Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 64280-64282 [2018-26849]

Download as PDF 64280 Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Rules and Regulations Zena Road, just northwest of Bethel; then (13) Follow the 200-foot contour line easterly and then southerly until its first intersection with Zena Road, and then follow Zena Road west approximately 0.25 mile to its southern intersection with Oak Grove Road, south of Bethel; then * * * * * (15) Follow Frizzell Road west for approximately 0.25 mile to its first intersection with the 200-foot contour line, then (16) Follow the 200-foot contour line generally south, crossing onto the Rickreall, Oregon, map, until the contour line intersects the beginning point. ■ 3. Subpart C is amended by adding § 9.265 to read as follows: amozie on DSK3GDR082PROD with RULES § 9.265 Van Duzer Corridor. (a) Name. The name of the viticultural area described in this section is ‘‘Van Duzer Corridor’’. For purposes of part 4 of this chapter, ‘‘Van Duzer Corridor’’ is a term of viticultural significance. (b) Approved maps. The five United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Van Duzer Corridor viticultural area are titled: (1) Sheridan, Oreg., 1956; revised 1992; (2) Ballston, Oreg., 1956; revised 1992; (3) Dallas, Oreg., 1974; photorevised 1986; (4) Amity, Oreg., 1957; revised 1993; and (5) Rickreall, Oreg., 1969; photorevised 1976; (c) Boundary. The Van Duzer Corridor viticultural area is located in Polk and Yamhill Counties, in Oregon. The boundary of the Van Duzer Corridor viticultural area is as described below: (1) The beginning point is on the Sheridan map at the intersection of State Highway 22 and Red Prairie Road. From the beginning point, proceed southeasterly along State Highway 22 for a total of 12.4 miles, crossing over the Ballston and Dallas maps and onto the Rickreall map, to the intersection of the highway with the 200-foot elevation contour west of the Oak Knoll Golf Course; then (2) Proceed north on the 200-foot elevation contour, crossing onto the Amity map, to the third intersection of the elevation contour with Frizzell Road; then (3) Proceed east on Frizzell Road for 0.3 mile to the intersection of the road with Oak Grove Road; then VerDate Sep<11>2014 16:07 Dec 13, 2018 Jkt 247001 (4) Proceed north along Oak Grove Road for 1.7 miles to the intersection of the road with Zena Road; then (5) Proceed east on Zena Road for approximately 0.25 mile to the second intersection of the road with the 200foot elevation contour; then (6) Proceed northwest along the 200foot elevation contour to the intersection of the elevation contour with Oak Grove Road; then (7) Proceed north along Oak Grove Road (which becomes Old Bethel Road) approximately 7.75 miles to the intersection of the road with Patty Lane; then (8) Proceed west in a straight line for a total of 10.8 miles, crossing over the Ballston map and onto the Sheridan map, to the intersection of the line with State Highway 18; then (9) Proceed southwest along State Highway 18 for 0.3 miles to the intersection of the highway with Red Prairie Road; then (10) Proceed south along Red Prairie Road for approximately 5.3 miles, returning to the beginning point. Signed: October 9, 2018. John J. Manfreda, Administrator. Approved: December 4, 2018. Timothy E. Skud, Deputy Assistant Secretary (Tax, Trade, and Tariff Policy). [FR Doc. 2018–27017 Filed 12–13–18; 8:45 am] BILLING CODE 4810–31–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 2019 and interest assumptions under the asset allocation regulation for valuation dates in the first quarter of 2019. The interest assumptions are used for valuing and paying benefits under terminating single-employer plans covered by the SUMMARY: PO 00000 Frm 00058 Fmt 4700 Sfmt 4700 pension insurance system administered by PBGC. DATES: Effective January 1, 2019. FOR FURTHER INFORMATION CONTACT: Melissa Rifkin (rifkin.melissa@ PBGC.gov), Attorney, Regulatory Affairs Division, Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 20005, 202–326–4400, ext. 6563. (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. 6563.) 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 January 2019 and updates the asset allocation interest assumptions for the first quarter (January through March) of 2019. The first quarter 2019 interest assumptions under the allocation regulation will be 3.09 percent for the first 20 years following the valuation date and 2.84 percent thereafter. In comparison with the interest assumptions in effect for the fourth quarter of 2018, these interest assumptions represent no change in the select period (the period during which the select rate (the initial rate) applies), an increase of 0.25 percent in the select E:\FR\FM\14DER1.SGM 14DER1 64281 Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Rules and Regulations rate, and an increase of 0.08 percent in the ultimate rate (the final rate). The January 2019 interest assumptions under the benefit payments regulation will be 1.50 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 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. Rate set For plans with a valuation date On or after * 303 Before Because of the need to provide immediate guidance for the valuation and payment of benefits under plans with valuation dates during January 2019, 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. * 2–1–19 1.50 3. In appendix C to part 4022, Rate Set 303 is added at the end of the table to read as follows: ■ For plans with a valuation date On or after * 303 Before * * 1.50 Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344. 2. In appendix B to part 4022, Rate Set 303 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 * * * * 4.00 4.00 i3 * n1 * n2 * * 4.00 7 8 n1 n2 * i1 i2 * 4.00 4.00 i3 * * * 4.00 7 8 Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362. Appendix B to Part 4044—Interest Rates Used to Value Benefits 5. In appendix B to part 4044, an entry for ‘‘January–March 2019’’ is added at the end of the table to read as follows: * ■ 4. The authority citation for part 4044 continues to read as follows: ■ 1. The authority citation for part 4022 continues to read as follows: ■ Deferred annuities (percent) * 2–1–19 PART 4044—ALLOCATION OF ASSETS IN SINGLE–EMPLOYER PLANS i1 * Immediate annuity rate (percent) * 1–1–19 PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS Appendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments * Rate set Employee benefit plans, Pension insurance, Pensions. In consideration of the foregoing, 29 CFR parts 4022 and 4044 are amended as follows: Deferred annuities (percent) Immediate annuity rate (percent) * 1–1–19 29 CFR Part 4044 * * * * The values of it are: For valuation dates occurring in the month— it amozie on DSK3GDR082PROD with RULES * * * January–March 2019 ........................................................ VerDate Sep<11>2014 16:07 Dec 13, 2018 Jkt 247001 PO 00000 for t = it for t = 1–20 * 0.0284 >20 E:\FR\FM\14DER1.SGM 14DER1 * 0.0309 Frm 00059 Fmt 4700 Sfmt 4700 it * for t = * N/A N/A 64282 Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Rules and Regulations Issued in Washington, DC. Hilary Duke, Assistant General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2018–26849 Filed 12–13–18; 8:45 am] BILLING CODE 7709–02–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R03–OAR–2018–0490; FRL–9987–81– Region 3] amozie on DSK3GDR082PROD with RULES Air Plan Approval; Maryland; Continuous Opacity Monitoring Requirements for Municipal Waste Combustors and Cement Plants to clarify visible emissions (VE) and continuous opacity monitor (COM) requirements for MWCs and Portland cement plants. The formal SIP revision (SIP Revision 16–04) was submitted by Maryland on May 10, 2016. On February 28, 2018, the Maryland Department of the Environment (MDE) Secretary Ben Grumbles submitted a clarification letter to EPA Regional Administrator Cosmo Servidio, withdrawing definitions for continuous burning and operating time, COMAR 26.11.01.01B(8–1) and (27–1), respectively, from SIP Revision 16–04. These definitions are no longer part of SIP Revision 16–04 and are not pending before EPA. II. Summary of SIP Revision and EPA Analysis The SIP revision consisted of AGENCY: Environmental Protection revisions to COMAR 26.11.01.10, Agency (EPA). Continuous Opacity Monitoring ACTION: Final rule. Requirements. Under COMAR SUMMARY: The Environmental Protection 26.11.01.10A, Applicability and Exceptions, MDE added a new section, Agency (EPA) is approving a state COMAR 26.11.01.10A(6), regarding implementation plan (SIP) revision submitted by the State of Maryland (SIP requirements for alternative visible emissions limits. Under COMAR Revision 16–04). This revision pertains 26.11.01.10B, General Requirements for to clarifying continuous opacity COMs, MDE amended COMAR monitoring requirements and visible emission standards for municipal waste 26.11.01.10B(3) to clarify that a COM must comply with the applicable combustors (MWCs) and Portland requirements in 40 CFR part 51, cement plants. This action is being appendix P in its entirety. Also under taken under the Clean Air Act (CAA). COMAR 26.11.01.10B, MDE added new DATES: This final rule is effective on sections COMAR 26.11.01.10B(5) and January 14, 2019. 26.11.01.10B(6) to clarify COM ADDRESSES: EPA has established a requirements for the owners and docket for this action under Docket ID Number EPA–R03–OAR–2018–0490. All operators of cement kilns and clinker coolers that are operating COMs and the documents in the docket are listed on the https://www.regulations.gov website. owners and operators of MWCs that are required to install and operate COMs, Although listed in the index, some respectively. MDE repealed information is not publicly available, 26.11.01.10F, regarding redundant e.g., confidential business information COMs requirements for fuel burning (CBI) or other information whose equipment, and is requesting its disclosure is restricted by statute. removal from the SIP. Finally, MDE Certain other material, such as amended COMAR 26.11.08, Control of copyrighted material, is not placed on Incinerators, to add a new section D to the internet and will be publicly regulation .04, Visible Emissions. available only in hard copy form. EPA evaluated these amendments and Publicly available docket materials are found that they help to clarify available through https:// requirements for COMs. Therefore, they www.regulations.gov, or please contact are approvable. Other specific the person identified in the FOR FURTHER requirements of Maryland’s SIP INFORMATION CONTACT section for Revision 16–04 and the rationale for additional availability information. EPA’s proposed action are explained in FOR FURTHER INFORMATION CONTACT: the NPRM and will not be restated here. Maria A. Pino, (215) 814–2181, or by III. Summary of Public Comments and email at pino.maria@epa.gov. EPA Responses SUPPLEMENTARY INFORMATION: On September 1, 2018, EPA received I. Background adverse comments from one anonymous On August 23, 2018 (83 FR 42624), commenter. Comment: The commenter observed EPA published a notice of proposed that in the docket for this rulemaking, rulemaking (NPRM) for the State of Docket ID No. EPA–R03–OAR–2018– Maryland. In the NPRM, EPA proposed approval of a revision to Maryland’s SIP 0490, at https://www.regulations.gov, VerDate Sep<11>2014 16:07 Dec 13, 2018 Jkt 247001 PO 00000 Frm 00060 Fmt 4700 Sfmt 4700 Maryland’s February 28, 2018 withdrawal letter looked incomplete. EPA Response: Upon receipt of the comment, EPA checked and confirmed that the second page of the letter was inadvertently excluded from the docket. EPA notes that the substance of the letter was contained in the first page of the letter, which was included in the docket. The first page explained that Maryland was withdrawing the definitions of continuous burning and operating time from EPA’s consideration as SIP revisions. ‘‘The purpose of this letter is to request a clarification to the Maryland SIP Rev #16–04, to withdraw two definitions under COMAR 26.11.01.01 Definitions from EPA’s consideration. Please remove the following two definitions from EPA’s consideration for inclusion into Maryland’s SIP as part of SIP Rev #16–04: COMAR 26.11.01.01.8: 1. (8–1) Continuous Burning 2. (27–1) Operating Time’’ The omitted second page contained only the following closing language: ‘‘. . . SIP submittal (enclosed) is an exact duplicate of the official hard copy. If you have any questions concerning this SIP action, please feel free to call me at (41 0) 537–3084 or Mr. George (Tad) S. Aburn, Jr., Director of the Air and Radiation Administration, at 410–537–3255. Sincerely, Ben Grumbles, Secretary. Enclosure cc: Mr. George (Tad) S. Aburn Jr., Director, Air and Radiation Administration; Ms. Cristina Fernandez, Director, Air Protection Division, EPA Region Ill’’ Although all the relevant substantive information was contained in the first page of the letter, which was include in the docket, EPA rectified the omission as quickly as possible. EPA posted Maryland’s complete two-page letter, dated February 28, 2018, to Docket ID No. EPA–R03–OAR–2018–0490, at https://www.regulations.gov, on September 4, 2018. The public comment period ran from August 23, 2018 until September 24, 2018. Comment: The commenter also stated that EPA’s NPRM was hard to understand, writing, ‘‘I can’t follow which COMAR applies to what COMAR because of what redundancies, changes, or what have you.’’ EPA Response: There were numerous changes discussed in EPA’s August 23, 2018 NPRM, which readers may find hard to follow. However, in section II of the NPRM, Summary of SIP Revision and EPA Analysis, EPA set out a section by section accounting of the proposed changes to Maryland’s SIP. In addition, in Docket ID No. EPA–R03–OAR–2018– 0490, at https://www.regulations.gov, there are numerous documents that are part of Maryland’s SIP Revision E:\FR\FM\14DER1.SGM 14DER1

Agencies

[Federal Register Volume 83, Number 240 (Friday, December 14, 2018)]
[Rules and Regulations]
[Pages 64280-64282]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26849]


=======================================================================
-----------------------------------------------------------------------

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 2019 and interest assumptions under the 
asset allocation regulation for valuation dates in the first quarter of 
2019. 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, 2019.

FOR FURTHER INFORMATION CONTACT: Melissa Rifkin 
([email protected]), Attorney, Regulatory Affairs Division, 
Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 
20005, 202-326-4400, ext. 6563. (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. 6563.)

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 January 2019 and 
updates the asset allocation interest assumptions for the first quarter 
(January through March) of 2019.
    The first quarter 2019 interest assumptions under the allocation 
regulation will be 3.09 percent for the first 20 years following the 
valuation date and 2.84 percent thereafter. In comparison with the 
interest assumptions in effect for the fourth quarter of 2018, these 
interest assumptions represent no change in the select period (the 
period during which the select rate (the initial rate) applies), an 
increase of 0.25 percent in the select

[[Page 64281]]

rate, and an increase of 0.08 percent in the ultimate rate (the final 
rate).
    The January 2019 interest assumptions under the benefit payments 
regulation will be 1.50 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 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 January 
2019, 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 303 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)            i                i                i                n                n
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          303            1-1-19           2-1-19             1.50             4.00             4.00             4.00                7                8
--------------------------------------------------------------------------------------------------------------------------------------------------------


0
3. In appendix C to part 4022, Rate Set 303 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          303            1-1-19           2-1-19             1.50             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 ``January-March 2019'' 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 =
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
January-March 2019..........       0.0309          1-20        0.0284           >20           N/A           N/A
----------------------------------------------------------------------------------------------------------------



[[Page 64282]]

    Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2018-26849 Filed 12-13-18; 8:45 am]
 BILLING CODE 7709-02-P


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