Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age, 72018-72019 [2013-28682]
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Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Rules and Regulations
taxpayers is therefore appropriate,
regardless of the amount of taxes owed.
The commenter made two additional
recommendations. The commenter
recommended that the IRS implement
procedures to require IRS employees to
investigate whether a taxpayer making
an installment agreement is eligible for
the reduced fee for low-income
taxpayers. The commenter also
recommended that the IRS enhance
internal training and establish
procedures to better promote viable
payment plans and avoid unrealistic
installment agreements for low-income
taxpayers. These comments do not affect
the content of these final regulations,
but the IRS will, nevertheless, consider
them when updating the procedures for
entering into installment agreements.
The IRS notes, however, that as of
January of 2008, taxpayers meeting the
low-income criteria are identified
systemically based on the taxpayer’s last
return and the account is identified as
being eligible for the reduced user fee.
Special Analyses
It has been determined that these final
regulations are 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 is hereby
certified that these regulations will not
have a significant economic impact on
a substantial number of small entities.
Accordingly, a regulatory flexibility
analysis is not required. This
certification is based on the information
that follows. The economic impact of
these regulations on any small entity
would result from the entity being
required to pay a fee prescribed by these
regulations to obtain a particular
service. The dollar amount of the fee is
not, however, substantial enough to
have a significant economic impact on
any entity subject to the fee. Pursuant to
section 7805(f) of the Code, the notice
of proposed rulemaking preceding this
regulation was submitted to the Chief
Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business and no
comments were received.
sroberts on DSK5SPTVN1PROD with RULES
Drafting Information
The principal author of these
regulations is Girish Prasad of the Office
of Associate Chief Counsel (Procedure
and Administration).
List of Subjects in 26 CFR Part 300
Estate taxes, Excise taxes, Gift taxes,
Income taxes, Reporting and
recordkeeping requirements, User fees.
VerDate Mar<15>2010
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Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 300 is
amended as follows:
PENSION BENEFIT GUARANTY
CORPORATION
PART 300—USER FEES
Allocation of Assets in SingleEmployer Plans; Valuation of Benefits
and Assets; Expected Retirement Age
Paragraph 1. The authority citation
for part 300 continues to read as
follows:
■
Authority: 31 U.S.C. 9701.
Par. 2. In § 300.1, paragraphs (b)
introductory text and (d) are revised to
read as follows:
■
§ 300.1
Installment agreement fee.
*
*
*
*
*
(b) Fee. The fee for entering into an
installment agreement before January 1,
2014, is $105. The fee for entering into
an installment agreement on or after
January 1, 2014, is $120. A reduced fee
applies in the following situations:
*
*
*
*
*
(d) Effective/applicability date. This
section is applicable beginning January
1, 2014.
■ Par. 3. In § 300.2, paragraphs (b) and
(d) are revised to read as follows:
§ 300.2 Restructuring or reinstatement of
installment agreement fee.
*
*
*
*
*
(b) Fee. The fee for restructuring or
reinstating an installment agreement
before January 1, 2014, is $45. The fee
for restructuring or reinstating an
installment agreement on or after
January 1, 2014, is $50.
*
*
*
*
*
(d) Effective/applicability date. This
section is applicable beginning January
1, 2014.
■ Par. 4. In § 300.3, paragraphs (b)(1)
introductory text and (d) are revised to
read as follows:
§ 300.3
Offer to compromise fee.
*
*
*
*
*
(b) Fee. (1) The fee for processing an
offer to compromise before January 1,
2014, is $150. The fee for processing an
offer to compromise on or after January
1, 2014, is $186. No fee will be charged
if an offer is—
*
*
*
*
*
(d) Effective/applicability date. This
section is applicable beginning January
1, 2014.
Approved: November 22, 2013.
John Dalrymple,
Deputy Commissioner for Services and
Enforcement.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2013–28863 Filed 11–29–13; 8:45 am]
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29 CFR Part 4044
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
This rule amends the Pension
Benefit Guaranty Corporation’s
regulation on Allocation of Assets in
Single-Employer Plans by substituting a
new table for determining expected
retirement ages for participants in
pension plans undergoing distress or
involuntary termination with valuation
dates falling in 2014. This table is
needed in order to compute the value of
early retirement benefits and, thus, the
total value of benefits under a plan.
DATES: Effective Date: January 1, 2014.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, 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: The
Pension Benefit Guaranty Corporation
(PBGC) administers the pension plan
termination insurance program under
Title IV of the Employee Retirement
Income Security Act of 1974 (ERISA).
PBGC’s regulation on Allocation of
Assets in Single-Employer Plans (29
CFR part 4044) sets forth (in subpart B)
the methods for valuing plan benefits of
terminating single-employer plans
covered under Title IV. Guaranteed
benefits and benefit liabilities under a
plan that is undergoing a distress
termination must be valued in
accordance with subpart B of part 4044.
In addition, when PBGC terminates an
underfunded plan involuntarily
pursuant to ERISA section 4042(a), it
uses the subpart B valuation rules to
determine the amount of the plan’s
underfunding.
Under § 4044.51(b) of the asset
allocation regulation, early retirement
benefits are valued based on the annuity
starting date, if a retirement date has
been selected, or the expected
retirement age, if the annuity starting
date is not known on the valuation date.
Sections 4044.55 through 4044.57 set
forth rules for determining the expected
retirement ages for plan participants
entitled to early retirement benefits.
Appendix D of part 4044 contains tables
SUMMARY:
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Federal Register / Vol. 78, No. 231 / Monday, December 2, 2013 / Rules and Regulations
to be used in determining the expected
early retirement ages.
Table I in appendix D (Selection of
Retirement Rate Category) is used to
determine whether a participant has a
low, medium, or high probability of
retiring early. The determination is
based on the year a participant would
reach ‘‘unreduced retirement age’’ (i.e.,
the earlier of the normal retirement age
or the age at which an unreduced
benefit is first payable) and the
participant’s monthly benefit at
unreduced retirement age. The table
applies only to plans with valuation
dates in the current year and is updated
annually by the PBGC to reflect changes
in the cost of living, etc.
Tables II–A, II–B, and II–C (Expected
Retirement Ages for Individuals in the
Low, Medium, and High Categories
respectively) are used to determine the
expected retirement age after the
probability of early retirement has been
determined using Table I. These tables
establish, by probability category, the
expected retirement age based on both
the earliest age a participant could retire
under the plan and the unreduced
retirement age. This expected retirement
age is used to compute the value of the
early retirement benefit and, thus, the
total value of benefits under the plan.
This document amends appendix D to
replace Table I–13 with Table I–14 in
order to provide an updated correlation,
appropriate for calendar year 2014,
between the amount of a participant’s
benefit and the probability that the
participant will elect early retirement.
Table I–14 will be used to value benefits
in plans with valuation dates during
calendar year 2014.
PBGC has determined that notice of,
and public comment on, this rule are
impracticable and contrary to the public
interest. Plan administrators need to be
able to estimate accurately the value of
plan benefits as early as possible before
initiating the termination process. For
that purpose, if a plan has a valuation
date in 2014, the plan administrator
needs the updated table being
promulgated in this rule. Accordingly,
the public interest is best served by
issuing this table expeditiously, without
an opportunity for notice and comment,
to allow as much time as possible to
estimate the value of plan benefits with
the proper table for plans with valuation
dates in early 2014.
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
regulation, the Regulatory Flexibility
Act of 1980 does not apply (5 U.S.C.
601(2)).
List of Subjects in 29 CFR Part 4044
Pension insurance, Pensions.
In consideration of the foregoing, 29
CFR part 4044 is amended as follows:
PART 4044
1. The authority citation for part 4044
continues to read as follows:
■
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
2. Appendix D to part 4044 is
amended by removing Table I–13 and
adding in its place Table I–14 To read
as follows:
■
Appendix D to Part 4044 —Tables Used
To Determine Expected Retirement Age
TABLE I–14—SELECTION OF RETIREMENT RATE CATEGORY
[For Plans with valuation dates after December 31, 2013, and before January 1, 2015]
Participant’s Retirement Rate Category is—
Low 1 if monthly benefit at
URA is less
than—
If participant reaches URA in year—
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
1
2
3
*
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
or later ....................................................................................................
From—
614
627
641
655
670
685
700
715
731
747
To—
614
627
641
655
670
685
700
715
731
747
High 3 if
monthly benefit at URA is
greater than—
2,594
2,651
2,710
2,769
2,830
2,893
2,956
3,021
3,088
3,156
2,594
2,651
2,710
2,769
2,830
2,893
2,956
3,021
3,088
3,156
Table II–A.
Table II–B.
Table II–C.
*
*
*
*
Issued in Washington, DC, this 19th day of
November, 2013.
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
[FR Doc. 2013–28682 Filed 11–29–13; 8:45 am]
sroberts on DSK5SPTVN1PROD with RULES
Medium 2 if monthly benefit at
URA is—
ACTION:
Coast Guard
SUMMARY:
33 CFR Part 100
[Docket No. USCG–2013–0937]
BILLING CODE 7709–02–P
Special Local Regulation; Southern
California Annual Marine Events for
the San Diego Captain of the Port Zone
AGENCY:
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Notice of enforcement of
regulation.
DEPARTMENT OF HOMELAND
SECURITY
PO 00000
Coast Guard, DHS.
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The Coast Guard will enforce
the Mission Bay Parade of Lights special
local regulations during this year’s
parade held on December 14, 2013. This
event occurs on Mission Bay in San
Diego, CA. These special local
regulations are necessary to provide for
the safety of the participants, crew,
spectators, sponsor vessels of the
parade, and general users of the
waterway. During the enforcement
period, persons and vessels are
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[Federal Register Volume 78, Number 231 (Monday, December 2, 2013)]
[Rules and Regulations]
[Pages 72018-72019]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-28682]
=======================================================================
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4044
Allocation of Assets in Single-Employer Plans; Valuation of
Benefits and Assets; Expected Retirement Age
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the Pension Benefit Guaranty Corporation's
regulation on Allocation of Assets in Single-Employer Plans by
substituting a new table for determining expected retirement ages for
participants in pension plans undergoing distress or involuntary
termination with valuation dates falling in 2014. This table is needed
in order to compute the value of early retirement benefits and, thus,
the total value of benefits under a plan.
DATES: Effective Date: January 1, 2014.
FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, 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: The Pension Benefit Guaranty Corporation
(PBGC) administers the pension plan termination insurance program under
Title IV of the Employee Retirement Income Security Act of 1974
(ERISA). PBGC's regulation on Allocation of Assets in Single-Employer
Plans (29 CFR part 4044) sets forth (in subpart B) the methods for
valuing plan benefits of terminating single-employer plans covered
under Title IV. Guaranteed benefits and benefit liabilities under a
plan that is undergoing a distress termination must be valued in
accordance with subpart B of part 4044. In addition, when PBGC
terminates an underfunded plan involuntarily pursuant to ERISA section
4042(a), it uses the subpart B valuation rules to determine the amount
of the plan's underfunding.
Under Sec. 4044.51(b) of the asset allocation regulation, early
retirement benefits are valued based on the annuity starting date, if a
retirement date has been selected, or the expected retirement age, if
the annuity starting date is not known on the valuation date. Sections
4044.55 through 4044.57 set forth rules for determining the expected
retirement ages for plan participants entitled to early retirement
benefits. Appendix D of part 4044 contains tables
[[Page 72019]]
to be used in determining the expected early retirement ages.
Table I in appendix D (Selection of Retirement Rate Category) is
used to determine whether a participant has a low, medium, or high
probability of retiring early. The determination is based on the year a
participant would reach ``unreduced retirement age'' (i.e., the earlier
of the normal retirement age or the age at which an unreduced benefit
is first payable) and the participant's monthly benefit at unreduced
retirement age. The table applies only to plans with valuation dates in
the current year and is updated annually by the PBGC to reflect changes
in the cost of living, etc.
Tables II-A, II-B, and II-C (Expected Retirement Ages for
Individuals in the Low, Medium, and High Categories respectively) are
used to determine the expected retirement age after the probability of
early retirement has been determined using Table I. These tables
establish, by probability category, the expected retirement age based
on both the earliest age a participant could retire under the plan and
the unreduced retirement age. This expected retirement age is used to
compute the value of the early retirement benefit and, thus, the total
value of benefits under the plan.
This document amends appendix D to replace Table I-13 with Table I-
14 in order to provide an updated correlation, appropriate for calendar
year 2014, between the amount of a participant's benefit and the
probability that the participant will elect early retirement. Table I-
14 will be used to value benefits in plans with valuation dates during
calendar year 2014.
PBGC has determined that notice of, and public comment on, this
rule are impracticable and contrary to the public interest. Plan
administrators need to be able to estimate accurately the value of plan
benefits as early as possible before initiating the termination
process. For that purpose, if a plan has a valuation date in 2014, the
plan administrator needs the updated table being promulgated in this
rule. Accordingly, the public interest is best served by issuing this
table expeditiously, without an opportunity for notice and comment, to
allow as much time as possible to estimate the value of plan benefits
with the proper table for plans with valuation dates in early 2014.
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 regulation, the Regulatory Flexibility Act of 1980 does not apply
(5 U.S.C. 601(2)).
List of Subjects in 29 CFR Part 4044
Pension insurance, Pensions.
In consideration of the foregoing, 29 CFR part 4044 is amended as
follows:
PART 4044
0
1. 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
2. Appendix D to part 4044 is amended by removing Table I-13 and adding
in its place Table I-14 To read as follows:
Appendix D to Part 4044 --Tables Used To Determine Expected Retirement
Age
Table I-14--Selection of Retirement Rate Category
[For Plans with valuation dates after December 31, 2013, and before January 1, 2015]
----------------------------------------------------------------------------------------------------------------
Participant's Retirement Rate Category is--
---------------------------------------------------------------
Medium \2\ if monthly benefit High \3\ if
If participant reaches URA in year-- Low \1\ if at URA is-- monthly
monthly -------------------------------- benefit at URA
benefit at URA is greater
is less than-- From-- To-- than--
----------------------------------------------------------------------------------------------------------------
2015............................................ 614 614 2,594 2,594
2016............................................ 627 627 2,651 2,651
2017............................................ 641 641 2,710 2,710
2018............................................ 655 655 2,769 2,769
2019............................................ 670 670 2,830 2,830
2020............................................ 685 685 2,893 2,893
2021............................................ 700 700 2,956 2,956
2022............................................ 715 715 3,021 3,021
2023............................................ 731 731 3,088 3,088
2024 or later................................... 747 747 3,156 3,156
----------------------------------------------------------------------------------------------------------------
\1\ Table II-A.
\2\ Table II-B.
\3\ Table II-C.
* * * * *
Issued in Washington, DC, this 19th day of November, 2013.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2013-28682 Filed 11-29-13; 8:45 am]
BILLING CODE 7709-02-P
