Allocation of Assets in Single-Employer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 57123-57124 [2020-20179]
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57123
Federal Register / Vol. 85, No. 179 / Tuesday, September 15, 2020 / Rules and Regulations
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.
AGENCY:
ACTION:
Final rule.
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 October 2020 and interest
assumptions under the asset allocation
regulation for plans with valuation dates
in the fourth quarter of 2020. These
interest assumptions are used for
valuing benefits and paying certain
benefits under terminating singleemployer plans covered by the pension
insurance system administered by
PBGC.
SUMMARY:
DATES:
Effective October 1, 2020.
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.)
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).
jbell on DSKJLSW7X2PROD with RULES
SUPPLEMENTARY INFORMATION:
Rate set
For plans with a
valuation date
On or after
*
324
VerDate Sep<11>2014
*
16:15 Sep 14, 2020
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 October
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).
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 benefits liabilities reportable
under section 4044 of ERISA and for
other purposes. The fourth quarter 2020
interest assumptions will be 1.62
percent for the first 20 years following
the valuation date and 1.40 percent
thereafter. In comparison with the
interest assumptions in effect for the
third 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 0.36 percent in the select
rate, and a decrease of 0.17 percent in
the ultimate rate (the final rate).
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
Need for Immediate Guidance
PBGC updates appendix B of the asset
allocation regulation each quarter and
Immediate
annuity rate
(percent)
Before
10–1–20
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 October 2020
measurement dates.
The October 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 September
2020, these assumptions represent no
change in the immediate rate and are
otherwise unchanged.
*
11–1–20
Jkt 250001
PO 00000
0.00
Frm 00047
List of Subjects
29 CFR Part 4022
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.
2. In appendix B to part 4022, Rate Set
324 is added at the end of the table to
read as follows:
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
*
Deferred annuities
(percent)
i1
i2
*
4.00
4.00
Fmt 4700
Sfmt 4700
i3
*
n1
*
4.00
E:\FR\FM\15SER1.SGM
15SER1
n2
*
7
8
57124
Federal Register / Vol. 85, No. 179 / Tuesday, September 15, 2020 / Rules and Regulations
3. In appendix C to part 4022, Rate Set
324 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
Rate set
On or after
*
*
*
Before
*
10–1–20
11–1–20
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
324
*
0.00
i1
i2
*
4.00
4.00
i3
*
n2
*
*
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 ‘‘October–December 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
*
*
*
*
The values of it are:
For valuation dates occurring in the month—
it
*
*
*
October–December 2020 .................................................
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory
Affairs, Pension Benefit Guaranty
Corporation.
BILLING CODE 7709–02–P
DEPARTMENT OF THE TREASURY
Office of Investment Security
31 CFR Part 800
RIN 1505–AC68
Provisions Pertaining to Certain
Investments in the United States by
Foreign Persons
Office of Investment Security,
Department of the Treasury.
ACTION: Final rule.
This final rule modifies
certain provisions in the regulations of
the Committee on Foreign Investment in
the United States that implement
section 721 of the Defense Production
Act of 1950, as amended by the Foreign
Investment Risk Review Modernization
Act of 2018. Specifically, the rule
modifies the mandatory declaration
provision for certain foreign investment
transactions involving a U.S. business
that produces, designs, tests,
manufactures, fabricates, or develops
one or more critical technologies. It also
makes amendments to the definition of
the term ‘‘substantial interest’’ and a
jbell on DSKJLSW7X2PROD with RULES
16:15 Sep 14, 2020
Jkt 250001
for t =
1–20
*
0.0140
>20
*
0.0162
I. Background
AGENCY:
VerDate Sep<11>2014
it
related provision, and makes one
technical revision.
DATES:
Effective date: The final rule is
effective on October 15, 2020.
Applicability date: See § 800.104.
FOR FURTHER INFORMATION CONTACT: For
questions about this rule, contact:
Meena R. Sharma, Deputy Director of
Investment Security Policy and
International Relations; or David
Shogren, Senior Policy Advisor, at U.S.
Department of the Treasury, 1500
Pennsylvania Avenue NW, Washington,
DC 20220; telephone: (202) 622–3425;
email: CFIUS.FIRRMA@treasury.gov.
SUPPLEMENTARY INFORMATION:
[FR Doc. 2020–20179 Filed 9–14–20; 8:45 am]
SUMMARY:
for t =
On May 21, 2020, the Department of
the Treasury (Treasury Department)
published a notice of proposed
rulemaking amending certain provisions
in 31 CFR part 800 (Part 800). 85 FR
30893. (The Office of the Federal
Register made the proposed rule
available for public inspection on May
20, 2020.) Public comments on the
proposed rule were due by June 22,
2020, and are discussed below.
The proposed rule made revisions to
the requirement to submit declarations
to the Committee on Foreign Investment
in the United States (CFIUS or the
Committee) for certain critical
technology transactions. This
declaration requirement in Part 800
implements section 1706 of the Foreign
Investment Risk Review Modernization
Act of 2018 (FIRRMA), which amends
PO 00000
Frm 00048
Fmt 4700
Sfmt 4700
it
*
for t =
*
N/A
N/A
section 721 of the Defense Production
Act of 1950 (DPA) to authorize CFIUS
to mandate through regulations the
submission of a declaration for covered
transactions involving certain U.S.
businesses that produce, design, test,
manufacture, fabricate, or develop one
or more critical technologies.
The proposed rule made
modifications to the scope of the
mandatory declaration provision in Part
800—primarily reorienting it from one
based on a nexus to certain industries to
one based on whether certain U.S.
government authorizations would be
required to export, reexport, transfer (incountry), or retransfer the critical
technology or technologies produced,
designed, tested, manufactured,
fabricated, or developed by the U.S.
business to certain transaction parties
and foreign persons in the ownership
chain. To accomplish this, the proposed
rule amended § 800.104 (applicability
rule) and § 800.401 (mandatory
declarations); introduced two new
definitions: ‘‘U.S. regulatory
authorization’’ and ‘‘voting interest for
purposes of critical technology
mandatory declarations;’’ and removed
the North American Industry
Classification System (NAICS) codes at
appendix B to Part 800. The proposed
rule also made amendments to the
definition of ‘‘substantial interest’’ at
§ 800.244 of Part 800.
Further explanation of FIRRMA and
the proposed rule can be found at 85 FR
30893; changes to the proposed rule are
explained in further detail below.
E:\FR\FM\15SER1.SGM
15SER1
]]>Agencies
[Federal Register Volume 85, Number 179 (Tuesday, September 15, 2020)]
[Rules and Regulations]
[Pages 57123-57124]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20179]
[[Page 57123]]
=======================================================================
-----------------------------------------------------------------------
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 October 2020 and interest
assumptions under the asset allocation regulation for plans with
valuation dates in the fourth 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 October 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 October 2020 measurement dates.
The October 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 September 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 benefits liabilities
reportable under section 4044 of ERISA and for other purposes. The
fourth quarter 2020 interest assumptions will be 1.62 percent for the
first 20 years following the valuation date and 1.40 percent
thereafter. In comparison with the interest assumptions in effect for
the third 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 0.36 percent in the select
rate, and a decrease of 0.17 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 October
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.
0
2. In appendix B to part 4022, Rate Set 324 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
324 10-1-20 11-1-20 0.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 57124]]
0
3. In appendix C to part 4022, Rate Set 324 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
324 10-1-20 11-1-20 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 ``October-December 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
October-December 2020....... 0.0162 1-20 0.0140 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit
Guaranty Corporation.
[FR Doc. 2020-20179 Filed 9-14-20; 8:45 am]
BILLING CODE 7709-02-P
