Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 38948-38950 [2016-14076]
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38948
Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations
Subpart G—Measures To Protect the
Integrity of the Compensation Program
§ 104.71
fraud.
Procedures to prevent and detect
(a) Review of claims. For the purpose
of detecting and preventing the payment
of fraudulent claims and for the purpose
of assuring accurate and appropriate
payments to eligible claimants, the
Special Master shall implement
procedures to:
(1) Verify, authenticate, and audit
claims;
(2) Analyze claim submissions to
detect inconsistencies, irregularities,
duplication, and multiple claimants;
and
(3) Ensure the quality control of
claims review procedures.
(b) Quality control. The Special
Master shall institute periodic quality
control audits designed to evaluate the
accuracy of submissions and the
accuracy of payments, subject to the
oversight of the Inspector General of the
Department of Justice.
(c) False or fraudulent claims. The
Special Master shall refer all evidence of
false or fraudulent claims to appropriate
law enforcement authorities.
Dated: June 13, 2016.
Sheila L. Birnbaum,
Special Master.
Subpart H—Attorney Fees
ehiers on DSK5VPTVN1PROD with RULES
§ 104.81
Limitation on attorney fees.
(a) In general—(1) In general.
Notwithstanding any contract, the
representative of an individual may not
charge, for services rendered in
connection with the claim of an
individual under this title, including
expenses routinely incurred in the
course of providing legal services, more
than 10 percent of an award paid under
this title on such claim. Expenses
incurred in connection with the claim of
an individual in this title other than
those that are routinely incurred in the
course of providing legal services may
be charged to a claimant only if they
have been approved by the Special
Master.
(2) Certification. In the case of any
claim in connection with which services
covered by this section were rendered,
the representative shall certify his or her
compliance with this section and shall
provide such information as the Special
Master requires to ensure such
compliance.
(b) Limitation—(1) In general. Except
as provided in paragraph (b)(2) of this
section, in the case of an individual who
was charged a legal fee in connection
with the settlement of a civil action
described in section 405(c)(3)(C)(iii) of
the Act, the representative who charged
such legal fee may not charge any
amount for compensation for services
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14:36 Jun 14, 2016
Jkt 238001
rendered in connection with a claim
filed by or on behalf of that individual
under this title.
(2) Exception. If the legal fee charged
in connection with the settlement of a
civil action described in section
405(c)(3)(C)(iii) of the Act of an
individual is less than 10 percent of the
aggregate amount of compensation
awarded to such individual through
such settlement, the representative who
charged such legal fee to that individual
may charge an amount for compensation
for services rendered to the extent that
such amount charged is not more than
Ten (10) percent of such aggregate
amount through the settlement, minus
the total amount of all legal fees charged
for services rendered in connection with
such settlement.
(c) Discretion to lower fee. In the event
that the Special Master finds that the fee
limit set by paragraph (a) or (b) of this
section provides excessive
compensation for services rendered in
connection with such claim, the Special
Master may, in the discretion of the
Special Master, award as reasonable
compensation for services rendered an
amount lesser than that permitted for in
paragraph (a) of this section.
[FR Doc. 2016–14259 Filed 6–13–16; 4:15 pm]
BILLING CODE 4410–12–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 2016 and
interest assumptions under the asset
allocation regulation for valuation dates
in the third quarter of 2016. The interest
assumptions are used for valuing and
paying benefits under terminating
single-employer plans covered by the
pension insurance system administered
by PBGC.
SUMMARY:
PO 00000
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DATES:
Effective July 1, 2016.
FOR FURTHER INFORMATION CONTACT:
Deborah C. Murphy (Murphy.Deborah@
PBGC.gov), Deputy 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.)
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 July 2016 and
updates the asset allocation interest
assumptions for the third quarter (July
through September) of 2016.
The third quarter 2016 interest
assumptions under the allocation
regulation will be 2.50 percent for the
first 20 years following the valuation
date and 2.85 percent thereafter. In
comparison with the interest
assumptions in effect for the second
quarter of 2016, these interest
assumptions represent no change in the
select period (the period during which
the select rate (the initial rate) applies),
a decrease of 0.27 percent in the select
rate, and a decrease of 0.01 percent in
the ultimate rate (the final rate).
SUPPLEMENTARY INFORMATION:
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38949
Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations
The July 2016 interest assumptions
under the benefit payments regulation
will be 0.75 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 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 valuation
and payment of benefits under plans
with valuation dates during July 2016,
Rate set
For plans with a valuation
date
On or after
*
273
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
For plans with a valuation
date
On or after
*
273
*
*
*
*
*
*
*
*
n1
n2
*
4.00
4.00
*
7
8
*
Deferred annuities
(percent)
i1
i2
*
8–1–16
0.75
i3
*
4.00
n1
n2
*
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 July–September 2016, as set
forth below, is added to the table.
*
■
4. The authority citation for part 4044
continues to read as follows:
■
*
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
7–1–16
*
i3
4.00
Immediate annuity
rate
(percent)
Before
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
i2
i1
0.75
*
Rate set
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
Deferred annuities
(percent)
*
3. In appendix C to part 4022, Rate Set
273, as set forth below, is added to the
table.
1. The authority citation for part 4022
continues to read as follows:
■
*
8–1–16
■
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
2. In appendix B to part 4022, Rate Set
273, as set forth below, is added to the
table.
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
*
7–1–16
Employee benefit plans, Pension
insurance, Pensions.
In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
■
29 CFR Part 4022
Immediate annuity
rate
(percent)
Before
29 CFR Part 4044
*
*
*
*
The values of it are:
For valuation dates occurring in the month—
it
ehiers on DSK5VPTVN1PROD with RULES
*
*
*
*
July–September 2016 ...............................................................................
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for t =
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it
for t =
it
for t =
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>20
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38950
Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations
Issued in Washington, DC, on this 9th day
of June 2016.
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
[FR Doc. 2016–14076 Filed 6–14–16; 8:45 am]
BILLING CODE 7709–02–P
DEPARTMENT OF DEFENSE
Office of the Secretary
[Docket ID: DOD–2016–OS–0063]
32 CFR Part 311
Privacy Act of 1974; Implementation
Office of the Secretary, DoD.
Direct final rule.
AGENCY:
ACTION:
The Office of the Secretary of
Defense is exempting those records
contained in DMDC 24 DoD, entitled
‘‘Defense Information System for
Security (DISS),’’ when investigatory
material is compiled solely for the
purpose of determining suitability,
eligibility, or qualifications for Federal
civilian employment, military service,
Federal contracts, or access to classified
information, but only to the extent that
such material would reveal the identity
of a confidential source.
This direct final rule establishes a
new exemption to the Office of the
Secretary Privacy Program. The Defense
Information System for Security is the
new DoD enterprise-wide information
system for personnel security; it
provides a common, comprehensive
medium to request, record, document,
and identify personnel security actions
within the Department including:
Determinations of eligibility and access
to classified information, national
security, suitability and/or fitness for
employment, and HSPD–12
determination for Personal Identity
Verification (PIV) to access government
facilities and systems, submitting
adverse information, verification of
investigation and or adjudicative status,
support of continuous evaluation and
insider threat detection, prevention, and
mitigation activities. DISS consists of
two applications, the Case Adjudication
Tracking system (CATS) and the Joint
Verification System (JVS). CATS is used
by the DoD Adjudicative Community for
the purpose of recording eligibility
determinations. JVS is used by DoD
Security Managers and Industry Facility
Security Officers for the purpose of
verifying eligibility, recording access
determinations, submitting incidents for
subsequent adjudication, and visit
requests from the field (worldwide). The
records may also be used as a
ehiers on DSK5VPTVN1PROD with RULES
SUMMARY:
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14:36 Jun 14, 2016
Jkt 238001
management tool for statistical analyses,
tracking, reporting, evaluating program
effectiveness, and conducting research.
This direct final rule is consistent with
the rule currently published regarding
DMDC 11, Investigative Records
Repository.
DATES: The rule is effective on
September 13, 2016 unless adverse
comments are received by August 15,
2016. If adverse comment is received,
the Department of Defense will publish
a timely withdrawal of the rule in the
Federal Register.
ADDRESSES: You may submit comments,
identified by docket number 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, 4800 Mark Center Drive,
Mailbox #24, Alexandria, VA 22350–
1700.
Instructions: All submissions received
must include the agency name and
docket number 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.
FOR FURTHER INFORMATION CONTACT: Mrs.
Luz D. Ortiz, 571–372–0478.
SUPPLEMENTARY INFORMATION: This rule
is being 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.
Direct Final Rule and Significant
Adverse Comments
DoD has determined this rulemaking
meets the criteria for a direct final rule
because it involves non-substantive
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
PO 00000
Frm 00070
Fmt 4700
Sfmt 4700
comment necessitates withdrawal of
this direct final rule, DoD will consider
whether it warrants a substantive
response in a notice and comment
process.
Executive Order 12866, ‘‘Regulatory
Planning and Review’’ and Executive
Order 13563, ‘‘Improving Regulation
and Regulatory Review’’
It has been determined that Privacy
Act rules for the Department of Defense
are not significant rules. The rules do
not (1) Have an annual effect on the
economy of $100 million or more or
adversely affect in a material way the
economy; a sector of the economy;
productivity; competition; jobs; the
environment; public health or safety; or
State, local, or tribal governments or
communities; (2) Create a serious
inconsistency or otherwise interfere
with an action taken or planned by
another Agency; (3) Materially alter the
budgetary impact of entitlements,
grants, user fees, or loan programs, or
the rights and obligations of recipients
thereof; or (4) Raise novel legal or policy
issues arising out of legal mandates, the
President’s priorities, or the principles
set forth in these Executive orders.
Public Law 96–354, ‘‘Regulatory
Flexibility Act’’ (5 U.S.C. Chapter 6)
It has been determined that this
Privacy Act rule for the Department of
Defense does not have significant
economic impact on a substantial
number of small entities because it is
concerned only with the administration
of Privacy Act systems of records within
the Department of Defense. A
Regulatory Flexibility Analysis is not
required.
Public Law 95–511, ‘‘Paperwork
Reduction Act’’ (44 U.S.C. Chapter 35)
It has been determined that this
Privacy Act rule for the Department of
Defense imposes no additional
information requirements beyond the
Department of Defense and that the
information collected within the
Department of Defense is necessary and
consistent with 5 U.S.C. 552a, known as
the Privacy Act of 1074.
Section 202, Public Law 104–4,
‘‘Unfunded Mandates Reform Act’’
It has been determined that this
Privacy Act rule for the Department of
Defense does not involve a Federal
mandate that may result in the
expenditure by State, local and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
and that this rulemaking will not
significantly or uniquely affect small
governments.
E:\FR\FM\15JNR1.SGM
15JNR1
]]>Agencies
[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Rules and Regulations]
[Pages 38948-38950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14076]
=======================================================================
-----------------------------------------------------------------------
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 2016 and interest assumptions under the
asset allocation regulation for valuation dates in the third quarter of
2016. 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, 2016.
FOR FURTHER INFORMATION CONTACT: Deborah C. Murphy
(Murphy.Deborah@PBGC.gov), Deputy 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 2016 and
updates the asset allocation interest assumptions for the third quarter
(July through September) of 2016.
The third quarter 2016 interest assumptions under the allocation
regulation will be 2.50 percent for the first 20 years following the
valuation date and 2.85 percent thereafter. In comparison with the
interest assumptions in effect for the second quarter of 2016, these
interest assumptions represent no change in the select period (the
period during which the select rate (the initial rate) applies), a
decrease of 0.27 percent in the select rate, and a decrease of 0.01
percent in the ultimate rate (the final rate).
[[Page 38949]]
The July 2016 interest assumptions under the benefit payments
regulation will be 0.75 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 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 valuation
and payment of benefits under plans with valuation dates during July
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
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 273, 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 Deferred annuities (percent)
valuation date Immediate -----------------------------------------------------------
Rate set -------------------------- annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
----------------------------------------------------------------------------------------------------------------
* * * * * * *
273 7-1-16 8-1-16 0.75 4.00 4.00 4.00 7 8
----------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 273, 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 Deferred annuities (percent)
valuation date Immediate -----------------------------------------------------------
Rate set -------------------------- annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
----------------------------------------------------------------------------------------------------------------
* * * * * * *
273 7-1-16 8-1-16 0.75 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 2016, 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
July-September 2016........................... 0.0250 1-20 0.0285 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
[[Page 38950]]
Issued in Washington, DC, on this 9th day of June 2016.
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2016-14076 Filed 6-14-16; 8:45 am]
BILLING CODE 7709-02-P
