Legal Status
Legal Status
Rule
Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits
A Rule by the Pension Benefit Guaranty Corporation on
Document Details
Information about this document as published in the Federal Register.
- Printed version:
- Publication Date:
- 07/15/2010
- Agency:
- Pension Benefit Guaranty Corporation
- Dates:
- Effective August 1, 2010.
- Effective Date:
- 08/01/2010
- Document Type:
- Rule
- Document Citation:
- 75 FR 41091
- Page:
- 41091-41092 (2 pages)
- CFR:
- 29 CFR 4022
- Document Number:
- 2010-17200
Document Details
-
Enhanced Content - Table of Contents
This tables of contents is a navigational tool, processed from the headings within the legal text of Federal Register documents. This repetition of headings to form internal navigation links has no substantive legal effect.
- AGENCY:
- ACTION:
- SUMMARY:
- DATES:
- FOR FURTHER INFORMATION CONTACT:
- SUPPLEMENTARY INFORMATION:
- List of Subjects in 29 CFR Part 4022
- PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS
- Appendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments
- Appendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments
Enhanced Content - Table of Contents
-
Enhanced Content - Submit Public Comment
- This feature is not available for this document.
Enhanced Content - Submit Public Comment
-
Enhanced Content - Read Public Comments
Enhanced Content - Read Public Comments
-
Enhanced Content - Sharing
- Shorter Document URL
- https://www.federalregister.gov/d/2010-17200 https://www.federalregister.gov/d/2010-17200
Enhanced Content - Sharing
-
Enhanced Content - Document Tools
These tools are designed to help you understand the official document better and aid in comparing the online edition to the print edition.
-
These markup elements allow the user to see how the document follows the Document Drafting Handbook that agencies use to create their documents. These can be useful for better understanding how a document is structured but are not part of the published document itself.
Display Non-Printed Markup Elements
Enhanced Content - Document Tools
-
-
Enhanced Content - Developer Tools
This document is available in the following developer friendly formats:
- JSON: Normalized attributes and metadata
- XML: Original full text XML
- MODS: Government Publishing Office metadata
More information and documentation can be found in our developer tools pages.
Enhanced Content - Developer Tools
Published Document
This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.
AGENCY:
Pension Benefit Guaranty Corporation.
ACTION:
Final rule.
SUMMARY:
Pension Benefit Guaranty Corporation's regulation on Benefits Payable in Terminated Single-Employer Plans prescribes interest assumptions for valuing and paying certain benefits under terminating single-employer plans. This final rule amends the benefit payments regulation to adopt interest assumptions for plans with valuation dates in August 2010. Interest assumptions are also published on PBGC's Web site (http://www.pbgc.gov).
DATES:
Effective August 1, 2010.
Start Further InfoFOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Manager, Regulatory and Policy Division, Legislative and Regulatory Department, Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005, 202-326-4024. (TTY/TDD users may call the Federal relay service toll-free at 1-800-877-8339 and ask to be connected to 202-326-4024.)
End Further Info End Preamble Start Supplemental InformationSUPPLEMENTARY INFORMATION:
PBGC's regulations prescribe actuarial assumptions—including interest assumptions—for valuing and paying plan benefits of terminating single-employer plans covered by title IV of the Employee Retirement Income Security Act of 1974. The interest assumptions are intended to reflect current conditions in the financial and annuity markets.
These interest assumptions are found in two PBGC regulations: the regulation on Benefits Payable in Terminated Single-Employer Plans (29 CFR Part 4022) and the regulation on Allocation of Assets in Single-Employer Plans (29 CFR Part 4044). Assumptions under the asset allocation regulation are updated quarterly; assumptions under the benefit payments regulation are updated monthly. This final rule updates only the assumptions under the benefit payments regulation.
Two sets of interest assumptions are prescribed under the benefit payments regulation: (1) A set for PBGC to use to determine whether a benefit is payable as a lump sum and to determine lump-sum amounts to be paid by PBGC (found in Appendix B to Part 4022), and (2) a set for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using PBGC's historical methodology (found in Appendix C to Part 4022).
This amendment (1) adds to Appendix B to Part 4022 the interest assumptions for PBGC to use for its own lump-sum payments in plans with valuation dates during August 2010, and (2) adds to Appendix C to Part 4022 the interest assumptions for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using PBGC's historical methodology for valuation dates during August 2010.
The interest assumptions that PBGC will use for its own lump-sum payments (set forth in Appendix B to part 4022) will be 2.25 percent for the period during which a benefit is 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 July 2010, these interest assumptions represent a decrease of 0.25 percent in the immediate annuity rate and are otherwise unchanged. For private-sector payments, the interest assumptions (set forth in Appendix C to part 4022) will be the same as those used by PBGC for determining and paying lump sums (set forth in Appendix B to part 4022).
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 determine and issue new interest assumptions promptly so that the assumptions can reflect current market conditions as accurately as possible.
Because of the need to provide immediate guidance for the valuation and payment of benefits in plans with valuation dates during August 2010, 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).
Start List of SubjectsList of Subjects in 29 CFR Part 4022
End List of Subjects Start Amendment PartIn consideration of the foregoing,
End Amendment Part Start PartPART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS
End Part Start Amendment Part1. The authority citation for part 4022 continues to read as follows:
End Amendment Part Start AuthorityAuthority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344.
End Authority Start Amendment Part2. In appendix B to part 4022, Rate Set 202, as set forth below, is added to the table.
End Amendment PartAppendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments
Rate set | For plans with a valuation date | Immediate annuity rate (percent) | Deferred annuities (percent) | |||||
---|---|---|---|---|---|---|---|---|
On or after | Before | i1 | i2 | i3 | n1 | |||
Start Printed Page 41092 | ||||||||
* * * * * * * | ||||||||
202 | 8-1-10 | 9-1-10 | 2.25 | 4.00 | 4.00 | 4.00 | 7 |
3. In appendix C to part 4022, Rate Set 202, as set forth below, is added to the table.
End Amendment PartAppendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments
Rate set | For plans with a valuation date | Immediate annuity rate (percent) | Deferred annuities (percent) | |||||
---|---|---|---|---|---|---|---|---|
On or after | Before | i1 | i2 | i3 | n1 | |||
* * * * * * * | ||||||||
202 | 8-1-10 | 9-1-10 | 2.25 | 4.00 | 4.00 | 4.00 | 7 |
Issued in Washington, DC, on this 7th day of July 2010.
Vincent K. Snowbarger,
Acting Director, Pension Benefit Guaranty Corporation.
[FR Doc. 2010-17200 Filed 7-14-10; 8:45 am]
BILLING CODE 7709-01-P