Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 59515-59517 [2017-26963]

Download as PDF Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Rules and Regulations We continue to revise and update the listings on a regular basis, including those body systems not affected by this final rule.2 We intend to update the four listings affected by this final rule as quickly as possible, but may not be able to publish final rules revising these listings by the current expiration dates. Therefore, we are extending the current expiration dates for the above listed body systems. Regulatory Procedures Justification for Final Rule nshattuck on DSK9F9SC42PROD with RULES We follow the Administrative Procedure Act (APA) rulemaking procedures specified in 5 U.S.C. 553 in promulgating regulations. Section 702(a)(5) of the Social Security Act, 42 U.S.C. 902(a)(5). Generally, the APA requires that an agency provide prior notice and opportunity for public comment before issuing a final regulation. The APA provides exceptions to the notice-and-comment requirements when an agency finds there is good cause for dispensing with such procedures because they are impracticable, unnecessary, or contrary to the public interest. We have determined that good cause exists for dispensing with the notice and public comment procedures. 5 U.S.C. 553(b)(B). This final rule only extends the date on which four body system listings will no longer be effective. It makes no substantive changes to our rules. Our current regulations 3 provide that we may extend, revise, or promulgate the body system listings again. Therefore, we have determined that opportunity for prior comment is unnecessary, and we are issuing this regulation as a final rule. In addition, for the reasons cited above, we find good cause for dispensing with the 30-day delay in the effective date of this final rule. 5 U.S.C. 553(d)(3). We are not making any substantive changes to the listings in these body systems. Without an extension of the expiration dates for these listings, we will not have the criteria we need to assess medical impairments in these four body systems at step three of the sequential evaluation processes. We therefore find it is in the public interest to make this final rule effective on the publication date. 2 Since we last extended the expiration dates of the listings affected by this rule in August 2016 (81 FR 51101), we have published final rules revising the medical criteria for evaluating mental disorders (81 FR 66137 (2016)) and HIV infection (81 FR 86915 (2016)). 3 See the first sentence of appendix 1 to subpart P of part 404 of 20 CFR. VerDate Sep<11>2014 15:15 Dec 14, 2017 Jkt 244001 Executive Order 12866, as Supplemented by Executive Order 13563 We consulted with the Office of Management and Budget (OMB) and determined that this final rule does not meet the requirements for a significant regulatory action under Executive Order 12866, as supplemented by Executive Order 13563. Therefore, OMB did not review it. We also determined that this final rule meets the plain language requirement of Executive Order 12866. Regulatory Flexibility Act We certify that this final rule does not have a significant economic impact on a substantial number of small entities because it affects only individuals. Therefore, a regulatory flexibility analysis is not required under the Regulatory Flexibility Act, as amended. Paperwork Reduction Act These rules do not create any new or affect any existing collections and, therefore, do not require Office of Management and Budget approval under the Paperwork Reduction Act. (Catalog of Federal Domestic Assistance Program Nos. 96.001, Social SecurityDisability Insurance; 96.002, Social SecurityRetirement Insurance; 96.004, Social Security-Survivors Insurance; 96.006, Supplemental Security Income) List of Subjects in 20 CFR Part 404 Administrative practice and procedure, Blind, Disability benefits, Old-age, Survivors and Disability Insurance, Reporting and recordkeeping requirements, Social Security. Nancy A. Berryhill, Acting Commissioner of Social Security. For the reasons set out in the preamble, we are amending appendix 1 to subpart P of part 404 of chapter III of title 20 of the Code of Federal Regulations as set forth below. PART 404—FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE (1950– ) Subpart P—[Amended] 1. The authority citation for subpart P of part 404 continues to read as follows: ■ Authority: Secs. 202, 205(a)–(b) and (d)– (h), 216(i), 221(a), (i), and (j), 222(c), 223, 225, and 702(a)(5) of the Social Security Act (42 U.S.C. 402, 405(a)–(b) and (d)–(h), 416(i), 421(a), (i), and (j), 422(c), 423, 425, and 902(a)(5)); sec. 211(b), Pub. L. 104–193, 110 Stat. 2105, 2189; sec. 202, Pub. L. 108–203, 118 Stat. 509 (42 U.S.C. 902 note). PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 59515 2. Amend appendix 1 to subpart P of part 404 by revising items 2, 5, 6, and 9 of the introductory text before part A to read as follows: ■ Appendix 1 to Subpart P of Part 404— Listing of Impairments * * * * * 2. Musculoskeletal System (1.00 and 101.00): January 27, 2020. * * * * * 5. Cardiovascular System (4.00 and 104.00): January 27, 2020. 6. Digestive System (5.00 and 105.00): January 27, 2020. * * * * * 9. Skin Disorders (8.00 and 108.00): January 27, 2020. * * * * * [FR Doc. 2017–27086 Filed 12–14–17; 8:45 am] BILLING CODE 4191–02–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 January 2018 and interest assumptions under the asset allocation regulation for valuation dates in the first quarter of 2018. 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 January 1, 2018. 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 regulations on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) and Benefits Payable in SUMMARY: E:\FR\FM\15DER1.SGM 15DER1 59516 Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Rules and Regulations 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 website (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 January 2018, and updates the asset allocation interest assumptions for the first quarter (January through March) of 2018. The first quarter 2018 interest assumptions under the allocation regulation will be 2.39 percent for the first 20 years following the valuation date and 2.60 percent thereafter. In comparison with the interest assumptions in effect for the fourth quarter of 2017, this represents no change in the select period (the period during which the select rate, the initial rate, applies), an increase of 0.05 percent in the select rate, and a decrease of 0.03 percent in the ultimate rate, the final rate. The January 2018 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 December 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. Because of the need to provide immediate guidance for the valuation and payment of benefits under plans with valuation dates during January 2018, 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’’ For plans with a valuation date On or after * 291 ........................ Before * 1–1–18 2–1–18 nshattuck on DSK9F9SC42PROD with RULES On or after Before * 1–1–18 2–1–18 Jkt 244001 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 291 is added at the end of the table to read as follows: ■ Appendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments * * * i2 * i3 * 4.00 4.00 * * For plans with a valuation date 15:15 Dec 14, 2017 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. * n1 * n2 * 7 8 n1 n2 Appendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments Rate set VerDate Sep<11>2014 29 CFR Part 4022 i1 0.75 * * 291 ........................ List of Subjects 4.00 * 3. In appendix C to part 4022, Rate Set 291 is added at the end of the table to read as follows: ■ 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). Deferred annuities (percent) Immediate annuity rate (percent) Rate set under the criteria set forth in Executive Order 12866. * * Deferred annuities (percent) Immediate annuity rate (percent) * PO 00000 * i1 i2 i3 4.00 * 4.00 4.00 E:\FR\FM\15DER1.SGM 15DER1 * 0.75 Frm 00012 Fmt 4700 Sfmt 4700 * * 7 8 59517 Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Rules and Regulations Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362. PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS 4. The authority citation for part 4044 continues to read as follows: it * * January–March 2018 ................................ BILLING CODE 7709–02–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 100 [Docket No. USCG–2017–0916] Special Local Regulation; Southern California Annual Marine Events for the San Diego Captain of the Port Zone—San Diego Parade of Lights Coast Guard, DHS. Notice of enforcement of regulation. AGENCY: ACTION: The Coast Guard will enforce the San Diego Parade of Lights special local regulations on the waters of San Diego Bay, California on December 17, 2017. These special local regulations are necessary to provide for the safety of the participants, crew, spectators, sponsor vessels, and general users of the waterway. During the enforcement period, persons and vessels are prohibited from anchoring, blocking, loitering, or impeding within this regulated area unless authorized by the Captain of the Port, or his designated representative. DATES: The regulations in 33 CFR 100.1101 will be enforced from 4:30 p.m. through 8:30 p.m. on December 17, 2017 for Item 5 in Table 1 of § 100.1101. FOR FURTHER INFORMATION CONTACT: If you have questions about this publication of enforcement, call or email Lieutenant Junior Grade Briana Biagas, Waterways Management, U.S. Coast Guard Sector San Diego, CA; telephone (619) 278–7656, email D11MarineEventsSD@uscg.mil. nshattuck on DSK9F9SC42PROD with RULES it * 1–20 0.0239 [FR Doc. 2017–26963 Filed 12–14–17; 8:45 am] Jkt 244001 for t = * Issued in Washington, DC. Daniel S. Liebman, Acting Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. 15:15 Dec 14, 2017 * * * * * The values of it are: For valuation dates occurring in the month— VerDate Sep<11>2014 5. In appendix B to part 4044, an entry for January–March 2018 is added at the end of the table to read as follows: ■ ■ SUMMARY: Appendix B to Part 4044—Interest Rates Used to Value Benefits for t = * 0.0260 it for t = * >20 * N/A The Coast Guard will enforce the special local regulations in 33 CFR 100.1101 for the San Diego Parade of Lights in San Diego Bay Bay, CA in 33 CFR 100.1101, Table 1, Item 5 of that section from 4:30 p.m. until 8:30 p.m. on December 17, 2017. This enforcement action is being taken to provide for the safety of life on navigable waterways during the event. The Coast Guard’s regulation for recurring marine events in the San Diego Captain of the Port Zone identifies the regulated entities and area for this event. Under the provisions of 33 CFR 100.1101, persons and vessels are prohibited from anchoring, blocking, loitering, or impeding within this regulated area, unless authorized by the Captain of the Port, or his designated representative. The Coast Guard may be assisted by other Federal, State, or local law enforcement agencies in enforcing this regulation. This document is issued under authority of 5 U.S.C. 552(a) and 33 CFR 100.1101. In addition to this document in the Federal Register, the Coast Guard will provide the maritime community with advance notification of this enforcement period via the Local Notice to Mariners, Broadcast Notice to Mariners, and local advertising by the event sponsor. If the Captain of the Port Sector San Diego or his designated representative determines that the regulated area need not be enforced for the full duration stated on this document, he or she may use a Broadcast Notice to Mariners or other communications coordinated with the event sponsor to grant general permission to enter the regulated area. DEPARTMENT OF HOMELAND SECURITY Dated: December 5, 2017. J.R. Buzzella, Captain, U.S. Coast Guard, Captain of the Port San Diego. I. Table of Abbreviations N/A SUPPLEMENTARY INFORMATION: [FR Doc. 2017–27111 Filed 12–14–17; 8:45 am] BILLING CODE 9110–04–P PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 Coast Guard 33 CFR Part 117 [Docket No. USCG–2016–0776] RIN 1625–AA09 Drawbridge Operation Regulation; Ashley River, Charleston, SC Coast Guard, DHS. Final rule. AGENCY: ACTION: The Coast Guard is modifying the operating schedule that governs the US17 Highway Bridges (Ashley River Bridges), across the Ashley River, miles 2.4 and 2.5, in Charleston, SC. This rule requires a bridge tender to be present during daytime hours only from 9 a.m. to 4 p.m. daily for on signal openings. All other times a 12 hour advanced notification is required. This modification provides relief to vehicle traffic congestion with minimal effect on navigation. DATES: This rule is effective January 16, 2018. ADDRESSES: To view documents mentioned in this preamble as being available in the docket, go to http:// www.regulations.gov. Type USCG– 2016–0776 in the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ Click on Open Docket Folder on the line associated with this rulemaking. FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, call or email LT Justin Heck, Coast Guard Sector Charleston, SC, Waterways Management Division; telephone 843– 740–3184, email justin.c.heck@uscg.mil. SUPPLEMENTARY INFORMATION: SUMMARY: CFR Code of Federal Regulations DHS Department of Homeland Security FR Federal Register OMB Office of Management and Budget NPRM Notice of Proposed Rulemaking (Advance, Supplemental) E:\FR\FM\15DER1.SGM 15DER1

Agencies

[Federal Register Volume 82, Number 240 (Friday, December 15, 2017)]
[Rules and Regulations]
[Pages 59515-59517]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26963]


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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 January 2018 and interest assumptions under the 
asset allocation regulation for valuation dates in the first quarter of 
2018. 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 January 1, 2018.

FOR FURTHER INFORMATION CONTACT: Daniel S. Liebman 
([email protected]), 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 regulations on Allocation of Assets 
in Single-Employer Plans (29 CFR part 4044) and Benefits Payable in

[[Page 59516]]

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 website 
(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 January 2018, and 
updates the asset allocation interest assumptions for the first quarter 
(January through March) of 2018.
    The first quarter 2018 interest assumptions under the allocation 
regulation will be 2.39 percent for the first 20 years following the 
valuation date and 2.60 percent thereafter. In comparison with the 
interest assumptions in effect for the fourth quarter of 2017, this 
represents no change in the select period (the period during which the 
select rate, the initial rate, applies), an increase of 0.05 percent in 
the select rate, and a decrease of 0.03 percent in the ultimate rate, 
the final rate.
    The January 2018 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 December 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.
    Because of the need to provide immediate guidance for the valuation 
and payment of benefits under plans with valuation dates during January 
2018, 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 291 is added at the end of 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
291............................          1-1-18           2-1-18             0.75          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------


0
3. In appendix C to part 4022, Rate Set 291 is added at the end of 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
291............................          1-1-18           2-1-18             0.75          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 59517]]

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 January-March 2018 is added 
at the end of the table to read as follows:

Appendix B to Part 4044--Interest Rates Used to Value Benefits

* * * * *

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               The values of it are:
      For valuation dates occurring in the month--       -----------------------------------------------------------------------------------------------
                                                                it            for t =           it            for t =           it            for t =
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
January-March 2018......................................          0.0239            1-20          0.0260             >20             N/A             N/A
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC.
Daniel S. Liebman,
Acting Assistant General Counsel for Regulatory Affairs, Pension 
Benefit Guaranty Corporation.
[FR Doc. 2017-26963 Filed 12-14-17; 8:45 am]
 BILLING CODE 7709-02-P