Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 33692-33693 [2019-14793]
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33692
Federal Register / Vol. 84, No. 135 / Monday, July 15, 2019 / Rules and Regulations
substantial direct compliance costs on
state and local governments or preempt
state law within the meaning of the
Executive Order.
Drafting Information
The principal author of these final
regulations is Joanna L. Trebat, Office of
the Associate Chief Counsel (Income
Tax and Accounting). Other personnel
from the IRS and Treasury Department
participated in their development.
§ 1.861–18
[Amended]
Par. 5. Section 1.861–18 is amended
in paragraph (i)(4) by:
■ 1. Removing Example 2;
■ 2. Designating Examples 1 and 3 as
paragraphs (i)(4)(i) and (ii), respectively;
and
■ 3. In the heading for newly designated
paragraph (i)(4)(ii), removing ‘‘3’’ and
adding ‘‘2’’ in its place.
■
§ 1.6655–0
List of Subjects
[Amended]
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 602
Accordingly, 26 CFR parts 1 and 602
are amended as follows:
§ 1.6655–6
SUPPLEMENTARY INFORMATION:
Par. 7. Section 1.6655–2 is amended
by removing the paragraph (f)(3)(i)
heading and paragraph (f)(3)(i)(A) and
redesignating (f)(3)(i)(B) as (f)(3)(i).
■
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.381(c)(4)–1 is
amended by revising the second
sentence of paragraph (b)(2) to read as
follows:
■
§ 1.381(c)(4)–1
Method of accounting.
*
*
*
*
*
(b) * * *
(2) * * * The installment method
under section 453, the mark-to-market
method under section 475, the
amortization of bond premium under
section 171, the percentage of
completion method under section 460,
the recurring item exception of § 1.461–
5, and the income deferral method
under section 455 are examples of
special methods of accounting. * * *
*
*
*
*
*
■ Par. 3. Section 1.382–7 is amended by
revising the third sentence of paragraph
(a) to read as follows:
khammond on DSKBBV9HB2PROD with RULES
§ 1.382–7
Built in gains and losses.
(a) * * * Examples to which this
paragraph (a) will apply include, but are
not limited to, income received prior to
the change date that is deferred under
section 455 or Rev. Proc. 2004–34
(2004–1 CB 991 (June 1, 2004)) (or any
successor revenue procedure) (see
§ 601.601(d)(2)(ii)(b)).
*
*
*
*
*
§ 1.451–5
■
[Removed]
VerDate Sep<11>2014
15:41 Jul 12, 2019
Methods of accounting.
*
*
*
*
*
(c) Example. The following example
illustrates the rules of this section:
(1) Example. * * *
*
*
*
*
*
PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
Par. 9. Add an authority citation for
part 602 to read as follows:
■
Authority: 26 U.S.C. 7805.
§ 602.101
[Amended]
Par. 10. Section 602.101 is amended
by removing the entry for § 1.451–5 in
the table in paragraph (b) and by
removing the parenthetical authority
citation at the end of the section.
■
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
Approved: June 27, 2019.
David J. Kautter,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2019–14947 Filed 7–11–19; 4:15 pm]
Par. 4. Section 1.451–5 is removed.
Jkt 247001
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
Par. 8. Section 1.6655–6 is amended
in paragraph (c) by:
■ 1. Revising the heading and
introductory text;
■ 2. Removing Example 1;
■ 3. Designating Example 2 as paragraph
(c)(1) and revising the heading of newly
designated paragraph (c)(1); and
■ 4. Adding reserved paragraph (c)(2).
The revisions read as follows:
[Amended]
■
Amendments to the Regulations
Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions
for Paying Benefits
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 August 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 August 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.)
§ 1.6655–2
Reporting and recordkeeping
requirements.
29 CFR Part 4022
SUMMARY:
Par. 6. Section 1.6655–0 is amended
by removing the entries for § 1.6655–
2(f)(3)(i) and (f)(3)(i)(A) and
redesignating the entry for § 1.6655–
2(f)(3)(i)(B) as § 1.6655–2(f)(3)(i).
■
26 CFR Part 1
PENSION BENEFIT GUARANTY
CORPORATION
BILLING CODE 4830–01–P
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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 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 August 2019
measurement dates.
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15JYR1
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Federal Register / Vol. 84, No. 135 / Monday, July 15, 2019 / Rules and Regulations
The August 2019 lump sum interest
assumptions will be 0.50 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 July 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
For plans with a valuation
date
On or after
*
310
Before
Because of the need to provide
immediate guidance for the payment of
benefits under plans with valuation
dates during August 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.
*
9–1–19
3. In appendix C to part 4022, rate set
310 is added at the end of the table to
read as follows:
■
0.50
For plans with a valuation
date
On or after
*
310
Before
*
*
[FR Doc. 2019–14793 Filed 7–12–19; 8:45 am]
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DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2019–0548]
Coast Guard, DHS.
Notice of enforcement of
regulation.
ACTION:
The Coast Guard will enforce
a safety zone on the Illinois River in
Morris, IL. This action is necessary and
intended to promote the safety of life
and property on navigable waters
SUMMARY:
Jkt 247001
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
i3
AGENCY:
15:41 Jul 12, 2019
2. In appendix B to part 4022, rate set
310 is added at the end of the table to
read as follows:
■
*
Safety Zones; Annual Events
Requiring Safety Zones in the Captain
of the Port, Lake Michigan Zone—Corn
Festival Fireworks
VerDate Sep<11>2014
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
Deferred annuities
(percent)
*
9–1–19
Issued in Washington, DC, by
Stephanie Cibinic,
Deputy Assistant General Counsel for
Regulatory Affairs, Pension Benefit Guaranty
Corporation.
i1
Immediate
annuity rate
(percent)
*
8–1–19
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
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
8–1–19
In consideration of the foregoing, 29
CFR part 4022 is amended as follows:
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4.00
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before, during, and immediately after a
shore-based firework display. During
the enforcement period listed below,
vessels and persons are prohibited from
transiting through, mooring, or
anchoring within this safety zone
without approval from the Captain of
the Port, Lake Michigan or his or her
designated representative.
The regulations in 33 Code of
Federal Regulations (CFR) 165.929 will
be enforced for the location listed in
item (h)(1) in Table 165.929 to 33 CFR
165.929 from 8:30 p.m. through 9 p.m.
on September 28, 2019.
DATES:
If
you have questions about this notice of
enforcement, call or email LT John
Ramos, Waterways Management
Division, Marine Safety Unit Chicago;
telephone (630) 986–2155, email
FOR FURTHER INFORMATION CONTACT:
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]]>Agencies
[Federal Register Volume 84, Number 135 (Monday, July 15, 2019)]
[Rules and Regulations]
[Pages 33692-33693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14793]
=======================================================================
-----------------------------------------------------------------------
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 August 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 August 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 August 2019 measurement dates.
[[Page 33693]]
The August 2019 lump sum interest assumptions will be 0.50 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 July 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 August 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 310 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
310 8-1-19 9-1-19 0.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, rate set 310 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
310 8-1-19 9-1-19 0.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, by
Stephanie Cibinic,
Deputy Assistant General Counsel for Regulatory Affairs, Pension
Benefit Guaranty Corporation.
[FR Doc. 2019-14793 Filed 7-12-19; 8:45 am]
BILLING CODE 7709-02-P
