Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 52848-52849 [2017-24597]

Download as PDF 52848 Federal Register / Vol. 82, No. 219 / Wednesday, November 15, 2017 / Rules and Regulations standards and practices to determine if it should take action in the future. Paragraph 1. The authority citation for part 1 continues to read in part as follows: ■ By direction of the Commission. Donald S. Clark, Secretary. Authority: 26 U.S.C. 7805 * * * [FR Doc. 2017–24728 Filed 11–14–17; 8:45 am] Par. 2. Section 1.367(a)–1 is amended by adding paragraph (e) to read as follows: ■ BILLING CODE 6750–01–P § 1.367(a)–1 Transfers to foreign corporations subject to section 367(a): In general. DEPARTMENT OF THE TREASURY Internal Revenue Service * 26 CFR Part 1 [TD 9803] RIN 1545–BL87 Treatment of Certain Transfers of Property to Foreign Corporations; Correction Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendment. AGENCY: This document contains corrections to final regulations (TD 9803) that were published in the Federal Register on Friday, December 16, 2016. The final regulations are related to certain transfers of property by United States persons to foreign corporations. SUMMARY: This correction is effective on November 15, 2017 and is applicable on or after December 16, 2016. FOR FURTHER INFORMATION CONTACT: Lynlee Baker at (202) 317–6937 (not a toll-free number). SUPPLEMENTARY INFORMATION: DATES: Background The final regulations (TD 9803) that are the subject of this correction are issued under section 367 of the Internal Revenue Code. Need for Correction sradovich on DSK3GMQ082PROD with RULES List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. Correction of Publication Accordingly, 26 CFR part 1 is corrected by making the following correcting amendment: 15:48 Nov 14, 2017 * * * * (e) Close of taxable year in certain section 368(a)(1)(F) reorganizations. If a domestic corporation is the transferor corporation in a reorganization described in section 368(a)(1)(F) after March 30, 1987, in which the acquiring corporation is a foreign corporation, then the taxable year of the transferor corporation shall end with the close of the date of the transfer and the taxable year of the acquiring corporation shall end with the close of the date on which the transferor’s taxable year would have ended but for the occurrence of the transfer. With regard to the consequences of the closing of the taxable year, see section 381 and the regulations thereunder. * * * * * Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. 2017–24687 Filed 11–14–17; 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: As published, the final regulations published in the Federal Register on Friday, December 16, 2016 (81 FR 91012) (TD 9803) contain an error that needs to be corrected. Specifically, paragraph (e) was inadvertently omitted from the final regulations. VerDate Sep<11>2014 FOR FURTHER INFORMATION CONTACT: PART 1—INCOME TAXES Jkt 244001 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 December 2017. The interest assumptions are used for paying benefits under terminating singleemployer plans covered by the pension insurance system administered by PBGC. SUMMARY: DATES: PO 00000 Effective December 1, 2017. Frm 00026 Fmt 4700 Sfmt 4700 Daniel S. Liebman (liebman.daniel@ pbgc.gov), Acting Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005, 202–326–4400 ext. 6510. (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. 6510.) 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 terminated 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). 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 December 2017.1 The December 2017 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 November 2017, these 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. SUPPLEMENTARY INFORMATION: 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. E:\FR\FM\15NOR1.SGM 15NOR1 52849 Federal Register / Vol. 82, No. 219 / Wednesday, November 15, 2017 / Rules and Regulations Because of the need to provide immediate guidance for the payment of benefits under plans with valuation dates during December 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). Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344. 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: ■ * * 12–1–17 1–1–18 On or after * * 12–1–17 1–1–18 50 CFR Part 300 Fraser River Sockeye and Pink Salmon Fisheries; Inseason Orders National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Temporary orders; inseason orders. AGENCY: sradovich on DSK3GMQ082PROD with RULES i3 * 4.00 4.00 NMFS publishes Fraser River salmon inseason orders to regulate treaty and non-treaty (all citizen) SUMMARY: Jkt 244001 n1 * n2 * 7 8 n1 n2 * Deferred annuities (percent) i1 i2 i3 4.00 * 4.00 4.00 * 0.75 commercial salmon fisheries in U.S. waters. The orders were issued by the Fraser River Panel (Panel) of the Pacific Salmon Commission (Commission) and subsequently approved and issued by NMFS during the 2017 salmon fisheries within the U.S. Fraser River Panel Area. These orders established fishing dates, times, and areas for the gear types of U.S. treaty Indian and all citizen commercial fisheries during the period the Panel exercised jurisdiction over these fisheries. The effective dates for the inseason orders are set out in this document under the heading Inseason Orders. DATES: RIN 0648–XF775 15:48 Nov 14, 2017 * * National Oceanic and Atmospheric Administration VerDate Sep<11>2014 * Immediate annuity rate (percent) Before DEPARTMENT OF COMMERCE * Appendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments For plans with a valuation date BILLING CODE 7709–02–P i2 * 0.75 Rate set [FR Doc. 2017–24597 Filed 11–14–17; 8:45 am] i1 4.00 * Daniel S. Liebman, Acting Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. * Deferred annuities (percent) Immediate annuity rate (percent) Before * * 290 ........................ * 1. The authority citation for part 4022 continues to read as follows: On or after 3. In appendix C to part 4022, Rate Set 290 is added to the table in numerical order to read as follows: * ■ For plans with a valuation date ■ Appendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS Rate set * 290 ........................ 2. In appendix B to part 4022, Rate Set 290 is added to the table in numerical order to read as follows: FOR FURTHER INFORMATION CONTACT: Peggy Mundy at 206–526–4323. The Treaty between the Government of the United States of America and the Government of Canada concerning Pacific Salmon was signed at Ottawa on January 28, 1985, and subsequently was given effect in the United States by the SUPPLEMENTARY INFORMATION: PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 * * 7 8 Pacific Salmon Treaty Act (Act) at 16 U.S.C. 3631–3644. Under authority of the Act, Federal regulations at 50 CFR part 300, subpart F, provide a framework for the implementation of certain regulations of the Commission and inseason orders of the Commission’s Fraser River Panel for U.S. sockeye and pink salmon fisheries in the Fraser River Panel Area. The regulations close the U.S. portion of the Fraser River Panel Area to U.S. sockeye and pink salmon tribal and non-tribal commercial fishing unless opened by Panel orders that are given effect by inseason regulations published by NMFS. During the fishing season, NMFS may issue regulations that establish fishing times and areas consistent with the Commission agreements and inseason orders of the Panel. Such orders must be consistent with domestic legal obligations and are issued by the Regional Administrator, West Coast Region, NMFS. Official notification of these inseason actions is provided by two telephone hotline numbers described at 50 CFR E:\FR\FM\15NOR1.SGM 15NOR1

Agencies

[Federal Register Volume 82, Number 219 (Wednesday, November 15, 2017)]
[Rules and Regulations]
[Pages 52848-52849]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24597]


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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 December 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 December 1, 2017.

FOR FURTHER INFORMATION CONTACT: Daniel S. Liebman 
(liebman.daniel@pbgc.gov), Acting Assistant General Counsel for 
Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street 
NW., Washington, DC 20005, 202-326-4400 ext. 6510. (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. 6510.)

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 terminated 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).
    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 December 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.
---------------------------------------------------------------------------

    The December 2017 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 November 2017, these 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.

[[Page 52849]]

    Because of the need to provide immediate guidance for the payment 
of benefits under plans with valuation dates during December 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 290 is added to the table in 
numerical order 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)           i             i             i             n             n
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
290............................         12-1-17           1-1-18             0.75          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------


0
3. In appendix C to part 4022, Rate Set 290 is added to the table in 
numerical order 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)           i             i             i             n             n
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
290............................         12-1-17           1-1-18             0.75          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------


Daniel S. Liebman,
Acting Assistant General Counsel for Regulatory Affairs, Pension 
Benefit Guaranty Corporation.
[FR Doc. 2017-24597 Filed 11-14-17; 8:45 am]
 BILLING CODE 7709-02-P