Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 48855-48856 [2012-20030]
Download as PDF
<![CDATA[
48855
Rules and Regulations
Federal Register
Vol. 77, No. 158
Wednesday, August 15, 2012
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions
for Paying Benefits
Pension Benefit Guaranty
Corporation.
AGENCY:
ACTION:
Final rule.
This final rule amends the
Pension Benefit Guaranty Corporation’s
regulation on Benefits Payable in
Terminated Single-Employer Plans to
prescribe interest assumptions under
the regulation for valuation dates in
September 2012. The interest
assumptions are used for paying
benefits under terminating singleemployer plans covered by the pension
insurance system administered by
PBGC.
SUMMARY:
DATES:
Effective September 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–
Rate set
For plans with a valuation
date
On or after
srobinson on DSK4SPTVN1PROD with RULES
*
227
Before
*
9–1–12
17:27 Aug 14, 2012
Immediate
annuity rate
(percent)
*
10–1–12
1 Appendix B to PBGC’s regulation on Allocation
of Assets in Single-Employer Plans (29 CFR part
4044) prescribes interest assumptions for valuing
VerDate Mar<15>2010
877–8339 and ask to be connected to
202–326–4024.)
SUPPLEMENTARY INFORMATION: PBGC’s
regulation on Benefits Payable in
Terminated Single-Employer Plans (29
CFR part 4022) prescribes actuarial
assumptions—including interest
assumptions—for 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 regulation are also published on
PBGC’s Web site (https://www.pbgc.gov).
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 benefit
payments regulation are updated
monthly. This final rule updates the
benefit payments interest assumptions
for September 2012.1
The September 2012 interest
assumptions under the benefit payments
regulation will be 0.75 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 August 2012,
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
Jkt 226001
0.75
Frm 00001
List of Subjects in 29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
In consideration of the foregoing, 29
CFR part 4022 is 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
227, 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
i3
4.00
*
benefits under terminating covered single-employer
plans for purposes of allocation of assets under
PO 00000
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 payment of
benefits under plans with valuation
dates during September 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).
Fmt 4700
Sfmt 4700
n1
*
4.00
n2
*
7
8
ERISA section 4044. Those assumptions are
updated quarterly.
E:\FR\FM\15AUR1.SGM
15AUR1
48856
Federal Register / Vol. 77, No. 158 / Wednesday, August 15, 2012 / Rules and Regulations
3. In appendix C to part 4022, Rate Set
227, as set forth below, is added to the
table.
■
Appendix C to Part 4022—Lump Sum
Interest Rates For Private-Sector
Payments
*
Rate set
For plans with a valuation
date
On or after
*
Before
*
227
9–1–12
*
[FR Doc. 2012–20030 Filed 8–14–12; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2012–0380]
Safety Zones; Annual Fireworks Event
in the Captain of the Port Detroit Zone
Coast Guard, DHS.
Notice of enforcement of
regulation.
AGENCY:
ACTION:
The Coast Guard will enforce
a safety zone for an annual fireworks
event in the Captain of the Port Detroit
zone from 9:15 p.m. to 10 p.m. on
August 18, 2012. This action is
necessary and intended to ensure safety
of life on the navigable waters
immediately prior to, during, and
immediately after fireworks events.
During the aforementioned period, the
Coast Guard will enforce restrictions
upon, and control movement of, vessels
in a specified area immediately prior to,
during, and immediately after fireworks
events. During the enforcement period,
no person or vessel may enter the safety
zone without permission of the Captain
of the Port.
DATES: The regulations in 33 CFR
165.941 will be enforced from 9:15 p.m.
to 10 p.m. on August 18, 2012.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this notice, call
or email LT Adrian Palomeque,
Prevention, U.S. Coast Guard Sector
Detroit, 110 Mount Elliot Ave., Detroit,
MI 48207; telephone (313) 568–9508,
email Adrian.F.Palomeque@uscg.mil.
SUPPLEMENTARY INFORMATION: The Coast
Guard will enforce the safety zone listed
srobinson on DSK4SPTVN1PROD with RULES
SUMMARY:
17:27 Aug 14, 2012
*
Jkt 226001
*
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
10–1–12
Dated: Issued in Washington, DC, on this
7th day of August 2012.
Laricke Blanchard,
Deputy Director for Policy, Pension Benefit
Guaranty Corporation.
VerDate Mar<15>2010
*
0.75
i1
i2
*
4.00
i3
4.00
*
in 33 CFR 165.941, Safety Zones;
Annual Fireworks Events in the Captain
of the Port Detroit Zone, at the following
date and times for the following event:
(1) Cheeseburger Festival Fireworks,
Caseville, MI. The safety zone listed in
33 CFR 165.941(a)(11) will be enforced
from 9:15 p.m. to 10 p.m. on August 18,
2012. In the case of inclement weather
on August 18, 2012, this safety zone will
be enforced from 9:15 p.m. to 10 p.m.
on August 19, 2012.
Under the provisions of 33 CFR
165.23, entry into, transiting, or
anchoring within this safety zone during
the enforcement period is prohibited
unless authorized by the Captain of the
Port Detroit or his designated
representative. Vessels that wish to
transit through the safety zone may
request permission from the Captain of
the Port Detroit. Requests must be made
in advance and approved by the Captain
of Port before transits will be
authorized. Approvals will be granted
on a case by case basis. The Captain of
the Port may be contacted via U.S. Coast
Guard Sector Detroit on channel 16,
VHF-FM. The Coast Guard will give
notice to the public via Local Notice to
Mariners and VHF radio broadcasts that
the regulation is in effect.
This notice is issued under authority
of 33 CFR 165.23 and 5 U.S.C. 552(a).
If the Captain of the Port determines
that this safety zone need not be
enforced for the full duration stated in
this notice, he or she may use a
Broadcast Notice to Mariners to grant
general permission to enter the safety
zone.
Dated: August 2, 2012.
J.E. Ogden,
Captain, U.S. Coast Guard, Captain of the
Port Detroit.
[FR Doc. 2012–20002 Filed 8–14–12; 8:45 am]
BILLING CODE 9110–04–P
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
n1
*
4.00
n2
*
7
8
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2012–0729]
RIN 1625–AA00
Safety Zone; Superior Bay, Duluth, MN
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
The Coast Guard is
establishing a temporary safety zone
encompassing a portion of the Duluth
Harbor Basin, Northern Section,
including the Duluth Entry. This safety
zone is intended to help protect
participants, event safety personnel,
boaters and spectators during the
Superior Man Triathlon.
DATES: This rule is effective from 6 a.m.
to 8:30 a.m. on August 26, 2012.
ADDRESSES: Documents mentioned in
this preamble are part of docket [USCG–
2012–0729]. To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type the docket
number in the ‘‘SEARCH’’ box and click
‘‘SEARCH.’’ Click on Open Docket
Folder on the line associated with this
rulemaking. You may also visit the
Docket Management Facility in Room
W12–140 on the ground floor of the
Department of Transportation West
Building, 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 rule, call or
email Lieutenant Judson A Coleman,
Marine Safety Unit Duluth U.S. Coast
Guard; telephone (218) 720–5286 ext
111, email Judson.A.Coleman@uscg.mil.
If you have questions on viewing or
submitting material to the docket, call
Renee V. Wright, Program Manager,
Docket Operations, telephone (202)
366–9826.
SUMMARY:
E:\FR\FM\15AUR1.SGM
15AUR1
]]>Agencies
[Federal Register Volume 77, Number 158 (Wednesday, August 15, 2012)]
[Rules and Regulations]
[Pages 48855-48856]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-20030]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 77, No. 158 / Wednesday, August 15, 2012 /
Rules and Regulations
[[Page 48855]]
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated Single-Employer Plans; Interest
Assumptions for Paying Benefits
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule amends the Pension Benefit Guaranty
Corporation's regulation on Benefits Payable in Terminated Single-
Employer Plans to prescribe interest assumptions under the regulation
for valuation dates in September 2012. The interest assumptions are
used for paying benefits under terminating single-employer plans
covered by the pension insurance system administered by PBGC.
DATES: Effective September 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 regulation on Benefits Payable in
Terminated Single-Employer Plans (29 CFR part 4022) prescribes
actuarial assumptions--including interest assumptions--for 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 regulation are also published on PBGC's Web site
(https://www.pbgc.gov).
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 benefit
payments regulation are updated monthly. This final rule updates the
benefit payments interest assumptions for September 2012.\1\
---------------------------------------------------------------------------
\1\ Appendix B to PBGC's regulation on Allocation of Assets in
Single-Employer Plans (29 CFR part 4044) prescribes interest
assumptions for valuing benefits under terminating covered single-
employer plans for purposes of allocation of assets under ERISA
section 4044. Those assumptions are updated quarterly.
---------------------------------------------------------------------------
The September 2012 interest assumptions under the benefit payments
regulation will be 0.75 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 August 2012, 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 payment
of benefits under plans with valuation dates during September 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 in 29 CFR Part 4022
Employee benefit plans, Pension insurance, Pensions, Reporting and
recordkeeping requirements.
In consideration of the foregoing, 29 CFR part 4022 is 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 227, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
227 9-1-12 10-1-12 0.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 48856]]
0
3. In appendix C to part 4022, Rate Set 227, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
227 9-1-12 10-1-12 0.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dated: Issued in Washington, DC, on this 7th day of August 2012.
Laricke Blanchard,
Deputy Director for Policy, Pension Benefit Guaranty Corporation.
[FR Doc. 2012-20030 Filed 8-14-12; 8:45 am]
BILLING CODE 7709-01-P
