Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age, 71019-71020 [2014-28216]
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Federal Register / Vol. 79, No. 230 / Monday, December 1, 2014 / Rules and Regulations
Dated: November 24, 2014.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
[FR Doc. 2014–28221 Filed 11–28–14; 8:45 am]
BILLING CODE 3510–33–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4044
Allocation of Assets in SingleEmployer Plans; Valuation of Benefits
and Assets; Expected Retirement Age
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 2015. 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, 2015.
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: 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
SUMMARY:
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
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–14 with Table I–15 in
order to provide an updated correlation,
appropriate for calendar year 2015,
between the amount of a participant’s
benefit and the probability that the
participant will elect early retirement.
Table I–15 will be used to value benefits
in plans with valuation dates during
calendar year 2015.
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 2015, 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 2015.
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—ALLOCATION OF
ASSETS IN SINGLE–EMPLOYER
PLANS
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–14 and
adding in its place Table I–15 to read as
follows:
■
Appendix D to Part 4044—Tables Used
to Determine Expected Retirement Age
rljohnson on DSK3VPTVN1PROD with RULES
TABLE I–15—SELECTION OF RETIREMENT RATE CATEGORY
[For Plans with valuation dates after December 31, 2014, and before January 1, 2016]
Participant’s retirement rate category is—
Low 1 if
monthly benefit at URA
is less than—
If participant reaches URA in year—
2016 .................................................................................................................
VerDate Sep<11>2014
16:32 Nov 28, 2014
Jkt 235001
PO 00000
Frm 00025
Fmt 4700
Sfmt 4700
Medium 2 if monthly benefit at
URA is—
From—
618
E:\FR\FM\01DER1.SGM
To—
618
01DER1
2,610
High 3 if
monthly
benefit at URA
is greater
than—
2,610
71020
Federal Register / Vol. 79, No. 230 / Monday, December 1, 2014 / Rules and Regulations
TABLE I–15—SELECTION OF RETIREMENT RATE CATEGORY—Continued
[For Plans with valuation dates after December 31, 2014, and before January 1, 2016]
Participant’s retirement rate category is—
Low 1
if monthly benefit at URA is
less than—
If participant reaches URA in year—
2017
2018
2019
2020
2021
2022
2023
2024
2025
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
or later ....................................................................................................
Medium 2 if monthly benefit at
URA is—
From—
631
646
661
676
691
707
724
740
757
To—
631
646
661
676
691
707
724
740
757
2,667
2,728
2,791
2,855
2,921
2,988
3,057
3,127
3,199
High 3 if
monthly
benefit at URA
is greater
than—
2,667
2,728
2,791
2,855
2,921
2,988
3,057
3,127
3,199
1 Table
II–A.
II–B.
3 Table II–C.
2 Table
*
*
*
*
*
[FR Doc. 2014–28216 Filed 11–28–14; 8:45 am]
BILLING CODE 7709–02–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2014–0878]
RIN 1625–AA00
Safety Zone; Upper Mississippi River
Between Mile 44 and 46; Thebes, IL
Coast Guard, DHS.
Temporary Final Rule.
AGENCY:
ACTION:
The Coast Guard is
establishing a temporary safety zone for
all waters of the Upper Mississippi
River, extending the entire width from
mile 44 and 46. This safety zone is
needed to protect persons, property, and
infrastructure from potential damage
and safety hazards associated with the
removal of two 16 inch Enterprise
pipelines in the navigation channel.
Entry into this zone is prohibited unless
specifically authorized by the Captain of
the Port (COTP) Ohio Valley or a
designated representative.
DATES: This rule is effective without
actual notice from December 1, 2014
until January 31, 2015. For the purposes
of enforcement, actual notice will be
used from November 1, 2014, until
December 1, 2014.
rljohnson on DSK3VPTVN1PROD with RULES
SUMMARY:
VerDate Sep<11>2014
13:52 Nov 28, 2014
Documents mentioned in
this preamble are part of docket [USCG–
2014–0878]. 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.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call or
email MSU Paducah, U.S. Coast Guard;
telephone 270–442–1621, email
Heather.Norman@uscg.mil. If you have
questions on viewing or submitting
material to the docket, call Cheryl F.
Collins, Program Manager, Docket
Operations, telephone 202–366–9826.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
Issued in Washington, DC, this 24th day of
November, 2014.
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
Jkt 235001
Table of Acronyms
APA Administrative Procedures Act
BNM Broadcast Notice to Mariners
COTP Captain of the Port
DHS Department of Homeland Security
FR Federal Register
LNM Local Notice to Mariners
MM Mile Marker
NPRM Notice of Proposed Rulemaking
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
PO 00000
Frm 00026
Fmt 4700
Sfmt 4700
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)(3)(B), the Coast Guard finds that
good cause exists for not publishing a
notice of proposed rulemaking (NPRM)
with respect to this rule as it would be
impracticable and contrary to the public
interest. On 23 September 2014, the
Coast Guard received information about
the scope and extent of a project,
beginning 02 October 2014, involving
the removal of two 16 inch Enterprise
pipelines located at MM 45, Upper
Mississippi River, Thebes, IL. Removal
operations are anticipated to be
approximately 4 hours per day until
completion. The Coast Guard
determined that immediate action is
necessary to establish a safety zone to
protect life and property from the
hazards associated with and resulting
from the pipeline removal. The Coast
Guard was not advised of the scope and
extent of this potentially hazardous
condition in sufficient time to publish a
NPRM.
This safety zone may include closures
and/or navigation restrictions and
requirements that are vital to
maintaining safe navigation on the
Upper Mississippi River during the
Enterprise pipeline removal. Therefore,
delaying the effective date for this
emergency safety zone to complete the
NPRM process would be contrary to the
public interest as it would delay the
safety measures vital to safe navigation.
Broadcast Notices to Mariners (BNM)
and information sharing with the
waterway users will update mariners of
the restrictions, requirements, and
E:\FR\FM\01DER1.SGM
01DER1
]]>Agencies
[Federal Register Volume 79, Number 230 (Monday, December 1, 2014)]
[Rules and Regulations]
[Pages 71019-71020]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-28216]
=======================================================================
-----------------------------------------------------------------------
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 2015. 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, 2015.
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: 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 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-14 with Table I-
15 in order to provide an updated correlation, appropriate for calendar
year 2015, between the amount of a participant's benefit and the
probability that the participant will elect early retirement. Table I-
15 will be used to value benefits in plans with valuation dates during
calendar year 2015.
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 2015, 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 2015.
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--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS
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-14 and adding
in its place Table I-15 to read as follows:
Appendix D to Part 4044--Tables Used to Determine Expected Retirement
Age
Table I-15--Selection of Retirement Rate Category
[For Plans with valuation dates after December 31, 2014, and before January 1, 2016]
----------------------------------------------------------------------------------------------------------------
Participant's retirement rate category is--
---------------------------------------------------------------
Low \1\ if Medium \2\ if monthly benefit High \3\ if
If participant reaches URA in year-- monthly at URA is-- monthly
benefit at URA -------------------------------- benefit at URA
is less than-- is greater
From-- To-- than--
----------------------------------------------------------------------------------------------------------------
2016............................................ 618 618 2,610 2,610
[[Page 71020]]
2017............................................ 631 631 2,667 2,667
2018............................................ 646 646 2,728 2,728
2019............................................ 661 661 2,791 2,791
2020............................................ 676 676 2,855 2,855
2021............................................ 691 691 2,921 2,921
2022............................................ 707 707 2,988 2,988
2023............................................ 724 724 3,057 3,057
2024............................................ 740 740 3,127 3,127
2025 or later................................... 757 757 3,199 3,199
----------------------------------------------------------------------------------------------------------------
\1\ Table II-A.
\2\ Table II-B.
\3\ Table II-C.
* * * * *
Issued in Washington, DC, this 24th day of November, 2014.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2014-28216 Filed 11-28-14; 8:45 am]
BILLING CODE 7709-02-P
