Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 27898-27899 [2018-12549]

Download as PDF 27898 Federal Register / Vol. 83, No. 116 / Friday, June 15, 2018 / Rules and Regulations (9) Performance data must support the shelf life of the device by demonstrating continued sterility, package integrity, and device functionality over the identified shelf life. (10) Performance data must validate the instructions for reprocessing and reliability of reusable components. (11) Labeling must include the following: (i) A section that summarizes the clinical testing results, including the adverse event profile and improvement in LUTS; (ii) A shelf life for single use components; (iii) A use life for reusable components; and (iv) Reprocessing instructions for reusable components. Dated: June 8, 2018. Leslie Kux, Associate Commissioner for Policy. [FR Doc. 2018–12829 Filed 6–14–18; 8:45 am] BILLING CODE 4164–01–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 2018 and interest assumptions under the asset allocation regulation for valuation dates in the third 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 July 1, 2018. FOR FURTHER INFORMATION CONTACT: Hilary Duke (duke.hilary@PBGC.gov), Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street sradovich on DSK3GMQ082PROD with RULES SUMMARY: VerDate Sep<11>2014 15:57 Jun 14, 2018 Jkt 244001 NW, Washington, DC 20005, 202–326– 4400, ext. 3839. (TTY users may call the Federal relay service toll free at 1–800– 877–8339 and ask to be connected to 202–326–4400, ext. 3839.) 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 (ERISA). The interest assumptions in the regulations are also published on PBGC’s website (https://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 2018 and updates the asset allocation interest assumptions for the third quarter (July through September) of 2018. The third quarter 2018 interest assumptions under the allocation regulation will be 2.53 percent for the first 25 years following the valuation date and 2.64 percent thereafter. In comparison with the interest assumptions in effect for the second quarter of 2018, these interest assumptions represent an increase of 5 years in the select period (the period during which the select rate (the initial rate) applies), an increase of 0.26 percent in the select rate, and an increase of 0.05 percent in the ultimate rate (the final rate). The July 2018 interest assumptions under the benefit payments regulation will be 1.25 percent for the period PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 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 2018, these interest assumptions represent no change in the immediate rate and no changes in i1, i2, or i3. 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 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 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 297 is added at the end of the table to read as follows: ■ Appendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments * E:\FR\FM\15JNR1.SGM * * 15JNR1 * * 27899 Federal Register / Vol. 83, No. 116 / Friday, June 15, 2018 / Rules and Regulations For plans with a valuation date Rate set On or after * Before * 297 8–1–18 3. In appendix C to part 4022, Rate Set 297 is added at the end of the table to read as follows: ■ For plans with a valuation date On or after * Before * n2 * * 4.00 Immediate annuity rate (percent) 1.25 * 7 8 n1 n2 * Deferred annuities (percent) i1 i2 * 4.00 i3 4.00 * * * 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 2018’’ is added at the end of the table to read as follows: * ■ * * * * The values of it are: it for t = it 1–25 * * 0.0264 * 0.0253 Issued in Washington, DC. Hilary Duke, Assistant General Counsel, Pension Benefit Guaranty Corporation. for t = BILLING CODE 7709–02–P DEPARTMENT OF HOMELAND SECURITY This rule is effective from 9 p.m. to 11 p.m. on June 30, 2018. If you have questions on this rule, call or email LCDR Barbara Wilk, Waterways Management Division Chief, Sector Hampton Roads, U.S. Coast Guard; telephone 757–668–5580, email HamptonRoadsWaterways@uscg.mil. FOR FURTHER INFORMATION CONTACT: 33 CFR Part 165 [Docket Number USCG–2018–0330] RIN 1625–AA00 Safety Zone; Appomattox River, Hopewell, VA SUPPLEMENTARY INFORMATION: Coast Guard, DHS. ACTION: Temporary final rule. AGENCY: I. Table of Abbreviations The Coast Guard is establishing a temporary safety zone for a marine event on the navigable waters of the Appomattox River at confluence with the James River in Hopewell, VA. This action is necessary to provide for SUMMARY: 15:57 Jun 14, 2018 Jkt 244001 CFR Code of Federal Regulations COTP Captain of the Port DHS Department of Homeland Security FR Federal Register NPRM Notice of proposed rulemaking § Section U.S.C. United States Code PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 for t = * N/A >25 DATES: Coast Guard it * the safety of life on these navigable waters in Hopewell, VA, during a fireworks display on June 30, 2018. This rule prohibits persons and vessels from being in the safety zone unless authorized by the Captain of the Port Hampton Roads or a designated representative. [FR Doc. 2018–12549 Filed 6–14–18; 8:45 am] sradovich on DSK3GMQ082PROD with RULES 4.00 n1 Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362. 4. The authority citation for part 4044 continues to read as follows: VerDate Sep<11>2014 * * ■ * July–September 2018 .... * 8–1–18 PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS For valuation dates occurring in the month— i3 Appendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments * 7–1–18 i2 * 4.00 1.25 * 297 i1 * 7–1–18 Rate set Deferred annuities (percent) Immediate annuity rate (percent) * N/A II. Background Information and Regulatory History On March 27, 2018, the Hopewell Recreation and Parks Department notified the Coast Guard that it will be conducting a fireworks display from approximately 9:30 to 9:45 p.m. on June 30, 2018, to serve as the city of Hopewell’s Fourth of July celebration. The fireworks are to be launched from a barge in the Appomattox River near City Point in Hopewell, VA. In response, on May 31, 2018, the Coast Guard published a notice of proposed rulemaking (NPRM) titled Safety Zone; Appomattox River, Hopewell, VA (83 FR 24950). There we stated why we issued the NPRM, and invited comments on our proposed regulatory action related to this fireworks display. During the comment period that ended June 7, 2018, we received no comments. Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days after publication in the Federal Register. Delaying the effective date of this rule would be impracticable because immediate action is needed to E:\FR\FM\15JNR1.SGM 15JNR1

Agencies

[Federal Register Volume 83, Number 116 (Friday, June 15, 2018)]
[Rules and Regulations]
[Pages 27898-27899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12549]


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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 2018 and interest assumptions under the 
asset allocation regulation for valuation dates in the third 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 July 1, 2018.

FOR FURTHER INFORMATION CONTACT: Hilary Duke ([email protected]), 
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation, 1200 K Street NW, Washington, DC 20005, 202-326-
4400, ext. 3839. (TTY users may call the Federal relay service toll 
free at 1-800-877-8339 and ask to be connected to 202-326-4400, ext. 
3839.)

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 (ERISA). The 
interest assumptions in the regulations are also published on PBGC's 
website (https://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 2018 and 
updates the asset allocation interest assumptions for the third quarter 
(July through September) of 2018.
    The third quarter 2018 interest assumptions under the allocation 
regulation will be 2.53 percent for the first 25 years following the 
valuation date and 2.64 percent thereafter. In comparison with the 
interest assumptions in effect for the second quarter of 2018, these 
interest assumptions represent an increase of 5 years in the select 
period (the period during which the select rate (the initial rate) 
applies), an increase of 0.26 percent in the select rate, and an 
increase of 0.05 percent in the ultimate rate (the final rate).
    The July 2018 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 June 2018, these interest assumptions 
represent no change in the immediate rate and no changes in i1, i2, or 
i3.
    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 
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 297 is added at the end of the 
table to read as follows:

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

* * * * *

[[Page 27899]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                   For plans with a valuation date     Immediate                                 Deferred annuities (percent)
    Rate set     ----------------------------------   annuity rate  ------------------------------------------------------------------------------------
                    On or after         Before         (percent)            i                i                i                n                n
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          297            7-1-18           8-1-18             1.25             4.00             4.00             4.00                7                8
--------------------------------------------------------------------------------------------------------------------------------------------------------


0
3. In appendix C to part 4022, Rate Set 297 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)            i                i                i                n                n
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          297            7-1-18           8-1-18             1.25             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 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 i are:
   For valuation dates occurring in the month--    -----------------------------------------------------------------------------------------------------
                                                           i             for t =             i             for t =             i             for t =
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
July-September 2018...............................          0.0253             1-25           0.0264              >25              N/A              N/A
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2018-12549 Filed 6-14-18; 8:45 am]
 BILLING CODE 7709-02-P


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