Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing Benefits, 71146 [2021-27079]
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Federal Register / Vol. 86, No. 238 / Wednesday, December 15, 2021 / Rules and Regulations
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4044
Allocation of Assets in SingleEmployer Plans; Interest Assumptions
for Valuing Benefits
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
This final rule amends the
Pension Benefit Guaranty Corporation’s
regulation on Allocation of Assets in
Single-Employer Plans to prescribe
interest assumptions under the asset
allocation regulation for plans with
valuation dates in the first quarter of
2022. These interest assumptions are
used for valuing benefits under
terminating single-employer plans and
for other purposes.
DATES: Effective January 1, 2022.
FOR FURTHER INFORMATION CONTACT:
Hilary Duke (duke.hilary@pbgc.gov),
Assistant General Counsel for
Regulatory Affairs, Pension Benefit
Guaranty Corporation, 1200 K Street
NW, Washington, DC 20005, 202–229–
3839. (TTY users may call the Federal
relay service toll free at 1–800–877–
8339 and ask to be connected to 202–
229–3839.)
SUPPLEMENTARY INFORMATION: PBGC’s
regulation on Allocation of Assets in
Single-Employer Plans (29 CFR part
4044) prescribes actuarial
assumptions—including interest
assumptions—for valuing benefits under
terminating single-employer plans
covered by title IV of the Employee
SUMMARY:
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 4044 (‘‘Interest Rates
Used to Value Benefits’’) to determine
the present value of annuities in an
involuntary or distress termination of a
single-employer plan under the asset
allocation regulation. The assumptions
are also used to determine the value of
multiemployer plan benefits and certain
assets when a plan terminates by mass
withdrawal in accordance with PBGC’s
regulation on Duties of Plan Sponsor
Following Mass Withdrawal (29 CFR
part 4281).
The first quarter 2022 interest
assumptions will be 2.37 percent for the
first 20 years following the valuation
date and 2.03 percent thereafter. In
comparison with the interest
assumptions in effect for the fourth
quarter of 2021, these interest
assumptions represent no change in the
select period (the period during which
the select rate (the initial rate) applies),
a decrease of 0.03 percent in the select
rate, and a decrease of 0.08 percent in
the ultimate rate (the final rate).
rule expeditiously, without an
opportunity for notice and comment,
and that good cause exists for making
the assumptions set forth in this
amendment effective less than 30 days
after publication to allow the use of the
proper assumptions to estimate the
value of plan benefits for plans with
valuation dates early in the first quarter
of 2022.
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).
Need for Immediate Guidance
PBGC has determined that notice of,
and public comment on, this rule are
impracticable, unnecessary, and
contrary to the public interest. PBGC
routinely updates the interest
assumptions in appendix B of the asset
allocation regulation each quarter so
that they are available to value benefits.
Accordingly, PBGC finds that the public
interest is best served by issuing this
■
List of Subjects in 29 CFR Part 4044
Employee benefit plans, Pension
insurance, Pensions.
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. In appendix B to part 4044, an entry
for ‘‘January–March 2022’’ 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 it are:
For valuation dates occurring in the month—
it
*
*
*
January–March 2022 ................................................
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory
Affairs, Pension Benefit Guaranty
Corporation.
[FR Doc. 2021–27079 Filed 12–14–21; 8:45 am]
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BILLING CODE 7709–02–P
for t =
it
*
0.0237
*
0.0203
1–20
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2021–0876]
RIN 1625–AA87
Security Zone; Corpus Christi Ship
Channel, Corpus Christi, TX
Coast Guard, DHS.
ACTION: Temporary final rule.
AGENCY:
VerDate Sep<11>2014
19:15 Dec 14, 2021
Jkt 256001
PO 00000
Frm 00018
Fmt 4700
Sfmt 4700
for t =
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>20
it
for t =
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N/A
N/A
The Coast Guard is
establishing a 500-yard radius
temporary moving security zone around
Motor Vessel (M/V) Liberty Pride. This
zone is needed to protect the vessel,
which will be carrying specialized cargo
onboard, while they are transiting the
Corpus Christi Ship Channel in Corpus
Christi, TX. Entry of vessels or persons
into the zone is prohibited unless
specifically authorized by the Captain of
the Port Sector Corpus Christi (COTP) or
a designated representative.
SUMMARY:
This rule is effective without
actual notice from December 15, 2021
through December 16, 2021. For the
DATES:
E:\FR\FM\15DER1.SGM
15DER1
]]>Agencies
[Federal Register Volume 86, Number 238 (Wednesday, December 15, 2021)]
[Rules and Regulations]
[Page 71146]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27079]
[[Page 71146]]
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PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4044
Allocation of Assets in Single-Employer Plans; Interest
Assumptions for Valuing Benefits
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule amends the Pension Benefit Guaranty
Corporation's regulation on Allocation of Assets in Single-Employer
Plans to prescribe interest assumptions under the asset allocation
regulation for plans with valuation dates in the first quarter of 2022.
These interest assumptions are used for valuing benefits under
terminating single-employer plans and for other purposes.
DATES: Effective January 1, 2022.
FOR FURTHER INFORMATION CONTACT: Hilary Duke ([email protected]),
Assistant General Counsel for Regulatory Affairs, Pension Benefit
Guaranty Corporation, 1200 K Street NW, Washington, DC 20005, 202-229-
3839. (TTY users may call the Federal relay service toll free at 1-800-
877-8339 and ask to be connected to 202-229-3839.)
SUPPLEMENTARY INFORMATION: PBGC's regulation on Allocation of Assets in
Single-Employer Plans (29 CFR part 4044) prescribes actuarial
assumptions--including interest assumptions--for valuing 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 regulation are also published on PBGC's website
(https://www.pbgc.gov).
PBGC uses the interest assumptions in appendix B to part 4044
(``Interest Rates Used to Value Benefits'') to determine the present
value of annuities in an involuntary or distress termination of a
single-employer plan under the asset allocation regulation. The
assumptions are also used to determine the value of multiemployer plan
benefits and certain assets when a plan terminates by mass withdrawal
in accordance with PBGC's regulation on Duties of Plan Sponsor
Following Mass Withdrawal (29 CFR part 4281).
The first quarter 2022 interest assumptions will be 2.37 percent
for the first 20 years following the valuation date and 2.03 percent
thereafter. In comparison with the interest assumptions in effect for
the fourth quarter of 2021, these interest assumptions represent no
change in the select period (the period during which the select rate
(the initial rate) applies), a decrease of 0.03 percent in the select
rate, and a decrease of 0.08 percent in the ultimate rate (the final
rate).
Need for Immediate Guidance
PBGC has determined that notice of, and public comment on, this
rule are impracticable, unnecessary, and contrary to the public
interest. PBGC routinely updates the interest assumptions in appendix B
of the asset allocation regulation each quarter so that they are
available to value benefits. Accordingly, PBGC finds that the public
interest is best served by issuing this rule expeditiously, without an
opportunity for notice and comment, and that good cause exists for
making the assumptions set forth in this amendment effective less than
30 days after publication to allow the use of the proper assumptions to
estimate the value of plan benefits for plans with valuation dates
early in the first quarter of 2022.
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 4044
Employee benefit plans, Pension insurance, Pensions.
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. In appendix B to part 4044, an entry for ``January-March 2022'' 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
January-March 2022........... 0.0237 1-20 0.0203 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit
Guaranty Corporation.
[FR Doc. 2021-27079 Filed 12-14-21; 8:45 am]
BILLING CODE 7709-02-P
