Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age, 67186-67187 [2019-26456]
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67186
Federal Register / Vol. 84, No. 236 / Monday, December 9, 2019 / Rules and Regulations
seriously delinquent tax debt as
described in 26 U.S.C. 7345.
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Carl C. Risch,
Assistant Secretary, Bureau of Consular
Affairs, Department of State.
[FR Doc. 2019–26393 Filed 12–6–19; 8:45 am]
BILLING CODE 4710–13–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4044
Allocation of Assets in SingleEmployer Plans; Valuation of Benefits
and Assets; Expected Retirement Age
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
This rule amends the Pension
Benefit Guaranty Corporation’s
regulation on Allocation of Assets in
Single-Employer Plans by substituting a
new table for determining expected
retirement ages for participants in
pension plans undergoing distress or
involuntary termination with valuation
dates falling in 2020. This table is
needed to compute the value of early
retirement benefits and, thus, the total
value of benefits under a plan.
DATES: This rule is effective January 1,
2020.
FOR FURTHER INFORMATION CONTACT:
Gregory Katz (katz.gregory@pbgc.gov),
Attorney, Regulatory Affairs Division,
Office of the General Counsel, 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: The
Pension Benefit Guaranty Corporation
(PBGC) administers the pension plan
termination insurance program under
title IV of the Employee Retirement
Income Security Act of 1974 (ERISA).
PBGC’s regulation on Allocation of
Assets in Single-Employer Plans (29
CFR part 4044) sets forth (in subpart B)
the methods for valuing plan benefits of
terminating single-employer plans
covered under title IV. Guaranteed
tkelley on DSKBCP9HB2PROD with RULES
SUMMARY:
VerDate Sep<11>2014
16:48 Dec 06, 2019
Jkt 250001
benefits and benefit liabilities under a
plan that is undergoing a distress
termination must be valued in
accordance with subpart B of part 4044.
In addition, when PBGC terminates an
underfunded plan involuntarily
pursuant to ERISA section 4042(a), it
uses the subpart B valuation rules to
determine the amount of the plan’s
underfunding.
Under § 4044.51(b) of the asset
allocation regulation, early retirement
benefits are valued based on the annuity
starting date, if a retirement date has
been selected, or the expected
retirement age, if the annuity starting
date is not known on the valuation date.
Sections 4044.55 through 4044.57 set
forth rules for determining the expected
retirement ages for plan participants
entitled to early retirement benefits.
Appendix D of part 4044 contains tables
to be used in determining the expected
early retirement ages.
Table I in appendix D (Selection of
Retirement Rate Category) is used to
determine whether a participant has a
low, medium, or high probability of
retiring early. The determination is
based on the year a participant would
reach ‘‘unreduced retirement age’’ (i.e.,
the earlier of the normal retirement age
or the age at which an unreduced
benefit is first payable) and the
participant’s monthly benefit at
unreduced retirement age. The table
applies only to plans with valuation
dates in the current year and is updated
annually by PBGC to reflect changes in
the cost of living, etc.
Tables II–A, II–B, and II–C (Expected
Retirement Ages for Individuals in the
Low, Medium, and High Categories
respectively) are used to determine the
expected retirement age after the
probability of early retirement has been
determined using Table I. These tables
establish, by probability category, the
expected retirement age based on both
the earliest age a participant could retire
under the plan and the unreduced
retirement age. This expected retirement
age is used to compute the value of the
early retirement benefit and, thus, the
total value of benefits under the plan.
This document amends appendix D to
replace Table I–19 with Table I–20 to
provide an updated correlation,
appropriate for calendar year 2020,
between the amount of a participant’s
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Fmt 4700
Sfmt 4700
benefit and the probability that the
participant will elect early retirement.
Table I–20 will be used to value benefits
in plans with valuation dates during
calendar year 2020.
PBGC has determined that notice of,
and public comment on, this rule are
impracticable and contrary to the public
interest. Plan administrators need to be
able to estimate accurately the value of
plan benefits as early as possible before
initiating the termination process. For
that purpose, if a plan has a valuation
date in 2020, the plan administrator
needs the updated table being
promulgated in this rule. Accordingly,
PBGC finds that the public interest is
best served by issuing this table
expeditiously, without an opportunity
for notice and comment, and that good
cause exists for making the table set
forth in this amendment effective less
than 30 days after publication to allow
as much time as possible to estimate the
value of plan benefits with the proper
table for plans with valuation dates in
early 2020.
PBGC has determined that this action
is not a ‘‘significant regulatory action’’
under the criteria set forth in Executive
Order 12866 and Executive Order
13771.
Because no general notice of proposed
rulemaking is required for this
regulation, the Regulatory Flexibility
Act of 1980 does not apply (5 U.S.C.
601(2)).
List of Subjects in 29 CFR Part 4044
Employee benefit plans, Pension
insurance.
In consideration of the foregoing, 29
CFR part 4044 is amended as follows:
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
1. The authority citation for part 4044
continues to read as follows:
■
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
2. Appendix D to part 4044 is
amended by removing Table I–19 and
adding in its place Table I–20 to read as
follows:
■
Appendix D to Part 4044—Tables Used
To Determine Expected Retirement Age
C:\TARSHA\09DER1.SGM
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Federal Register / Vol. 84, No. 236 / Monday, December 9, 2019 / Rules and Regulations
67187
TABLE I–20—SELECTION OF RETIREMENT RATE CATEGORY
[For valuation dates in 2020 1]
Participant’s retirement rate category is—
Low 2 if monthly
benefit at URA is
less than—
If participant reaches URA in year—
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
.................................................................................
.................................................................................
.................................................................................
.................................................................................
.................................................................................
.................................................................................
.................................................................................
.................................................................................
.................................................................................
or later ....................................................................
1 Applicable tables
2 Table II–A.
3 Table
4 Table
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From—
672
688
704
720
736
753
771
788
806
825
To—
672
688
704
720
736
753
771
788
806
825
High 4 if monthly
benefit at URA
is greater than—
2,839
2,905
2,971
3,040
3,110
3,181
3,254
3,329
3,406
3,484
2,839
2,905
2,971
3,040
3,110
3,181
3,254
3,329
3,406
3,484
for valuation dates before 2020 are available on PBGC’s website (www.pbgc.gov).
II–B.
II–C.
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The regulations in the table to 33
CFR 165.506 at (a)(16) will be enforced
from 5:45 p.m. through 6:30 p.m. on
December 31, 2019, and from 11:45 p.m.
on December 31, 2019, through 12:30
a.m. on January 1, 2020.
DATES:
Issued in Washington, DC, by:
Hilary Duke,
Assistant General Counsel for Regulatory
Affairs, Pension Benefit Guaranty
Corporation.
If
you have questions about this notice of
enforcement, you may call or email
Petty Officer Thomas Welker, U.S. Coast
Guard, Sector Delaware Bay, Waterways
Management Division, telephone 215–
271–4814, email Thomas.J.Welker@
uscg.mil.
BILLING CODE 7709–02–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2019–0906]
Safety Zones; Fireworks Displays in
the Fifth Coast Guard District
of
regulation.
The Coast Guard will enforce
the Penn’s Landing, Delaware River,
Philadelphia, PA, safety zone from 5:45
p.m. through 6:30 p.m. on December 31,
2019, and from 11:45 p.m. on December
31, 2019, through 12:30 a.m. on January
1, 2020. This is to ensure safety of life
on the navigable waters of the United
States immediately prior to, during, and
immediately after the fireworks
displays. Our regulation for safety zones
of fireworks displays in the Fifth Coast
Guard District identifies the area for this
event at Penn’s Landing in Philadelphia,
PA. During the enforcement periods
vessels may not enter, remain in, or
transit through the safety zones unless
authorized by the Captain of the Port or
on scene designated Coast Guard patrol
personnel.
SUMMARY:
VerDate Sep<11>2014
The Coast
Guard will enforce the safety zone in the
Table to 33 CFR 165.506, entry (a)(16),
for the Delaware River Waterfront
Corporation New Year’s Eve Fireworks
displays. This action is necessary to
ensure safety of life on the navigable
waters of the United States immediately
prior to, during, and immediately after
the fireworks displays. Our regulation
for safety zones of fireworks displays
within the Fifth Coast Guard District,
table to § 165.506, entry (a)(16) specifies
the location of the regulated area as all
waters of Delaware River, adjacent to
Penn’s Landing, Philadelphia, PA,
within 500 yards of a fireworks barge at
approximate position latitude 39°56′49″
N, longitude 075°08′11″ W. During the
enforcement periods, as reflected in
§ 165.506(d), vessels may not enter,
remain in, or transit through the safety
zones unless authorized by the Captain
of the Port or on scene designated Coast
Guard patrol personnel.
In addition to this notice of
enforcement in the Federal Register, the
Coast Guard plans to provide
notification of this enforcement period
via broadcast notice to mariners.
SUPPLEMENTARY INFORMATION:
AGENCY: Coast Guard, DHS.
ACTION: Notice of enforcement
16:48 Dec 06, 2019
Jkt 250001
Dated: November 29, 2019.
Scott E. Anderson,
Captain, U.S. Coast Guard, Captain of the
Port, Delaware Bay.
[FR Doc. 2019–26471 Filed 12–6–19; 8:45 am]
BILLING CODE 9110–04–P
FOR FURTHER INFORMATION CONTACT:
[FR Doc. 2019–26456 Filed 12–6–19; 8:45 am]
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Medium 3 if monthly benefit at URA is—
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DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2019–0486]
RIN 1625–AA00
Safety Zone; Ohio River, Brookport, IL
Coast Guard, DHS.
Final rule.
AGENCY:
ACTION:
The Coast Guard is
establishing a temporary safety zone on
a portion of the Ohio River in
Brookport, IL. This action is necessary
to protect personnel, vessels, and the
marine environment from potential
hazards created by the demolition of
Lock and Dam 52 involving explosives.
Entry of vessels or persons into this
zone is prohibited unless specifically
authorized by the Captain of the Port
Ohio Valley or a designated
representative.
DATES: This rule is effective without
actual notice from December 9, 2019
through December 1, 2020. For the
purposes of enforcement, actual notice
will be used from December 3, 2019
through December 9, 2019
ADDRESSES: To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type USCG–2019–
SUMMARY:
C:\TARSHA\09DER1.SGM
09DER1
]]>Agencies
[Federal Register Volume 84, Number 236 (Monday, December 9, 2019)]
[Rules and Regulations]
[Pages 67186-67187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26456]
=======================================================================
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4044
Allocation of Assets in Single-Employer Plans; Valuation of
Benefits and Assets; Expected Retirement Age
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the Pension Benefit Guaranty Corporation's
regulation on Allocation of Assets in Single-Employer Plans by
substituting a new table for determining expected retirement ages for
participants in pension plans undergoing distress or involuntary
termination with valuation dates falling in 2020. This table is needed
to compute the value of early retirement benefits and, thus, the total
value of benefits under a plan.
DATES: This rule is effective January 1, 2020.
FOR FURTHER INFORMATION CONTACT: Gregory Katz ([email protected]),
Attorney, Regulatory Affairs Division, Office of the General Counsel,
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: The Pension Benefit Guaranty Corporation
(PBGC) administers the pension plan termination insurance program under
title IV of the Employee Retirement Income Security Act of 1974
(ERISA). PBGC's regulation on Allocation of Assets in Single-Employer
Plans (29 CFR part 4044) sets forth (in subpart B) the methods for
valuing plan benefits of terminating single-employer plans covered
under title IV. Guaranteed benefits and benefit liabilities under a
plan that is undergoing a distress termination must be valued in
accordance with subpart B of part 4044. In addition, when PBGC
terminates an underfunded plan involuntarily pursuant to ERISA section
4042(a), it uses the subpart B valuation rules to determine the amount
of the plan's underfunding.
Under Sec. 4044.51(b) of the asset allocation regulation, early
retirement benefits are valued based on the annuity starting date, if a
retirement date has been selected, or the expected retirement age, if
the annuity starting date is not known on the valuation date. Sections
4044.55 through 4044.57 set forth rules for determining the expected
retirement ages for plan participants entitled to early retirement
benefits. Appendix D of part 4044 contains tables to be used in
determining the expected early retirement ages.
Table I in appendix D (Selection of Retirement Rate Category) is
used to determine whether a participant has a low, medium, or high
probability of retiring early. The determination is based on the year a
participant would reach ``unreduced retirement age'' (i.e., the earlier
of the normal retirement age or the age at which an unreduced benefit
is first payable) and the participant's monthly benefit at unreduced
retirement age. The table applies only to plans with valuation dates in
the current year and is updated annually by PBGC to reflect changes in
the cost of living, etc.
Tables II-A, II-B, and II-C (Expected Retirement Ages for
Individuals in the Low, Medium, and High Categories respectively) are
used to determine the expected retirement age after the probability of
early retirement has been determined using Table I. These tables
establish, by probability category, the expected retirement age based
on both the earliest age a participant could retire under the plan and
the unreduced retirement age. This expected retirement age is used to
compute the value of the early retirement benefit and, thus, the total
value of benefits under the plan.
This document amends appendix D to replace Table I-19 with Table I-
20 to provide an updated correlation, appropriate for calendar year
2020, between the amount of a participant's benefit and the probability
that the participant will elect early retirement. Table I-20 will be
used to value benefits in plans with valuation dates during calendar
year 2020.
PBGC has determined that notice of, and public comment on, this
rule are impracticable and contrary to the public interest. Plan
administrators need to be able to estimate accurately the value of plan
benefits as early as possible before initiating the termination
process. For that purpose, if a plan has a valuation date in 2020, the
plan administrator needs the updated table being promulgated in this
rule. Accordingly, PBGC finds that the public interest is best served
by issuing this table expeditiously, without an opportunity for notice
and comment, and that good cause exists for making the table set forth
in this amendment effective less than 30 days after publication to
allow as much time as possible to estimate the value of plan benefits
with the proper table for plans with valuation dates in early 2020.
PBGC has determined that this action is not a ``significant
regulatory action'' under the criteria set forth in Executive Order
12866 and Executive Order 13771.
Because no general notice of proposed rulemaking is required for
this regulation, the Regulatory Flexibility Act of 1980 does not apply
(5 U.S.C. 601(2)).
List of Subjects in 29 CFR Part 4044
Employee benefit plans, Pension insurance.
In consideration of the foregoing, 29 CFR part 4044 is amended as
follows:
PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS
0
1. 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
2. Appendix D to part 4044 is amended by removing Table I-19 and adding
in its place Table I-20 to read as follows:
Appendix D to Part 4044--Tables Used To Determine Expected Retirement
Age
[[Page 67187]]
Table I-20--Selection of Retirement Rate Category
[For valuation dates in 2020 \1\]
----------------------------------------------------------------------------------------------------------------
Participant's retirement rate category is--
-------------------------------------------------------------------------------
If participant reaches URA in Medium \3\ if monthly benefit at URA High \4\ if
year-- Low \2\ if monthly is-- monthly benefit at
benefit at URA is ---------------------------------------- URA is greater
less than-- From-- To-- than--
----------------------------------------------------------------------------------------------------------------
2021............................ 672 672 2,839 2,839
2022............................ 688 688 2,905 2,905
2023............................ 704 704 2,971 2,971
2024............................ 720 720 3,040 3,040
2025............................ 736 736 3,110 3,110
2026............................ 753 753 3,181 3,181
2027............................ 771 771 3,254 3,254
2028............................ 788 788 3,329 3,329
2029............................ 806 806 3,406 3,406
2030 or later................... 825 825 3,484 3,484
----------------------------------------------------------------------------------------------------------------
\1\ Applicable tables for valuation dates before 2020 are available on PBGC's website (www.pbgc.gov).
\2\ Table II-A.
\3\ Table II-B.
\4\ Table II-C.
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Issued in Washington, DC, by:
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit
Guaranty Corporation.
[FR Doc. 2019-26456 Filed 12-6-19; 8:45 am]
BILLING CODE 7709-02-P
