Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 77900-77901 [2011-32184]
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Federal Register / Vol. 76, No. 241 / Thursday, December 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 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 January 2012 and
interest assumptions under the asset
allocation regulation for valuation dates
in the first quarter of 2012. 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 January 1, 2012.
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
SUMMARY:
Rate set
For plans with a
valuation date
pmangrum on DSK3VPTVN1PROD with RULES
On or after
*
219
VerDate Mar<15>2010
Before
*
1–1–12
19:12 Dec 14, 2011
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 January 2012
and updates the asset allocation interest
assumptions for the first quarter
(January through March) of 2012.
The first quarter 2012 interest
assumptions under the allocation
regulation will be 3.74 percent for the
first 20 years following the valuation
date and 3.70 percent thereafter. In
comparison with the interest
assumptions in effect for the fourth
quarter of 2011, these interest
assumptions represent no change in the
select period (the period during which
the select rate (the initial rate) applies),
a decrease of 0.33 percent in the select
rate, and a decrease of 0.58 percent in
the ultimate rate (the final rate).
The January 2012 interest
assumptions under the benefit payments
regulation will be 1.25 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
2011, these interest assumptions
represent a decrease of 0.25 percent in
the immediate annuity rate and are
otherwise unchanged.
Immediate
annuity rate
(percent)
*
2–1–12
Jkt 226001
1.25
PO 00000
Frm 00006
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
2012, 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
219, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
*
Deferred annuities
(percent)
i1
i2
*
4.00
4.00
Fmt 4700
Sfmt 4700
i3
*
n1
*
4.00
E:\FR\FM\15DER1.SGM
15DER1
n2
*
7
8
77901
Federal Register / Vol. 76, No. 241 / Thursday, December 15, 2011 / Rules and Regulations
3. In appendix C to part 4022, Rate Set
219, 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
*
*
i1
2–1–12
1.25
i2
*
4.00
*
1–1–12
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
219
*
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 January–March 2012, 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 month—
it
*
*
*
January–March 2012 ........................................................
Issued in Washington, DC, on this 8th day
of December 2011.
Laricke Blanchard,
Deputy Director for Policy, Pension Benefit
Guaranty Corporation.
[FR Doc. 2011–32184 Filed 12–14–11; 8:45 am]
BILLING CODE 7709–01–P
Coast Guard
33 CFR Part 165
[Docket No. USCG–2011–1087]
RIN 1625–AA00
Safety Zone; Upper Mississippi River,
Mile 389.4 to 403.1
Coast Guard, DHS.
Temporary final rule.
AGENCY:
The Coast Guard is
establishing a temporary safety zone for
all waters of the Upper Mississippi
River, from Mile 389.4 to 403.1,
extending the entire width of the river
located on the Iowa and Illinois border.
This safety zone is needed to protect
bridge span movement operations on
the Upper Mississippi River. Entry into
this zone is prohibited unless
specifically authorized by the Captain of
the Port Upper Mississippi River or a
designated representative.
pmangrum on DSK3VPTVN1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
14:52 Dec 14, 2011
it
for t =
1–20
*
0.0370
>20
*
0.0374
Effective Date: this rule is
effective in the CFR from December 15,
2011 until 7 p.m. CST on December 21,
2011. This rule is effective with actual
notice for purposes of enforcement
beginning 7 a.m. on November 22, 2011.
DATES:
Documents indicated in this
preamble as being available in the
docket are part of docket USCG–2011–
1087 and are available online by going
to https://www.regulations.gov, selecting
the Advanced Docket Search option on
the right side of the screen, inserting
USCG–2011–1087 in the Docket ID box,
pressing Enter, and then clicking on the
item in the Docket ID column. 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.
and 5 p.m., Monday through Friday,
except Federal holidays.
ADDRESSES:
DEPARTMENT OF HOMELAND
SECURITY
ACTION:
for t =
Jkt 226001
If
you have questions on this temporary
rule, call or email Chief Petty Officer
Ryan Christensen, Sector Upper
Mississippi River Response Department
at telephone (314) 269–2721, email
Ryan.D.Christensen@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:
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00007
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it
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for t =
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N/A
N/A
Regulatory Information
The Coast Guard is issuing this
temporary final rule without prior
notice and opportunity to comment
pursuant to authority under section 4(a)
of the Administrative Procedure Act
(APA) (5 U.S.C. 553(b)). This provision
authorizes an agency to issue a rule
without prior notice and opportunity to
comment when the agency for good
cause finds that those procedures are
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ Under 5 U.S.C.
553(b)(B), the Coast Guard finds that
good cause exists for not using the
NPRM process. The Coast Guard
received notice that bridge span
movement operations would take place
on November 22, 2011. This short notice
did not allow for the time needed to
publish a NPRM and provide for a
comment period. The Coast Guard
determined that a safety zone is
necessary to protect vessels and
mariners from the hazards associated
with transporting the bridge spans.
Delaying this rule and the necessary
protections by publishing a NPRM
would be impracticable and would
unnecessarily delay the bridge span
operations. This rule is needed to
protect vessels and mariners from the
safety hazards associated with
transporting bridge spans in the vicinity
of Mile 389.4 to 403.1 on the Upper
Mississippi River.
Under 5 U.S.C. 553(d)(3), the Coast
Guard finds that good cause exists for
E:\FR\FM\15DER1.SGM
15DER1
]]>Agencies
[Federal Register Volume 76, Number 241 (Thursday, December 15, 2011)]
[Rules and Regulations]
[Pages 77900-77901]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-32184]
[[Page 77900]]
=======================================================================
-----------------------------------------------------------------------
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 January 2012 and interest assumptions under the
asset allocation regulation for valuation dates in the first quarter of
2012. 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 January 1, 2012.
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 January 2012 and
updates the asset allocation interest assumptions for the first quarter
(January through March) of 2012.
The first quarter 2012 interest assumptions under the allocation
regulation will be 3.74 percent for the first 20 years following the
valuation date and 3.70 percent thereafter. In comparison with the
interest assumptions in effect for the fourth quarter of 2011, these
interest assumptions represent no change in the select period (the
period during which the select rate (the initial rate) applies), a
decrease of 0.33 percent in the select rate, and a decrease of 0.58
percent in the ultimate rate (the final rate).
The January 2012 interest assumptions under the benefit payments
regulation will be 1.25 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 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 January
2012, 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 219, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
219 1-1-12 2-1-12 1.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 77901]]
0
3. In appendix C to part 4022, Rate Set 219, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
219 1-1-12 2-1-12 1.25 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 2012, 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 month-- it for t = it for t = it for t =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
January-March 2012.......... 0.0374 1-20 0.0370 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 8th day of December 2011.
Laricke Blanchard,
Deputy Director for Policy, Pension Benefit Guaranty Corporation.
[FR Doc. 2011-32184 Filed 12-14-11; 8:45 am]
BILLING CODE 7709-01-P
