Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 22184-22185 [2016-08773]
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22184
Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Rules and Regulations
BIA will publish a final rule with
technical revisions.
Dated: April 12, 2016.
Lawrence S. Roberts,
Acting Assistant Secretary—Indian Affairs.
[FR Doc. 2016–08776 Filed 4–14–16; 8:45 am]
BILLING CODE 4337–15–P
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
Terminated Single-Employer Plans to
prescribe interest assumptions under
the regulation for valuation dates in
May 2016. The interest assumptions are
used for paying benefits under
terminating single-employer plans
covered by the pension insurance
system administered by PBGC.
DATES: Effective May 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.)
SUMMARY:
Rate set
For plans with a valuation
date
On or after
*
271
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 May 2016.1
The May 2016 interest assumptions
under the benefit payments regulation
will be 1.00 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 April 2016,
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
SUPPLEMENTARY INFORMATION:
Before
3. In appendix C to part 4022, Rate Set
271, as set forth below, is added to the
table.
■
jstallworth on DSK7TPTVN1PROD with RULES
1 Appendix B to PBGC’s regulation on Allocation
of Assets in Single-Employer Plans (29 CFR part
4044) prescribes interest assumptions for valuing
14:40 Apr 14, 2016
Jkt 238001
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
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
271, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
i2
*
4.00
1.00
*
*
*
i3
4.00
*
n1
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4.00
n2
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8
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
VerDate Sep<11>2014
i1
*
6–1–16
List of Subjects in 29 CFR Part 4022
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
5–1–16
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 May 2016, 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).
*
*
*
*
benefits under terminating covered single-employer
plans for purposes of allocation of assets under
PO 00000
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ERISA section 4044. Those assumptions are
updated quarterly.
E:\FR\FM\15APR1.SGM
15APR1
22185
Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Rules and Regulations
Rate set
For plans with a valuation
date
On or after
*
Before
*
271
*
5–1–16
6–1–16
Issued in Washington, DC, on this 11th day
of April 2016.
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
[FR Doc. 2016–08773 Filed 4–14–16; 8:45 am]
BILLING CODE 7709–02–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 566
Hizballah Financial Sanctions
Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is adding new part 566
to 31 CFR chapter V to implement the
Hizballah International Financing
Prevention Act of 2015, which requires
the President to prescribe certain
regulations.
SUMMARY:
DATES:
Effective: April 15, 2016.
The
Department of the Treasury’s Office of
Foreign Assets Control: Assistant
Director for Licensing, tel.: 202–622–
2480, Assistant Director for Regulatory
Affairs, tel.: 202–622–4855, Assistant
Director for Sanctions Compliance &
Evaluation, tel.: 202–622–2490; or the
Department of the Treasury’s Office of
the Chief Counsel (Foreign Assets
Control), Office of the General Counsel,
tel.: 202–622–2410.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
jstallworth on DSK7TPTVN1PROD with RULES
Electronic and Facsimile Availability
This document and additional
information concerning OFAC are
available from OFAC’s Web site
(www.treasury.gov/ofac). Certain general
information pertaining to OFAC’s
sanctions programs also is available via
facsimile through a 24-hour fax-ondemand service, tel.: 202–622–0077.
Background
On December 18, 2015, the President
signed the Hizballah International
Financing Prevention Act of 2015,
VerDate Sep<11>2014
14:40 Apr 14, 2016
Jkt 238001
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
1.00
i1
i2
*
4.00
i3
4.00
*
Public Law 114–102 (HIFPA), into law.
Section 102(a)(1) of HIFPA requires the
President, within 120 days of the
enactment of HIFPA, to prescribe
regulations to prohibit or impose strict
conditions on the opening or
maintaining in the United States of a
correspondent account or a payablethrough account by a foreign financial
institution that the President
determines, on or after December 18,
2015, engages in one or more of the
following activities: (1) Knowingly
facilitating a significant transaction or
transactions for Hizballah; (2)
knowingly facilitating a significant
transaction or transactions of a person
identified on the List of Specially
Designated Nationals and Blocked
Persons (SDN List) maintained by
OFAC, the property and interests in
property of which are blocked pursuant
to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et
seq.) for acting on behalf of or at the
direction of, or being owned or
controlled by, Hizballah; (3) knowingly
engaging in money laundering to carry
out an activity described in (1) or (2); or
(4) knowingly facilitating a significant
transaction or transactions or providing
significant financial services to carry out
an activity described in (1), (2), or (3).
Pursuant to Presidential
Memorandum of March 18, 2016:
Delegation of Functions Under Sections
102(a), 102(c), 204, and 302 of HIFPA,
the President delegated certain
functions and authorities, with respect
to the determinations provided for
therein, to the Secretary of the Treasury,
in consultation with the Secretary of
State. In furtherance of HIFPA’s
requirement and the Presidential
delegation of functions and authorities
noted above, OFAC is promulgating the
Hizballah Financial Sanctions
Regulations, 31 CFR part 566 (the
‘‘Regulations’’).
Subpart A of the Regulations clarifies
the relation of this part to other laws
and regulations. Subpart B of the
Regulations implements section 102(a)
of HIFPA. The names of foreign
financial institutions that are
determined by the Secretary of the
Treasury, in consultation with the
Secretary of State, to engage in the
activities described in § 566.201(a) of
PO 00000
Frm 00013
Fmt 4700
Sfmt 4700
n1
*
4.00
n2
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7
8
the Regulations, and which are subject
to prohibitions or strict conditions on
the opening or maintaining of
correspondent or payable-through
accounts as set forth in § 566.201(b) of
the Regulations, will be listed on the
Hizballah Financial Sanctions
Regulations List (HFSR List) on OFAC’s
Web site (www.treasury.gov/ofac) on the
Counter Terrorism Sanctions page and
published in the Federal Register.
Subpart C of the Regulations defines
key terms used throughout the
Regulations, and subpart D contains
interpretive sections regarding the
Regulations. Section 566.404 of subpart
D of the Regulations sets forth the types
of factors that, as a general matter, the
Secretary of the Treasury will consider
in determining, for purposes of
paragraph (a) of § 566.201, whether
transactions or financial services are
significant.
Transactions otherwise prohibited
under the Regulations but found to be
consistent with U.S. policy may be
authorized by the general licenses
contained in subpart E of the
Regulations or by a specific license
issued pursuant to the procedures
described in subpart E of 31 CFR part
501. Subpart E of the Regulations
includes a general license in § 566.504
authorizing transactions related to
winding down and closing a
correspondent account or a payablethrough account. Section 566.504
authorizes transactions related to
closing a correspondent account or
payable-through account for a foreign
financial institution whose name is
added to the HFSR List during the 10day period beginning on the effective
date of the prohibition in § 566.201.
This general license includes a reporting
requirement pursuant to which a U.S.
financial institution that maintained a
correspondent account or a payablethrough account for a foreign financial
institution whose name is added to the
HFSR List must file a report with OFAC
that provides full details on the closing
of each such account within 30 days of
the closure of the account. The report
must include complete information on
all transactions processed or executed in
winding down and closing the account.
Subpart F of the Regulations refers to
subpart C of part 501 for recordkeeping
E:\FR\FM\15APR1.SGM
15APR1
]]>Agencies
[Federal Register Volume 81, Number 73 (Friday, April 15, 2016)]
[Rules and Regulations]
[Pages 22184-22185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08773]
=======================================================================
-----------------------------------------------------------------------
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 Terminated Single-
Employer Plans to prescribe interest assumptions under the regulation
for valuation dates in May 2016. The interest assumptions are used for
paying benefits under terminating single-employer plans covered by the
pension insurance system administered by PBGC.
DATES: Effective May 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: 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 May 2016.\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 May 2016 interest assumptions under the benefit payments
regulation will be 1.00 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 April 2016, 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 May 2016, 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 271, as set forth below, is
added to the table.
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) i i i n n
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
271 5-1-16 6-1-16 1.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 271, as set forth below, is
added to the table.
Appendix C to Part 4022--Lump Sum Interest Rates for Private-Sector
Payments
* * * * *
[[Page 22185]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i i i n n
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
271 5-1-16 6-1-16 1.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 11th day of April 2016.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2016-08773 Filed 4-14-16; 8:45 am]
BILLING CODE 7709-02-P
