Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 34052-34053 [2015-14592]
Download as PDF
<![CDATA[
wreier-aviles on DSK5TPTVN1PROD with RULES
34052
Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Rules and Regulations
advance if potential impeachment
records collected and maintained in
order to sufficiently meet the
Department’s Giglio requirements and
obligations are all relevant and
necessary. In order to ensure that the
Department’s prosecutors and
investigative agencies receive sufficient
information to meet their obligations
under Giglio, it is appropriate to
maintain potential impeachment
information in accordance with
Department policy as such records
could later be relevant and necessary in
a different case in which the same
witness or affiant subsequently testifies.
(5) From subsection (e)(2) because
collecting information directly from the
subject individual could serve notice
that the individual is the subject of
investigation and because of the nature
of the records in this system, which are
used to impeach or demonstrate bias of
a witness, requires that the information
be collected from others.
(6) From subsection (e)(3) because
federal law enforcement officers receive
notice from their supervisors and
prosecuting attorneys that impeachment
information may be used at trial. Law
enforcement officers are also given
notice by the Giglio decision itself.
(7) From subsections (e)(4)(G), (H),
and (I) because this system of records is
exempt from the access and amendment
provisions of subsection (d).
(8) From subsection (e)(5) because it
may not be possible to determine in
advance if all potential impeachment
records collected and maintained in
order to sufficiently meet the
Department’s Giglio requirements and
obligations are all accurate, relevant,
timely, and complete at the time of
collection. Although the Department has
policies in place to verify the records,
the records may be originated from
another agency, third party, or open
source media and it may be impossible
to ensure the accuracy, relevance,
timeliness, and completeness of
potential impeachment information
maintained prior to and during the
process of being verified.
(9) From subsection (e)(8) because the
nature of the Giglio discovery process
renders notice of compliance with the
compulsory discovery process
impractical.
(10) From subsections (f) and (g)
because these subsections are
inapplicable to the extent that the
system is exempt from other specific
subsections of the Privacy Act.
VerDate Sep<11>2014
15:17 Jun 12, 2015
Jkt 235001
Dated: June 4, 2015.
Erika Brown Lee,
Chief Privacy and Civil Liberties Officer,
United States Department of Justice.
[FR Doc. 2015–14641 Filed 6–12–15; 8:45 am]
BILLING CODE 4410–FB–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 July 2015 and
interest assumptions under the asset
allocation regulation for valuation dates
in the third quarter of 2015. 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 July 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: 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
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
SUMMARY:
PO 00000
Frm 00030
Fmt 4700
Sfmt 4700
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 July 2015 and
updates the asset allocation interest
assumptions for the third quarter (July
through September) of 2015.
The third quarter 2015 interest
assumptions under the allocation
regulation will be 2.32 percent for the
first 20 years following the valuation
date and 2.37 percent thereafter. In
comparison with the interest
assumptions in effect for the second
quarter of 2015, these interest
assumptions represent no change in the
select period (the period during which
the select rate (the initial rate) applies),
a decrease of 0.39 percent in the select
rate, and a decrease of 0.41 percent in
the ultimate rate (the final rate).
The July 2015 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 June 2015,
these interest assumptions represent an
increase of 0.50 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 valuation
and payment of benefits under plans
with valuation dates during July 2015,
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’’
E:\FR\FM\15JNR1.SGM
15JNR1
34053
Federal Register / Vol. 80, No. 114 / Monday, June 15, 2015 / Rules and Regulations
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).
29 CFR Part 4044
List of Subjects
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
Employee benefit plans, Pension
insurance, Pensions.
In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
261 ..........................................................................
3. In appendix C to part 4022, Rate Set
261 is added to the table to read as
follows:
■
*
Deferred annuities
(percent)
i1
i2
i3
n1
8–1–15
*
1.25
4.00
*
4.00
4.00
7
n2
*
8
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
*
*
For plans with a valuation date
Before
i1
i2
i3
n1
8–1–15
On or after
*
*
*
261 ..........................................................................
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
1.25
4.00
*
4.00
4.00
7
Rate set
*
7–1–15
n2
*
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 July–September 2015 is added
to the table to read as follows:
*
■
4. The authority citation for part 4044
continues to read as follows:
■
*
*
*
*
The values of it are:
For valuation dates occurring in the
month—
it
for t =
*
*
July–September 2015 ...............................
*
0.0232
1–20
it
*
for t =
DEPARTMENT OF THE TREASURY
[FR Doc. 2015–14592 Filed 6–12–15; 8:45 am]
Cuban Assets Control Regulations;
Terrorism List Governments Sanctions
Regulations
Office of Foreign Assets Control
31 CFR Parts 515 and 596
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
SUMMARY:
PO 00000
Frm 00031
Fmt 4700
it
*
0.0237
Issued in Washington, DC, on this 8th day
of June 2015.
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
wreier-aviles on DSK5TPTVN1PROD with RULES
*
Immediate
annuity rate
(percent)
*
7–1–15
*
Jkt 235001
*
Before
On or after
15:17 Jun 12, 2015
*
1. The authority citation for part 4022
continues to read as follows:
For plans with a valuation date
VerDate Sep<11>2014
2. In appendix B to part 4022, Rate Set
261 is added to the table to read as
follows:
■
■
Rate set
BILLING CODE 7709–02–P
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
Sfmt 4700
*
>20
for t =
*
N/A
N/A
Control (OFAC) is amending the
Terrorism List Governments Sanctions
Regulations to replace the list of
countries designated as supporting
international terrorism with information
on the availability of state sponsor of
terrorism determination and rescission
decisions in the Federal Register and
the availability of a current list of state
sponsors of terrorism maintained on the
Web site of the Department of State. A
conforming amendment is made to the
Cuban Assets Control Regulations.
DATES:
E:\FR\FM\15JNR1.SGM
Effective: June 15, 2015.
15JNR1
]]>Agencies
[Federal Register Volume 80, Number 114 (Monday, June 15, 2015)]
[Rules and Regulations]
[Pages 34052-34053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-14592]
=======================================================================
-----------------------------------------------------------------------
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 July 2015 and interest assumptions under the
asset allocation regulation for valuation dates in the third quarter of
2015. 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 July 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: 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 July 2015 and
updates the asset allocation interest assumptions for the third quarter
(July through September) of 2015.
The third quarter 2015 interest assumptions under the allocation
regulation will be 2.32 percent for the first 20 years following the
valuation date and 2.37 percent thereafter. In comparison with the
interest assumptions in effect for the second quarter of 2015, these
interest assumptions represent no change in the select period (the
period during which the select rate (the initial rate) applies), a
decrease of 0.39 percent in the select rate, and a decrease of 0.41
percent in the ultimate rate (the final rate).
The July 2015 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 June 2015, these interest assumptions
represent an increase of 0.50 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 valuation
and payment of benefits under plans with valuation dates during July
2015, 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''
[[Page 34053]]
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 261 is added to the table to
read as follows:
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
261..................................................... 7-1-15 8-1-15 1.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 261 is added to the table to
read as follows:
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
261..................................................... 7-1-15 8-1-15 1.25 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 July-September 2015 is
added to the table to read as follows:
Appendix B to Part 4044--Interest Rates Used To Value Benefits
* * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
The values of it are:
For valuation dates occurring in the month-- -----------------------------------------------------------------------------------------------------
it for t = it for t = it for t =
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
July-September 2015............................... 0.0232 1-20 0.0237 >20 N/A N/A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 8th day of June 2015.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2015-14592 Filed 6-12-15; 8:45 am]
BILLING CODE 7709-02-P
