Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 8857-8858 [2014-03283]
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8857
Federal Register / Vol. 79, No. 31 / Friday, February 14, 2014 / Rules and Regulations
Authority: Sec. 18, 84 Stat. 1608 (29 U.S.C.
667); 29 CFR part 1902; Secretary of Labor’s
Order No. 1–2012 (77 FR 3912).
Subpart Y—Hawaii
2. Amend § 1952.314 by revising
paragraph (b) to read as follows:
■
§ 1952.314
Level of Federal enforcement.
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*
*
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(b) To provide a workable division of
enforcement responsibilities, Hawaii
and Federal OSHA have entered into an
operational status agreement. Electronic
copies of the agreement are available at:
https://www.osha.gov/dcsp/osp/
stateprogs/hawaii.html.
[FR Doc. 2014–03286 Filed 2–13–14; 8:45 am]
BILLING CODE 4510–26–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:
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
March 2014. The interest assumptions
are used for paying benefits under
terminating single-employer plans
covered by the pension insurance
system administered by PBGC.
DATES: Effective March 1, 2014.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion (Klion.Catherine@
pbgc.gov), Assistant General Counsel for
Regulatory Affairs, Pension Benefit
SUMMARY:
Rate set
For plans with a valuation
date
On or after
*
245
Before
17:37 Feb 13, 2014
Jkt 232001
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
245, 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
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
1 Appendix B to PBGC’s regulation on Allocation
of Assets in Single-Employer Plans (29 CFR Part
4044) prescribes interest assumptions for valuing
List of Subjects in 29 CFR Part 4022
i2
*
4.00
1.50
3. In appendix C to part 4022, Rate Set
245, as set forth below, is added to the
table.
VerDate Mar<15>2010
i1
*
4–1–14
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 March 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).
Deferred annuities (percent)
Immediate
annuity rate
(percent)
*
3–1–14
■
tkelley on DSK3SPTVN1PROD with RULES
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 March 2014.1
The March 2014 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 February 2014,
these interest assumptions represent a
decrease of 0.25 percent in the
immediate annuity rate and are
otherwise unchanged.
*
*
*
*
benefits under terminating covered single-employer
plans for purposes of allocation of assets under
PO 00000
Frm 00033
Fmt 4700
Sfmt 4700
ERISA section 4044. Those assumptions are
updated quarterly.
E:\FR\FM\14FER1.SGM
14FER1
8858
Federal Register / Vol. 79, No. 31 / Friday, February 14, 2014 / Rules and Regulations
For plans with a valuation
date
Rate set
On or after
*
Before
*
245
*
3–1–14
4–1–14
1.50
Issued in Washington, DC, on this 5th day
of February 2014.
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
[FR Doc. 2014–03283 Filed 2–13–14; 8:45 am]
BILLING CODE 7709–02–P
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Parts 353, 360, and 363
Regulations Governing Definitive
United States Savings Bonds, Series
EE and HH; Regulations Governing
Definitive United States Savings
Bonds, Series I; Regulations
Governing Securities Held in
TreasuryDirect
Bureau of the Fiscal Service,
Fiscal Service, Treasury.
AGENCY:
ACTION:
Final rule.
The Department of the
Treasury (Treasury) is eliminating the
printing of paper Series EE and Series
I savings bonds in reissue and claims
transactions. Customers requesting these
transactions will now have the option of
receiving either book-entry (electronic)
bonds or payment in lieu of the
traditional paper bonds. Treasury is also
updating agency contact information
and making a minor revision in the
Regulations Governing Securities Held
in TreasuryDirect®.
SUMMARY:
This final rule is effective
February 14, 2014.
DATES:
You can download this
Final Rule at the following Internet
addresses: https://
www.publicdebt.treas.gov; https://
www.gpo.gov; or https://
www.regulations.gov.
ADDRESSES:
tkelley on DSK3SPTVN1PROD with RULES
FOR FURTHER INFORMATION CONTACT:
Technical information: Jerry Kelly,
Acting Director, 304–480–6319 or
jerry.kelly@fiscal.treasury.gov.
Legal information: Lisa Martin,
Attorney-Adviser, 304–480–8692 or
lisa.martin@fiscal.treasury.gov.
SUPPLEMENTARY INFORMATION:
VerDate Mar<15>2010
17:37 Feb 13, 2014
Immediate
annuity rate
(percent)
Jkt 232001
Deferred annuities (percent)
i1
i2
*
4.00
i3
4.00
*
I. Background
In continuation of its all-electronic
initiative announced in 2010, Treasury
is working toward a goal of issuing
savings bonds only in book-entry
(electronic) form and eliminating the
issuance or reissuance of definitive
(paper) savings bonds.
Through previous actions, Treasury
has created its online TreasuryDirect®
system in which savings bond
customers may safely purchase and hold
their Series EE and Series I bonds in
book-entry form. Treasury has
developed rules and procedures that
allow customers already holding paper
Series EE and I bonds to convert those
bonds to book-entry in their
TreasuryDirect® accounts. This was
followed by development of a process
that accommodates regular payrollbased savings through an employee’s
TreasuryDirect® account and the
discontinuation of the old paper payroll
savings bond program. And, as of
January 2012, Treasury discontinued the
issuance of paper Series EE and I bonds
through traditional over-the-counter
sales.
II. Amendments to Title 31 CFR
Now, with this action to eliminate the
printing of paper Series EE and I bonds
in reissue and claims transactions,
Treasury is moving another step closer
to our all-electronic goal. Customers
requesting reissue or replacement of
paper Series EE and I bonds after
February 14, 2014, may receive their
new bonds in book-entry (electronic)
form in their TreasuryDirect® accounts.
Any customers not wishing to receive
book-entry bonds may elect to receive
payment instead. The option to receive
payment will also be available to the
relatively small number of paper bond
owners who may not be eligible to open
a TreasuryDirect® account.
These changes will allow Treasury to
reduce program costs, enhance customer
service, and minimize environmental
impact. Moving more savings bonds into
a book-entry environment where most
routine transactions are paperless
furthers Treasury’s initiative to ‘‘go
green, save green.’’
Treasury is also conforming
references to the TreasuryDirect®
system, updating agency contact
PO 00000
Frm 00034
Fmt 4700
Sfmt 4700
n1
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4.00
n2
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7
8
information, and revising one of the
example registrations for TreasuryDirect
accounts owned by trusts.
III. Procedural Requirements
A. Administrative Procedure Act (APA)
Because this rule relates to United
States securities, which are contracts
between Treasury and the owner of the
security, this rule falls within the
contract exception to the APA at 5
U.S.C. 553(a)(2). As a result, the notice,
public comment, and delayed effective
date provisions of the APA are
inapplicable to this rule.
B. Congressional Review Act (CRA)
This rule is not a major rule pursuant
to the CRA, 5 U.S.C. 801 et seq., because
it is a minor amendment that is
expected to decrease costs for taxpayers.
It is not expected to lead to any of the
results listed in 5 U.S.C. 804(2). This
rule may take immediate effect after we
submit a copy of it to Congress and the
Comptroller General.
C. Paperwork Reduction Act (PRA)
There is no new collection of
information contained in this final rule
that would be subject to the PRA, 44
U.S.C. 3501 et seq. Under the PRA, an
agency may not conduct or sponsor, and
a person is not required to respond to,
a collection of information unless it
displays a valid OMB control number.
The Office of Management and Budget
already has approved all collections of
information for these parts (OMB No.
1535–0004, OMB No. 1535–0009, OMB
No. 1535–0012, OMB No. 1535–0013,
OMB No. 1535–0023, OMB No. 1535–
0036, OMB No. 1535–0063, OMB No.
1535–0098, OMB No. 1535–0118, and
OMB No. 1535–0131).
D. Regulatory Flexibility Act
The provisions of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., do
not apply to this rule because, pursuant
to 5 U.S.C. 553(a)(2), it is not required
to be issued with notice and
opportunity for public comment.
E. Executive Order 12866
This rule is not a significant
regulatory action pursuant to Executive
Order 12866.
E:\FR\FM\14FER1.SGM
14FER1
]]>Agencies
[Federal Register Volume 79, Number 31 (Friday, February 14, 2014)]
[Rules and Regulations]
[Pages 8857-8858]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03283]
-----------------------------------------------------------------------
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 March 2014. The interest assumptions are used
for paying benefits under terminating single-employer plans covered by
the pension insurance system administered by PBGC.
DATES: Effective March 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 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 March 2014.\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 March 2014 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 February 2014, 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 March 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 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 245, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
245 3-1-14 4-1-14 1.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 245, as set forth below, is
added to the table.
Appendix C to Part 4022--Lump Sum Interest Rates for Private-Sector
Payments
* * * * *
[[Page 8858]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
245 3-1-14 4-1-14 1.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 5th day of February 2014.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2014-03283 Filed 2-13-14; 8:45 am]
BILLING CODE 7709-02-P
