Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 49682-49684 [2013-19842]
Download as PDF
<![CDATA[
49682
Federal Register / Vol. 78, No. 158 / Thursday, August 15, 2013 / Rules and Regulations
is due, without regard to extensions of
time to file the return. Treas. Reg.
§§ 53.6011–1 and 53.6071–1 require
persons subject to certain excise taxes
under Chapters 41 and 42 of the Code
to file a Form 4720, ‘‘Return of Certain
Excise Taxes under Chapters 41 and 42
of the Internal Revenue Code,’’ to
accompany payment of those excise
taxes and provide the time for filing the
return. Section 4959 was added to
Chapter 42 of the Code.
On April 5, 2013, the Treasury
Department and the IRS published a
notice of proposed rulemaking in the
Federal Register (REG–130266–11; 78
FR 20523) containing proposed
regulations providing guidance to
hospital organizations on the CHNA
requirements of section 501(r)(3) and
the related excise tax of section 4959.
That notice of proposed rulemaking did
not include amendments to the
regulations under section 6011 and
section 6071 regarding the return to
accompany the payment of the excise
tax under section 4959 and the time for
filing such a return.
tkelley on DSK3SPTVN1PROD with RULES
Explanation of Provisions
Under § 53.6011–1(c) of these
temporary regulations, a charitable
hospital organization that is liable for
the section 4959 excise tax must file a
return on Form 4720. Under § 53.6071–
1(h) of these temporary regulations, a
hospital organization liable for the
section 4959 excise tax must file a Form
4720 by the 15th day of the fifth month
after the end of the organization’s
taxable year during which the liability
under section 4959 was incurred. Thus,
for example, a hospital organization
reporting on a calendar year basis that
failed to meet the requirements of
section 501(r)(3) by December 31, 2013,
would have to file a Form 4720 and pay
the section 4959 tax due by May 15,
2014.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in
Executive Order 12866, as
supplemented by Executive Order
13563. Therefore, a regulatory
assessment is not required. It also has
been determined that section 553(b) of
the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these
regulations. For the applicability of the
Regulatory Flexibility Act (5 U.S.C.
chapter 6), refer to the Special Analyses
section of the preamble to the crossreference notice of proposed rulemaking
published in the Proposed Rules section
in this issue of the Federal Register.
Pursuant to section 7805(f) of the Code,
VerDate Mar<15>2010
16:08 Aug 14, 2013
Jkt 229001
these regulations were submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment
on their impact on small business, and
no comments were received.
Drafting Information
The principal author of these
regulations is Amy F. Giuliano, Office of
Associate Chief Counsel (Tax Exempt
and Government Entities). However,
other personnel from the IRS and
Treasury Department participated in
their development.
The applicability of paragraph (c) of this
section expires on or before August 12,
2016.
■ Par. 4. Section 53.6071–1 is amended
by:
■ 1. Revising paragraph (h).
■ 2. Adding paragraph (i).
The revision and addition read as
follows:
§ 53.6071–1
Time for filing returns.
Amendments to the Regulations
*
*
*
*
(h) [Reserved]. For further guidance,
see § 53.6071–1T(h).
(i) Effective/applicability date—(1)
Paragraph (g) of this section applies on
and after July 6, 2007.
(2) [Reserved]. For further guidance,
see § 53.6071–1T(i)(2).
Par. 5. Section 53.6071–1T is revised
to read as follows:
Accordingly, 26 CFR part 53 is
amended as follows:
§ 53.6071–1T
(temporary).
PART 53—FOUNDATION AND SIMILAR
EXCISE TAXES
(a) through (g) [Reserved]. For further
guidance, see § 53.6071–1(a) through (g).
(h) Taxes on failures by charitable
hospital organizations to satisfy the
community health needs assessment
requirements of section 501(r)(3). A
hospital organization liable for tax
imposed by section 4959 must file a
Form 4720, ‘‘Return of Certain Excise
Taxes Under Chapters 41 and 42 of the
Internal Revenue Code,’’ as required by
§ 53.6011–1(c), on or before the 15th day
of the fifth month after the end of the
hospital organization’s taxable year.
(i) Effective/applicability date—(1)
[Reserved]. For further guidance, see
§ 53.6071–1(i)(1).
(2) Paragraph (h) of this section
applies on and after August 15, 2013.
(3) The applicability of paragraph (h)
of this section expires on or before
August 12, 2016.
List of Subjects in 26 CFR Part 53
Excise taxes, Foundations,
Investments, Lobbying, Reporting and
recordkeeping requirements.
Paragraph 1. The authority citation
for part 53 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 53.6011–1 is amended
by:
■ 1. Redesignating paragraphs (c)
through (e) as (d) through (f).
■ 2. Adding new paragraphs (c) and (g).
The addition reads as follows:
■
§ 53.6011–1 General requirement of return,
statement or list.
*
*
*
*
*
(c) [Reserved]. For further guidance,
see § 53.6011–1T(c).
*
*
*
*
*
(g) [Reserved]. For further guidance,
see § 53.6011–1T(g).
■ Par. 3. Section 53.6011–1T is added to
read as follows:
§ 53.6011–1T General requirement of
return, statement or list (temporary).
(a) and (b) [Reserved]. For further
guidance, see § 53.6011–1(a) and (b).
(c) A hospital organization described
in section 501(r)(2)(A) that is liable for
tax imposed by section 4959 must file
an annual return on Form 4720 and
include the information required by the
form and instructions. The annual
return filed by a hospital organization
must include the required information
for each of the organization’s hospital
facilities that failed to meet the
requirements of section 501(r)(3) for the
taxable year.
(d) through (f) [Reserved]. For further
guidance, see § 53.6011–1(d) through (f).
(g) Paragraph (c) of this section
applies on and after August 15, 2013.
PO 00000
Frm 00028
Fmt 4700
Sfmt 4700
*
Time for filing returns
Heather C. Maloy,
Acting Deputy Commissioner for Services and
Enforcement.
Approved: August 9, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2013–19931 Filed 8–14–13; 8:45 am]
BILLING CODE 4830–01–P
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:
E:\FR\FM\15AUR1.SGM
15AUR1
49683
Federal Register / Vol. 78, No. 158 / Thursday, August 15, 2013 / Rules and Regulations
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 2013. The interest
assumptions are used for paying
benefits under terminating singleemployer plans covered by the pension
insurance system administered by
PBGC.
DATES: Effective September 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
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
SUMMARY:
Rate set
For plans with a valuation
date
On or after
*
239
Before
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 2013.1
The September 2013 interest
assumptions under the benefit payments
regulation will be 1.50 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 2013,
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
3. In appendix C to part 4022, Rate Set
239, as set forth below, is added to the
table.
■
For plans with a valuation
date
On or after
*
tkelley on DSK3SPTVN1PROD with RULES
239
Before
*
9–1–13
VerDate Mar<15>2010
16:08 Aug 14, 2013
*
*
Immediate
annuity rate
(percent)
*
Jkt 229001
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
239, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
*
i3
4.00
*
n1
*
4.00
n2
*
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
10–1–13
1 Appendix B to PBGC’s regulation on Allocation
of Assets in Single-Employer Plans (29 CFR Part
4044) prescribes interest assumptions for valuing
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
In consideration of the foregoing, 29
CFR part 4022 is amended as follows:
i2
*
4.00
1.50
*
Rate set
i1
*
10–1–13
List of Subjects in 29 CFR Part 4022
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
9–1–13
benefits under plans with valuation
dates during September 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).
1.50
*
*
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
Frm 00029
Fmt 4700
Sfmt 4700
*
4.00
*
7
8
ERISA section 4044. Those assumptions are
updated quarterly.
E:\FR\FM\15AUR1.SGM
15AUR1
49684
Federal Register / Vol. 78, No. 158 / Thursday, August 15, 2013 / Rules and Regulations
Issued in Washington, DC, on this 9th day
of August 2013.
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
[FR Doc. 2013–19842 Filed 8–14–13; 8:45 am]
BILLING CODE 7702–02–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2011–0228]
RIN 1625–AA00
Safety Zone, Brandon Road Lock and
Dam to Lake Michigan Including Des
Plaines River, Chicago Sanitary and
Ship Canal, Chicago River, and
Calumet-Saganashkee Channel,
Chicago, IL
Coast Guard, DHS.
Notice of enforcement of
regulation.
AGENCY:
ACTION:
The Coast Guard will enforce
a segment of the Safety Zone; Brandon
Road Lock and Dam to Lake Michigan
including Des Plaines River, Chicago
Sanitary and Ship Canal, Chicago River,
Calumet-Saganashkee Channel on all
waters of the Chicago Sanitary and Ship
Canal from Mile Marker 296.1 to Mile
Marker 296.7 at specified times on each
day from August 12 through August 16,
2013. This action is necessary to protect
the waterways, waterway users, and
vessels from the hazards associated with
the U.S. Army Corps of Engineers
dispersal barriers performance testing.
During any of the enforcement
periods listed below, entry into,
transiting, mooring, laying-up or
anchoring within the enforced area of
this safety zone by any person or vessel
is prohibited unless authorized by the
Captain of the Port, Lake Michigan, or
his designated representative.
DATES: The regulations in 33 CFR
165.930 will be enforced from 8 a.m. to
1 p.m. on each day from August 12
through August 16, 2013.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this notice, call
or email MST1 Joseph McCollum,
Prevention Department, Coast Guard
Sector Lake Michigan, telephone 414–
747–7148, email address
joseph.p.mccollum@uscg.mil.
tkelley on DSK3SPTVN1PROD with RULES
SUMMARY:
Plaines River, Chicago Sanitary and
Ship Canal, Chicago River, CalumetSaganashkee Channel, Chicago, IL,
listed in 33 CFR 165.930. Specifically,
the Coast Guard will enforce this safety
zone between Mile Marker 296.1 to Mile
Marker 296.7 on all waters of the
Chicago Sanitary and Ship Canal.
Enforcement will occur from 8 a.m.
until 1 p.m. on each day of August 12
through August 16, 2013.
This enforcement action is necessary
because the Captain of the Port, Lake
Michigan has determined that the U.S.
Army Corps of Engineers dispersal
barriers performance testing poses risks
to life and property. Because of these
risks, it is necessary to control vessel
movement during the operation to
prevent injury and property loss.
In accordance with the general
regulations in § 165.23 of this part, entry
into, transiting, mooring, laying up or
anchoring within the enforced area of
this safety zone by any person or vessel
is prohibited unless authorized by the
Captain of the Port, Lake Michigan, or
his or her designated representative.
Vessels that wish to transit through
the safety zone may request permission
from the Captain of the Port, Lake
Michigan. Requests must be made in
advance and approved by the Captain of
the 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 Lake Michigan on VHF
channel 16.
This notice is issued under authority
of 33 CFR 165.930 and 5 U.S.C. 552(a).
In addition to this notice in the Federal
Register, the Captain of the Port, Lake
Michigan, will also provide notice
through other means, which may
include, but are not limited to,
Broadcast Notice to Mariners, Local
Notice to Mariners, local news media,
distribution in leaflet form, and onscene oral notice. Additionally, the
Captain of the Port, Lake Michigan, may
notify representatives from the maritime
industry through telephonic and email
notifications.
Dated: August 3, 2013.
M.W. Sibley,
Captain, U.S. Coast Guard, Captain of the
Port, Lake Michigan.
[FR Doc. 2013–19782 Filed 8–14–13; 8:45 am]
BILLING CODE 9110–04–P
The Coast
Guard will enforce a segment of the
Safety Zone; Brandon Road Lock and
Dam to Lake Michigan including Des
SUPPLEMENTARY INFORMATION:
VerDate Mar<15>2010
16:08 Aug 14, 2013
Jkt 229001
PO 00000
Frm 00030
Fmt 4700
Sfmt 4700
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R09–OAR–2012–0904, FRL–9846–5]
Approval and Disapproval of Air
Quality State Implementation Plans;
Arizona; Regional Haze and Interstate
Transport Requirements
Environmental Protection
Agency (EPA).
ACTION: Final rule; correction.
AGENCY:
EPA is correcting the
preamble to the final rule that appeared
in the Federal Register on July 30, 2013.
This final rule partially approved and
partially disapproved a portion of
Arizona’s State Implementation Plan
(SIP) to implement the regional haze
program for the first planning period
through 2018. The final rule preamble
inadvertently misstated the effective
date of the rule under the Congressional
Review Act and the deadline for filing
of petitions for judicial review of the
rule under section 307(b)(1) of the Clean
Air Act. This document corrects those
errors and clarifies that the rule was
signed by the Acting Regional
Administrator for EPA Region 9.
DATES: This rule is effective on August
29, 2013.
FOR FURTHER INFORMATION CONTACT:
Gregory Nudd, U.S. EPA, Region 9,
Planning Office, Air Division, Air-2, 75
Hawthorne Street, San Francisco, CA
94105. Gregory Nudd can be reached at
telephone number (415) 947–4107 and
via electronic mail at
r9azreghaze@epa.gov.
SUMMARY:
In Federal
Register document 2013–18022
published in the Federal Register on
July 30, 2013 (78 FR 46142), the
following corrections are made:
1. On page 46174, in the third
column, in section VI. Statutory and
Executive Order Reviews, paragraph K.
Congressional Review Act, the last
sentence is corrected to read as follows:
‘‘This rule will be effective on August
29, 2013.’’
2. On page 46174, in the third
column, in section VI. Statutory and
Executive Order Reviews, paragraph L.
Petitions for Judicial Review, the first
sentence is corrected to read as follows:
‘‘Under section 307(b)(1) of the Clean
Air Act, petitions for judicial review of
this action must be filed in the United
States Court of Appeals for the
appropriate circuit by September 28,
2013.’’
3. On page 46174, in the third
column, the title of Jane Diamond is
SUPPLEMENTARY INFORMATION:
E:\FR\FM\15AUR1.SGM
15AUR1
]]>Agencies
[Federal Register Volume 78, Number 158 (Thursday, August 15, 2013)]
[Rules and Regulations]
[Pages 49682-49684]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-19842]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
[[Page 49683]]
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 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 September 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 September 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 September 2013 interest assumptions under the benefit payments
regulation will be 1.50 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 2013, 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 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 239, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
239 9-1-13 10-1-13 1.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 239, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
239 9-1-13 10-1-13 1.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 49684]]
Issued in Washington, DC, on this 9th day of August 2013.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2013-19842 Filed 8-14-13; 8:45 am]
BILLING CODE 7702-02-P
