Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 27422-27423 [2017-12148]

Download as PDF 27422 Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations (l) Material Incorporated by Reference (1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51. (2) You must use this service information as applicable to do the actions required by this AD, unless this AD specifies otherwise. (i) Embraer Service Bulletin 145–28–0030, Revision 01, dated October 22, 2010. (ii) Embraer Service Bulletin 145LEG–28– 0032, Revision 01, dated November 20, 2012. (3) For service information identified in this AD, contact Empresa Brasileira de Aeronautica S.A. (Embraer), Technical Publications Section (PC 060), Av. Brigadeiro ˜ Faria Lima, 2170–Putim–12227–901 Sao Jose dos Campos–SP–Brasil; telephone +55 12 3927–5852 or +55 12 3309–0732; fax +55 12 3927–7546; email distrib@embraer.com.br; Internet http://www.flyembraer.com. (4) You may view this service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For information on the availability of this material at the FAA, call 425–227–1221. (5) You may view this service information that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202–741–6030, or go to: http:// www.archives.gov/federal-register/cfr/ibrlocations.html. Issued in Renton, Washington, on June 2, 2017. Michael Kaszycki, Acting Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. 2017–12168 Filed 6–14–17; 8:45 am] BILLING CODE 4910–13–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 2017 and interest assumptions under the asset allocation regulation for valuation dates in the third quarter of 2017. The interest assumptions are used for valuing and paying benefits under terminating pmangrum on DSK3GDR082PROD with RULES SUMMARY: VerDate Sep<11>2014 14:00 Jun 14, 2017 Jkt 241001 single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective July 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 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 (http:// 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 2017 and updates the asset allocation interest assumptions for the third quarter (July through September) of 2017. The third quarter 2017 interest assumptions under the allocation regulation will be 2.44 percent for the first 20 years following the valuation date and 2.74 percent thereafter. In comparison with the interest assumptions in effect for the second quarter of 2017, these interest assumptions represent no change in the select period (the period during which the select rate, the initial rate, applies), an increase of 0.29 percent in the select PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 rate, and an increase of 0.14 percent in the ultimate rate, the final rate. The July 2017 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 June 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 valuation and payment of benefits under plans with valuation dates during July 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 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 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 285, as set forth below, is added to the table. ■ Appendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments * E:\FR\FM\15JNR1.SGM * * 15JNR1 * * 27423 Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations Rate set For plans with a valuation date On or after * Immediate annuity rate (percent) Before * 285 7–1–17 3. In appendix C to part 4022, Rate Set 285, as set forth below, is added to the table. * * * * Immediate annuity rate (percent) Before * 7–1–17 i 2 n 3 * n 1 * 4.00 * 4.00 7 8 * Deferred annuities (percent) i * 8–1–17 i 1 * 4.00 1.00 i 2 n 3 * n 1 * 4.00 7 8 Appendix B to Part 4044—Interest Rates Used To Value Benefits 5. In appendix B to part 4044, an entry for July–September 2017, as set forth below, is added to the table. * ■ 4. The authority citation for part 4044 continues to read as follows: ■ 2 * 4.00 Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362. PART 4044—ALLOCATION OF ASSETS IN SINGLE–EMPLOYER PLANS 2 Appendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments For plans with a valuation date 285 i 1 * 4.00 1.00 * On or after i * 8–1–17 ■ Rate set Deferred annuities (percent) * * * * The values of it are: For valuation dates occurring in the months— i * * * July–September 2017 ....................................................... Issued in Washington, DC. Deborah Chase Murphy, Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2017–12148 Filed 6–14–17; 8:45 am] BILLING CODE 7709–02–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [Docket No. USCG–2017–0510] Drawbridge Operation Regulation; Sacramento River, Rio Vista, CA Coast Guard, DHS. Notice of deviation from drawbridge regulation. pmangrum on DSK3GDR082PROD with RULES AGENCY: ACTION: The Coast Guard has issued a temporary deviation from the operating schedule that governs the Rio Vista Drawbridge across the Sacramento River, mile 12.8, at Rio Vista, CA. The SUMMARY: VerDate Sep<11>2014 17:24 Jun 14, 2017 Jkt 241001 for t = t i 1–20 * 0.0274 * 0.0244 deviation is necessary to allow the bridge owner to make necessary emergency repairs to the bridge. This deviation allows the bridge to open with one hour advance notice during the deviation period. DATES: This deviation is effective from 7 p.m. on June 16, 2017 to 4 a.m. on July 1, 2017. ADDRESSES: The docket for this deviation [USCG–2017–0510], is available at http://www.regulations.gov. Type the docket number in the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ Click on Open Docket Folder on the line associated with this deviation. FOR FURTHER INFORMATION CONTACT: If you have questions on this temporary deviation, call or email Carl T. Hausner, Chief, Bridge Section, Eleventh Coast Guard District; telephone 510–437– 3516; email Carl.T.Hausner@uscg.mil. SUPPLEMENTARY INFORMATION: The California Department of Transportation has requested a temporary change to the operation of the Rio Vista Drawbridge, mile 12.8, over Sacramento River, at Rio Vista, CA. The drawbridge navigation PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 for t = t i * >20 for t = t * N/A N/A span provides a vertical clearance of 18 feet above Mean High Water in the closed-to-navigation position. In accordance with 33 CFR 117.5, the draw opens on signal. Navigation on the waterway is commercial, search and rescue, law enforcement, and recreational. The drawspan will require a one hour advance notice at three specified periods: (1) From 7 p.m. on June 16, 2017 to 4 a.m. on June 17, 2017; (2) from 8 p.m. on June 24, 2017 to 7 a.m. on June 25, 2017; and (3) from 7 p.m. on June 30, 2017 to 4 a.m. on July 1, 2017, to allow the bridge owner to make emergency repairs to the bridge deck. A one hour advance notice will give enough time for the contractor to clear away equipment and workers before the drawspan can safely open for transiting vessels. Scaffolding will be installed below the bridge deck from June 16, 2017 through July 1, 2017, reducing the vertical clearance by 4 feet, and will extend from the west tower 48 feet into the navigational channel. This temporary deviation has been coordinated with the waterway users. E:\FR\FM\15JNR1.SGM 15JNR1

Agencies

[Federal Register Volume 82, Number 114 (Thursday, June 15, 2017)]
[Rules and Regulations]
[Pages 27422-27423]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-12148]


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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 2017 and interest assumptions under the 
asset allocation regulation for valuation dates in the third quarter of 
2017. 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, 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 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 
(http://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 2017 and 
updates the asset allocation interest assumptions for the third quarter 
(July through September) of 2017.
    The third quarter 2017 interest assumptions under the allocation 
regulation will be 2.44 percent for the first 20 years following the 
valuation date and 2.74 percent thereafter. In comparison with the 
interest assumptions in effect for the second quarter of 2017, these 
interest assumptions represent no change in the select period (the 
period during which the select rate, the initial rate, applies), an 
increase of 0.29 percent in the select rate, and an increase of 0.14 
percent in the ultimate rate, the final rate.
    The July 2017 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 June 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 valuation 
and payment of benefits under plans with valuation dates during July 
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

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 285, as set forth below, is 
added to the table.

Appendix B to Part 4022--Lump Sum Interest Rates for PBGC Payments

* * * * *

[[Page 27423]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                   For plans with a valuation date     Immediate                                Deferred annuities  (percent)
    Rate set     ----------------------------------  annuity  rate  ------------------------------------------------------------------------------------
                    On or after         Before         (percent)            i                i                i                n                n
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          285            7-1-17           8-1-17             1.00             4.00             4.00             4.00                7                8
--------------------------------------------------------------------------------------------------------------------------------------------------------


0
3. In appendix C to part 4022, Rate Set 285, 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 valuation date     Immediate                                Deferred annuities  (percent)
    Rate set     ----------------------------------  annuity  rate  ------------------------------------------------------------------------------------
                    On or after         Before         (percent)            i                i                i                n                n
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          285            7-1-17           8-1-17             1.00             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, an entry for July-September 2017, 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 months--        i           for t =         i           for t =         i           for t =
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
July-September 2017.........       0.0244          1-20        0.0274           >20           N/A           N/A
----------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC.
Deborah Chase Murphy,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2017-12148 Filed 6-14-17; 8:45 am]
 BILLING CODE 7709-02-P