--Lump Sum Interest Rates for Private-Sector
Payments
* * * * *
[[Page 13884]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
210 4-1-11 5-1-11 2.50 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 April-June 2011, 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
April-June 2011............. 0.0396 1-20 0.0432 > 20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 10th day of March 2011.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension Benefit Guaranty Corporation.
[FR Doc. 2011-6054 Filed 3-14-11; 8:45 am]
BILLING CODE 7709-01-P
