Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 10707-10708 [2017-02761]

Download as PDF Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations the CFTC to be eligible contract participants pursuant to Section 1a(12)(C) of the Commodity Exchange Act. Based on our existing information about the security-based swaps market, including our existing information about participants in the security-based swaps market, we believe that the interim final rules apply to few, if any, small entities. For this reason, the extension of the expiration dates in the interim final rules should not have a significant economic impact on a substantial number of small entities. a person who is an eligible contract participant under Section 1a(12)(C) of the Commodity Exchange Act as in effect prior to July 16, 2011). (b) The exemption provided in paragraph (a) of this section does not apply to the provisions of Section 17(a) of the Act (15 U.S.C. 77q(a)). (c) This section will expire on February 11, 2018. VI. Statutory Authority and Text of the Rules and Amendments The amendments described in this release are being adopted under the authority set forth in Sections 19 and 28 of the Securities Act, Sections 12(h), 23(a) and 36 of the Exchange Act, and Section 304(d) of the Trust Indenture Act. ■ List of Subjects in 17 CFR Parts 230, 240 and 260 Reporting and recordkeeping requirements, Securities. Text of the Rules and Amendments For the reasons set out in the preamble, the Commission amends 17 CFR parts 230, 240, and 260 as follows: PART 230—GENERAL RULES AND REGULATIONS, SECURITIES ACT OF 1933 1. The authority citation for part 230 continues to read, in part, as follows: ■ Authority: 15 U.S.C. 77b, 77b note, 77c, 77d, 77d note, 77f, 77g, 77h, 77j, 77r, 77s, 77z–3, 77sss, 78c, 78d, 78j, 78l, 78m, 78n, 78o, 78o–7 note, 78t, 78w, 78ll(d), 78mm, 80a–8, 80a–24, 80a–28, 80a–29, 80a–30, and 80a–37, and Pub. L. 112–106, sec. 201(a), sec. 401, 126 Stat. 313 (2012), unless otherwise noted. * * § 230.240 * * 3. The authority citation for part 240 continues to read, in part, as follows: Authority: 15 U.S.C. 77c, 77d, 77g, 77j, 77s, 77z–2, 77z–3, 77eee, 77ggg, 77nnn, 77sss, 77ttt, 78c, 78c–3, 78c–5, 78d, 78e, 78f, 78g, 78i, 78j, 78j–1, 78k, 78k–1, 78l, 78m, 78n, 78n–1, 78o, 78o–4, 78o–10, 78p, 78q, 78q–1, 78s, 78u–5, 78w, 78x, 78ll, 78mm, 80a–20, 80a–23, 80a–29, 80a–37, 80b–3, 80b– 4, 80b–11, 7201 et seq. and 8302; 7 U.S.C. 2(c)(2)(E); 12 U.S.C. 5221(e)(3); 18 U.S.C. 1350; Pub. L. 111–203, 939A, 124 Stat. 1376 (2010); and Pub. L. 112–106, sec. 503 and 602, 126 Stat. 326 (2012), unless otherwise noted. * * * § 240.12a–11 * * 4. Section 240.12a–11 is revised to read as follows: ■ § 240.12a–11 Exemption of security-based swaps sold in reliance on Securities Act of 1933 Rule 240 (§ 230.240) from section 12(a) of the Act. (a) The provisions of Section 12(a) of the Act (15 U.S.C. 78l(a)) do not apply to any security-based swap offered and sold in reliance on § 230.240 of this chapter. (b) This section will expire on February 11, 2018. § 240.12h–1 [Amended] 5. In § 240.12h–1, paragraph (i) is revised to read as follows: * [Amended] § 240.12h–1 Exemptions from registration under section 12(g) of the Act. 2. Section 230.240 is revised to read as follows: * § 230.240 Exemption for certain securitybased swaps. (a) Except as expressly provided in paragraph (b) of this section, the Act does not apply to the offer or sale of any security-based swap that is: (1) A security-based swap agreement, as defined in Section 2A of the Act (15 U.S.C. 77b(b)–1) as in effect prior to July 16, 2011; and (2) Entered into between eligible contract participants (as defined in Section 1a(12) of the Commodity Exchange Act (7 U.S.C. 1a(12)) as in effect prior to July 16, 2011, other than VerDate Sep<11>2014 16:57 Feb 14, 2017 Jkt 241001 * * * * (i) Any security-based swap offered and sold in reliance on § 230.240 of this chapter. This section will expire on February 11, 2018. PART 260—GENERAL RULES AND REGULATIONS, TRUST INDENTURE ACT OF 1939 6. The authority citation for part 260 continues to read as follows: ■ Authority: 15 U.S.C. 77c, 77ddd, 77eee, 77ggg, 77nnn, 77sss, 78ll(d), 80b–3, 80b–4, and 80b–11, unless otherwise noted. * PO 00000 * * Frm 00007 * Fmt 4700 * Sfmt 4700 [Amended] 7. Section 260.4d–12 is revised to read as follows: ■ § 260.4d–12 Exemption for security-based swaps offered and sold in reliance on Securities Act of 1933 Rule 240 (§ 230.240). Any security-based swap offered and sold in reliance on § 230.240 of this chapter, whether or not issued under an indenture, is exempt from the Act. This section will expire on February 11, 2018. By the Commission. Dated: February 10, 2017. Brent J. Fields, Secretary. [FR Doc. 2017–03121 Filed 2–14–17; 8:45 am] BILLING CODE 8011–01–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: [Amended] ■ ■ mstockstill on DSK3G9T082PROD with RULES PART 240—GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934 § 260.4d–12 10707 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 March 2017. The interest assumptions are used for paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective March 1, 2017. 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 (http://www.pbgc.gov). SUMMARY: E:\FR\FM\15FER1.SGM 15FER1 10708 Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations 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 March 2017.1 The March 2017 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 January 2017, 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 February 2017, 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 For plans with a valuation date On or after * Before * 4–1–17 1.25 281 3–1–17 3. In appendix C to part 4022, Rate Set 281 is added to the table to read as follows: ■ * For plans with a valuation date * * Before * * 4–1–17 Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344. 2. In appendix B to part 4022, Rate Set 281 is added to the table to read as follows: ■ Appendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments * * * * * i2 i3 * 4.00 n1 4.00 * n2 * 7 8 n1 n2 * Deferred annuities (percent) 1.25 3–1–17 1. The authority citation for part 4022 continues to read as follows: ■ 4.00 Immediate annuity rate (percent) 281 PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS i1 * On or after * Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. In consideration of the foregoing, 29 CFR part 4022 is amended as follows: Appendix C to Part 4022—Lump Sum Interest Rates For Private-Sector Payments * Rate set List of Subjects in 29 CFR Part 4022 Deferred annuities (percent) Immediate annuity rate (percent) * Rate set amendment, the Regulatory Flexibility Act of 1980 does not apply. See 5 U.S.C. 601(2). i1 i2 i3 4.00 * 4.00 4.00 * * * 7 Issued in Washington, DC, by Deborah Chase Murphy, Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2017–02761 Filed 2–14–17; 8:45 am] mstockstill on DSK3G9T082PROD with RULES BILLING CODE 7709–02–P 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 16:57 Feb 14, 2017 Jkt 241001 benefits under terminating covered single-employer plans for purposes of allocation of assets under PO 00000 Frm 00008 Fmt 4700 Sfmt 9990 ERISA section 4044. Those assumptions are updated quarterly. E:\FR\FM\15FER1.SGM 15FER1 8

Agencies

[Federal Register Volume 82, Number 30 (Wednesday, February 15, 2017)]
[Rules and Regulations]
[Pages 10707-10708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02761]


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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.

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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 March 2017. The interest assumptions are used 
for paying benefits under terminating single-employer plans covered by 
the pension insurance system administered by PBGC.

DATES: Effective March 1, 2017.

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 
(http://www.pbgc.gov).

[[Page 10708]]

    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 March 2017.\1\
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    \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.
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    The March 2017 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 January 2017, 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 February 2017, 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 281 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                                    Deferred annuities (percent)
                                                     date               Immediate  ---------------------------------------------------------------------
                Rate set                 ---------------------------- annuity rate
                                           On or after     Before       (percent)         i             i             i             n             n
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
281.....................................       3-1-17        4-1-17          1.25          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------


0
3. In appendix C to part 4022, Rate Set 281 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                                    Deferred annuities (percent)
                                                     date               Immediate  ---------------------------------------------------------------------
                Rate set                 ---------------------------- annuity rate
                                           On or after     Before       (percent)         i             i             i             n             n
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
281.....................................       3-1-17        4-1-17          1.25          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC, by
Deborah Chase Murphy,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2017-02761 Filed 2-14-17; 8:45 am]
 BILLING CODE 7709-02-P