Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 9454-9456 [2019-04740]

Download as PDF 9454 Federal Register / Vol. 84, No. 51 / Friday, March 15, 2019 / Rules and Regulations 13. In § 30.68, revise paragraph (c) to read as follows: ■ § 30.68 Section 8 owners. * * * * * (c) Maximum penalty. The maximum penalty for each violation under this section is $39,121. * * * * * PART 87—NEW RESTRICTIONS ON LOBBYING 14. The authority citation for part 87 continues to read as follows: ■ Authority: 28 U.S.C. 1 note; 31 U.S.C. 1352; 42 U.S.C. 3535(d). 15. In § 87.400, revise paragraphs (a), (b), and (e) to read as follows: ■ § 87.400 Penalties. (a) Any person who makes an expenditure prohibited herein shall be subject to a civil penalty of not less than $20,134 and not more than $201,340 for each such expenditure. (b) Any person who fails to file or amend the disclosure form (see appendix B of this part) to be filed or amended if required herein, shall be subject to a civil penalty of not less than $20,134 and not more than $201,340 for each such failure. * * * * * (e) First offenders under paragraph (a) or (b) of this section shall be subject to a civil penalty of $20,134, absent aggravating circumstances. Second and subsequent offenses by persons shall be subject to an appropriate civil penalty between $20,134 and $201,340 as determined by the agency head or his or her designee. * * * * * PART 180—CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS MATTERS 16. The authority citation for part 180 continues to read as follows: ■ Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; 42 U.S.C. 2000d–1, 3535(d), 3601–3619, 5301–5320, and 6103. 17. In § 180.671, revise paragraphs (a)(1) through (3) to read as follows: ■ amozie on DSK9F9SC42PROD with RULES § 180.671 Assessing civil penalties for Fair Housing Act cases. (a) * * * (1) $21,039, if the respondent has not been adjudged in any administrative hearing or civil action permitted under the Fair Housing Act or any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local governmental agency, to have VerDate Sep<11>2014 16:03 Mar 14, 2019 Jkt 247001 committed any prior discriminatory housing practice. (2) $52,596, if the respondent has been adjudged in any administrative hearing or civil action permitted under the Fair Housing Act, or under any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local government agency, to have committed one other discriminatory housing practice and the adjudication was made during the 5-year period preceding the date of filing of the charge. (3) $105,194, if the respondent has been adjudged in any administrative hearings or civil actions permitted under the Fair Housing Act, or under any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local government agency, to have committed two or more discriminatory housing practices and the adjudications were made during the 7-year period preceding the date of filing of the charge. * * * * * PART 3282—MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS 18. The authority citation for part 3282 is revised to read as follows: ■ Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461 note; 42 U.S.C. 3535(d) and 5424. 19. Revise § 3282.10 to read as follows: ■ § 3282.10 Civil and criminal penalties. Failure to comply with this part may subject the party in question to the civil and criminal penalties provided for in section 611 of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed under section 611 of the Act shall be $2,924 for each violation, up to a maximum of $3,654,955 for any related series of violations occurring within one year from the date of the first violation. Dated: March 12, 2019. J. Paul Compton, Jr., General Counsel. [FR Doc. 2019–04898 Filed 3–14–19; 8:45 am] BILLING CODE 4210–67–P PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 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 certain interest assumptions under the benefit payments regulation for plans with valuation dates in April 2019 and interest assumptions under the asset allocation regulation for plans with valuation dates in the second quarter of 2019. These interest assumptions are used for valuing benefits and paying certain benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective April 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 (http://www.pbgc.gov). SUMMARY: Lump Sum Interest Assumption PBGC uses the interest assumptions in appendix B to part 4022 (‘‘Lump Sum Interest Rates for PBGC Payments’’) to determine whether a benefit is payable as a lump sum and to determine the amount to pay as a lump sum. Because some private-sector pension plans use these interest rates to determine lump sum amounts payable to plan E:\FR\FM\15MRR1.SGM 15MRR1 9455 Federal Register / Vol. 84, No. 51 / Friday, March 15, 2019 / Rules and Regulations participants (if the resulting lump sum is larger than the amount required under section 417(e)(3) of the Internal Revenue Code and section 205(g)(3) of ERISA), these rates are also provided in appendix C to part 4022 (‘‘Lump Sum Interest Rates for Private-Sector Payments’’). This final rule updates appendices B and C of the benefit payments regulation to provide the rates for April 2019 measurement dates. The April 2019 lump sum interest assumptions will be 1.25 percent for the period during which a benefit is (or is assumed to be) 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 March 2019, these assumptions represent no change in the immediate rate and are otherwise unchanged. Valuation/Asset Allocation Interest Assumptions PBGC uses the interest assumptions in appendix B to part 4044 (‘‘Interest Rates Used to Value Benefits’’) to value benefits for allocation purposes under section 4044 of ERISA, and some private-sector pension plans use them to determine benefit liabilities reportable under section 4044 of ERISA and for other purposes. The second quarter 2019 interest assumptions will be 3.07 percent for the first 20 years following Rate set For plans with a valuation date On or after * 306 Before the valuation date and 3.05 percent thereafter. In comparison with the interest assumptions in effect for the first quarter of 2019, these interest assumptions represent no change in the select period (the period during which the select rate (the initial rate) applies), a decrease of 0.02 percent in the select rate, and an increase of 0.21 percent in the ultimate rate (the final rate). 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). Need for Immediate Guidance Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. PBGC updates appendix B of the asset allocation regulation each quarter and appendices B and C of the benefit payments regulation each month. 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 issue new interest assumptions promptly so that they are available to value benefits and, for plans that rely on our publication of them each month or each quarter, to calculate lump sum benefit amounts. Because of the need to provide immediate guidance for the valuation and payment of benefits under plans with valuation dates during April 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’’ * 5–1–19 1.25 3. In appendix C to part 4022, Rate Set 306 is added at the end of the table to read as follows: ■ For plans with a valuation date On or after * amozie on DSK9F9SC42PROD with RULES 306 Before 1.25 Jkt 247001 i1 i2 * 4.00 4.00 * 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 306 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 n1 * n2 * * 4.00 7 8 n1 n2 7 8 * Deferred annuities (percent) i1 i2 * 4.00 4.00 i3 * * 4.00 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 ‘‘April–June 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: ■ 16:03 Mar 14, 2019 * * 5–1–19 PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS VerDate Sep<11>2014 * Immediate annuity rate (percent) * 4–1–19 29 CFR Part 4044 Appendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments * Rate set 29 CFR Part 4022 Deferred annuities (percent) Immediate annuity rate (percent) * 4–1–19 List of Subjects PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 E:\FR\FM\15MRR1.SGM * * 15MRR1 * * 9456 Federal Register / Vol. 84, No. 51 / Friday, March 15, 2019 / Rules and Regulations The values of it are: For valuation dates occurring in the month— it * * * April–June 2019 ................................................................ Issued in Washington, DC, by Hilary Duke, Assistant General Counsel, Pension Benefit Guaranty Corporation. [FR Doc. 2019–04740 Filed 3–14–19; 8:45 am] BILLING CODE 7709–02–P DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Parts 561 and 566 List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions (CAPTA List) Office of Foreign Assets Control, Treasury. ACTION: Final rule; technical amendments. AGENCY: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is amending the Iranian Financial Sanctions Regulations (IFSR) and the Hizballah Financial Sanctions Regulations (HFSR) to incorporate references to the new List of Foreign Financial Institutions Subject to Correspondent Account or PayableThrough Account Sanctions (CAPTA List). DATES: Effective: March 15, 2019. FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for Licensing, tel.: 202–622–2480; Assistant Director for Regulatory Affairs, tel.: 202–622– 4855; Assistant Director for Sanctions Compliance & Evaluation, tel.: 202–622– 2490; or the Department of the Treasury’s Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202–622–2410. SUPPLEMENTARY INFORMATION: SUMMARY: amozie on DSK9F9SC42PROD with RULES Electronic Availability This document and additional information concerning OFAC are available from OFAC’s website (www.treasury.gov/ofac). Background Pursuant to a number of sanctions authorities, the Secretary of the Treasury may impose strict conditions or prohibitions on the opening or maintaining of correspondent or VerDate Sep<11>2014 16:38 Mar 14, 2019 Jkt 247001 for t = it for t = 1–20 * 0.0305 >20 * 0.0307 payable-through accounts in the United States (collectively, ‘‘correspondent or payable-through account sanctions’’) for a foreign financial institution (FFI) that the Secretary determines knowingly engages in specified transactions. As a general matter, the Secretary of the Treasury further delegates these authorities to the Director of OFAC. With respect to the first two such authorities established, OFAC created separate sanctions lists to identify FFIs subject to correspondent or payablethrough account sanctions. Specifically, §§ 561.201 and 561.203 of the IFSR (31 CFR part 561) provide that, upon a finding by the Secretary of the Treasury that an FFI knowingly engages in one or more of the activities described in § 561.201(a) or § 561.203(a), the Secretary of the Treasury will impose correspondent or payable-through account sanctions on the FFI. Notes to §§ 561.201(b) and 561.203(a) further clarify that the name of the FFI and the relevant prohibition or strict condition(s) will be added to the List of Foreign Financial Institutions Subject to Part 561 List (Part 561 List) on the Iran sanctions page on OFAC’s website (www.treasury.gov/ofac) and published in the Federal Register. As of March 14, 2019, there was one FFI on the Part 561 List. Similarly, § 566.201 of the HFSR provides that, upon a finding by the Secretary of the Treasury that an FFI knowingly engages in one or more of the activities described in § 566.201(a), the Secretary of the Treasury will impose correspondent or payable-through account sanctions on the FFI. A note to § 566.201(c) further explains that the name of the FFI and the relevant prohibition or strict condition(s) will be added to the HFSR List on the Counter Terrorism Sanctions web page on OFAC’s website (www.treasury.gov/ ofac) and published in the Federal Register. As of March 14, 2019, there was no HFSR List on the OFAC website because no FFI has been listed pursuant to the HFSR. Additional sanctions authorities provide for correspondent or payablethrough account sanctions, including the Ukraine Freedom Support Act of 2014, as amended (UFSA), and Executive Order 13810 of September 20, 2017 (‘‘Imposing Additional Sanctions PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 it * for t = * N/A N/A With Respect to North Korea’’) (82 FR 44705, September 25, 2017), as implemented in the North Korea Sanctions Regulations, 31 CFR part 510 (NKSR). In order to avoid potential confusion resulting from multiple OFAC lists addressing similar sanctions, on March 1, 2018, OFAC announced on its website the creation of a consolidated list, the List of Foreign Financial Institutions Subject to Correspondent Account or Payable-Through Account Sanctions (CAPTA List), which would list any FFI subject to correspondent or payable-through account sanctions pursuant to UFSA or the NKSR, as well as the relevant prohibition or strict condition(s). Also on March 1, 2018, OFAC stated that the CAPTA List eventually would be expanded to include FFIs subject to correspondent or payable-through account sanctions pursuant to additional authorities, including the IFSR and the HFSR. As of March 14, 2019, the CAPTA List did not include any FFIs subject to correspondent or payable-through account sanctions under UFSA or the NKSR because OFAC has not identified any such FFIs. This rule amends the IFSR and the HFSR to replace 14 references to the Part 561 List and seven references to the HFSR List, respectively, with references to the CAPTA List. OFAC also is making a conforming change in the IFSR and the HFSR to the location on OFAC’s website for the CAPTA List. On March 15, 2019, by separate action, OFAC is expanding the CAPTA List on the OFAC website to include FFIs subject to correspondent or payable-through account sanctions pursuant to the IFSR and the HFSR. As part of this change, OFAC will move the name of the FFI on the Part 561 List, along with the relevant prohibition or strict condition(s) to which the FFI is subject, to the CAPTA List. The CAPTA List will thus supersede the Part 561 List in its entirety, and the Part 561 List will be removed from OFAC’s website. Following the publication of this rule, unless otherwise specified, the names of any FFIs that are determined by the Secretary of the Treasury to be subject to correspondent or payable-through account sanctions will be placed on the CAPTA List. The CAPTA List will be accessible via OFAC’s website and E:\FR\FM\15MRR1.SGM 15MRR1

Agencies

[Federal Register Volume 84, Number 51 (Friday, March 15, 2019)]
[Rules and Regulations]
[Pages 9454-9456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04740]


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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 certain interest assumptions under the benefit payments 
regulation for plans with valuation dates in April 2019 and interest 
assumptions under the asset allocation regulation for plans with 
valuation dates in the second quarter of 2019. These interest 
assumptions are used for valuing benefits and paying certain benefits 
under terminating single-employer plans covered by the pension 
insurance system administered by PBGC.

DATES: Effective April 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 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 (http://www.pbgc.gov).

Lump Sum Interest Assumption

    PBGC uses the interest assumptions in appendix B to part 4022 
(``Lump Sum Interest Rates for PBGC Payments'') to determine whether a 
benefit is payable as a lump sum and to determine the amount to pay as 
a lump sum. Because some private-sector pension plans use these 
interest rates to determine lump sum amounts payable to plan

[[Page 9455]]

participants (if the resulting lump sum is larger than the amount 
required under section 417(e)(3) of the Internal Revenue Code and 
section 205(g)(3) of ERISA), these rates are also provided in appendix 
C to part 4022 (``Lump Sum Interest Rates for Private-Sector 
Payments'').
    This final rule updates appendices B and C of the benefit payments 
regulation to provide the rates for April 2019 measurement dates.
    The April 2019 lump sum interest assumptions will be 1.25 percent 
for the period during which a benefit is (or is assumed to be) 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 March 2019, these assumptions represent no change in the 
immediate rate and are otherwise unchanged.

Valuation/Asset Allocation Interest Assumptions

    PBGC uses the interest assumptions in appendix B to part 4044 
(``Interest Rates Used to Value Benefits'') to value benefits for 
allocation purposes under section 4044 of ERISA, and some private-
sector pension plans use them to determine benefit liabilities 
reportable under section 4044 of ERISA and for other purposes. The 
second quarter 2019 interest assumptions will be 3.07 percent for the 
first 20 years following the valuation date and 3.05 percent 
thereafter. In comparison with the interest assumptions in effect for 
the first quarter of 2019, these interest assumptions represent no 
change in the select period (the period during which the select rate 
(the initial rate) applies), a decrease of 0.02 percent in the select 
rate, and an increase of 0.21 percent in the ultimate rate (the final 
rate).

Need for Immediate Guidance

    PBGC updates appendix B of the asset allocation regulation each 
quarter and appendices B and C of the benefit payments regulation each 
month. 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 issue new interest assumptions promptly 
so that they are available to value benefits and, for plans that rely 
on our publication of them each month or each quarter, to calculate 
lump sum benefit amounts.
    Because of the need to provide immediate guidance for the valuation 
and payment of benefits under plans with valuation dates during April 
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 306 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          306            4-1-19           5-1-19             1.25             4.00             4.00             4.00                7                8
--------------------------------------------------------------------------------------------------------------------------------------------------------


0
3. In appendix C to part 4022, Rate Set 306 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                       * * * * * *
          306            4-1-19           5-1-19             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 ``April-June 2019'' is 
added at the end of the table to read as follows:

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

* * * * *

[[Page 9456]]



----------------------------------------------------------------------------------------------------------------
                                                             The values of i are:
     For valuation dates     -----------------------------------------------------------------------------------
  occurring in the month--          i          for t =          i          for t =          i          for t =
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
April-June 2019.............       0.0307          1-20        0.0305           >20           N/A           N/A
----------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC, by
Hilary Duke,
Assistant General Counsel, Pension Benefit Guaranty Corporation.
[FR Doc. 2019-04740 Filed 3-14-19; 8:45 am]
BILLING CODE 7709-02-P