Federal Register / Vol. 82, No. 12 / Thursday, January 19, 2017 / Rules and Regulations 6243 

1Appendix B to PBGC’s regulation on Allocation 

of Assets in Single-Employer Plans (29 CFR part 

4044) prescribes interest assumptions for valuing 

benefits under terminating covered single-employer 

plans for purposes of allocation of assets under 

ERISA section 4044. Those assumptions are 

updated quarterly. 

see § 1.1312–7 as contained in 26 CFR 

part 1 revised as of April 1, 2016. 

John Dalrymple, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: November 11, 2016. 

Mark J. Mazur, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2017–01365 Filed 1–18–17; 8:45 am] 

BILLING CODE 4830–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Part 4022 

Benefits Payable in Terminated SingleEmployer 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 interest assumptions under 

the regulation for valuation dates in 

February 2017. The interest 

assumptions are used for paying 

benefits under terminating singleemployer plans covered by the pension 

insurance system administered by 

PBGC. 

DATES: Effective February 1, 2017. 

FOR FURTHER INFORMATION CONTACT: 

Deborah C. Murphy (Murphy.Deborah@

pbgc.gov), Assistant General Counsel for 

Regulatory Affairs, Pension Benefit 

Guaranty Corporation, 1200 K Street 

NW., Washington, DC 20005, 202–326– 

4400 ext. 3451. (TTY/TDD users may 

call the Federal relay service toll-free at 

1–800–877–8339 and ask to be 

connected to 202–326–4400 ext. 3451.) 

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 terminating single-employer 

plans covered by title IV of the 

Employee Retirement Income Security 

Act of 1974. The interest assumptions in 

the regulation are also published on 

PBGC’s Web site (http://www.pbgc.gov). 

PBGC uses the interest assumptions in 

Appendix B to Part 4022 to determine 

whether a benefit is payable as a lump 

sum and to determine the amount to 

pay. Appendix C to Part 4022 contains 

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. Currently, the rates in 

Appendices B and C of the benefit 

payment regulation are the same. 

The interest assumptions are intended 

to reflect current conditions in the 

financial and annuity markets. 

Assumptions under the benefit 

payments regulation are updated 

monthly. This final rule updates the 

benefit payments interest assumptions 

for February 2017.1

The February 2017 interest 

assumptions under the benefit payments 

regulation will be 1.25 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 January 2017, 

these interest assumptions are 

unchanged. 

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 payment of 

benefits under plans with valuation 

dates during February 2017, 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 

280, as set forth below, is added to the 

table. 

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 i1 i2 i3 n1 n2

*******

280 2–1–17 3–1–17 1.25 4.00 4.00 4.00 7 8 

■ 3. In appendix C to part 4022, Rate Set 

280, as set forth below, is added to the 

table. 

Appendix C to Part 4022—Lump Sum 

Interest Rates for Private-Sector 

Payments 

* * * * * 


asabaliauskas on DSK3SPTVN1PROD with RULES
6244 Federal Register / Vol. 82, No. 12 / Thursday, January 19, 2017 / Rules and Regulations 

1National Compensation Survey, Bureau of Labor 

Statistics (July 2016), Employee Benefits in the 

United States—March 2016 (http://www.bls.gov/ 

news.release/pdf/ebs2.pdf). These data show that 66 

percent of 114 million private-sector workers have 

access to a retirement plan through their employers. 

By extension, approximately 34 percent of the 114 

million private-sector workers (39 million) do not 

have access to a retirement plan through work. 

2The Department of Labor has published 

regulations relating to state payroll deduction 

savings programs. 81 FR 59464 (Aug. 30, 2016) and 

81 FR 92639 (Dec. 20, 2016). 

Rate set 

For plans with a valuation 

date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i1 i2 i3 n1 n2

*******

280 2–1–17 3–1–17 1.25 4.00 4.00 4.00 7 8 

Issued in Washington, DC. 

Deborah Chase Murphy, 

Assistant General Counsel for Regulatory 

Affairs, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2017–00461 Filed 1–18–17; 8:45 am] 

BILLING CODE 7709–02–P 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

31 CFR Part 347 

RIN 1530–AA13 

Regulations Governing Retirement 

Savings Bonds 

AGENCY: Bureau of the Fiscal Service, 

Fiscal Service, Treasury. 

ACTION: Final rule. 

SUMMARY: Currently, the Bureau of the 

Fiscal Service (Fiscal Service) of the 

United States Department of the 

Treasury (Treasury), issues 

nonmarketable, electronic retirement 

savings bonds to an individual 

retirement account (IRA) custodian 

designated by Fiscal Service to act as a 

custodian for Roth IRAs under 

Treasury’s myRA® program. In this 

Final Rule, Treasury offers 

nonmarketable, electronic retirement 

savings bonds for certain retirement 

savings programs established by states 

or certain of their political subdivisions 

(states). The bonds will be issued to a 

trustee or custodian (custodian) of a 

Roth IRA or traditional IRA designated 

by a state under its retirement savings 

program (whether or not the program 

provides for automatic enrollment). 

Interest will be earned at a rate available 

to federal employees invested in the 

Government Securities Investment Fund 

(G Fund) of the federal Thrift Savings 

Plan. 

This offering does not affect the terms 

of retirement savings bonds issued to 

the custodian of Treasury’s retirement 

savings program, myRA®, which are 

held in participants’ Roth IRAs. More 

information on myRA® is available at 

www.myra.gov. 

DATES: This Final Rule is effective 

January 19, 2017. 

FOR FURTHER INFORMATION CONTACT: 

Technical information: Gregory Till, 

myRA Bureau Director, at (202) 622– 

6970 or Gregory.Till@treasury.gov. 

Legal information: Elizabeth Spears, 

Senior Counsel, at (304) 480–8647 or 

Lisa.Spears@fiscal.treasury.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Approximately one third of privatesector employees in the United States 

lack access to a retirement savings plan 

through their employers.1 To fill this 

gap, several states are establishing or 

considering establishing programs that 

will encourage employees to save for 

their retirement, including through 

individual retirement accounts into 

which employees are automatically 

enrolled and through other approaches 

(collectively referred to here as AutoIRAs, whether or not they use automatic 

enrollment).2 Under an Auto-IRA 

program, employee contributions are 

deposited into an IRA and invested in 

accordance with the design of the AutoIRA program and the wishes of the 

participant. Generally, it is expected 

that an Auto-IRA program will offer a 

safe and low-cost investment option as 

an alternative to a risk-bearing 

diversified investment, such as a target 

date fund. In order to assist states in 

offering savers the option of a principalprotected investment, Fiscal Service 

will offer retirement savings bonds to 

state Auto-IRA programs. Fiscal Service 

reserves the right, however, to decline to 

issue retirement savings bonds to state 

Auto-IRA programs on a case-by-case 

basis, based on considerations such as 

the structure and reasonableness of 

associated fees, plans to control fees and 

expenses, whether participants have 

reasonable access to their funds, and 

oversight of providers designated to 

operate state Auto-IRA programs. 

II. Section-by-Section Analysis 

Subpart A—General Information 

Section 347.0 Offering of securities. 

This section is amended to offer 

retirement savings bonds to Auto-IRA 

custodians for certain state retirement 

savings programs. 

Section 347.1 Applicability. This 

section is amended to include the AutoIRA custodians for state retirement 

savings programs under this part. 

Section 347.2 Official agencies. This 

section clarifies that Fiscal Service is 

responsible for issuing retirement 

savings bonds to the Auto-IRA 

custodians and that states are 

responsible for administering their own 

Auto-IRA retirement savings programs. 

Section 347.3 Definitions. Several 

new definitions, including ‘‘Auto-IRA,’’ 

‘‘state Auto-IRA program,’’ ‘‘IRA,’’ 

‘‘Custodian,’’ ‘‘State,’’ and ‘‘Auto-IRA 

custodian’’ have been added for ease of 

reference in Subpart C—Auto-IRA 

Programs and minor changes have been 

made to some existing definitions. 

Subpart B—Treasury’s Retirement 

Savings Program 

Miscellaneous changes have been 

made to the sections pertaining to 

retirement savings bonds issued to the 

custodian of Treasury’s retirement 

savings program, myRA®, which are 

held in participants’ Roth IRAs. These 

changes, which were made to 

accommodate revised definitions and 

other minor or technical revisions, do 

not affect the terms of these bonds. See, 

e.g., §§ 347.10 through 347.16. 

Subpart C—Auto-IRA Programs 

Section 347.30 Plan requirements 

for State Auto-IRA programs. 

Subsection (a) of this new section 

specifies that retirement savings bonds 

will be issued to Auto-IRA custodians 

for certain state Auto-IRA programs, and 

that no other registrations under 

Subpart C are permitted. As defined in 

§ 347.3, an Auto-IRA custodian is ‘‘an 

entity designated by a state (including, 

for the purpose of these regulations, 

certain political subdivisions of states) 

to act as the trustee or custodian for 

Auto-IRAs, in the form of Roth IRAs or 

traditional IRAs, for or opened on behalf 

of participants in a state Auto-IRA 

program.’’ Subsection (b) lists topics 


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