Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 56973-56975 [2011-23686]
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Federal Register / Vol. 76, No. 179 / Thursday, September 15, 2011 / Rules and Regulations
DEPARTMENT OF THE TREASURY
BILLING CODE 4910–13–P
PART 1—INCOME TAXES
Internal Revenue Service
[FR Doc. 2011–23187 Filed 9–14–11; 8:45 am]
■
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
26 CFR Part 1
DEPARTMENT OF COMMERCE
Authority: 26 U.S.C. 7805 * * *.
[TD 9542]
RIN 1545–BE77
National Oceanic and Atmospheric
Administration
15 CFR Part 922
Office of National Marine Sanctuaries
Final Policy and Permit Guidance for
Submarine Cable Projects
Office of National Marine
Sanctuaries (ONMS), National Oceanic
and Atmospheric Administration
(NOAA), Department of Commerce
(DOC).
AGENCY:
Notice of availability; response
to comments.
ACTION:
The Office of National Marine
Sanctuaries (ONMS) has developed final
policy and permitting guidance for
submarine cable projects proposed in
national marine sanctuaries. This action
identifies the criteria the ONMS will use
to ensure that applications to install and
maintain submarine cables in
sanctuaries are reviewed consistently
and in a manner that adheres to the
National Marine Sanctuaries Act and
ONMS regulations (15 CFR part 922).
The ONMS is releasing its final policy
and permitting guidance, and
responding to comments on the interim
policy.
SUMMARY:
This notice of availability is
effective as a final policy as of
September 15, 2011.
DATES:
FOR FURTHER INFORMATION CONTACT:
wreier-aviles on DSK7SPTVN1PROD with RULES
Vicki Wedell, (301) 713–3125.
Dated: September 6, 2011.
Daniel J. Basta,
Director, Office of National Marine
Sanctuaries.
Elections Regarding Start-Up
Expenditures, Corporation
Organizational Expenditures, and
Partnership Organizational Expenses;
Correction
Par. 2. Section 1.709–1 is amended by
revising the last sentences of paragraphs
(b)(4) Example 2, Example 5, and
Example 6 to read as follows:
§ 1.709–1 Treatment of organization and
syndication costs.
■
Internal Revenue Service (IRS),
Treasury.
AGENCY:
ACTION:
Correcting amendment.
This document contains
corrections to final regulations and
removal of temporary regulations (TD
9542) that were published in the
Federal Register on Wednesday, August
17, 2011 (76 FR 50887) relating to
elections to deduct start-up
expenditures, organizational
expenditures of corporations, and
organizational expenses of partnerships.
The American Jobs Creation Act of 2004
amended the Internal Revenue Code to
permit the optional deduction of a
limited amount of these types of
expenses that are paid or incurred after
October 22, 2004.
SUMMARY:
This correction is effective on
September 15, 2011 and is applicable
August 16, 2011.
DATES:
R.
Matthew Kelley, (202) 622–7900 (not a
toll-free number).
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
Copies of the final policy
and permit guidance for submarine
cable projects may be viewed and
downloaded at https://
sanctuaries.noaa.gov/library/
welcome.html. You may also request a
copy of the final policy by contacting
Vicki Wedell, NOAA, Office of National
Marine Sanctuaries, 1305 East-West
Highway, (N/NMS2), 11th Floor, Silver
Spring, Maryland 20910.
ADDRESSES:
Background
The final regulations and removal of
temporary regulations that are the
subject of this document are under
sections 195, 248, and 709 of the
Internal Revenue Code.
Need for Correction
As published, the final regulations
and removal of temporary regulations
(TD 9542) contain errors that may prove
to be misleading and are in need of
clarification.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Correction of Publication
[FR Doc. 2011–23625 Filed 9–14–11; 8:45 am]
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendments:
BILLING CODE 3510–NK–P
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(4) * * *
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Example 2. * * * Partnership X may
amortize the remaining $34,800 ($36,000 ¥
$1,200 = $34,800) ratably over the remaining
174 months.
*
*
*
*
*
Example 5. * * * Partnership X may
amortize the remaining $52,200 ($54,000 ¥
$1,800 = $ 52,200) ratably over the remaining
174 months.
Example 6. * * * Partnership X may
amortize the remaining $435,000 ($450,000
¥ $15,000 = $435,000) ratably over the
remaining 174 months.
*
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Diane Williams,
Federal Register Liaison, Publications and
Regulations Branch, Legal Processing
Division, Associate Chief Counsel (Procedure
and Administration).
[FR Doc. 2011–23598 Filed 9–14–11; 8:45 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 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 October 2011 and
interest assumptions under the asset
allocation regulation for valuation dates
in the fourth quarter of 2011. The
interest assumptions are used for
valuing and paying benefits under
terminating single-employer plans
SUMMARY:
E:\FR\FM\15SER1.SGM
15SER1
56974
Federal Register / Vol. 76, No. 179 / Thursday, September 15, 2011 / Rules and Regulations
covered by the pension insurance
system administered by PBGC.
DATES: Effective October 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 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
Rate set
For plans with a valuation
date
On or after
*
216
Before
3. In appendix C to part 4022, Rate Set
216, as set forth below, is added to the
table.
For plans with a valuation
date
On or after
VerDate Mar<15>2010
13:02 Sep 14, 2011
Before
Jkt 223001
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
216, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
i2
*
4.00
1.75
*
*
*
i3
4.00
*
n1
*
4.00
n2
*
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
Rate set
i1
*
11–1–11
Because of the need to provide
immediate guidance for the valuation
and payment of benefits under plans
with valuation dates during October
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).
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
10–1–11
■
wreier-aviles on DSK7SPTVN1PROD with RULES
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 October 2011
and updates the asset allocation interest
assumptions for the fourth quarter
(October through December) of 2011.
The fourth quarter 2011 interest
assumptions under the allocation
regulation will be 4.07 percent for the
first 20 years following the valuation
date and 4.28 percent thereafter. In
comparison with the interest
assumptions in effect for the third
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 0.14 percent
in the select rate, and a decrease of 0.06
percent in the ultimate rate (the final
rate).
The October 2011 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 September
2011, these interest assumptions
represent a decrease of 0.50 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.
*
*
Immediate
annuity rate
(percent)
PO 00000
Frm 00026
*
*
Deferred annuities
(percent)
i1
Fmt 4700
i2
Sfmt 4700
E:\FR\FM\15SER1.SGM
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15SER1
56975
Federal Register / Vol. 76, No. 179 / Thursday, September 15, 2011 / Rules and Regulations
For plans with a valuation
date
Rate set
On or after
*
Before
*
216
*
10–1–11
11–1–11
1.75
i1
i2
*
4.00
4.00
BILLING CODE 7709–01–P
8
*
for t =
it
1–20
*
*
*
*
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R03–OAR–2011–0511; FRL–9462–6]
Approval and Promulgation of Air
Quality Implementation Plans; West
Virginia; Revised Motor Vehicle
Emission Budgets for the Charleston,
Huntington, Parkersburg, Weirton, and
Wheeling 8-Hour Ozone Maintenance
Areas
Environmental Protection
Agency (EPA).
ACTION: Direct final rule.
AGENCY:
EPA is taking direct final
action to approve a State
Implementation Plan (SIP) revision
submitted by the State of West Virginia.
The revision amends the 8-hour ozone
maintenance plans for the Charleston,
Huntington, Parkersburg, Weirton, and
Wheeling 8-hour ozone maintenance
areas. This revision amends the
maintenance plans’ 2009 and 2018
motor vehicle emissions budgets
(MVEBs) by reallocating a portion of the
plans’ safety margins which results in
an increase in the MVEBs. The revised
plans continue to demonstrate
maintenance of the 8-hour national
ambient air quality standard (NAAQS)
for ozone. EPA is approving this SIP
for t =
*
0.0428
revision to the West Virginia
maintenance plans for the Charleston,
Huntington, Parkersburg, Weirton, and
Wheeling 8-hour ozone maintenance
areas in accordance with the
requirements of the Clean Air Act
(CAA).
This rule is effective on
November 14, 2011 without further
notice, unless EPA receives adverse
written comment by October 17, 2011.
If EPA receives such comments, it will
publish a timely withdrawal of the
direct final rule in the Federal Register
and inform the public that the rule will
not take effect.
ADDRESSES: Submit your comments,
identified by Docket ID Number EPA–
R03–OAR–2011–0511 by one of the
following methods:
A. https://www.regulations.gov. Follow
the on-line instructions for submitting
comments.
B. E-mail:
fernandez.cristina@epa.gov.
C. Mail: EPA–R03–OAR–2011–0511,
Cristina Fernandez, Associate Director,
Office of Air Program Planning,
Mailcode 3AP30, U.S. Environmental
Protection Agency, Region III, 1650
Arch Street, Philadelphia, Pennsylvania
19103.
D. Hand Delivery: At the previouslylisted EPA Region III address. Such
deliveries are only accepted during the
Docket’s normal hours of operation, and
special arrangements should be made
for deliveries of boxed information.
Instructions: Direct your comments to
Docket ID No. EPA–R03–OAR–2011–
0511. EPA’s policy is that all comments
received will be included in the public
docket without change, and may be
made available online at https://
DATES:
wreier-aviles on DSK7SPTVN1PROD with RULES
*
7
5. In appendix B to part 4044, a new
entry for October–December 2011, as set
forth below, is added to the table.
*
0.0407
[FR Doc. 2011–23686 Filed 9–14–11; 8:45 am]
Jkt 223001
*
4.00
Appendix B to Part 4044—Interest
Rates Used to Value Benefits
it
Issued in Washington, DC, on this 9th day
of September 2011.
Laricke Blanchard,
Deputy Director for Policy, Pension Benefit
Guaranty Corporation.
13:02 Sep 14, 2011
n2
*
The values of it are:
*
*
October–December 2011 .........................
VerDate Mar<15>2010
n1
*
■
4. The authority citation for part 4044
continues to read as follows:
■
SUMMARY:
i3
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
For valuation dates occurring in the
months —
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
PO 00000
Frm 00027
Fmt 4700
Sfmt 4700
it
*
>20
for t =
*
N/A
N/A
www.regulations.gov, including any
personal information provided, unless
the comment includes information
claimed to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Do not submit information that you
consider to be CBI or otherwise
protected through https://
www.regulations.gov or e-mail. The
https://www.regulations.gov Web site is
an ‘‘anonymous access’’ system, which
means EPA will not know your identity
or contact information unless you
provide it in the body of your comment.
If you send an e-mail comment directly
to EPA without going through https://
www.regulations.gov, your e-mail
address will be automatically captured
and included as part of the comment
that is placed in the public docket and
made available on the Internet. If you
submit an electronic comment, EPA
recommends that you include your
name and other contact information in
the body of your comment and with any
disk or CD–ROM you submit. If EPA
cannot read your comment due to
technical difficulties and cannot contact
you for clarification, EPA may not be
able to consider your comment.
Electronic files should avoid the use of
special characters, any form of
encryption, and be free of any defects or
viruses.
Docket: All documents in the
electronic docket are listed in the
https://www.regulations.gov index.
Although listed in the index, some
information is not publicly available,
i.e., CBI or other information whose
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
E:\FR\FM\15SER1.SGM
15SER1
]]>Agencies
[Federal Register Volume 76, Number 179 (Thursday, September 15, 2011)]
[Rules and Regulations]
[Pages 56973-56975]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-23686]
=======================================================================
-----------------------------------------------------------------------
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 October 2011 and interest assumptions under the
asset allocation regulation for valuation dates in the fourth quarter
of 2011. The interest assumptions are used for valuing and paying
benefits under terminating single-employer plans
[[Page 56974]]
covered by the pension insurance system administered by PBGC.
DATES: Effective October 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 October 2011 and
updates the asset allocation interest assumptions for the fourth
quarter (October through December) of 2011.
The fourth quarter 2011 interest assumptions under the allocation
regulation will be 4.07 percent for the first 20 years following the
valuation date and 4.28 percent thereafter. In comparison with the
interest assumptions in effect for the third 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 0.14 percent in the select rate, and a decrease
of 0.06 percent in the ultimate rate (the final rate).
The October 2011 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 September 2011, these interest assumptions
represent a decrease of 0.50 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 October
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 216, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
216 10-1-11 11-1-11 1.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 216, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 56975]]
* * * * * * *
216 10-1-11 11-1-11 1.75 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 October-December 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 =
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
October-December 2011............................. 0.0407 1-20 0.0428 >20 N/A N/A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 9th day of September 2011.
Laricke Blanchard,
Deputy Director for Policy, Pension Benefit Guaranty Corporation.
[FR Doc. 2011-23686 Filed 9-14-11; 8:45 am]
BILLING CODE 7709-01-P
