Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 70940-70942 [2016-24811]
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70940
Federal Register / Vol. 81, No. 199 / Friday, October 14, 2016 / Rules and Regulations
in areas located throughout the United
States, including Texas and Louisiana.
Special Analyses
Certain IRS regulations, including
these, are exempt from the requirements
of Executive Order 12866, as
supplemented and reaffirmed by
Executive Order 13563. Therefore, a
regulatory impact assessment is not
required. It also has been determined
that section 553(b) of the Administrative
Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations. For
applicability of the Regulatory
Flexibility Act (5 U.S.C. chapter 6),
please refer to the cross-referencing
notice of proposed rulemaking
published in the Proposed Rules section
in this issue of the Federal Register.
Pursuant to section 7805(f) of the Code,
these temporary regulations will be
submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on their
impact on small business.
Drafting Information
The principal authors of these
regulations are Daniel Cassano and
Christopher Wrobel of the Office of the
Associate Chief Counsel (Income Tax &
Accounting). However, other personnel
from the Treasury Department and the
IRS participated in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Amendments to the Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
PART 1— INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.165–11 is revised to
read as follows:
■
§ 1.165–11 Election in respect of losses
attributable to a disaster.
(a) through (j) [Reserved]. For further
guidance, see § 1.165–11T(a) through (j).
■ Par. 3. Section 1.165–11T is added to
read as follows:
ehiers on DSK5VPTVN1PROD with RULES
§ 1.165–11T Election to take disaster loss
deduction for preceding year (temporary).
(a) In general. Section 165(i) allows a
taxpayer who has sustained a loss
attributable to a federally declared
disaster in a taxable year to elect to
deduct that disaster loss in the
preceding year. This section provides
rules and procedures for making and
VerDate Sep<11>2014
13:00 Oct 13, 2016
Jkt 241001
revoking an election to claim a disaster
loss in the preceding year.
(b) Definitions. The following
definitions apply for purposes of this
section:
(1) A federally declared disaster
means any disaster subsequently
determined by the President of the
United States to warrant assistance by
the Federal Government under the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act or a
successor enactment.
(2) A federally declared disaster area
is the area determined to be eligible for
assistance pursuant to the Presidential
declaration in paragraph (b)(1) of this
section.
(3) A disaster loss is a loss occurring
in a federally declared disaster area that
is attributable to a federally declared
disaster and that is otherwise allowable
as a deduction for the disaster year
under section 165(a) and §§ 1.165–1
through 1.165–10.
(4) The disaster year is the taxable
year in which a taxpayer sustains a loss
attributable to a federally declared
disaster.
(5) The preceding year is the taxable
year immediately prior to the disaster
year.
(c) Scope and effect of election. An
election made pursuant to section 165(i)
for a disaster loss attributable to a
particular disaster applies to the entire
loss sustained by the taxpayer from that
disaster during the disaster year. If the
taxpayer makes a section 165(i) election
with respect to a particular disaster
occurring during the disaster year, the
disaster to which the election relates is
deemed to have occurred, and the
disaster loss to which the election
applies is deemed to have been
sustained, in the preceding year.
(d) Requirement to file consistent
returns. A taxpayer may not make a
section 165(i) election for a disaster loss
if the taxpayer claims a deduction (as a
loss, as cost of goods sold, or otherwise)
for the same loss for the disaster year.
If a taxpayer has claimed a deduction
for a disaster loss for the disaster year
and the taxpayer wishes to make a
section 165(i) election with respect to
such loss, the taxpayer must file an
amended return to remove the
previously deducted loss on or before
the date that the taxpayer makes the
section 165(i) election for such loss.
Similarly, if a taxpayer has claimed a
deduction for a disaster loss for the
preceding year based on a section 165(i)
election and the taxpayer wishes to
revoke that election, the taxpayer must
file an amended return to remove the
loss for the preceding year on or before
the date the taxpayer files the return or
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Fmt 4700
Sfmt 4700
amended return for the disaster year
that includes the loss.
(e) Manner of making election. An
election under section 165(i) to deduct
a disaster loss for the preceding year is
made on an original federal tax return
for the preceding year or an amended
federal tax return for the preceding year
in the manner specified by guidance
issued pursuant to these regulations.
See paragraph (h) of this section.
(f) Due date for making election. The
due date for making the section 165(i)
election is six months after the due date
for filing the taxpayer’s federal income
tax return for the disaster year
(determined without regard to any
extension of time to file).
(g) Revocation. Subject to the
requirements in paragraph (d) of this
section, a section 165(i) election may be
revoked on or before the date that is
ninety (90) days after the due date for
making the election.
(h) Additional guidance. The time and
manner for making and revoking a
section 165(i) election under paragraphs
(d), (e), (f), and (g) of this section may
be modified through guidance
published in the Federal Register or in
the Internal Revenue Bulletin (see
§ 601.601(d) of this chapter).
(i) Effective/applicability date. This
section is effective October 13, 2016 and
applies to elections, revocations, and
any other related actions that can be
made or taken on or after October 13,
2016.
(j) Expiration date. The section
expires October 13, 2019.
John Dalrymple,
Deputy Commissioner for Services and
Enforcement.
Approved: September 19, 2016.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2016–24664 Filed 10–13–16; 8:45 am]
BILLING CODE 4830–01–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
SUMMARY:
E:\FR\FM\14OCR1.SGM
14OCR1
70941
Federal Register / Vol. 81, No. 199 / Friday, October 14, 2016 / Rules and Regulations
prescribe interest assumptions under
the regulation for valuation dates in
November 2016. 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, 2016.
FOR FURTHER INFORMATION CONTACT:
Deborah C. Murphy (Murphy.Deborah@
pbgc.gov), Assistant General Counsel for
Regulatory Affairs, Pension Benefit
Guaranty Corporation, 1200 K Street
NW., Washington, DC 20005, 202–326–
4400 ext. 3451. (TTY/TDD users may
call the Federal relay service toll-free at
1–800–877–8339 and ask to be
connected to 202–326–4400 ext. 3451.)
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
*
277
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 2016.1
The November 2016 interest
assumptions under the benefit payments
regulation will be 0.50 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 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
Immediate
annuity
rate
(percent)
*
11–1–16
i1
*
Before
*
12–1–16
3. In appendix C to part 4022, Rate Set
277 is added to the table to read as
follows:
■
For plans with a valuation
date
On or after
*
ehiers on DSK5VPTVN1PROD with RULES
277
*
11–1–16
VerDate Sep<11>2014
17:16 Oct 13, 2016
Jkt 241001
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
277 is added to the table to read as
follows:
■
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
*
*
*
*
*
i3
*
4.00
n1
*
4.00
n2
*
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
*
*
Immediate
annuity
rate
(percent)
i1
*
12–1–16
1 Appendix B to PBGC’s regulation on Allocation
of Assets in Single-Employer Plans (29 CFR part
4044) prescribes interest assumptions for valuing
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
In consideration of the foregoing, 29
CFR part 4022 is amended as follows:
i2
4.00
*
Before
List of Subjects in 29 CFR Part 4022
Deferred annuities (percent)
0.50
*
Rate set
dates during November 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).
0.50
Deferred annuities (percent)
i2
i3
*
4.00
4.00
benefits under terminating covered single-employer
plans for purposes of allocation of assets under
PO 00000
Frm 00019
Fmt 4700
Sfmt 4700
*
4.00
*
7
8
ERISA section 4044. Those assumptions are
updated quarterly.
E:\FR\FM\14OCR1.SGM
14OCR1
70942
Federal Register / Vol. 81, No. 199 / Friday, October 14, 2016 / Rules and Regulations
Judith Starr,
General Counsel, Pension Benefit Guaranty
Corporation.
[FR Doc. 2016–24811 Filed 10–13–16; 8:45 am]
BILLING CODE 7709–02–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2016–0154]
RIN 1625–AA00
Safety Zones; San Francisco, CA
Coast Guard, DHS.
Final rule.
AGENCY:
ACTION:
The Coast Guard is amending
several permanent safety zones located
in the Captain of the Port San Francisco
zone that are established to protect
public safety during annual firework
displays. These amendments are
necessary to update listed events to
accurately reflect the firework display
locations. This regulation prohibits the
movement of vessels within the
established firework display areas
unless authorized by the Captain of the
Port (COTP) San Francisco or a
designated representative.
DATES: This rule is effective November
14, 2016.
ADDRESSES: To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type USCG–2016–
0154 in the ‘‘SEARCH’’ box and click
‘‘SEARCH.’’ Click on Open Docket
Folder on the line associated with this
rule.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call or
email Lieutenant Junior Grade Christina
Ramirez, U.S. Coast Guard Sector San
Francisco; telephone 415–399–3585,
email D11-PF-MarineEvents@uscg.mil.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Table of Abbreviations
ehiers on DSK5VPTVN1PROD with RULES
CFR Code of Federal Regulations
COTP Captain of the Port
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
§ Section
U.S.C. United States Code
II. Background Information and
Regulatory History
On April 19, 2016 we published a
notice of proposed rulemaking (NPRM)
entitled Safety Zones; San Francisco,
CA, in the Federal Register (81 FR
VerDate Sep<11>2014
13:00 Oct 13, 2016
Jkt 241001
22946), to amend several permanent
safety zones located in the Captain of
the Port San Francisco zone that are
established to protect public safety
during annual firework displays. There
we stated why we issued the NPRM,
and invited comments on our proposed
regulatory action related to the amended
fireworks safety zones. We received no
comments on the NPRM nor did we
receive a request for public meeting. A
public meeting was not held.
III. Legal Authority and Need for Rule
The Coast Guard is issuing this rule
under authority in 33 U.S.C. 1231. The
Captain of the Port San Francisco
(COTP) has determined that potential
hazards associated with the current
outdated fireworks locations, if not
updated, pose safety concerns for event
crew, spectators, participants of the
event, participating vessels, and other
users and vessels of the waterway.
IV. Discussion of Comments, Changes,
and the Rule
As noted above, we received no
comments on our NPRM published on
April 19, 2016. There are no changes in
the regulatory text of this rule from the
proposed rule in the NPRM.
This rule amends Table 1 in
§ 165.1191 to update three events to
reflect the current event locations.
These events are listed numerically in
Table 1 of this section: (7), (8), (22).
V. Regulatory Analyses
We developed this rule after
considering numerous statutes and
Executive orders related to rulemaking.
Below we summarize our analyses
based on a number of these statutes and
Executive orders, and we discuss First
Amendment rights of protestors.
A. Regulatory Planning and Review
Executive Orders 12866 and 13563
direct agencies to assess the costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits.
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This NPRM has not been
designated a ‘‘significant regulatory
action,’’ under Executive Order 12866.
Accordingly, the NPRM has not been
reviewed by the Office of Management
and Budget.
This regulatory action determination
is based on the size, location, duration,
and time-of-day of each safety zone.
Vessel traffic would be able to safely
transit around each safety zone which
PO 00000
Frm 00020
Fmt 4700
Sfmt 4700
would impact a small designated area of
the COTP San Francisco zone for less
than 1 hour during the evening when
vessel traffic is normally low. Moreover,
the Coast Guard would issue a Local
Notice to Mariner and Broadcast Notice
to Mariners via VHF–FM marine
channel 16 about the zone, and the rule
would allow vessels to seek permission
to enter the zones.
B. Impact on Small Entities
The Regulatory Flexibility Act of
1980, 5 U.S.C. 601–612, as amended,
requires Federal agencies to consider
the potential impact of regulations on
small entities during rulemaking. The
term ‘‘small entities’’ comprises small
businesses, not-for-profit organizations
that are independently owned and
operated and are not dominant in their
fields, and governmental jurisdictions
with populations of less than 50,000.
The Coast Guard certifies under 5 U.S.C.
605(b) that this rule would not have a
significant economic impact on a
substantial number of small entities.
While some owners or operators of
vessels intending to transit the safety
zone may be small entities, for the
reasons stated in section V.A above this
rule would not have a significant
economic impact on any vessel owner
or operator.
If you think that your business,
organization, or governmental
jurisdiction qualifies as a small entity
and that this rule would have a
significant economic impact on it,
please submit a comment (see
ADDRESSES) explaining why you think it
qualifies and how and to what degree
this rule would economically affect it.
Under section 213(a) of the Small
Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104–121),
we want to assist small entities in
understanding this rule. If the rule
would affect your small business,
organization, or governmental
jurisdiction and you have questions
concerning its provisions or options for
compliance, please contact the person
listed in the FOR FURTHER INFORMATION
CONTACT section. The Coast Guard will
not retaliate against small entities that
question or complain about this rule or
any policy or action of the Coast Guard.
C. Collection of Information
This rule would not call for a new
collection of information under the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501–3520).
D. Federalism and Indian Tribal
Governments
A rule has implications for federalism
under Executive Order 13132,
E:\FR\FM\14OCR1.SGM
14OCR1
]]>Agencies
[Federal Register Volume 81, Number 199 (Friday, October 14, 2016)]
[Rules and Regulations]
[Pages 70940-70942]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-24811]
=======================================================================
-----------------------------------------------------------------------
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
[[Page 70941]]
prescribe interest assumptions under the regulation for valuation dates
in November 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 November 1, 2016.
FOR FURTHER INFORMATION CONTACT: Deborah C. Murphy
(Murphy.Deborah@pbgc.gov), Assistant General Counsel for Regulatory
Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW.,
Washington, DC 20005, 202-326-4400 ext. 3451. (TTY/TDD users may call
the Federal relay service toll-free at 1-800-877-8339 and ask to be
connected to 202-326-4400 ext. 3451.)
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 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 November 2016 interest assumptions under the benefit payments
regulation will be 0.50 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 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 November 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 277 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
277 11-1-16 12-1-16 0.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 277 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
277 11-1-16 12-1-16 0.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 70942]]
Judith Starr,
General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2016-24811 Filed 10-13-16; 8:45 am]
BILLING CODE 7709-02-P
