Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits, 29323-29324 [2020-10075]
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29323
Rules and Regulations
Federal Register
Vol. 85, No. 95
Friday, May 15, 2020
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Correction of Publication
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendments:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
DEPARTMENT OF THE TREASURY
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.861–8 is amended by
revising the second and third sentence
in paragraph (c)(4) and revising the first
sentence in paragraph (e)(6)(i) to read as
follows:
■
Internal Revenue Service
26 CFR Part 1
[TD 9882]
RIN 1545–BP19; 1545–BK55; 1545–AC09
Foreign Tax Credit Guidance Related
to the Tax Cuts and Jobs Act, Overall
Foreign Loss Recapture, and Foreign
Tax Redeterminations; Correcting
Amendment
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendments.
AGENCY:
This document contains
corrections to Treasury Decision 9882,
which was published in the Federal
Register on Tuesday, December 17,
2019. Treasury Decision 9882 contained
final and temporary regulations that
provide guidance relating to the
determination of the foreign tax credit
under the Internal Revenue Code.
DATES: These corrections are effective
on May 15, 2020 and applicable
December 17, 2019.
FOR FURTHER INFORMATION CONTACT:
Jeffrey P. Cowan, (202) 317–4924 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The final regulations (TD 9882) that
are the subject of this correction are
under sections 861 and 904 of the
Internal Revenue Code.
jbell on DSKJLSW7X2PROD with RULES
Need for Correction
As published December 17, 2019 (84
FR 69022), the final and temporary
regulations (TD 9882; FR Doc. 2019–
24848) contained errors that need to be
corrected.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
VerDate Sep<11>2014
16:12 May 14, 2020
Jkt 250001
amended return) either for all taxable
years beginning after December 31,
2017, and before January 1, 2020, or for
its last taxable year beginning before
January 1, 2020, without the prior
consent of the Commissioner. * * *
*
*
*
*
*
§ 1.904–4
[Amended]
Par. 4. Section 1.904–4(c)(6)(iii) is
amended by removing the language
‘‘deemed paid or accrued’’ and adding
the language ‘‘deemed paid’’ in its
place.
■
§ 1.904–5
[Amended]
Par. 5. Section 1.904–5 is amended by
removing paragraph (c)(1)(ii).
■
§ 1.861–8 Computation of taxable income
from sources within the United States and
from other sources and activities
§ 1.904(g)–0
*
■
*
*
*
*
(c) * * *
(4) * * * In determining whether two
or more corporations are members of the
same controlled group under section
267(b)(3), a person is considered to own
stock owned directly by such person,
stock owned by application of section
1563(e)(1), and stock owned by
application of section 267(c). In
determining whether a corporation is
related to a partnership under section
267(b)(10), a person is considered to
own the partnership interest owned
directly by such person and the
partnership interest owned by
application of section 267(e)(3).
*
*
*
*
*
(e) * * *
(6) * * *
(i) * * * The deduction for foreign
income, war profits and excess profits
taxes allowed by section 164 (including
with respect to a controlled foreign
corporation) is allocated and
apportioned among the applicable
statutory and residual groupings under
the principles of § 1.904–6(a)(1)(i), (ii),
and (iv). * * *
*
*
*
*
*
■ Par. 3. Section 1.861–17 is amended
by revising the first sentence in
paragraph (e)(3) to read as follows:
§ 1.861–17 Allocation and apportionment
of research and experimental expenditures.
*
*
*
*
*
(e) * * *
(3) * * * A taxpayer otherwise
subject to the binding election described
in paragraph (e)(1) of this section may
change its method (on an original or an
PO 00000
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[Amended]
Par. 6. Section 1.904(g)–0 is amended
by adding ‘‘the’’ in the heading for
§ 1.904(g)–3 before the word
‘‘recapture’’.
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. 2020–08995 Filed 5–14–20; 8:45 am]
BILLING CODE 4830–01–P
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:
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 June 2020. 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 June 1, 2020.
FOR FURTHER INFORMATION CONTACT:
Gregory Katz (katz.gregory@pbgc.gov),
Attorney, Regulatory Affairs Division,
Pension Benefit Guaranty Corporation,
SUMMARY:
E:\FR\FM\15MYR1.SGM
15MYR1
29324
Federal Register / Vol. 85, No. 95 / Friday, May 15, 2020 / Rules and Regulations
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 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’’).
Rate set
For plans with a valuation
date
On or after
*
320
Before
This final rule updates appendices B
and C of the benefit payments regulation
to provide the rates for June 2020
measurement dates.
The June 2020 lump sum interest
assumptions will be 0.00 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 May 2020,
these assumptions represent a decrease
of 0.50 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 June 2020, PBGC finds that
good cause exists for making the
assumptions set forth in this
amendment effective less than 30 days
after publication.
*
7–1–20
0.00
3. In appendix C to part 4022, rate set
320 is added at the end of the table to
read as follows:
■
For plans with a valuation
date
On or after
*
jbell on DSKJLSW7X2PROD with RULES
320
Before
*
6–1–20
*
BILLING CODE 7709–02–P
Jkt 250001
In consideration of the foregoing, 29
CFR part 4022 is 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
320 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
*
*
4.00
n2
*
7
8
n1
n2
*
Deferred annuities
(percent)
0.00
i1
i2
*
4.00
4.00
i3
*
*
4.00
39 CFR Part 3045
SUMMARY:
Reorganization of Postal Regulatory
Commission Rules; Correction
PO 00000
Postal Regulatory Commission.
Frm 00002
Fmt 4700
Sfmt 4700
8
Correcting amendment.
ACTION:
[Docket No. RM2019–13; Order No. 5407]
*
7
POSTAL REGULATORY COMMISSION
AGENCY:
16:12 May 14, 2020
i1
*
*
[FR Doc. 2020–10075 Filed 5–14–20; 8:45 am]
VerDate Sep<11>2014
*
Immediate
annuity rate
(percent)
7–1–20
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory
Affairs, Pension Benefit Guaranty
Corporation.
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
Rate set
List of Subjects in 29 CFR Part 4022
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
6–1–20
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 April 20, 2020, the Postal
Regulatory Commission revised
Commission rules. That document
incorrectly listed a cross-reference. This
document corrects the final regulations
by removing the incorrect crossreference.
E:\FR\FM\15MYR1.SGM
15MYR1
]]>Agencies
[Federal Register Volume 85, Number 95 (Friday, May 15, 2020)]
[Rules and Regulations]
[Pages 29323-29324]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10075]
=======================================================================
-----------------------------------------------------------------------
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 June 2020. 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 June 1, 2020.
FOR FURTHER INFORMATION CONTACT: Gregory Katz ([email protected]),
Attorney, Regulatory Affairs Division, Pension Benefit Guaranty
Corporation,
[[Page 29324]]
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 benefit payments
regulation to provide the rates for June 2020 measurement dates.
The June 2020 lump sum interest assumptions will be 0.00 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 May 2020, these assumptions represent a decrease of 0.50
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 June 2020, 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 320 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
320 6-1-20 7-1-20 0.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, rate set 320 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
320 6-1-20 7-1-20 0.00 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. 2020-10075 Filed 5-14-20; 8:45 am]
BILLING CODE 7709-02-P
