Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 75897-75898 [2013-29755]
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75897
Rules and Regulations
Federal Register
Vol. 78, No. 240
Friday, December 13, 2013
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 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 2014 and
interest assumptions under the asset
allocation regulation for valuation dates
in the first quarter of 2014. 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, 2014.
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
regulations on Allocation of Assets in
Single-Employer Plans (29 CFR Part
4044) and Benefits Payable in
Terminated Single-Employer Plans (29
emcdonald on DSK67QTVN1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
17:00 Dec 12, 2013
Jkt 232001
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
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 2014
and updates the asset allocation interest
assumptions for the first quarter
(January through March) of 2014.
The first quarter 2014 interest
assumptions under the allocation
regulation will be 3.35 percent for the
first 20 years following the valuation
date and 3.50 percent thereafter. In
comparison with the interest
assumptions in effect for the fourth
quarter of 2013, these interest
assumptions represent no change in the
select period (the period during which
the select rate (the initial rate) applies),
an increase of 0.35 percent in the select
rate, and an increase of 0.19 percent in
the ultimate rate (the final rate).
The January 2014 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 December
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
2013, these interest assumptions are
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
2014, 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
243, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
E:\FR\FM\13DER1.SGM
*
*
13DER1
*
*
75898
Federal Register / Vol. 78, No. 240 / Friday, December 13, 2013 / Rules and Regulations
For plans with a
valuation date
Rate set
On or after
*
Before
*
243
1–1–14
*
*
243
1–1–14
*
*
Immediate
annuity rate
(percent)
Before
i3
4.00
n1
*
n2
*
*
4.00
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
For plans with a
valuation date
i2
*
4.00
1.75
3. In appendix C to part 4022, Rate Set
243, as set forth below, is added to the
table.
On or after
i1
*
2–1–14
■
Rate set
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
2–1–14
1.75
*
*
Deferred annuities
(percent)
i1
i2
*
4.00
i3
4.00
*
*
*
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 2014, as set
forth below, is added to the table.
*
■
4. The authority citation for part 4044
continues to read as follows:
■
*
*
*
*
The values of i t are:
For valuation dates occurring in the month—
it
*
*
*
*
January–March 2014 ................................................................................
Issued in Washington, DC, on this 9th day
of December 2013.
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
for t =
0.0335
*
1–20
33 CFR Part 165
31, 2013 during the Sacramento New
Years Eve Fireworks Display. The
fireworks display will occur from 9 p.m.
to 9:20 p.m. on December 31, 2013 for
the annual Sacramento New Years Eve
Fireworks Display. This action is
necessary to control vessel traffic and to
help protect the safety of event
participants and spectators. During the
enforcement period, unauthorized
persons or vessels are prohibited from
entering into, transiting through, or
anchoring in the safety zone, unless
authorized by the Patrol Commander
(PATCOM).
[Docket No. USCG–2013–0969]
DATES:
[FR Doc. 2013–29755 Filed 12–12–13; 8:45 am]
BILLING CODE 7709–02–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
emcdonald on DSK67QTVN1PROD with RULES
Safety Zone; Sacramento New Years
Eve Fireworks Display, Sacramento
River, Sacramento, CA
Coast Guard, DHS.
Notice of enforcement of
regulation.
AGENCY:
ACTION:
The Coast Guard will enforce
the 1,000 foot safety zone in the
navigable waters of the Sacramento
River in Sacramento, CA on December
SUMMARY:
VerDate Mar<15>2010
17:00 Dec 12, 2013
Jkt 232001
The regulation in 33 CFR
165.1191, Table 1, Item number 29, will
be enforced from 9 p.m. to 9:20 p.m. on
December 31, 2013.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this notice, call
or email Lieutenant Junior Grade
William Hawn, U.S. Coast Guard Sector
San Francisco; telephone (415) 399–
7442 or email at D11-PF-MarineEvents@
uscg.mil.
SUPPLEMENTARY INFORMATION: The Coast
Guard will enforce the Sacramento New
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
it
for t =
it
for t =
*
0.0350
*
>20
N/A
N/A
Years Eve Fireworks Display safety zone
in the navigable waters of the
Sacramento River around the Tower
Bridge in Sacramento, CA in
approximate position 38°34′49.98″ N,
121°30′29.61″ W (NAD 83). Upon the
commencement of the fireworks
display, scheduled to begin at 9 p.m. on
December 31, 2013, the safety zone will
encompass the navigable waters around
the fireworks launch site on the Tower
Bridge in Sacramento, CA in
approximate position: 38°34′49.98″ N,
121°30′29.61″ W (NAD 83) within a
radius of 1,000 feet. At the conclusion
of the fireworks display the safety zone
shall terminate. This safety zone will be
in effect from 9 p.m. to 9:20 p.m. on
December 31, 2013.
Under the provisions of 33 CFR
165.1191, unauthorized persons or
vessels are prohibited from entering
into, transiting through, or anchoring in
the safety zone during all applicable
effective dates and times, unless
authorized to do so by the PATCOM.
Additionally, each person who receives
notice of a lawful order or direction
issued by an official patrol vessel shall
E:\FR\FM\13DER1.SGM
13DER1
]]>Agencies
[Federal Register Volume 78, Number 240 (Friday, December 13, 2013)]
[Rules and Regulations]
[Pages 75897-75898]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-29755]
========================================================================
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. 78, No. 240 / Friday, December 13, 2013 /
Rules and Regulations
[[Page 75897]]
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 2014 and interest assumptions under the
asset allocation regulation for valuation dates in the first quarter of
2014. 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, 2014.
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 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 2014 and
updates the asset allocation interest assumptions for the first quarter
(January through March) of 2014.
The first quarter 2014 interest assumptions under the allocation
regulation will be 3.35 percent for the first 20 years following the
valuation date and 3.50 percent thereafter. In comparison with the
interest assumptions in effect for the fourth quarter of 2013, these
interest assumptions represent no change in the select period (the
period during which the select rate (the initial rate) applies), an
increase of 0.35 percent in the select rate, and an increase of 0.19
percent in the ultimate rate (the final rate).
The January 2014 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 December 2013, these interest assumptions are
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
2014, 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 243, as set forth below, is
added to the table.
Appendix B to Part 4022--Lump Sum Interest Rates for PBGC Payments
* * * * *
[[Page 75898]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i 1 i 2 i 3 n 1 n 2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
243 1-1-14 2-1-14 1.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 243, 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) i 1 i 2 i 3 n 1 n 2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
243 1-1-14 2-1-14 1.75 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 2014, as
set forth below, is added to the table.
Appendix B to Part 4044--Interest Rates Used to Value Benefits
* * * * *
----------------------------------------------------------------------------------------------------------------
The values of i t are:
For valuation dates occurring in the month-- -----------------------------------------------------------------
i t for t = i t for t = i t for t =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
January-March 2014............................ 0.0335 1-20 0.0350 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 9th day of December 2013.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2013-29755 Filed 12-12-13; 8:45 am]
BILLING CODE 7709-02-P
