Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 42009-42010 [2013-16853]
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42009
Federal Register / Vol. 78, No. 135 / Monday, July 15, 2013 / Rules and Regulations
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions
for Paying Benefits
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
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
August 2013. The interest assumptions
are used for paying benefits under
terminating single-employer plans
covered by the pension insurance
system administered by PBGC.
DATES: Effective August 1, 2013.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion
(Klion.Catherine@pbgc.gov), Assistant
General Counsel for Regulatory Affairs,
Pension Benefit Guaranty Corporation,
1200 K Street NW., Washington, DC
20005, 202–326–4024. (TTY/TDD users
may call the Federal relay service tollfree 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
SUMMARY:
Rate set
For plans with a valuation
date
On or after
*
238
Before
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 August 2013.1
The August 2013 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 July 2013,
these interest assumptions represent an
increase 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
3. In appendix C to part 4022, Rate Set
238, as set forth below, is added to the
table.
■
mstockstill on DSK4VPTVN1PROD with RULES
For plans with a valuation
date
On or after
Before
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
17:56 Jul 12, 2013
Jkt 229001
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
238, 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
*
9–1–13
List of Subjects in 29 CFR Part 4022
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
8–1–13
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 August 2013, 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)
i1
i2
benefits under terminating covered single-employer
plans for purposes of allocation of assets under
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
i3
ERISA section 4044. Those assumptions are
updated quarterly.
E:\FR\FM\15JYR1.SGM
15JYR1
42010
Federal Register / Vol. 78, No. 135 / Monday, July 15, 2013 / Rules and Regulations
Rate set
For plans with a valuation
date
On or after
*
Before
*
238
*
8–1–13
9–1–13
Issued in Washington, DC, on this 10th day
of July 2013.
Leslie Kramerich,
Acting Chief Policy Officer, Pension Benefit
Guaranty Corporation.
[FR Doc. 2013–16853 Filed 7–12–13; 8:45 am]
BILLING CODE 7709–02–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[Docket No. USCG–2013–0469]
Drawbridge Operation Regulation; Isle
of Wight (Sinepuxent) Bay, Ocean City,
MD
Coast Guard, DHS.
Notice of deviation from
regulation.
AGENCY:
ACTION:
The Commander Fifth Coast
Guard District has issued a temporary
deviation from the regulations
governing the operation of the US 50
Bridge, over Isle of Wight (Sinepuxent)
Bay, mile 0.5, at Ocean City, MD. The
deviation is necessary to accommodate
the 10th annual ‘‘Island 2 Island’’ Half
Marathon. This deviation allows the
drawbridge to remain in the closed
position to vessels during the race.
DATES: This deviation is effective from
8 a.m. until 10:30 a.m. April 26, 2014.
ADDRESSES: The docket for this
deviation [USCG–2013–0469] is
available at https://www.regulations.gov.
Type the docket number in the ‘‘Search’’
box and click ‘‘Search.’’ Click on the
Open Docket Folder on the line
associated with this deviation. 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 temporary
deviation, call or email Kashanda
Booker, Bridge Management Specialist,
Fifth Coast Guard District, telephone
757–398–6227, email
mstockstill on DSK4VPTVN1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
17:56 Jul 12, 2013
Jkt 229001
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
1.75
i1
i2
*
4.00
i3
4.00
*
Kashanda.l.booker@uscg.mil. If you
have questions on viewing the docket,
call Barbara Hairston, Program Manager,
Docket Operations, telephone 202–366–
9826.
SUPPLEMENTARY INFORMATION: OC Tri
Running Sports, on behalf of Maryland
Transportation Authority, has requested
a temporary deviation from the current
operating regulations of the US 50
Bridge across Isle Wight (Sinepuxent)
Bay mile 0.5, at Ocean City, MD.
The closure has been requested to
ensure the safety of the increased
volume of runners and spectators that
will be participating in the 10th annual
‘‘Island 2 Island’’ Half Marathon on
April 26, 2014. The event is expected to
bring in over 4,000 runners and 6,000
spectators. The OC Tri Sports is
extending the course to 13.1 miles to
accommodate the request of the
community. Under this temporary
deviation, the Route 50 Bridge will
remain in the closed position to vessels,
from 8 a.m. through 10:30 a.m.
Information provided by our Coast
Guard Station Ocean City reveals that,
in the past, vessel traffic for that time of
year is very limited with most vessels
being small enough to pass without a
bridge lift. The US 50 Bridge, over Isle
of Wight (Sinepuxent) Bay, mile 0.5, at
Ocean City, MD has a vertical clearance
in the closed position to vessels of 13
feet above mean high water. Vessels that
can pass under the bridge without a
bridge opening may do so at any time
and are advised to proceed with
caution. The Atlantic Ocean is the
alternate route for vessels with mast
heights greater than 13 feet transiting
this section of Isle of Wight
(Sinepuxent) Bay. At all other times
during the effected period, the bridge
will operate as outlined at 33 CFR
117.559.
The Coast Guard will inform
waterway users through our Local and
Broadcast Notices to Mariners of the
closure periods for the bridge so that
vessels can arrange their transits to
minimize any impacts caused by the
temporary deviation.
In accordance with 33 CFR 117.35(e),
the drawbridge must return to its regular
operating schedule immediately at the
end of the designated time period. This
deviation from the operating regulations
is authorized under 33 CFR 117.35.
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
n1
*
4.00
n2
*
7
8
Dated: July 3, 2013.
Waverly W. Gregory, Jr.,
Bridge Program Manager, Fifth Coast Guard
District.
[FR Doc. 2013–16811 Filed 7–12–13; 8:45 am]
BILLING CODE 9110–04–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[Docket No. USCG–2013–0607]
Drawbridge Operation Regulation;
Delaware River, NJ
Coast Guard, DHS.
Notice of deviation from
drawbridge regulation.
AGENCY:
ACTION:
The Coast Guard has issued a
temporary deviation from the operating
schedule that governs the bascule span
of the Tacony-Palmyra Bridge (Route
73), across the Delaware River, mile
107.2, between the townships of
Tacony, PA and Palmyra, NJ. The
deviation is necessary to facilitate the
replacement of the bridge deck. This
deviation allows the bridge to remain in
the closed to navigation position during
the rehabilitation project.
DATES: This deviation is effective from
9 p.m. on Friday, August 16, 2013 until
9 p.m. on Friday, August 30, 2013.
ADDRESSES: The docket for this
deviation [USCG–2013–0607] is
available at 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 deviation. 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 temporary
deviation, call or email Terrance
Knowles, Environmental Protection
Specialist, Coast Guard; telephone 757–
398–6587, email
Terrance.A.Knowles@uscg.mil. If you
SUMMARY:
E:\FR\FM\15JYR1.SGM
15JYR1
]]>Agencies
[Federal Register Volume 78, Number 135 (Monday, July 15, 2013)]
[Rules and Regulations]
[Pages 42009-42010]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-16853]
[[Page 42009]]
=======================================================================
-----------------------------------------------------------------------
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 August 2013. The interest assumptions are used
for paying benefits under terminating single-employer plans covered by
the pension insurance system administered by PBGC.
DATES: Effective August 1, 2013.
FOR FURTHER INFORMATION CONTACT: Catherine B. Klion
(Klion.Catherine@pbgc.gov), Assistant General Counsel for Regulatory
Affairs, 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 August 2013.\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 August 2013 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 July 2013, these interest assumptions
represent an increase 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 payment
of benefits under plans with valuation dates during August 2013, 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 238, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
238 8-1-13 9-1-13 1.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 238, 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 42010]]
* * * * * * *
238 8-1-13 9-1-13 1.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 10th day of July 2013.
Leslie Kramerich,
Acting Chief Policy Officer, Pension Benefit Guaranty Corporation.
[FR Doc. 2013-16853 Filed 7-12-13; 8:45 am]
BILLING CODE 7709-02-P
