Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 55249-55250 [2015-23231]
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Federal Register / Vol. 80, No. 178 / Tuesday, September 15, 2015 / Rules and Regulations
§ 70.413
[Amended]
9. In § 70.413:
a. Paragraph (c)(2)(ii) is amended by
removing the words ‘‘as
unmerchantable,’’;
■ b. Paragraph (d)(2) is amended by
removing the words ‘‘unmerchantable
domestic’’; and
■ c. The first parenthetical phrase at the
end of the section is amended by
removing the Office of Management and
Budget control number ‘‘1512–0141’’
and adding, in its place, the number
‘‘1513–0030’’.
■
■
§ 70.414
[Amended]
10. Section 70.414 is amended by
removing the words ‘‘unmerchantable
domestic’’ from paragraph (d)(3).
■
Signed: June 11, 2015.
John J. Manfreda,
Administrator.
Approved: June 19, 2015.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. 2015–23132 Filed 9–14–15; 8:45 am]
BILLING CODE 4810–31–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 October 2015 and
interest assumptions under the asset
allocation regulation for valuation dates
in the fourth 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 October 1, 2015.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion (Klion.Catherine@
PBGC.gov), Assistant General Counsel
mstockstill on DSK4VPTVN1PROD with RULES
SUMMARY:
VerDate Sep<11>2014
19:08 Sep 14, 2015
Jkt 235001
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
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 October 2015
and updates the asset allocation interest
assumptions for the fourth quarter
(October through December) of 2015.
The fourth quarter 2015 interest
assumptions under the allocation
regulation will be 2.46 percent for the
first 20 years following the valuation
date and 2.98 percent thereafter. In
comparison with the interest
assumptions in effect for the third
quarter of 2015, these interest
assumptions represent no change in the
select period (the period during which
the select rate (the initial rate) applies),
an increase of 0.14 percent in the select
rate, and an increase of 0.68 percent in
the ultimate rate (the final rate).
The October 2015 interest
assumptions under the benefit payments
PO 00000
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Fmt 4700
Sfmt 4700
55249
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 September
2015, 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 October
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’’
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
264, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
E:\FR\FM\15SER1.SGM
*
*
15SER1
*
*
55250
Federal Register / Vol. 80, No. 178 / Tuesday, September 15, 2015 / Rules and Regulations
For plans with a valuation
date
Rate set
On or after
*
Before
*
264
11–1–15
3. In appendix C to part 4022, Rate Set
264, as set forth below, is added to the
table.
■
For plans with a valuation
date
On or after
*
Before
i3
4.00
n1
*
n2
*
*
4.00
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
*
i1
1.25
i2
*
4.00
*
11–1–15
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
10–1–15
i2
*
4.00
1.25
*
264
i1
*
10–1–15
Rate set
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
i3
4.00
*
*
*
4.00
7
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 October–December 2015, as set
forth below, is added to the table.
*
■
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
*
*
*
October–December 2015 .....................................................
Issued in Washington, DC, on this 10th day
of September 2015.
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
[FR Doc. 2015–23231 Filed 9–14–15; 8:45 am]
BILLING CODE 7709–02–P
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 199
[DOD–2006–HA–0207]
mstockstill on DSK4VPTVN1PROD with RULES
RIN 0720–AB15
Civilian Health and Medical Program of
the Uniformed Services (CHAMPUS);
TRICARE Reserve Select; TRICARE
Dental Program; Early Eligibility for
TRICARE for Certain Reserve
Component Members
Office of the Secretary, DoD.
Final rule.
AGENCY:
ACTION:
TRICARE Reserve Select
(TRS) is a premium-based TRICARE
SUMMARY:
VerDate Sep<11>2014
19:08 Sep 14, 2015
Jkt 235001
for t =
*
0.0246
it
*
1–20
health plan available for purchase
worldwide by qualified members of the
Ready Reserve and by qualified
survivors of TRS members. TRICARE
Dental Program (TDP) is a premiumbased TRICARE dental plan available
for purchase worldwide by qualified
Service members. This final rule revises
requirements and procedures for the
TRS program to specify the appropriate
actuarial basis for calculating premiums
in addition to making other minor
clarifying administrative changes. For a
member who is involuntarily separated
from the Selected Reserve under other
than adverse conditions this final rule
provides a time-limited exception that
allows TRS coverage in effect to
continue for up to 180 days after the
date on which the member is separated
from the Selected Reserve and TDP
coverage in effect to continue for no less
than 180 days after the separation date.
It also expands early TRICARE
eligibility for certain Reserve
Component members from a maximum
of 90 days to a maximum of 180 days
prior to activation in support of a
PO 00000
Frm 00030
Fmt 4700
for t =
Sfmt 4700
*
>20
0.0298
it
N/A
for t =
*
N/A
contingency operation for more than 30
days.
DATES:
This rule is effective October 15,
2015.
FOR FURTHER INFORMATION CONTACT:
Brian Smith, Defense Health Agency,
TRICARE Health Plan Division,
telephone (703) 681–0039.
Questions regarding payment of
specific claims under the TRICARE
allowable charge method should be
addressed to the appropriate TRICARE
contractor.
SUPPLEMENTARY INFORMATION:
I. Introduction and Background
A. Overview
An interim final rule was published
in the Federal Register on August 20,
2007 (72 FR 46380). That interim final
rule addressed provisions of the
National Defense Authorization Act for
Fiscal Year 2007 (NDAA–07) (Pub. L.
109–364),which expanded eligibility for
the TRICARE Reserve Select program to
include all Selected Reservists except
those individuals either enrolled or
E:\FR\FM\15SER1.SGM
15SER1
]]>Agencies
[Federal Register Volume 80, Number 178 (Tuesday, September 15, 2015)]
[Rules and Regulations]
[Pages 55249-55250]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-23231]
=======================================================================
-----------------------------------------------------------------------
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 October 2015 and interest assumptions under the
asset allocation regulation for valuation dates in the fourth 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 October 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 October 2015 and
updates the asset allocation interest assumptions for the fourth
quarter (October through December) of 2015.
The fourth quarter 2015 interest assumptions under the allocation
regulation will be 2.46 percent for the first 20 years following the
valuation date and 2.98 percent thereafter. In comparison with the
interest assumptions in effect for the third quarter of 2015, these
interest assumptions represent no change in the select period (the
period during which the select rate (the initial rate) applies), an
increase of 0.14 percent in the select rate, and an increase of 0.68
percent in the ultimate rate (the final rate).
The October 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 September 2015, 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 October
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'' 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 264, as set forth below, is
added to the table.
Appendix B to Part 4022--Lump Sum Interest Rates for PBGC Payments
* * * * *
[[Page 55250]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
264 10-1-15 11-1-15 1.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 264, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
264 10-1-15 11-1-15 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 October-December 2015,
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 ----------------------------------------------------------------------------------
in the month-- it for t = it for t = it for t =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
October-December 2015........ 0.0246 1-20 0.0298 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 10th day of September 2015.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2015-23231 Filed 9-14-15; 8:45 am]
BILLING CODE 7709-02-P
