Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 15107-15108 [2019-07279]

Download as PDF * * * * * [FR Doc. 2019–07286 Filed 4–12–19; 8:45 am] BILLING CODE 4510–26–C 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: amozie on DSK9F9SC42PROD with RULES VerDate Sep<11>2014 17:01 Apr 12, 2019 Jkt 247001 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 SUPPLEMENTARY INFORMATION: This final rule amends the Pension Benefit Guaranty Corporation’s regulation on Benefits Payable in Terminated Single-Employer Plans to prescribe certain interest assumptions under the regulation for plans with valuation dates in May 2019. These interest assumptions are used for paying SUMMARY: certain benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective May 1, 2019. FOR FURTHER INFORMATION CONTACT: Gregory Katz (katz.gregory@pbgc.gov), Attorney, Regulatory Affairs Division, Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 20005, 202–326–4400 ext. 3829. (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. 3829.) PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 15107 (ERISA). 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 (‘‘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. Because some privatesector pension plans use these interest rates to determine lump sum amounts payable to plan 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 benefits payment regulation to provide the rates for May 2019 measurement dates. The May 2019 lump sum interest assumptions will be 1.00 percent for the E:\FR\FM\15APR1.SGM 15APR1 ER15AP19.006</GPH> Federal Register / Vol. 84, No. 72 / Monday, April 15, 2019 / Rules and Regulations 15108 Federal Register / Vol. 84, No. 72 / Monday, April 15, 2019 / Rules and Regulations 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 April 2019, these assumptions represent a decrease of 0.25 percent in the immediate rate and are otherwise unchanged. PBGC updates appendices B and C 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 for plans that rely on our publication of them each month to calculate lump sum benefit amounts. Rate set * Because of the need to provide immediate guidance for the payment of benefits under plans with valuation dates during May 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). On or after Before Immediate annuity rate (percent) * * 6–1–19 1.00 307 5–1–19 3. In appendix C to part 4022, rate set 307 is added at the end of the table to read as follows: ■ * * * * On or after Before Immediate annuity rate (percent) * * 6–1–19 1.00 5–1–19 Issued in Washington, DC. Hilary Duke, Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2019–07279 Filed 4–12–19; 8:45 am] amozie on DSK9F9SC42PROD with RULES * i2 i3 4.00 * 4.00 4.00 * * n1 * n2 * 7 8 n1 n2 * Deferred annuities (percent) i1 i2 i3 4.00 * 4.00 4.00 * ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 52 and 81 [EPA–R03–OAR–2018–0215; FRL–9991–44Region 3] Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: The Environmental Protection Agency (EPA) is approving the requests from the State of Maryland (Maryland) SUMMARY: Jkt 247001 * i1 Air Plan Approval; District of Columbia, Maryland, and Virginia; Maryland and Virginia Redesignation Requests and District of Columbia, Maryland, and Virginia Maintenance Plan for the Washington, DC-MD-VA 2008 Ozone Standard Nonattainment Area 16:31 Apr 12, 2019 2. In appendix B to part 4022, rate set 307 is added at the end of the table to read as follows: ■ * BILLING CODE 7709–02–P VerDate Sep<11>2014 Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344. Deferred annuities (percent) * For plans with a valuation date 307 1. The authority citation for part 4022 continues to read as follows: ■ Appendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments * Rate set PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS Appendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments List of Subjects in 29 CFR Part 4022 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. For plans with a valuation date In consideration of the foregoing, 29 CFR part 4022 is amended as follows: PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 * * 7 8 and the Commonwealth of Virginia (Virginia) to redesignate to attainment their respective portions of the Washington, DC-MD-VA nonattainment area (hereafter ‘‘the Washington Area’’ or ‘‘the Area’’) for the 2008 8-hour ozone national ambient air quality standard (NAAQS or standard) (also referred to as the 2008 ozone NAAQS) as Maryland’s and Virginia’s portions of the Area meet the statutory requirements for redesignation under the Clean Air Act (CAA). EPA is therefore redesignating the following jurisdictions to attainment for the 2008 ozone NAAQS: The Counties of Calvert, Charles, Frederick, Montgomery, and Prince George’s in Maryland as well as the Counties of Arlington, Fairfax, Loudoun, and Prince William and the Cities of Alexandria, Fairfax, Falls Church, Manassas, and Manassas Park in Virginia. EPA is also approving, as a revision to District of E:\FR\FM\15APR1.SGM 15APR1

Agencies

[Federal Register Volume 84, Number 72 (Monday, April 15, 2019)]
[Rules and Regulations]
[Pages 15107-15108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07279]


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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 certain interest assumptions under the 
regulation for plans with valuation dates in May 2019. These interest 
assumptions are used for paying certain benefits under terminating 
single-employer plans covered by the pension insurance system 
administered by PBGC.

DATES: Effective May 1, 2019.

FOR FURTHER INFORMATION CONTACT: Gregory Katz ([email protected]), 
Attorney, Regulatory Affairs Division, Pension Benefit Guaranty 
Corporation, 1200 K Street NW, Washington, DC 20005, 202-326-4400 ext. 
3829. (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. 3829.)

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 (ERISA). 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 
(``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. 
Because some private-sector pension plans use these interest rates to 
determine lump sum amounts payable to plan 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 benefits payment 
regulation to provide the rates for May 2019 measurement dates.
    The May 2019 lump sum interest assumptions will be 1.00 percent for 
the

[[Page 15108]]

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 
April 2019, these assumptions represent a decrease of 0.25 percent in 
the immediate rate and are otherwise unchanged.
    PBGC updates appendices B and C 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 for 
plans that rely on our publication of them each month to calculate lump 
sum benefit amounts.
    Because of the need to provide immediate guidance for the payment 
of benefits under plans with valuation dates during May 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 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 307 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                                    Deferred annuities (percent)
                                                     date               Immediate  ---------------------------------------------------------------------
                Rate set                 ---------------------------- annuity rate
                                           On or after     Before       (percent)        i1            i2            i3            n1            n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
307.....................................       5-1-19        6-1-19          1.00          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------


0
3. In appendix C to part 4022, rate set 307 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                                    Deferred annuities (percent)
                                                     date               Immediate  ---------------------------------------------------------------------
                Rate set                 ---------------------------- annuity rate
                                           On or after     Before       (percent)        i1            i2            i3            n1            n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
307.....................................       5-1-19        6-1-19          1.00          4.00          4.00          4.00             7             8
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2019-07279 Filed 4-12-19; 8:45 am]
BILLING CODE 7709-02-P