Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 36153-36154 [2020-12883]
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Federal Register / Vol. 85, No. 115 / Monday, June 15, 2020 / Rules and Regulations
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[FR Doc. 2020–12696 Filed 6–11–20; 4:15 pm]
BILLING CODE 8610–01–P
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 July 2020 and interest assumptions
under the asset allocation regulation for
plans with valuation dates in the third
quarter of 2020. 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 July 1, 2020.
FOR FURTHER INFORMATION CONTACT:
Gregory Katz (katz.gregory@pbgc.gov),
Attorney, Regulatory Affairs Division,
jbell on DSKJLSW7X2PROD with RULES
SUMMARY:
VerDate Sep<11>2014
16:05 Jun 12, 2020
Jkt 250001
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.)
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
(https://www.pbgc.gov).
SUPPLEMENTARY INFORMATION:
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
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 July 2020
measurement dates.
The July 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 June 2020,
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 third quarter 2020
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
36153
interest assumptions will be 1.98
percent for the first 20 years following
the valuation date and 1.57 percent
thereafter. In comparison with the
interest assumptions in effect for the
second quarter of 2020, these interest
assumptions represent no change in the
select period (the period during which
the select rate (the initial rate) applies),
a decrease of 0.13 percent in the select
rate, and a decrease of 0.35 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 July 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
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
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.
E:\FR\FM\15JNR1.SGM
15JNR1
36154
Federal Register / Vol. 85, No. 115 / Monday, June 15, 2020 / Rules and Regulations
2. In appendix B to part 4022, Rate Set
321 is added at the end of the table to
read as follows:
■
For plans with a valuation
date
Rate set
On or after
*
Before
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
7–1–20
3. In appendix C to part 4022, Rate Set
321 is added at the end of the table to
read as follows:
For plans with a valuation
date
*
Before
7–1–20
*
*
i2
*
4.00
4.00
*
i3
*
*
n2
*
*
4.00
7
8
n1
n2
*
0.00
i1
i2
*
4.00
4.00
i3
*
*
*
4.00
7
8
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 ‘‘July–September 2020’’ is added at
the end of the table to read as follows:
*
■
4. The authority citation for part 4044
continues to read as follows:
■
n1
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
8–1–20
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
i1
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
321
*
Deferred annuities
(percent)
0.00
*
On or after
*
*
8–1–20
■
Rate set
*
Immediate
annuity rate
(percent)
*
321
*
*
*
*
*
The values of it are:
For valuation dates occurring in the month—
it
*
*
*
July–September 2020 .......................................................
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory
Affairs, Pension Benefit Guaranty
Corporation.
BILLING CODE 7709–02–P
ENVIRONMENTAL PROTECTION
AGENCY
1–20
*
0.0157
>20
*
0.0198
This final rule is effective July
15, 2020.
[EPA–R10–OAR–2020–0108; FRL–10009–
59–Region 10]
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:
The Environmental Protection
Agency (EPA) is approving revisions to
SUMMARY:
Jkt 250001
The EPA has established a
docket for this action under Docket ID
No. EPA–R10–OAR–2020–0108. All
documents in the docket are listed on
the https://www.regulations.gov
website. Although listed in the index,
some information is not publicly
available, e.g., Confidential Business
Information or other information the
disclosure of which is restricted by
statute. Certain other material, such as
ADDRESSES:
Air Plan Approval; Washington;
Northwest Clean Air Agency
jbell on DSKJLSW7X2PROD with RULES
for t =
DATES:
40 CFR Part 52
16:05 Jun 12, 2020
it
the Washington State Implementation
Plan (SIP) that were submitted by the
Washington Department of Ecology
(Ecology) in coordination with the
Northwest Clean Air Agency (NWCAA).
This revision updates certain NWCAA
regulations currently in the SIP,
removes obsolete regulations, and
approves a subset of updated Ecology
regulations to apply in NWCAA’s
jurisdiction.
[FR Doc. 2020–12883 Filed 6–12–20; 8:45 am]
VerDate Sep<11>2014
for t =
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it
*
for t =
*
N/A
N/A
copyrighted material, is not placed on
the internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available at https://
www.regulations.gov, or please contact
the person listed in the FOR FURTHER
INFORMATION CONTACT section for
additional availability information.
FOR FURTHER INFORMATION CONTACT: Jeff
Hunt, EPA Region 10, 1200 Sixth
Avenue—Suite 155, Seattle, WA 98101,
at (206) 553–0256, or hunt.jeff@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document, wherever
‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, it means
the EPA.
I. Background
On March 24, 2020, we proposed to
approve updates to certain NWCAA
regulations currently in the SIP, remove
obsolete regulations, and approve a
subset of updated Ecology regulations to
apply in NWCAA’s jurisdiction (85 FR
E:\FR\FM\15JNR1.SGM
15JNR1
]]>Agencies
[Federal Register Volume 85, Number 115 (Monday, June 15, 2020)]
[Rules and Regulations]
[Pages 36153-36154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12883]
=======================================================================
-----------------------------------------------------------------------
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 July 2020 and interest
assumptions under the asset allocation regulation for plans with
valuation dates in the third quarter of 2020. 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 July 1, 2020.
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 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 (https://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
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 July 2020 measurement dates.
The July 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 June 2020, 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
third quarter 2020 interest assumptions will be 1.98 percent for the
first 20 years following the valuation date and 1.57 percent
thereafter. In comparison with the interest assumptions in effect for
the second quarter of 2020, these interest assumptions represent no
change in the select period (the period during which the select rate
(the initial rate) applies), a decrease of 0.13 percent in the select
rate, and a decrease of 0.35 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 July
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
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.
[[Page 36154]]
0
2. In appendix B to part 4022, Rate Set 321 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
321 7-1-20 8-1-20 0.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 321 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
321 7-1-20 8-1-20 0.00 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 ``July-September 2020'' is
added at the end of the table to read as follows:
Appendix B to Part 4044--Interest Rates Used To Value Benefits
* * * * *
----------------------------------------------------------------------------------------------------------------
The values of i are:
For valuation dates -----------------------------------------------------------------------------------
occurring in the month-- i for t = i for t = i for t =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
July-September 2020......... 0.0198 1-20 0.0157 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit
Guaranty Corporation.
[FR Doc. 2020-12883 Filed 6-12-20; 8:45 am]
BILLING CODE 7709-02-P
