Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age, 74986-74987 [2015-30221]
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Federal Register / Vol. 80, No. 230 / Tuesday, December 1, 2015 / Rules and Regulations
This document postpones the
effectiveness of the discharge
requirements in both sanctuaries with
regard to USCG activities for another 6
months, until June 9, 2016. In the course
of the rule making to expand GFNMS
and CBNMS, NOAA learned from USCG
that the discharge regulations had the
potential to impair the operations of
USCG vessels and air craft conducting
law enforcement and on-water training
exercises in GFNMS and CBNMS. The
USCG supports national marine
sanctuary management by providing
routine surveillance and dedicated law
enforcement of the National Marine
Sanctuaries Act and sanctuary
regulations.
To ensure that the March 12, 2015
rule does not undermine USCG’s ability
to perform its duties, NOAA postponed
for 6 months the effectiveness of the
discharge requirements for USCG
operations. Specifically, the
effectiveness of the discharge
requirements was postponed until
December 9, 2015. However, NOAA
needs more time to assess USCG
activities and develop alternatives for an
environmental assessment developed
pursuant to the requirements of the
National Environmental Policy Act.
Therefore, NOAA is postponing the
effectiveness of the discharge
requirements with respect to USCG
operations for another 6 months, until
June 9, 2016. During this time, NOAA
will consider how to address USCG’s
concerns and will consider, among
other things, whether to exempt certain
USCG activities in sanctuary
regulations. The public, other federal
agencies, and interested stakeholders
will be given an opportunity to
comment on various alternatives that
are being considered. This will include
the opportunity to review any proposed
rule and related environmental analysis.
Authority: 16 U.S.C. 1431 et seq.; 16
U.S.C. 470.
Dated: November 20, 2015.
John Armor,
Acting Director for the Office of National
Marine Sanctuaries.
[FR Doc. 2015–30434 Filed 11–30–15; 8:45 am]
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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 2016. 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 January 1, 2016.
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 § 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.
SUMMARY:
PO 00000
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Fmt 4700
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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–15 with Table I–16 in
order to provide an updated correlation,
appropriate for calendar year 2016,
between the amount of a participant’s
benefit and the probability that the
participant will elect early retirement.
Table I–16 will be used to value benefits
in plans with valuation dates during
calendar year 2016.
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 2016, 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 2016.
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
E:\FR\FM\01DER1.SGM
01DER1
Federal Register / Vol. 80, No. 230 / Tuesday, December 1, 2015 / Rules and Regulations
Act of 1980 does not apply (5 U.S.C.
601(2)).
1. The authority citation for part 4044
continues to read as follows:
■
Pension insurance, Pensions.
In consideration of the foregoing, 29
CFR part 4044 is amended as follows:
2. Appendix D to part 4044 is
amended by removing Table I–15 and
adding in its place Table I–16 to read as
follows:
■
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
List of Subjects in 29 CFR Part 4044
74987
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
Appendix D to Part 4044—Tables Used
To Determine Expected Retirement Age
TABLE I–16—SELECTION OF RETIREMENT RATE CATEGORY
[For plans with valuation dates after December 31, 2015, and before January 1, 2017]
Participant’s Retirement Rate Category is—
Low 1
If participant reaches URA in year—
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
if monthly
benefit at URA is
less than—
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
or later ............................................................................
Medium 2 if monthly benefit at URA is—
From—
627
640
655
670
686
701
718
734
751
768
To—
627
640
655
670
686
701
718
734
751
768
High 3 if monthly
benefit at URA is
greater than—
2,647
2,705
2,767
2,831
2,896
2,962
3,030
3,100
3,171
3,244
2,647
2,705
2,767
2,831
2,896
2,962
3,030
3,100
3,171
3,244
1 Table
II–A.
II–B.
3 Table II–C.
2 Table
*
*
*
*
published as a direct final rule as the
Department of Defense does not expect
to receive any adverse comments, and
so a proposed rule is unnecessary.
*
Issued in Washington, DC, this day of
November 17, 2015.
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
The rule will be effective on
February 4, 2016 unless comments are
received that would result in a contrary
determination. Comments will be
accepted on or before February 1, 2016.
DATES:
[FR Doc. 2015–30221 Filed 11–30–15; 8:45 am]
BILLING CODE 7709–02–P
Department of the Army
32 CFR Part 505
[USA–2015–HQ–0036]
RIN 0702–AA71
Army Privacy Program
Department of the Army, DoD.
Direct final rule.
AGENCY:
ACTION:
The Department of the Army
is amending the Army Privacy Program
Regulation. Specifically, this direct final
rule is removing the exemption for
A0601–222 USMEPCOM, titled Armed
Services Military Accession Testing.
Based on a recent review of A0601–222
Armed Services Military Accession
Testing it has been determined that
records in this system will now be
covered by DMDC 15 DoD, Armed
Services Military Accession Testing,
which published in the Federal Register
on February 11, 2015. This rule is being
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SUMMARY:
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You may submit comments,
identified by docket number and/or
Regulatory Information Number (RIN)
and title, by any of the following
methods:
• Federal Rulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Department of Defense, Office
of the Deputy Chief Management
Officer, Directorate for Oversight and
Compliance, Regulatory and Audit
Matters Office, 9010 Defense Pentagon,
Washington, DC 20301–9010.
Instructions: All submissions received
must include the agency name and
docket number or RIN for this Federal
Register document. The general policy
for comments and other submissions
from members of the public is to make
these submissions available for public
viewing on the Internet at https://
www.regulations.gov as they are
received without change, including any
personal identifiers or contact
information.
ADDRESSES:
DEPARTMENT OF DEFENSE
PO 00000
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FOR FURTHER INFORMATION CONTACT:
Ms.
Tracy Rogers, Chief, FOIA/PA,
telephone: 703–428–6513.
The
revisions to this rule will be reported in
future status updates as part of DoD’s
retrospective plan under Executive
Order 13563 completed in August 2011.
DoD’s full plan can be accessed at:
https://www.regulations.gov/#!docket
Detail;D=DOD-2011-OS-0036.
SUPPLEMENTARY INFORMATION:
Direct Final Rule and Significant
Adverse Comments
DoD has determined this rulemaking
meets the criteria for a direct final rule
because it involves changes dealing
with DoD’s management of its Privacy
Programs. DoD expects no opposition to
the changes and no significant adverse
comments. However, if DoD receives a
significant adverse comment, the
Department will withdraw this direct
final rule by publishing a notice in the
Federal Register. A significant adverse
comment is one that explains: (1) Why
the direct final rule is inappropriate,
including challenges to the rule’s
underlying premise or approach; or (2)
why the direct final rule will be
ineffective or unacceptable without a
change. In determining whether a
comment necessitates withdrawal of
this direct final rule, DoD will consider
whether it warrants a substantive
response in a notice and comment
process.
E:\FR\FM\01DER1.SGM
01DER1
]]>Agencies
[Federal Register Volume 80, Number 230 (Tuesday, December 1, 2015)]
[Rules and Regulations]
[Pages 74986-74987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30221]
=======================================================================
-----------------------------------------------------------------------
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 2016. 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 January 1, 2016.
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-15 with Table I-
16 in order to provide an updated correlation, appropriate for calendar
year 2016, between the amount of a participant's benefit and the
probability that the participant will elect early retirement. Table I-
16 will be used to value benefits in plans with valuation dates during
calendar year 2016.
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 2016, 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 2016.
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
[[Page 74987]]
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-15 and adding
in its place Table I-16 to read as follows:
Appendix D to Part 4044--Tables Used To Determine Expected Retirement
Age
Table I-16--Selection of Retirement Rate Category
[For plans with valuation dates after December 31, 2015, and before January 1, 2017]
----------------------------------------------------------------------------------------------------------------
Participant's Retirement Rate Category is--
---------------------------------------------------------------------------
Low \1\ if Medium \2\ if monthly benefit at URA High \3\ if
If participant reaches URA in year-- monthly benefit is-- monthly benefit
at URA is less -------------------------------------- at URA is greater
than-- From-- To-- than--
----------------------------------------------------------------------------------------------------------------
2017................................ 627 627 2,647 2,647
2018................................ 640 640 2,705 2,705
2019................................ 655 655 2,767 2,767
2020................................ 670 670 2,831 2,831
2021................................ 686 686 2,896 2,896
2022................................ 701 701 2,962 2,962
2023................................ 718 718 3,030 3,030
2024................................ 734 734 3,100 3,100
2025................................ 751 751 3,171 3,171
2026 or later....................... 768 768 3,244 3,244
----------------------------------------------------------------------------------------------------------------
\1\ Table II-A.
\2\ Table II-B.
\3\ Table II-C.
* * * * *
Issued in Washington, DC, this day of November 17, 2015.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2015-30221 Filed 11-30-15; 8:45 am]
BILLING CODE 7709-02-P
