28490 Federal Register / Vol. 78, No. 94 / Wednesday, May 15, 2013 / 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. 

paid or accrued in taxable years 

beginning after February 14, 2012. 

* * * 

■ Par. 7. Section 1.1502–13 is amended 

by: 

■ 1. Revising the heading of paragraph 

(f)(5)(ii)(C). 

■ 2. Revising the first sentence in 

paragraph (f)(5)(ii)(C)(1). 

■ 3. Adding a new sentence at the end 

of paragraph (m). 

The revisions and addition read as 

follows: 

§ 1.1502–13 Intercompany transactions. 

* * * * * 

(f) * * * 

(5) * * * 

(ii) * * * 

(C) Section 338(h)(10) and Section 

336(e).— (1) In general. This paragraph 

(f)(5)(ii)(C) applies to a deemed 

liquidation of T under section 332 as the 

result of an election under section 

338(h)(10) or section 336(e). * * * 

* * * * * 

(m) Effective/applicability date. * * * 

Paragraph (f)(5)(ii)(C) of this section is 

applicable to any qualified stock 

disposition (as defined in § 1.336– 

1(b)(6)) for which the disposition date 

(as defined in § 1.336–1(b)(8)) is on or 

after May 15, 2013. 

* * * * * 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: May 9, 2013. 

Mark J. Mazur, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2013–11522 Filed 5–10–13; 4:15 pm] 

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 

June 2013. The interest assumptions are 

used for paying benefits under 

terminating single-employer plans 

covered by the pension insurance 

system administered by PBGC. 

DATES: Effective June 1, 2013. 

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 tollfree 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 June 2013.1

The June 2013 interest assumptions 

under the benefit payments regulation 

will be 0.75 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 May 2013, 

these interest assumptions represent a 

decrease of 0.25 percent in the 

immediate annuity rate and are 

otherwise 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 June 2013, 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: 


TKELLEY on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 78, No. 94 / Wednesday, May 15, 2013 / Rules and Regulations 28491 

Authority: 29 U.S.C. 1302, 1322, 1322b, 

1341(c)(3)(D), and 1344. 

■ 2. In appendix B to part 4022, Rate Set 

236, 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

*******

236 6–1–13 7–1–13 0.75 4.00 4.00 4.00 7 8 

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

236, as set forth below, is added to the 

table. 

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 i1 i2 i3 n1 n2

*******

236 6–1–13 7–1–13 0.75 4.00 4.00 4.00 7 8 

Issued in Washington, DC, on this 9th day 

of May 2013. 

Leslie Kramerich, 

Acting Chief Policy Officer, Pension Benefit 

Guaranty Corporation. 

[FR Doc. 2013–11557 Filed 5–14–13; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF DEFENSE 

Department of the Navy 

32 CFR Part 706 

Certifications and Exemptions Under 

the International Regulations for 

Preventing Collisions at Sea, 1972 

AGENCY: Department of the Navy, DoD. 

ACTION: Final rule. 

SUMMARY: The Department of the Navy 

(DoN) is amending its certifications and 

exemptions under the International 

Regulations for Preventing Collisions at 

Sea, 1972 (72 COLREGS), to reflect that 

the Deputy Assistant Judge Advocate 

General (DAJAG) (Admiralty and 

Maritime Law) has determined that USS 

SOMERSET (LPD 25) is a vessel of the 

Navy which, due to its special 

construction and purpose, cannot fully 

comply with certain provisions of the 72 

COLREGS without interfering with its 

special function as a naval ship. The 

intended effect of this rule is to warn 

mariners in waters where 72 COLREGS 

apply. 

DATES: This rule is effective May 15, 

2013 and is applicable beginning April 

18, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Lieutenant Jocelyn Loftus-Williams, 

JAGC, U.S. Navy, Admiralty Attorney, 

(Admiralty and Maritime Law), Office of 

the Judge Advocate General, Department 

of the Navy, 1322 Patterson Ave. SE., 

Suite 3000, Washington Navy Yard, DC 

20374–5066, telephone 202–685–5040. 

SUPPLEMENTARY INFORMATION: Pursuant 

to the authority granted in 33 U.S.C. 

1605, the DoN amends 32 CFR Part 706. 

This amendment provides notice that 

the DAJAG (Admiralty and Maritime 

Law), under authority delegated by the 

Secretary of the Navy, has certified that 

USS SOMERSET (LPD 25) is a vessel of 

the Navy which, due to its special 

construction and purpose, cannot fully 

comply with the following specific 

provisions of 72 COLREGS without 

interfering with its special function as a 

naval ship: Rule 27 (a)(i) and (b)(i), 

pertaining to the placement of all-round 

task lights in a vertical line; Annex I, 

paragraph 3(a), pertaining to the 

horizontal distance between the forward 

and after masthead lights; and Annex I, 

paragraph 2(k) as described in Rule 30 

(a)(i), pertaining to the vertical 

separation between anchor lights. The 

DAJAG (Admiralty and Maritime Law) 

has also certified that the lights 

involved are located in closest possible 

compliance with the applicable 72 

COLREGS requirements. 

Moreover, it has been determined, in 

accordance with 32 CFR parts 296 and 

701, that publication of this amendment 

for public comment prior to adoption is 

impracticable, unnecessary, and 

contrary to public interest since it is 

based on technical findings that the 

placement of lights on this vessel in a 

manner differently from that prescribed 

herein will adversely affect the vessel’s 

ability to perform its military functions. 

List of Subjects in 32 CFR Part 706 

Marine safety, Navigation (water), and 

Vessels. 

For the reasons set forth in the 

preamble, amend part 706 of title 32 of 

the CFR as follows: 

PART 706—CERTIFICATIONS AND 

EXEMPTIONS UNDER THE 

INTERNATIONAL REGULATIONS FOR 

PREVENTING COLLISIONS AT SEA, 

1972 

■ 1. The authority citation for part 706 

continues to read: 

Authority: 33 U.S.C. 1605. 

■ 2. Section 706.2 is amended as 

follows: 

■ A. In Table Three by adding, in alpha 

numerical order, by vessel number, an 

entry for USS SOMERSET (LPD 25); and 

■ B. In Table Four, paragraph 20, by 

adding, in alpha numerical order, by 

vessel number, an entry for USS 

SOMERSET (LPD 25); and 

■ C. In Table Five by adding, in alpha 

numerical order, by vessel number, an 

entry for USS SOMERSET (LPD 25). 


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