Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 48038-48039 [2014-19381]
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48038
Federal Register / Vol. 79, No. 158 / Friday, August 15, 2014 / Rules and Regulations
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
September 2014. The interest
assumptions are used for paying
benefits under terminating singleemployer plans covered by the pension
insurance system administered by
PBGC.
DATES: Effective Date: September 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 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
SUMMARY:
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 2014.1
The September 2014 interest
assumptions under the benefit payments
regulation will be 1.25 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 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
For plans with a valuation date
On or after
*
251 ........................
Before
*
9–1–14
10–1–14
3. In appendix C to part 4022, Rate Set
251, as set forth below, is added to the
table.
emcdonald on DSK67QTVN1PROD with RULES
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17:08 Aug 14, 2014
Jkt 232001
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
251, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
*
i1
i2
i3
*
4.00
4.00
*
1.25
n1
*
n2
*
7
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
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
In consideration of the foregoing, 29
CFR part 4022 is amended as follows:
4.00
*
■
List of Subjects in 29 CFR Part 4022
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Rate set
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 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).
*
*
*
*
benefits under terminating covered single-employer
plans for purposes of allocation of assets under
PO 00000
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Fmt 4700
Sfmt 4700
ERISA section 4044. Those assumptions are
updated quarterly.
E:\FR\FM\15AUR1.SGM
15AUR1
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48039
Federal Register / Vol. 79, No. 158 / Friday, August 15, 2014 / Rules and Regulations
For plans with a valuation date
Rate set
On or after
*
251 ........................
Before
*
9–1–14
10–1–14
*
Issued in Washington, DC, on this 12th day
of August 2014.
Philip Hertz,
Deputy General Counsel, Pension Benefit
Guaranty Corporation.
*[FR Doc. 2014–19381 Filed 8–14–14; 8:45 am]
BILLING CODE 7709–02–P
DEPARTMENT OF THE TREASURY
31 CFR Part 34
RIN 1505–AC44
Department of the Treasury
Regulations for the Gulf Coast
Restoration Trust Fund
Office of the Fiscal Assistant
Secretary, Treasury.
ACTION: Interim Final Rule.
AGENCY:
The Department of the
Treasury is issuing regulations
concerning the investment and use of
amounts deposited in the Gulf Coast
Restoration Trust Fund, which was
established in the Treasury of the
United States by the Resources and
Ecosystem Sustainability, Tourist
Opportunities, and Revived Economies
of the Gulf Coast States Act of 2012
(RESTORE Act).
DATES: Effective date for the Interim
Final Rule: October 14, 2014. Comments
on the Interim Final Rule are due:
September 15, 2014.
ADDRESSES: Treasury invites comments
on the topics addressed in this Interim
Final Rule. Comments may be submitted
through one of these methods:
Electronic Submission of Comments:
Interested persons may submit
comments electronically through the
Federal eRulemaking Portal at https://
www.regulations.gov. Electronic
submission of comments allows the
commenter maximum time to prepare
and submit a comment, ensures timely
receipt, and enables the Department to
make them available to the public.
Comments submitted electronically
through the https://www.regulations.gov
Web site can be viewed by other
commenters and interested members of
the public.
Mail: Send to Department of the
Treasury, Attention: Janet Vail, Room
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SUMMARY:
VerDate Mar<15>2010
17:08 Aug 14, 2014
Jkt 232001
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
i1
i2
i3
4.00
*
4.00
4.00
*
1.25
1132; 1500 Pennsylvania Avenue NW.;
Washington, DC 20220.
Email: Send to RESTORErule@
treasury.gov.
In general, Treasury will post all
comments to www.regulations.gov
without change, including any business
or personal information provided, such
as names, addresses, email addresses, or
telephone numbers. Treasury will also
make such comments available for
public inspection and copying in
Treasury’s Library, Department of the
Treasury, 1500 Pennsylvania Avenue
NW., Washington, DC 20220, on official
business days between the hours of
10:00 a.m. and 5:00 p.m. Eastern Time.
You can make an appointment to
inspect comments by telephoning (202)
622–0990. All comments received,
including attachments and other
supporting materials, will be part of the
public record and subject to public
disclosure. You should only submit
information that you wish to make
publicly available.
FOR FURTHER INFORMATION CONTACT:
Please send questions by email to
RESTORErule@treasury.gov or contact
Janet Vail, 202–622–6873.
SUPPLEMENTARY INFORMATION:
I. Background
The RESTORE Act makes funds
available for the restoration and
protection of the Gulf Coast region
through a new trust fund in the
Treasury of the United States, known as
the Gulf Coast Restoration Trust Fund.
The trust fund will contain 80 percent
of the administrative and civil penalties
paid after July 6, 2012, under the
Federal Water Pollution Control Act in
connection with the Deepwater Horizon
oil spill. These funds will be invested
and made available through five
components of the Act described below.
The Direct Component sets aside 35
percent of the penalties paid into the
trust fund for eligible activities
proposed by the State of Alabama, the
State of Mississippi, the State of Texas,
the State of Louisiana and 20 Louisiana
parishes, and 23 Florida counties. The
Comprehensive Plan Component sets
aside 30 percent of the penalties, plus
half of all interest earned on trust fund
investments, to be managed by a new
independent Federal entity called the
PO 00000
Frm 00025
Fmt 4700
Sfmt 4700
n1
*
n2
*
7
8
Gulf Coast Ecosystem Restoration
Council (Council). The Council includes
members from six Federal agencies or
departments and the five Gulf Coast
States. One of the Federal members, the
Secretary of Commerce, at this time
serves as Chairperson of the Council.
The Council will direct those funds to
projects and programs for the restoration
of the Gulf Coast region, pursuant to a
comprehensive plan that will be
developed by the Council. Under the
Spill Impact Component, entities
representing the Gulf Coast States can
use an additional 30 percent of penalties
in the trust fund for eligible activities
pursuant to State Expenditure Plans
approved by the Council. The remaining
five percent of penalties, plus one-half
of all interest earned on trust fund
investments, will be divided equally
between the NOAA RESTORE Act
Science Program established by the
National Oceanic and Atmospheric
Administration (NOAA), an operating
unit of the Department of Commerce,
and the Centers of Excellence Research
Grants Program.
Treasury has several roles in
administering the trust fund. One role is
to establish procedures, in consultation
with the Departments of the Interior and
Commerce, concerning the deposit and
expenditure of amounts from the trust
fund. The procedures must include
compliance measures for the programs
and activities carried out under the Act,
as well as auditing requirements to
determine whether amounts are
expended as intended. Treasury will
also administer grants for the Direct
Component and Centers of Excellence
Research Grants Program. The Treasury
Inspector General is authorized to
conduct, supervise, and coordinate
audits and investigations of projects,
programs, and activities funded under
the Act. In addition, the Act requires
Treasury to withhold funds from a Gulf
Coast State, Florida county, or Louisiana
parish if Treasury determines that trust
fund monies have been used for an
unauthorized purpose, or if a condition
on the use of funds has been violated.
Treasury published a proposed rule
on September 6, 2013, containing
procedures regarding trust fund
investments, as well as procedures to
implement the five components of the
E:\FR\FM\15AUR1.SGM
15AUR1
]]>Agencies
[Federal Register Volume 79, Number 158 (Friday, August 15, 2014)]
[Rules and Regulations]
[Pages 48038-48039]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-19381]
[[Page 48038]]
=======================================================================
-----------------------------------------------------------------------
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 September 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 Date: September 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 September 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 September 2014 interest assumptions under the benefit payments
regulation will be 1.25 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 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 payment
of benefits under plans with valuation dates during September 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 251, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
251............................ 9-1-14 10-1-14 1.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 251, as set forth below, is
added to the table.
Appendix C to Part 4022--Lump Sum Interest Rates for Private-Sector
Payments
* * * * *
[[Page 48039]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ---------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
251............................ 9-1-14 10-1-14 1.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 12th day of August 2014.
Philip Hertz,
Deputy General Counsel, Pension Benefit Guaranty Corporation.
*[FR Doc. 2014-19381 Filed 8-14-14; 8:45 am]
BILLING CODE 7709-02-P
