Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 15009-15010 [2014-05854]
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15009
Federal Register / Vol. 79, No. 52 / Tuesday, March 18, 2014 / Rules and Regulations
[FR Doc. 2014–05765 Filed 3–17–14; 8:45 am]
BILLING CODE 4910–13–P
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 April 2014 and
interest assumptions under the asset
allocation regulation for valuation dates
in the second 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 April 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 singleemployer plans covered by title IV of
SUMMARY:
Rate set
For plans with a valuation
date
sroberts on DSK5SPTVN1PROD with RULES
On or after
*
246
VerDate Mar<15>2010
Before
*
4–1–14
17:18 Mar 17, 2014
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 April 2014 and
updates the asset allocation interest
assumptions for the second quarter
(April through June) of 2014.
The second quarter 2014 interest
assumptions under the allocation
regulation will be 3.47 percent for the
first 20 years following the valuation
date and 3.64 percent thereafter. In
comparison with the interest
assumptions in effect for the first
quarter of 2014, these interest
assumptions represent no change in the
select period (the period during which
the select rate (the initial rate) applies),
an increase of 0.12 percent in the select
rate, and an increase of 0.14 percent in
the ultimate rate (the final rate).
The April 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 March 2014,
these interest assumptions are
unchanged.
Immediate
annuity rate
(percent)
*
5–1–14
Jkt 232001
1.50
PO 00000
Frm 00033
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 April 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
246, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
*
*
*
*
*
Deferred annuities
(percent)
i1
i2
*
4.00
4.00
Fmt 4700
Sfmt 4700
i3
n1
*
*
4.00
E:\FR\FM\18MRR1.SGM
18MRR1
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*
7
8
15010
Federal Register / Vol. 79, No. 52 / Tuesday, March 18, 2014 / Rules and Regulations
3. In appendix C to part 4022, Rate Set
246, 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
Rate set
On or after
*
Before
5–1–14
*
*
4.00
7
8
*
for t =
*
0.0347
1–20
BILLING CODE 7709–02–P
*
*
*
for t =
it
*
*
Coast Guard
33 CFR Part 165
[Docket No. USCG–2014–0015]
RIN 1625–AA00
Safety zone; Sea World San Diego
Fireworks, Mission Bay; San Diego, CA
Coast Guard, DHS.
Temporary final rule.
AGENCY:
The Coast Guard is
establishing a temporary safety zone
within the navigable waters of Mission
Bay for Sea World firework shows. This
temporary safety zone covers four
evening events held in March 2014. The
temporary safety zones provide for the
safety of participants, crew, rescue
personnel, and other users of the
waterway. Persons and vessels are
prohibited from entering into, transiting
through, or anchoring within this safety
zone unless authorized by the Captain
of the Port or his designated
representative.
Documents mentioned in
this preamble are part of docket [USCG–
2014–0015]. To view documents
mentioned in this preamble as being
available in the docket, go to 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
rulemaking. 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.
If
you have questions on this rule, call or
email Petty Officer Bryan Gollogly,
Waterways Management, U.S. Coast
Guard Sector San Diego, Coast Guard;
telephone 619–278–7656, email
d11marineeventssandiego@uscg.mil. If
you have questions on viewing or
submitting material to the docket, call
Cheryl Collins, Program Manager,
Docket Operations, telephone (202)
366–9826.
FOR FURTHER INFORMATION CONTACT:
Fmt 4700
N/A
Sfmt 4700
*
N/A
*
>20
Table of Acronyms
This rule is effective March 18,
2014 until March 23, 2014 and will be
enforced from 8:50 p.m. to 10 p.m. on
the following four evenings: March 18,
March 20, March 21, and March 22,
2014.
Frm 00034
for t =
SUPPLEMENTARY INFORMATION:
DATES:
PO 00000
it
*
0.0364
ADDRESSES:
DEPARTMENT OF HOMELAND
SECURITY
sroberts on DSK5SPTVN1PROD with RULES
*
n2
Appendix B to Part 4044—Interest
Rates Used to Value Benefits
it
[FR Doc. 2014–05854 Filed 3–17–14; 8:45 am]
Jkt 232001
4.00
n1
The values of it are:
Issued in Washington, DC, on this 12th day
of March 2014.
Philip Hertz,
Acting General Counsel, Pension Benefit
Guaranty Corporation.
17:18 Mar 17, 2014
*
4.00
i3
5. In appendix B to part 4044, a new
entry for April—June 2014, as set forth
below, is added to the table.
For valuation dates occurring in the
month—
SUMMARY:
i2
■
4. The authority citation for part 4044
continues to read as follows:
VerDate Mar<15>2010
i1
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
■
*
April—June 2014
*
Deferred annuities
(percent)
1.50
PART 4044—ALLOCATION OF
ASSETS IN SINGLE–EMPLOYER
PLANS
ACTION:
*
*
4–1–14
*
*
Immediate
annuity rate
(percent)
*
246
*
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking
TFR Temporary Final Rule
A. Regulatory History and Information
The Coast Guard is issuing this
temporary final rule without prior
notice and opportunity to comment
pursuant to authority under section 4(a)
of the Administrative Procedure Act
(APA) (5 U.S.C. 553(b)). This provision
authorizes an agency to issue a rule
without prior notice and opportunity to
comment when the agency for good
cause finds that those procedures are
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ Under 5 U.S.C.
553(b)(B), the Coast Guard finds that
good cause exists for not publishing a
notice of proposed rulemaking (NPRM)
with respect to this rule because doing
so would be impracticable and contrary
to the public interest. The logistical
details for this event were not known to
the Coast Guard until there was
insufficient time remaining before the
events to publish an NPRM. Thus,
delaying the effective date of this rule to
wait for a comment period to run would
be both impracticable and contrary to
the public interest because it would
inhibit the Coast Guard’s ability to
protect spectators and vessels from the
hazards associated with a maritime
E:\FR\FM\18MRR1.SGM
18MRR1
]]>Agencies
[Federal Register Volume 79, Number 52 (Tuesday, March 18, 2014)]
[Rules and Regulations]
[Pages 15009-15010]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-05854]
=======================================================================
-----------------------------------------------------------------------
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 April 2014 and interest assumptions under the
asset allocation regulation for valuation dates in the second 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 April 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 April 2014 and
updates the asset allocation interest assumptions for the second
quarter (April through June) of 2014.
The second quarter 2014 interest assumptions under the allocation
regulation will be 3.47 percent for the first 20 years following the
valuation date and 3.64 percent thereafter. In comparison with the
interest assumptions in effect for the first quarter of 2014, these
interest assumptions represent no change in the select period (the
period during which the select rate (the initial rate) applies), an
increase of 0.12 percent in the select rate, and an increase of 0.14
percent in the ultimate rate (the final rate).
The April 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 March 2014, 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 April
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 246, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
246 4-1-14 5-1-14 1.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 15010]]
0
3. In appendix C to part 4022, Rate Set 246, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
246 4-1-14 5-1-14 1.50 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 April--June 2014, as set
forth below, is added to the table.
Appendix B to Part 4044--Interest Rates Used to Value Benefits
* * * * *
----------------------------------------------------------------------------------------------------------------
The values of it are:
For valuation -----------------------------------------------------------------------------------------------
dates occurring for t
in the month-- it for t = it for t = it =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
April--June 2014 0.0347 1-20 0.0364 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 12th day of March 2014.
Philip Hertz,
Acting General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2014-05854 Filed 3-17-14; 8:45 am]
BILLING CODE 7709-02-P
