Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age, 78742-78743 [2020-26209]
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Federal Register / Vol. 85, No. 235 / Monday, December 7, 2020 / Rules and Regulations
Furthermore, comment letters explained
how the conditions in the U.S. affiliate
provision, coupled with the anti-evasion
provisions (with some modifications),
balance the flexibility needed by CPOs to
make prudent capital allocation decisions
with preventive measures reducing the
likelihood of abuse. While it is possible that
some less than forthright actors could
attempt to use the regulation 3.10(c)
exemption to skirt the CPO registration
requirements when soliciting commodity
interest investments from U.S. persons, the
Final Rule has appropriate restrictions that
will facilitate enforcement when necessary.
In conclusion, the Final Rule makes
prudent, limited amendments that reduce the
burdens on the Commission’s limited
resources while maintaining the necessary
protections intended for U.S. commodity
pool participants. I would like to thank the
commenters for their contribution to
improving the Final Rule and the CFTC staff
for working with my office to address my
concerns.
[FR Doc. 2020–23810 Filed 12–2–20; 4:15 pm]
BILLING CODE 6351–01–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 2021. 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,
2021.
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–
229–3829. (TTY users may call the
Federal relay service toll-free at 1–800–
877–8339 and ask to be connected to
202–229–3829.)
khammond on DSKJM1Z7X2PROD with RULES
SUMMARY:
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21:21 Dec 04, 2020
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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 § 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
SUPPLEMENTARY INFORMATION:
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early retirement benefit and, thus, the
total value of benefits under the plan.
This document amends appendix D to
replace Table I–20 with Table I–21 to
provide an updated correlation,
appropriate for calendar year 2021,
between the amount of a participant’s
benefit and the probability that the
participant will elect early retirement.
Table I–21 will be used to value benefits
in plans with valuation dates during
calendar year 2021.
PBGC has determined that notice of,
and public comment on, this rule are
impracticable, unnecessary, and
contrary to the public interest. PBGC’s
update of appendix D for calendar year
2021 is routine. If a plan has a valuation
date in 2021, the plan administrator
needs the updated table being
promulgated in this rule to value
benefits. 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 the use of the
proper table to estimate the value of
plan benefits for plans with valuation
dates in early 2021.
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–20 and
adding in its place Table I–21 to read as
follows:
■
Appendix D to Part 4044—Tables Used
To Determine Expected Retirement Age
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Federal Register / Vol. 85, No. 235 / Monday, December 7, 2020 / Rules and Regulations
78743
TABLE I–21—SELECTION OF RETIREMENT RATE CATEGORY
[For valuation dates in 2021 1]
Participant’s Retirement Rate Category is—
Low 2 if monthly
benefit at URA
is less than—
If participant reaches URA in year—
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
.................................................................................................
or later ....................................................................................
Medium 3 if monthly benefit at
URA is—
From—
686
701
718
734
751
768
786
804
822
841
To—
686
701
718
734
751
768
786
804
822
841
2,896
2,963
3,031
3,100
3,172
3,245
3,319
3,396
3,474
3,554
High 4 if monthly
benefit at URA
is greater than—
2,896
2,963
3,031
3,100
3,172
3,245
3,319
3,396
3,474
3,554
1 Applicable
tables for valuation dates before 2021 are available on PBGC’s website (www.pbgc.gov).
II–A.
II–B.
4 Table II–C.
2 Table
3 Table
*
*
*
*
*
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory
Affairs Pension Benefit Guaranty
Corporation.
[FR Doc. 2020–26209 Filed 12–4–20; 8:45 am]
BILLING CODE 7709–02–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 9 and 721
[EPA–HQ–OPPT–2019–0650; FRL–10015–
16]
RIN 2070–AB27
Significant New Use Rules on Certain
Chemical Substances (20–2.B)
Environmental Protection
Agency (EPA).
ACTION: Final rule.
I. General Information
EPA is issuing significant new
use rules (SNURs) under the Toxic
Substances Control Act (TSCA) for
chemical substances which were the
subject of premanufacture notices
(PMNs). This action requires persons to
notify EPA least 90 days before
commencing manufacture (defined by
statute to include import) or processing
of any of these chemical substances for
an activity that is designated as a
significant new use by this rule. This
action further requires that persons not
commence manufacture or processing
for the significant new use until they
have submitted a Significant New Use
Notice (SNUN), and EPA has conducted
a review of the notice, made an
appropriate determination on the notice,
A. Does this action apply to me?
You may be potentially affected by
this action if you manufacture, process,
or use the chemical substances
contained in this rule. The following list
of North American Industrial
Classification System (NAICS) codes is
not intended to be exhaustive, but rather
provides a guide to help readers
determine whether this document
applies to them. Potentially affected
entities may include:
• Manufacturers or processors of one
or more subject chemical substances
(NAICS codes 325 and 324110), e.g.,
chemical manufacturing and petroleum
refineries.
This action may also affect certain
entities through pre-existing import
AGENCY:
SUMMARY:
khammond on DSKJM1Z7X2PROD with RULES
and has taken any risk management
actions as are required as a result of that
determination.
DATES: This rule is effective on February
5, 2021. For purposes of judicial review,
this rule shall be promulgated at 1 p.m.
(e.s.t.) on December 21, 2020.
FOR FURTHER INFORMATION CONTACT: For
technical information contact: William
Wysong, New Chemicals Division
(7405M), Office of Pollution Prevention
and Toxics, Environmental Protection
Agency, 1200 Pennsylvania Ave. NW,
Washington, DC 20460–0001; telephone
number: (202) 564–4163; email address:
wysong.william@epa.gov.
For general information contact: The
TSCA-Hotline, ABVI-Goodwill, 422
South Clinton Ave., Rochester, NY
14620; telephone number: (202) 554–
1404; email address: TSCA-Hotline@
epa.gov.
SUPPLEMENTARY INFORMATION:
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21:21 Dec 04, 2020
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certification and export notification
rules under TSCA. Chemical importers
are subject to the TSCA section 13 (15
U.S.C. 2612) import provisions. This
action may also affect certain entities
through pre-existing import certification
and export notification rules under
TSCA, which would include the SNUR
requirements. The EPA policy in
support of import certification appears
at 40 CFR part 707, subpart B. In
addition, pursuant to 40 CFR 721.20,
any persons who export or intend to
export a chemical substance that is the
subject of this rule are subject to the
export notification provisions of TSCA
section 12(b) (15 U.S.C. 2611(b)), and
must comply with the export
notification requirements in 40 CFR part
707, subpart D.
B. How can I access the docket?
The docket includes information
considered by the Agency in developing
the proposed and final rules. The docket
for this action, identified by docket
identification (ID) number EPA–HQ–
OPPT–2019–0650, is available at
https://www.regulations.gov and at the
Office of Pollution Prevention and
Toxics Docket (OPPT Docket),
Environmental Protection Agency
Docket Center (EPA/DC), West William
Jefferson Clinton Bldg., Rm. 3334, 1301
Constitution Ave. NW, Washington, DC.
The Public Reading Room is open from
8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding legal holidays. The
telephone number for the Public
Reading Room is (202) 566–1744, and
the telephone number for the OPPT
Docket is (202) 566–0280. Please review
the visitor instructions and additional
information about the docket available
at https://www.epa.gov/dockets.
E:\FR\FM\07DER1.SGM
07DER1
]]>Agencies
[Federal Register Volume 85, Number 235 (Monday, December 7, 2020)]
[Rules and Regulations]
[Pages 78742-78743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26209]
=======================================================================
-----------------------------------------------------------------------
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 2021. 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, 2021.
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, 202-229-3829. (TTY users may call the Federal relay service
toll-free at 1-800-877-8339 and ask to be connected to 202-229-3829.)
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-20 with Table I-
21 to provide an updated correlation, appropriate for calendar year
2021, between the amount of a participant's benefit and the probability
that the participant will elect early retirement. Table I-21 will be
used to value benefits in plans with valuation dates during calendar
year 2021.
PBGC has determined that notice of, and public comment on, this
rule are impracticable, unnecessary, and contrary to the public
interest. PBGC's update of appendix D for calendar year 2021 is
routine. If a plan has a valuation date in 2021, the plan administrator
needs the updated table being promulgated in this rule to value
benefits. 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 the use of the proper table to estimate the value of plan
benefits for plans with valuation dates in early 2021.
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-20 and adding
in its place Table I-21 to read as follows:
Appendix D to Part 4044--Tables Used To Determine Expected Retirement
Age
[[Page 78743]]
Table I-21--Selection of Retirement Rate Category
[For valuation dates in 2021 \1\]
----------------------------------------------------------------------------------------------------------------
Participant's Retirement Rate Category is--
-----------------------------------------------------------------------
Medium \3\ if monthly benefit High \4\ if
If participant reaches URA in year-- Low \2\ if monthly at URA is-- monthly benefit at
benefit at URA is -------------------------------- URA is greater
less than-- From-- To-- than--
----------------------------------------------------------------------------------------------------------------
2022.................................... 686 686 2,896 2,896
2023.................................... 701 701 2,963 2,963
2024.................................... 718 718 3,031 3,031
2025.................................... 734 734 3,100 3,100
2026.................................... 751 751 3,172 3,172
2027.................................... 768 768 3,245 3,245
2028.................................... 786 786 3,319 3,319
2029.................................... 804 804 3,396 3,396
2030.................................... 822 822 3,474 3,474
2031 or later........................... 841 841 3,554 3,554
----------------------------------------------------------------------------------------------------------------
\1\ Applicable tables for valuation dates before 2021 are available on PBGC's website (www.pbgc.gov).
\2\ Table II-A.
\3\ Table II-B.
\4\ Table II-C.
* * * * *
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs Pension Benefit
Guaranty Corporation.
[FR Doc. 2020-26209 Filed 12-4-20; 8:45 am]
BILLING CODE 7709-02-P
