Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 10707-10708 [2017-02761]
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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 (https://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]
=======================================================================
-----------------------------------------------------------------------
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 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
(https://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\
---------------------------------------------------------------------------
\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 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
