Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 34847-34848 [2011-14852]
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34847
Federal Register / Vol. 76, No. 115 / Wednesday, June 15, 2011 / Rules and Regulations
Dated: June 9, 2011.
Nancy K. Stade,
Deputy Director for Policy, Center for Devices
and Radiological Health.
[FR Doc. 2011–14790 Filed 6–14–11; 8:45 am]
BILLING CODE 4160–01–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 the
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 July 2011 and
interest assumptions under the asset
allocation regulation for valuation dates
in the third quarter of 2011. The interest
assumptions are used for valuing and
paying benefits under terminating
single-employer plans covered by the
pension insurance system administered
by PBGC.
DATES: Effective July 1, 2011.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion
(Klion.Catherine@PBGC.gov), 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
WReier-Aviles on DSKGBLS3C1PROD with RULES
SUMMARY:
Rate set
For plans with a valuation
date
On or after
*
213
VerDate Mar<15>2010
Before
*
7–1–11
15:05 Jun 14, 2011
plan benefits under terminating singleemployer plans covered by title IV of
the Employee Retirement Income
Security Act of 1974. The interest
assumptions in the regulations are also
published on PBGC’s Web site (https://
www.pbgc.gov).
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 July 2011 and
updates the asset allocation interest
assumptions for the third quarter (July
through September) of 2011.
The third quarter 2011 interest
assumptions under the allocation
regulation will be 4.21 percent for the
first 25 years following the valuation
date and 4.34 percent thereafter. In
comparison with the interest
assumptions in effect for the second
quarter of 2011, these interest
assumptions represent an increase of
five years in the select period (the
period during which the select rate (the
initial rate) applies), an increase of 0.25
percent in the select rate, and an
increase of 0.02 percent in the ultimate
rate (the final rate).
The July 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 June 2011,
these interest assumptions represent a
decrease of 0.25 percent in the
*
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Frm 00003
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
213, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
8–1–11
immediate annuity rate and are
otherwise 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 July 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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34848
Federal Register / Vol. 76, No. 115 / Wednesday, June 15, 2011 / Rules and Regulations
3. In appendix C to part 4022, Rate Set
213, 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
Rate set
On or after
*
Before
7–1–11
*
*
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
213
*
*
8–1–11
2.25
i1
i2
*
4.00
4.00
4. The authority citation for part 4044
continues to read as follows:
8
*
*
*
*
The values of it are:
*
*
July–September 2011 ...............................
*
0.0421
1–25
Issued in Washington, DC, on this 10th day
of June 2011.
Laricke Blanchard,
Deputy Director for Policy, Pension Benefit
Guaranty Corporation.
[FR Doc. 2011–14852 Filed 6–14–11; 8:45 am]
BILLING CODE 7709–01–P
it
*
for t =
*
0.0434
opening periods for the bridge during
the day until December 20, 2013,
relieving vehicular traffic congestion
during the weekday and weekend
daytime hours while still providing for
the reasonable needs of navigation.
This rule is effective from 9 a.m.
on June 19, 2010 until 6:30 p.m. on
December 20, 2013.
DATES:
DEPARTMENT OF HOMELAND
SECURITY
Comments and related
materials received from the public, as
well as documents mentioned in this
preamble as being available in the
docket, are part of docket USCG–2010–
0879 and are available online by going
to https://www.regulations.gov, inserting
USCG–2010–0879 in the ‘‘Keyword’’
box, and 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.
ADDRESSES:
Coast Guard
33 CFR Part 117
[USCG–2010–0879]
RIN 1625–AA09
Drawbridge Operation Regulation;
Atlantic Intracoastal Waterway (AIWW),
Elizabeth River, Southern Branch,
Chesapeake, VA
Coast Guard, DHS.
Final rule.
AGENCY:
The Coast Guard is
temporarily changing the drawbridge
operation regulations of the Gilmerton
(US13/460) Bridge across the Elizabeth
River (Southern Branch), AIWW mile
5.8, at Chesapeake, VA. Due to the
construction of the new Gilmerton
Highway Bridge, the existing
drawbridge has experienced increased
delays to vehicular traffic during
unscheduled vessel openings. This
change will allow adjustments and set
Jkt 223001
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7
*
for t =
15:05 Jun 14, 2011
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4.00
5. In appendix B to part 4044, a new
entry for July–September 2011, as set
forth below, is added to the table.
it
VerDate Mar<15>2010
n2
Appendix B to Part 4044—Interest
Rates Used to Value Benefits
For valuation dates occurring in the
months—
WReier-Aviles on DSKGBLS3C1PROD with RULES
*
■
■
SUMMARY:
n1
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
ACTION:
i3
If
you have questions on this rule, call
Waverly W. Gregory, Jr., Bridge Program
Manager, Fifth Coast Guard District, at
757–398–6222. If you have questions on
viewing the docket, call Renee V.
Wright, Program Manager, Docket
Operations, telephone 202–366–9826.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00004
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N/A
Regulatory Information
On November 16, 2010, we published
a notice of temporary deviation request
for comments entitled ‘‘Drawbridge
Operation Regulation; Atlantic
Intracoastal Waterway (AIWW),
Elizabeth River, Southern Branch, VA’’
in the Federal Register (75 FR 69879)
and a notice of proposed rulemaking
(NPRM) entitled ‘‘Drawbridge Operation
Regulation; Atlantic Intracoastal
Waterway (AIWW), Elizabeth River,
Southern Branch, VA’’ in the Federal
Register (75 FR 69906). We received
seven comments on the published
deviation and NPRM. No public meeting
was requested, and none was held.
Under 5 U.S.C. 553(d)(3), the Coast
Guard finds that good cause exists for
making this rule effective in less than 30
days after publication in the Federal
Register. Making this rule effective in
less than 30 days is necessary in order
to continue the construction of the new
Gilmerton Bridge Replacement Project
without disruption. Additionally,
delaying this final temporary could
result in additional vehicular traffic
congestion without providing any
additional benefit to vessel traffic.
Background and Purpose
The City of Chesapeake, Virginia (the
City), who owns and operates the lifttype Gilmerton (US13/460) Bridge, has
requested a temporary change to the
existing bridge regulations. The current
regulation, set out in Title 33 CFR Part
E:\FR\FM\15JNR1.SGM
15JNR1
]]>Agencies
[Federal Register Volume 76, Number 115 (Wednesday, June 15, 2011)]
[Rules and Regulations]
[Pages 34847-34848]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-14852]
=======================================================================
-----------------------------------------------------------------------
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 the 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 July 2011 and interest assumptions under the
asset allocation regulation for valuation dates in the third quarter of
2011. The interest assumptions are used for valuing and paying benefits
under terminating single-employer plans covered by the pension
insurance system administered by PBGC.
DATES: Effective July 1, 2011.
FOR FURTHER INFORMATION CONTACT: Catherine B. Klion
(Klion.Catherine@PBGC.gov), 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 the regulations are also published on PBGC's Web site
(https://www.pbgc.gov).
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 July 2011 and
updates the asset allocation interest assumptions for the third quarter
(July through September) of 2011.
The third quarter 2011 interest assumptions under the allocation
regulation will be 4.21 percent for the first 25 years following the
valuation date and 4.34 percent thereafter. In comparison with the
interest assumptions in effect for the second quarter of 2011, these
interest assumptions represent an increase of five years in the select
period (the period during which the select rate (the initial rate)
applies), an increase of 0.25 percent in the select rate, and an
increase of 0.02 percent in the ultimate rate (the final rate).
The July 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 June 2011, these interest assumptions
represent a decrease of 0.25 percent in the immediate annuity rate and
are otherwise 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 July
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 213, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
213 7-1-11 8-1-11 2.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 34848]]
0
3. In appendix C to part 4022, Rate Set 213, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
213 7-1-11 8-1-11 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 July-September 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 =
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
July-September 2011............................... 0.0421 1-25 0.0434 >25 N/A N/A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 10th day of June 2011.
Laricke Blanchard,
Deputy Director for Policy, Pension Benefit Guaranty Corporation.
[FR Doc. 2011-14852 Filed 6-14-11; 8:45 am]
BILLING CODE 7709-01-P
