Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits
| Published date | 15 April 2019 |
| Citation | 84 FR 15107 |
| Record Number | 2019-07279 |
| Section | Rules and Regulations |
| Court | Pension Benefit Guaranty Corporation |
15107
Federal Register / Vol. 84, No. 72 / Monday, April 15, 2019 / Rules and Regulations
* * * * *
[FR Doc. 2019–07286 Filed 4–12–19; 8:45 am]
BILLING CODE 4510–26–C
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated Single-
Employer Plans; Interest Assumptions
for Paying Benefits
AGENCY
: Pension Benefit Guaranty
Corporation.
ACTION
: Final rule.
SUMMARY
: This final rule amends the
Pension Benefit Guaranty Corporation’s
regulation on Benefits Payable in
Terminated Single-Employer Plans to
prescribe certain interest assumptions
under the regulation for plans with
valuation dates in May 2019. These
interest assumptions are used for paying
certain benefits under terminating
single-employer plans covered by the
pension insurance system administered
by PBGC.
DATES
: Effective May 1, 2019.
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.)
SUPPLEMENTARY INFORMATION
: PBGC’s
regulation on Benefits Payable in
Terminated Single-Employer Plans (29
CFR part 4022) prescribes actuarial
assumptions—including interest
assumptions—for paying plan benefits
under terminated 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 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. 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 benefits payment regulation
to provide the rates for May 2019
measurement dates.
The May 2019 lump sum interest
assumptions will be 1.00 percent for the
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15108
Federal Register / Vol. 84, No. 72 / Monday, April 15, 2019 / Rules and Regulations
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 April 2019,
these assumptions represent a decrease
of 0.25 percent in the immediate rate
and are otherwise unchanged.
PBGC updates appendices B and C
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 for plans that rely
on our publication of them each month
to calculate lump sum benefit amounts.
Because of the need to provide
immediate guidance for the payment of
benefits under plans with valuation
dates during May 2019, 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 in 29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
In consideration of the foregoing, 29
CFR part 4022 is 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
307 is added at the end of the table to
read as follows:
Appendix 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 i
1
i
2
i
3
n
1
n
2
*******
307 5–1–19 6–1–19 1.00 4.00 4.00 4.00 7 8
■3. In appendix C to part 4022, rate set
307 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
* * * * *
Rate set
For plans with a valuation
date Immediate
annuity rate
(percent)
Deferred annuities
(percent)
On or after Before i
1
i
2
i
3
n
1
n
2
*******
307 5–1–19 6–1–19 1.00 4.00 4.00 4.00 7 8
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory
Affairs, Pension Benefit Guaranty
Corporation.
[FR Doc. 2019–07279 Filed 4–12–19; 8:45 am]
BILLING CODE 7709–02–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 52 and 81
[EPA–R03–OAR–2018–0215; FRL–9991–44-
Region 3]
Air Plan Approval; District of
Columbia, Maryland, and Virginia;
Maryland and Virginia Redesignation
Requests and District of Columbia,
Maryland, and Virginia Maintenance
Plan for the Washington, DC-MD-VA
2008 Ozone Standard Nonattainment
Area
AGENCY
: Environmental Protection
Agency (EPA).
ACTION
: Final rule.
SUMMARY
: The Environmental Protection
Agency (EPA) is approving the requests
from the State of Maryland (Maryland)
and the Commonwealth of Virginia
(Virginia) to redesignate to attainment
their respective portions of the
Washington, DC-MD-VA nonattainment
area (hereafter ‘‘the Washington Area’’
or ‘‘the Area’’) for the 2008 8-hour ozone
national ambient air quality standard
(NAAQS or standard) (also referred to as
the 2008 ozone NAAQS) as Maryland’s
and Virginia’s portions of the Area meet
the statutory requirements for
redesignation under the Clean Air Act
(CAA). EPA is therefore redesignating
the following jurisdictions to attainment
for the 2008 ozone NAAQS: The
Counties of Calvert, Charles, Frederick,
Montgomery, and Prince George’s in
Maryland as well as the Counties of
Arlington, Fairfax, Loudoun, and Prince
William and the Cities of Alexandria,
Fairfax, Falls Church, Manassas, and
Manassas Park in Virginia. EPA is also
approving, as a revision to District of
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