22184 Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Rules and Regulations 

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. 

BIA will publish a final rule with 

technical revisions. 

Dated: April 12, 2016. 

Lawrence S. Roberts, 

Acting Assistant Secretary—Indian Affairs. 

[FR Doc. 2016–08776 Filed 4–14–16; 8:45 am] 

BILLING CODE 4337–15–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 

May 2016. The interest assumptions are 

used for paying benefits under 

terminating single-employer plans 

covered by the pension insurance 

system administered by PBGC. 

DATES: Effective May 1, 2016. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion (Klion.Catherine@

pbgc.gov), Assistant General Counsel for 

Regulatory Affairs, 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.) 

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 May 2016.1

The May 2016 interest assumptions 

under the benefit payments regulation 

will be 1.00 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 April 2016, 

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 May 2016, 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 

271, 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

*******

271 5–1–16 6–1–16 1.00 4.00 4.00 4.00 7 8 

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

271, as set forth below, is added to the 

table. 

Appendix C to Part 4022—Lump Sum 

Interest Rates for Private-Sector 

Payments 

* * * * * 


jstallworth on DSK7TPTVN1PROD with RULES
Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Rules and Regulations 22185 

Rate set 

For plans with a valuation 

date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i1 i2 i3 n1 n2

*******

271 5–1–16 6–1–16 1.00 4.00 4.00 4.00 7 8 

Issued in Washington, DC, on this 11th day 

of April 2016. 

Judith Starr, 

General Counsel, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2016–08773 Filed 4–14–16; 8:45 am] 

BILLING CODE 7709–02–P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 566 

Hizballah Financial Sanctions 

Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (OFAC) is adding new part 566 

to 31 CFR chapter V to implement the 

Hizballah International Financing 

Prevention Act of 2015, which requires 

the President to prescribe certain 

regulations. 

DATES: Effective: April 15, 2016. 

FOR FURTHER INFORMATION CONTACT: The 

Department of the Treasury’s Office of 

Foreign Assets Control: Assistant 

Director for Licensing, tel.: 202–622– 

2480, Assistant Director for Regulatory 

Affairs, tel.: 202–622–4855, Assistant 

Director for Sanctions Compliance & 

Evaluation, tel.: 202–622–2490; or the 

Department of the Treasury’s Office of 

the Chief Counsel (Foreign Assets 

Control), Office of the General Counsel, 

tel.: 202–622–2410. 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning OFAC are 

available from OFAC’s Web site 

(www.treasury.gov/ofac). Certain general 

information pertaining to OFAC’s 

sanctions programs also is available via 

facsimile through a 24-hour fax-ondemand service, tel.: 202–622–0077. 

Background 

On December 18, 2015, the President 

signed the Hizballah International 

Financing Prevention Act of 2015, 

Public Law 114–102 (HIFPA), into law. 

Section 102(a)(1) of HIFPA requires the 

President, within 120 days of the 

enactment of HIFPA, to prescribe 

regulations to prohibit or impose strict 

conditions on the opening or 

maintaining in the United States of a 

correspondent account or a payablethrough account by a foreign financial 

institution that the President 

determines, on or after December 18, 

2015, engages in one or more of the 

following activities: (1) Knowingly 

facilitating a significant transaction or 

transactions for Hizballah; (2) 

knowingly facilitating a significant 

transaction or transactions of a person 

identified on the List of Specially 

Designated Nationals and Blocked 

Persons (SDN List) maintained by 

OFAC, the property and interests in 

property of which are blocked pursuant 

to the International Emergency 

Economic Powers Act (50 U.S.C. 1701 et 

seq.) for acting on behalf of or at the 

direction of, or being owned or 

controlled by, Hizballah; (3) knowingly 

engaging in money laundering to carry 

out an activity described in (1) or (2); or 

(4) knowingly facilitating a significant 

transaction or transactions or providing 

significant financial services to carry out 

an activity described in (1), (2), or (3). 

Pursuant to Presidential 

Memorandum of March 18, 2016: 

Delegation of Functions Under Sections 

102(a), 102(c), 204, and 302 of HIFPA, 

the President delegated certain 

functions and authorities, with respect 

to the determinations provided for 

therein, to the Secretary of the Treasury, 

in consultation with the Secretary of 

State. In furtherance of HIFPA’s 

requirement and the Presidential 

delegation of functions and authorities 

noted above, OFAC is promulgating the 

Hizballah Financial Sanctions 

Regulations, 31 CFR part 566 (the 

‘‘Regulations’’). 

Subpart A of the Regulations clarifies 

the relation of this part to other laws 

and regulations. Subpart B of the 

Regulations implements section 102(a) 

of HIFPA. The names of foreign 

financial institutions that are 

determined by the Secretary of the 

Treasury, in consultation with the 

Secretary of State, to engage in the 

activities described in § 566.201(a) of 

the Regulations, and which are subject 

to prohibitions or strict conditions on 

the opening or maintaining of 

correspondent or payable-through 

accounts as set forth in § 566.201(b) of 

the Regulations, will be listed on the 

Hizballah Financial Sanctions 

Regulations List (HFSR List) on OFAC’s 

Web site (www.treasury.gov/ofac) on the 

Counter Terrorism Sanctions page and 

published in the Federal Register. 

Subpart C of the Regulations defines 

key terms used throughout the 

Regulations, and subpart D contains 

interpretive sections regarding the 

Regulations. Section 566.404 of subpart 

D of the Regulations sets forth the types 

of factors that, as a general matter, the 

Secretary of the Treasury will consider 

in determining, for purposes of 

paragraph (a) of § 566.201, whether 

transactions or financial services are 

significant. 

Transactions otherwise prohibited 

under the Regulations but found to be 

consistent with U.S. policy may be 

authorized by the general licenses 

contained in subpart E of the 

Regulations or by a specific license 

issued pursuant to the procedures 

described in subpart E of 31 CFR part 

501. Subpart E of the Regulations 

includes a general license in § 566.504 

authorizing transactions related to 

winding down and closing a 

correspondent account or a payablethrough account. Section 566.504 

authorizes transactions related to 

closing a correspondent account or 

payable-through account for a foreign 

financial institution whose name is 

added to the HFSR List during the 10- 

day period beginning on the effective 

date of the prohibition in § 566.201. 

This general license includes a reporting 

requirement pursuant to which a U.S. 

financial institution that maintained a 

correspondent account or a payablethrough account for a foreign financial 

institution whose name is added to the 

HFSR List must file a report with OFAC 

that provides full details on the closing 

of each such account within 30 days of 

the closure of the account. The report 

must include complete information on 

all transactions processed or executed in 

winding down and closing the account. 

Subpart F of the Regulations refers to 

subpart C of part 501 for recordkeeping 


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