Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 1553-1555 [2018-00348]
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Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations
sradovich on DSK3GMQ082PROD with RULES
maximum amount provided for by
Federal law; (2) assessed or enforced by
an agency pursuant to Federal law; and
(3) assessed or enforced pursuant to an
administrative proceeding or a civil
action in the Federal courts.
The Inflation Adjustment Act, as
amended, requires agencies to adjust
civil monetary penalties by the inflation
adjustment described in section 5 of the
Inflation Adjustment Act no later than
January 15 of every year thereafter. The
Act also provides that any increase in a
civil monetary penalty shall apply only
to civil monetary penalties, including
those whose associated violation
predated such an increase, which are
assessed after the date the increase takes
effect.
The Inflation Adjustment Act, as
amended, provides that the inflation
adjustment does not apply to civil
monetary penalties under the Internal
Revenue Code of 1986 or the Tariff Act
of 1930.
Alcoholic Beverage Labeling Act
The Alcohol and Tobacco Tax and
Trade Bureau (TTB) administers the
Federal Alcohol Administration Act
(FAA Act) pursuant to section 1111(d)
of the Homeland Security Act of 2002,
codified at 6 U.S.C. 531(d). The
Secretary has delegated various
authorities through Treasury
Department Order 120–01, dated
December 10, 2013, (superseding
Treasury Department Order 120–01,
dated January 24, 2003), to the TTB
Administrator to perform the functions
and duties in the administration and
enforcement of this law.
The FAA Act contains the Alcoholic
Beverage Labeling Act (ABLA) of 1988,
Public Law 100–690, 27 U.S.C. 213–
219a, which was enacted on November
18, 1988. Section 204 of the ABLA,
codified in 27 U.S.C. 215, requires that
a health warning statement appear on
the labels of all containers of alcoholic
beverages manufactured, imported, or
bottled for sale or distribution in the
United States, as well as on containers
of alcoholic beverages that are
manufactured, imported, bottled, or
labeled for sale, distribution, or
shipment to members or units of the
U.S. Armed Forces, including those
located outside the United States.
The health warning statement
requirement applies to containers of
alcoholic beverages manufactured,
imported, or bottled for sale or
distribution in the United States on or
after November 18, 1989. The statement
reads as follows:
GOVERNMENT WARNING: (1) According
to the Surgeon General, women should not
drink alcoholic beverages during pregnancy
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15:52 Jan 11, 2018
Jkt 244001
because of the risk of birth defects. (2)
Consumption of alcoholic beverages impairs
your ability to drive a car or operate
machinery, and may cause health problems.
Section 204 of the ABLA also
specifies that the Secretary of the
Treasury shall have the power to ensure
the enforcement of the provisions of the
ABLA and issue regulations to carry out
them out. In addition, section 207 of the
ABLA, codified in 27 U.S.C. 218,
provides that any person who violates
the provisions of the ABLA is subject to
a civil penalty of not more than $10,000,
with each day constituting a separate
offense.
Most of the civil monetary penalties
administered by TTB are imposed by
the Internal Revenue Code of 1986, and
thus are not subject to the inflation
adjustment mandated by the Inflation
Adjustment Act. The only civil
monetary penalty enforced by TTB that
is subject to the inflation adjustment is
the penalty imposed by the ABLA at 27
U.S.C. 218.
TTB Regulations
The TTB regulations implementing
the ABLA are found in 27 CFR part 16,
and the regulations implementing the
Inflation Adjustment Act with respect to
the ABLA penalty are found in 27 CFR
16.33. This section indicates that the
ABLA provides that any person who
violates the provisions of this part shall
be subject to a civil penalty of not more
than $10,000, but also states that,
pursuant to the provisions of the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended,
this civil penalty is subject to periodic
cost-of-living adjustment. Accordingly,
any person who violates the provisions
of 27 CFR part 16 shall be subject to a
civil penalty of not more than the
amount listed at https://www.ttb.gov/
regulation_guidance/ablapenalty.html.
Each day shall constitute a separate
offense.
To adjust the penalty, § 16.33(b)
indicates that TTB will provide notice
in the Federal Register and at the
website mentioned above of cost-ofliving adjustments to the civil penalty
for violations of 27 CFR part 16.
Penalty Adjustment
In this document, TTB is publishing
its yearly adjustment to the maximum
ABLA penalty, as required by the
amended Inflation Adjustment Act.
As mentioned earlier, the ABLA
contains a maximum civil monetary
penalty. For such penalties, Section 5 of
the Inflation Adjustment Act indicates
that the inflation adjustment shall be
determined by increasing the maximum
penalty by the cost-of-living adjustment.
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1553
The cost-of-living adjustment means the
percentage (if any) by which the
Consumer Price Index for all-urban
consumers (CPI–U) for the month of
October preceding the date of the
adjustment exceeds the CPI–U for the
month of October 1 year before the
month of October preceding the date of
the adjustment.
The CPI–U in October 2016 was
241.729, and the CPI–U in October 2017
was 246.663. The rate of inflation
between October 2016 and October 2017
is therefore 2.041 percent. When
applied to the current ABLA penalty of
$20,111, this rate of inflation yields a
raw (unrounded) inflation adjustment of
$410.46551. Rounded to the nearest
dollar, the inflation adjustment is $410,
meaning that the new maximum civil
penalty for violations of the ABLA will
be $20,521.
The new maximum civil penalty will
apply to all penalties that are assessed
after January 12, 2018. TTB will also
update its web page at https://
www.ttb.gov/regulation_guidance/
ablapenalty.html to reflect the adjusted
penalty.
Dated: January 8, 2018.
Amy R. Greenberg,
Director, Regulations and Rulings Division.
[FR Doc. 2018–00417 Filed 1–11–18; 8:45 am]
BILLING CODE 4810–31–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:
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
February 2018. The interest
assumptions are used for paying
benefits under terminating singleemployer plans covered by the pension
insurance system administered by
PBGC.
SUMMARY:
DATES:
Effective February 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–
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Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations
326–4400 ext. 6510. (TTY/ASCII users
may call the Federal relay service tollfree 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
website (https://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
Rate set
For plans with a valuation
date
On or after
*
292
Before
payments regulation are updated
monthly. This final rule updates the
benefit payments interest assumptions
for February 2018.1
The February 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 January 2018,
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 payment of
benefits under plans with valuation
dates during February 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’’
3. In appendix C to part 4022, Rate Set
292 is added at the end of the table to
read as follows:
■
For plans with a valuation
date
On or after
*
sradovich on DSK3GMQ082PROD with RULES
292
Before
*
2–1–18
VerDate Sep<11>2014
15:52 Jan 11, 2018
*
*
Immediate
annuity rate
(percent)
*
Jkt 244001
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
292 is added at the end of the table to
read as follows:
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
*
i3
4.00
*
n1
*
4.00
n2
*
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
3–1–18
1 Appendix B to PBGC’s regulation on Allocation
of Assets in Single-Employer Plans (29 CFR part
4044) prescribes interest assumptions for valuing
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
In consideration of the foregoing, 29
CFR part 4022 is amended as follows:
i2
*
4.00
0.75
*
Rate set
i1
*
3–1–18
List of Subjects in 29 CFR Part 4022
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
2–1–18
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).
0.75
*
*
Deferred annuities
(percent)
i1
i2
*
4.00
i3
4.00
*
benefits under terminating covered single-employer
plans for purposes of allocation of assets under
PO 00000
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Fmt 4700
Sfmt 9990
*
4.00
*
7
8
ERISA section 4044. Those assumptions are
updated quarterly.
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Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations
Issued in Washington, DC.
Daniel S. Liebman,
Acting Assistant General Counsel for
Regulatory Affairs, Pension Benefit Guaranty
Corporation.
[FR Doc. 2018–00348 Filed 1–11–18; 8:45 am]
BILLING CODE 7709–02–P
Major Provisions of the Regulatory
Action
This rule adjusts as required by law
the maximum civil penalties that PBGC
may assess under sections 4071 and
4302 of ERISA. The new maximum
amounts are $2,140 for section 4071
penalties and $285 for section 4302
penalties.
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Parts 4071 and 4302
RIN 1212–AB45
Adjustment of Civil Penalties for
Inflation
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
The Pension Benefit Guaranty
Corporation is required to amend its
regulations annually to adjust for
inflation the maximum civil penalty for
failure to provide certain notices or
other material information and for
failure to provide certain multiemployer
plan notices.
DATES: Effective date: This rule is
effective on January 12, 2018.
Applicability date: The increases in
the civil monetary penalties under
sections 4071 and 4302 provided for in
this rule apply to such penalties
assessed after January 12, 2018.
FOR FURTHER INFORMATION CONTACT:
Stephanie Cibinic, Deputy Assistant
General Counsel for Regulatory Affairs
(cibinic.stephanie@pbgc.gov), Office of
the General Counsel, Pension Benefit
Guaranty Corporation, 1200 K Street
NW, Washington, DC 20005–4026; 202–
326–4400 extension 6352. (TTY and
TDD users may call the Federal relay
service toll-free at 800–877–8339 and
ask to be connected to 202–326–4400
extension 6352.)
SUPPLEMENTARY INFORMATION:
SUMMARY:
Executive Summary
sradovich on DSK3GMQ082PROD with RULES
Purpose of the Regulatory Action
This rule is needed to carry out the
requirements of the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 and Office of
Management and Budget guidance M–
18–03. The rule adjusts, as required for
2018, the maximum civil penalties
under 29 CFR part 4071 and 29 CFR part
4302 that PBGC may assess for failure to
provide certain notices or other material
information and certain multiemployer
plan notices.
PBGC’s legal authority for this action
comes from the Federal Civil Penalties
Inflation Adjustment Act of 1990 as
VerDate Sep<11>2014
15:52 Jan 11, 2018
Jkt 244001
amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015 and from sections
4002(b)(3), 4071, and 4302 of the
Employee Retirement Income Security
Act of 1974 (ERISA).
Background
The Pension Benefit Guaranty
Corporation (PBGC) administers title IV
of the Employee Retirement Income
Security Act of 1974 (ERISA). Title IV
has two provisions that authorize PBGC
to assess civil monetary penalties.1
Section 4302, added to ERISA by the
Multiemployer Pension Plan
Amendments Act of 1980, authorizes
PBGC to assess a civil penalty of up to
$100 a day for failure to provide a notice
under subtitle E of title IV of ERISA
(dealing with multiemployer plans).
Section 4071, added to ERISA by the
Omnibus Budget Reconciliation Act of
1987, authorizes PBGC to assess a civil
penalty of up to $1,000 a day for failure
to provide a notice or other material
information under subtitles A, B, and C
of title IV and sections 303(k)(4) and
306(g)(4) of title I of ERISA.
Adjustment of Civil Penalties
On November 2, 2015, the President
signed into law the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015,2 which
requires agencies to adjust civil
monetary penalties for inflation and to
publish the adjustments in the Federal
Register. An initial adjustment was
required to be made by interim final
rule published by July 1, 2016, and
effective by August 1, 2016. Subsequent
adjustments must be promulgated in
January each year after 2016. In an
interim final rule published on May 13,
2016 (at 81 FR 29765), PBGC adjusted
the maximum penalty under section
4071 to $2,063 and adjusted the
maximum penalty under section 4302 to
1 Under the Federal Civil Penalties Inflation
Adjustment Act of 1990, a penalty is a civil
monetary penalty if (among other things) it is for
a specific monetary amount or has a maximum
amount specified by Federal law. Title IV also
provides (in section 4007) for penalties for late
payment of premiums, but those penalties are
neither in a specified amount nor subject to a
specified maximum amount.
2 Sec. 701, Public Law 114–74, 129 Stat. 599–601
(Bipartisan Budget Act of 2015).
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Fmt 4700
Sfmt 4700
1555
$275.3 In a final rule published on
January 31, 2017 (at 82 FR 8813), PBGC
finalized its interim final rule and
adjusted the maximum penalty under
section 4071 to $2,097 and the
maximum penalty under section 4302 to
$279.4
On December 15, 2017, the Office of
Management and Budget issued
memorandum M–18–03 on
implementation of the 2018 annual
inflation adjustment pursuant to the
2015 act.5 The memorandum provides
agencies with the cost-of-living
adjustment multiplier for 2018, which is
based on the Consumer Price Index
(CPI–U) for the month of October 2017,
not seasonally adjusted. The multiplier
for 2018 is 1.02041. The adjusted
maximum amounts are $2,140 for
section 4071 penalties and $285 for
section 4302 penalties.
Compliance With Regulatory
Requirements
The Office of Management and Budget
has determined that this rule is not a
‘‘significant regulatory action’’ under
Executive Order 12866 and therefore not
subject to their review. As this is not a
significant regulatory action under E.O.
12866, it is not considered an E.O.
13771 regulatory action.
The Office of Management and Budget
also has determined that notice and
public comment on this final rule are
unnecessary because the adjustment of
civil penalties implemented in the rule
is required by law. See 5 U.S.C. 553(b).
Because no general notice of proposed
rulemaking is required for this rule, the
Regulatory Flexibility Act of 1980 does
not apply. See 5 U.S.C. 601(2).
List of Subjects
29 CFR Part 4071
Penalties.
29 CFR Part 4302
Penalties.
In consideration of the foregoing,
PBGC amends 29 CFR parts 4071 and
4302 as follows:
3 The Office of Management and Budget issued
memorandum M–16–06 on implementation of the
2015 act, including multipliers to use in the initial
adjustment.
4 The Office of Management and Budget issued
memorandum M–17–11 on December 16, 2016, on
implementation of the 2015 act, including the costof-living adjustment multiplier for 2017.
5 https://www.whitehouse.gov/wp-content/
uploads/2017/11/M-18-03.pdf
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12JAR1
]]>Agencies
[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Rules and Regulations]
[Pages 1553-1555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00348]
=======================================================================
-----------------------------------------------------------------------
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 February 2018. The interest assumptions are used
for paying benefits under terminating single-employer plans covered by
the pension insurance system administered by PBGC.
DATES: Effective February 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-
[[Page 1554]]
326-4400 ext. 6510. (TTY/ASCII 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 website
(https://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 February 2018.\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 February 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 January 2018, 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 payment
of benefits under plans with valuation dates during February 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 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 292 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
292 2-1-18 3-1-18 0.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 292 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
292 2-1-18 3-1-18 0.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 1555]]
Issued in Washington, DC.
Daniel S. Liebman,
Acting Assistant General Counsel for Regulatory Affairs, Pension
Benefit Guaranty Corporation.
[FR Doc. 2018-00348 Filed 1-11-18; 8:45 am]
BILLING CODE 7709-02-P
