Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 61981-61983 [2015-26241]
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Federal Register / Vol. 80, No. 199 / Thursday, October 15, 2015 / Rules and Regulations
today’s Federal Register, HUD provides
specific POCs at HUD’s Home
Ownership Centers (HOCs) that holders
of liens on HUD single family property
may use to present requests for
payment. The publication and use of
these POCs by the public should help
obviate the need for litigation to enforce
non-payment of liens against FHA
properties. This interpretive rule
provides the process for initiating suit
against FHA if for some reason payment
is not made and the taxing authority or
other entity has a lien that it seeks to
foreclose.
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B. HOC POCs
Ancillary to the interpretive rule,
HUD is providing POCs in each of its
four HOCs to receive tax bills and
similar billings. Each HOC oversees on
average 13 states/jurisdictions for FHA
activities and has an REO division that
handles the day-to-day oversight of
FHA’s acquired properties. In most
cases, having a known POC to send
billings should obviate the need to have
to bring suit against HUD to levy on a
property.
C. Jurisdiction
In the unlikely event it becomes
necessary for a taxing authority or HOA,
CA or special assessment entity to
proceed against HUD’s property, this
interpretive rule explains the exclusive
federal jurisdiction for such an action.
Section 1 title I, of the NHA provides a
limited waiver of sovereign immunity.
Under that provision: ‘‘[T]he Secretary
shall, in carrying out the functions of
this title and titles II, III . . . be
authorized, in his official capacity, to
sue and be sued in any court of
competent jurisdiction, State or
Federal.’’ (Underlining is provided for
emphasis). This section was added to
the NHA by the Banking Act of 1935,
sec. 334, Title III, Public Law 74–305, 49
Stat. 684, approved August 23, 1935). In
1972, Congress passed the Quiet Title
Act (QTA) (Pub. L. 92–562, 86 Stat.
1176). The QTA made two changes to
Title 28 of the United States Code,
which title of the code governs the
federal judicial system and judiciary
procedures. First, the QTA created a
new 28 U.S.C. 2409a, entitled ‘‘Real
Property Quiet Title Actions.’’
Paragraph (a) of section 2409a states,
‘‘The United States may be named as a
party defendant in a civil action under
this section to adjudicate a disputed
title to real property in which the
United States claims an interest.’’
Second, QTA amended 28 U.S.C. 1346,
This interpretive rule is issued pursuant to these
statutory mandates.
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14:29 Oct 14, 2015
Jkt 238001
entitled ‘‘United States as defendant’’ by
adding a new paragraph (f), which
states, ‘‘The district courts shall have
exclusive original jurisdiction of civil
actions under section 2409a to quiet
title to an estate or interest in property
in which an interest is claimed by the
United States.’’
The Supreme Court succinctly
explained the lack of jurisdiction in
state courts and the exclusivity of
federal court jurisdiction in QTA
actions in California v. Arizona, 440
U.S. 59 (1979):
[T]he intent of Congress seems reasonably
clear. The congressional purpose was simply
to confine jurisdiction to the federal courts
and to exclude the courts of the States, which
otherwise might be presumed to have
jurisdiction over quiet-title suits against the
United States, once its sovereign immunity
had been waived. . . . We find, therefore,
that section 1346(f), by vesting ‘exclusive
original jurisdiction’ of quiet title actions
against the United States in the federal
district courts did no more than assure that
such jurisdiction was not conferred upon the
courts of any State.
Federal courts have consistently held
that 28 U.S.C. 2409a authorizes owners
of an interest in real property in which
an agency such as HUD holds an
interest, including an ownership
interest, to bring suit to foreclose the
government’s interest in the property.
The QTA applies to lawsuits involving
interests that could cloud title, not just
traditional quiet title actions, as the
terminology of the QTA by its terms
includes any adjudication of a
‘‘disputed title’’ to real property. See,
United States v. Bedford Associates, 657
F. 2d 1300, 1316 (2d Cir. 1981), cert.
den. 456 U.S. 914 (1982); Robinson v.
United States, 586 F. 3d 683, 687 (9th
Cir. 2009); Delta Sav. & Loan Ass’n. v.
I.R.S., 847 F. 2d 248, 249 n. 1 (5th Cir.
1988); George v. United States, 672 F.
3d 942 (10th Cir. 2012), cert. den. 133
S. Ct. 432, __ U.S. __, 2012 U.S. LEXIS
7933 (2012).
In order to have a uniform process
that both the public and HUD can use,
and which will ensure that HUD can act
in a timely, accurate, and consistent
manner to protect properties that are
assets of the MMIF, it is HUD’s
interpretation that the sue and be sued
clause in 12 U.S.C. 1702, specifically
the words ‘‘court of competent
jurisdiction’’ means, for purposes of
foreclosing tax, HOA, CA, special
assessment (i.e., for sidewalks, septic or
water systems and the like), or similar
fees and assessments that result in liens
on HUD properties, the United States
District Court in the jurisdiction where
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Fmt 4700
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the HUD property that is to be the
subject of the lien foreclosure is situated
or in Washington, DC. This
interpretation is based on the provisions
of the QTA, and the Supreme Court’s
analysis of the same in California v.
Arizona and similar cases.
As the exclusive venue for foreclosing
a lien on HUD-owned property is a
United States District Court, the Federal
Rules of Civil Procedure (FRCP) must be
followed. Rule 4(i) sets out the
procedures to serve Federal agencies.
Under that rule, the head of the agency
or his or her designee must be served,
as well as the United States Attorney
General and the United States Attorney
in the applicable district. HUD, by
separate notice in today’s Federal
Register, pursuant to previously
published delegations of authority,
authorizes Regional Counsel in each of
HUD’s 10 Regional Counsel Offices to
redelegate to staff within their
operational jurisdictions the authority to
accept service of process in those cases
where FHA owns a property, a taxing
authority, HOA, CA, or other entity
purports to bring suit due to a
nonpayment of taxes or other fees and
assessments, and the entity seeks to
foreclose its lien in order to obtain title
to the property.
IV. Conclusion
Accordingly, HUD interprets the ‘‘sue
and be sued’’ clause of section 1 of title
1 of the NHA as requiring suit to be
brought exclusively in the Federal
District Court where the property is
located (or in the Federal District Court
for the District of Columbia) if a
lienholder wishes to enforce a lien
against a single family property owned
by HUD as the result of the payment of
a mortgage insurance claim.
Dated: October 7, 2015.
Helen R. Kanovsky,
General Counsel.
[FR Doc. 2015–26160 Filed 10–14–15; 8:45 am]
BILLING CODE 4210–67–P
III. This Interpretive Rule
PO 00000
61981
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
SUMMARY:
E:\FR\FM\15OCR1.SGM
15OCR1
61982
Federal Register / Vol. 80, No. 199 / Thursday, October 15, 2015 / Rules and Regulations
Terminated Single-Employer Plans to
prescribe interest assumptions under
the regulation for valuation dates in
November 2015. The interest
assumptions are used for paying
benefits under terminating singleemployer plans covered by the pension
insurance system administered by
PBGC.
DATES: Effective November 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
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
Rate set
For plans with a
valuation date
On or after
*
265
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 November 2015.1
The November 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 October 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 payment of
benefits under plans with valuation
dates during November 2015, PBGC
*
11–1–15
3. In appendix C to part 4022, Rate Set
265 is added to the table to read as
follows:
■
For plans with a
valuation date
On or after
*
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265
*
11–1–15
17:20 Oct 14, 2015
*
*
*
Jkt 238001
In consideration of the foregoing, 29
CFR part 4022 is 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
265 is added to the table to read as
follows:
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
*
i3
*
n1
*
4.00
n2
*
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
12–1–15
1 Appendix B to PBGC’s regulation on Allocation
of Assets in Single-Employer Plans (29 CFR part
4044) prescribes interest assumptions for valuing
VerDate Sep<11>2014
4.00
*
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Before
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
i2
*
4.00
1.25
*
Rate set
i1
*
12–1–15
List of Subjects in 29 CFR Part 4022
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Before
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).
1.25
i1
i2
*
4.00
i3
4.00
*
benefits under terminating covered single-employer
plans for purposes of allocation of assets under
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
*
4.00
*
7
8
ERISA section 4044. Those assumptions are
updated quarterly.
E:\FR\FM\15OCR1.SGM
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Federal Register / Vol. 80, No. 199 / Thursday, October 15, 2015 / Rules and Regulations
Issued in Washington, DC, on this 7th day
of October 2015.
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
BILLING CODE 7709–02–P
Coast Guard
33 CFR Part 165
[Docket Number USCG–2015–0809]
RIN 1625–AA00
Safety Zone, Atlantic Intracoastal
Waterway; Oak Island, NC
Coast Guard, DHS.
Temporary final rule.
AGENCY:
The Coast Guard is
establishing a temporary safety zone on
the navigable waters of the Atlantic
Intracoastal Waterway near Oak Island,
North Carolina. This action is necessary
to provide the safety of mariners on
navigable waters due to the transfer of
power cables across the Atlantic
Intracoastal Waterway. Entry into or
movement within the safety zone during
the enforcement period is prohibited
without approval of the Captain of the
Port.
DATES: This rule is effective without
actual notice from October 15, 2015
until October 20, 2015. For the purposes
of enforcement, actual notice will be
used from October 12, 2015 until
October 15, 2015.
ADDRESSES: Documents mentioned in
this preamble are part of docket [USCG–
2015–0809]. 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 LT Derek J. Burrill, Waterways
Management Division Chief, Sector
North Carolina, Coast Guard; telephone
(910) 772–2230, email Derek.J.Burrill@
uscg.mil. If you have questions on
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VerDate Sep<11>2014
17:20 Oct 14, 2015
Jkt 238001
Oak Island, North Carolina. To facilitate
the safety of mariners and the public,
the U.S Coast Guard will require
temporary closures of the channel on
October 12, 13, 19, 20, 2015.
C. Discussion of the Final Rule
The Coast Guard is establishing a
temporary safety zone on the navigable
waters of the Atlantic Intracoastal
Waterway within a 100 yard radius of
latitude 33°55′11″ N, longitude
078°03′24″ W in Oak Island, North
Carolina. This safety zone will be
established in the interest of public
safety due to the transfer of power
cables across the Atlantic Intracoastal
Waterway. The regulated area for this
safety zone includes all the water of the
Atlantic Intracoastal Waterway within a
100 yard radius of latitude 33°55′11″ N,
longitude 078°03′24″ W, a position
located north of the Oak Island Fixed
Bridge in Oak Island, North Carolina.
This rule will be enforced on October
12, 13, 19, 20, 2015 during the times of
09:00 a.m. to 12:00 p.m. and 01:00 p.m.
to 04:00 p.m. Vessels authorized by the
Captain of the Port or his/her
Representative to enter or remain in the
safety zone during the above listed time
frame must have a height clearance of
30 feet and greater and are required to
notify on scene Coastal Power and
Electric work boats at a minimum of 40
minutes prior to transiting the area on
VHF marine radio channels 13 or 16 or
via phone at 910–512–1645.
Except for vessels authorized by the
Captain of the Port or his/her
Representative, no person or vessel may
enter or remain in the safety zone
during the time frame listed. The
Captain of the Port will give notice of
the enforcement of the safety zone by all
appropriate means to provide the widest
dissemination of notice among the
affected segments of the public. This
will include publication in the Local
Notice to Mariners and Marine
Information Broadcasts.
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking
DEPARTMENT OF HOMELAND
SECURITY
SUMMARY:
viewing or submitting material to the
docket, call Cheryl Collins, Program
Manager, Docket Operations, telephone
(202) 366–9826.
SUPPLEMENTARY INFORMATION:
Table of Acronyms
[FR Doc. 2015–26241 Filed 10–14–15; 8:45 am]
ACTION:
61983
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 final
project details were not submitted to the
Coast Guard until September 4, 2015. As
such, it’s impractical to provide a full
comment period due to lack of time.
Delaying the effective date for comment
would be contrary to the public interest,
since immediate action is needed to
ensure protection of persons and vessels
transiting the area.
For similar reasons, under 5 U.S.C.
553(d)(3), the Coast Guard finds that
good cause exists for making this rule
effective less than 30 days after
publication in the Federal Register. Due
to the need for immediate action, the
restriction of vessel traffic is necessary
to protect life, property and the
environment. Therefore, a 30-day notice
is impracticable. The Coast Guard will
provide advance notifications to users
via marine information broadcasts and
local notice to mariners.
B. Basis and Purpose
The legal basis for this rule is 33
U.S.C. 1231; 46 U.S.C. Chapter 701,
3306, 3703; 50 U.S.C. 191, 195; 33 CFR
1.05–1, 6.04–1, 6.04–6, 160.5; Public
Law 107–295, 116 Stat. 2064; and DHS
Delegation No. 0170.1. Under these
authorities the Coast Guard may
establish a safety zone in defined water
areas that are determined to have
hazardous conditions and in which
vessel traffic can be regulated in the
interest of safety.
On October 12, 13, 19, and 20, 2015
Coastal Power will be installing power
cables that will run across the Atlantic
Intracoastal Waterway at latitude
33°55′11″ N, longitude 078°03′24″ W in
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Fmt 4700
Sfmt 4700
D. Regulatory Analyses
We developed this rule after
considering numerous statutes and
executive orders related to rulemaking.
Below we summarize our analyses
based on these statutes and executive
orders.
1. Regulatory Planning and Review
This rule is not a significant
regulatory action under section 3(f) of
Executive Order 12866, Regulatory
Planning and Review, as supplemented
by Executive Order 13563, Improving
Regulation and Regulatory Review, and
does not require an assessment of
potential costs and benefits under
E:\FR\FM\15OCR1.SGM
15OCR1
]]>Agencies
[Federal Register Volume 80, Number 199 (Thursday, October 15, 2015)]
[Rules and Regulations]
[Pages 61981-61983]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-26241]
=======================================================================
-----------------------------------------------------------------------
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
[[Page 61982]]
Terminated Single-Employer Plans to prescribe interest assumptions
under the regulation for valuation dates in November 2015. The interest
assumptions are used for paying benefits under terminating single-
employer plans covered by the pension insurance system administered by
PBGC.
DATES: Effective November 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 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 November 2015.\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 November 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 October 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 payment
of benefits under plans with valuation dates during November 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 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 265 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
265 11-1-15 12-1-15 1.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 265 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
265 11-1-15 12-1-15 1.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 61983]]
Issued in Washington, DC, on this 7th day of October 2015.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2015-26241 Filed 10-14-15; 8:45 am]
BILLING CODE 7709-02-P
