35838 Federal Register / Vol. 77, No. 116 / Friday, June 15, 2012 / Rules and Regulations 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4022 and 4044 

Allocation of Assets in SingleEmployer Plans; Benefits Payable in 

Terminated Single-Employer Plans; 

Interest Assumptions for Valuing and 

Paying Benefits 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

Pension Benefit Guaranty Corporation’s 

regulations on Benefits Payable in 

Terminated Single-Employer Plans and 

Allocation of Assets in Single-Employer 

Plans to prescribe interest assumptions 

under the benefit payments regulation 

for valuation dates in July 2012 and 

interest assumptions under the asset 

allocation regulation for valuation dates 

in the third quarter of 2012. The interest 

assumptions are used for valuing and 

paying benefits under terminating 

single-employer plans covered by the 

pension insurance system administered 

by PBGC. 

DATES: Effective July 1, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion 

(Klion.Catherine@PBGC.gov), 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.) 

SUPPLEMENTARY INFORMATION: PBGC’s 

regulations on Allocation of Assets in 

Single-Employer Plans (29 CFR part 

4044) and Benefits Payable in 

Terminated Single-Employer Plans 

(29 CFR part 4022) prescribe actuarial 

assumptions—including interest 

assumptions—for valuing and paying 

plan benefits under terminating singleemployer plans covered by title IV of 

the Employee Retirement Income 

Security Act of 1974. The interest 

assumptions in the regulations are also 

published on PBGC’s Web site (http:// 

www.pbgc.gov). 

The interest assumptions in Appendix 

B to Part 4044 are used to value benefits 

for allocation purposes under ERISA 

section 4044. 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 asset allocation 

regulation are updated quarterly; 

assumptions under the benefit payments 

regulation are updated monthly. This 

final rule updates the benefit payments 

interest assumptions for July 2012 and 

updates the asset allocation interest 

assumptions for the third quarter (July 

through September) of 2012. 

The third quarter 2012 interest 

assumptions under the allocation 

regulation will be 2.95 percent for the 

first 20 years following the valuation 

date and 3.66 percent thereafter. In 

comparison with the interest 

assumptions in effect for the second 

quarter of 2012, these interest 

assumptions represent no change in the 

select period (the period during which 

the select rate (the initial rate) applies), 

a decrease of 0.16 percent in the select 

rate, and an increase of 0.30 percent in 

the ultimate rate (the final rate). 

The July 2012 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 June 2011, 

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 valuation 

and payment of benefits under plans 

with valuation dates during July 2012, 

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 

29 CFR Part 4022 

Employee benefit plans, Pension 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

29 CFR Part 4044 

Employee benefit plans, Pension 

insurance, Pensions. 

In consideratin of the foregoing, 29 

CFR parts 4022 and 4044 are 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 

225, 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

*******

225 7–1–12 8–1–12 1.00 4.00 4.00 4.00 7 8 


srobinson on DSK4SPTVN1PROD with RULES
Federal Register / Vol. 77, No. 116 / Friday, June 15, 2012 / Rules and Regulations 35839 

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

225, 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

*******

225 7–1–12 8–1–12 1.00 4.00 4.00 4.00 7 8 

PART 4044—ALLOCATION OF 

ASSETS IN SINGLE-EMPLOYER 

PLANS 

■ 4. The authority citation for part 4044 

continues to read as follows: 

Authority: 29 U.S.C. 1301(a), 1302(b)(3), 

1341, 1344, 1362. 

■ 5. In appendix B to part 4044, a new 

entry for July–September 2012, as set 

forth below, is added to the table. 

Appendix B to Part 4044—Interest 

Rates Used To Value Benefits 

* * * * * 

For valuation dates occurring in the month— 

The values of it are: 

it for t = it for t = it for t = 

*******

July–September 2012 ........................................................... 0.0295 1–20 0.0366 >20 N/A N/A 

Issued in Washington, DC, on this 11th day 

of June 2012. 

John H. Hanley, 

Director, Legislative and Regulatory 

Department, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2012–14722 Filed 6–14–12; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Parts 100 and 165 

[Docket No. USCG–2012–0100] 

RIN 1625–AA00; 1625–AA08 

Special Local Regulation and Security 

Zone: War of 1812 Bicentennial 

Commemoration, Port of Boston, MA 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary special local 

regulation and temporary security zones 

during and after the War of 1812 

Bicentennial Commemoration events in 

the Port of Boston, Massachusetts, to be 

held between June 28, 2012 and July 6, 

2012. These regulations are necessary to 

promote the safe navigation of vessels 

and the safety of life and property 

during the heavy volume of vessel 

traffic expected during this event. 

DATES: This rule is effective and will be 

enforced from 9 a.m. on June 29, 2012 

to 6 p.m. on July 6, 2012. 

ADDRESSES: Documents mentioned in 

this preamble are part of docket USCG– 

2012–0100. To view documents 

mentioned in this preamble as being 

available in the docket, go to http:// 

www.regulations.gov, type the docket 

number in the ‘‘SEARCH’’ Box and click 

‘‘SEARCH.’’ Click on Open Docket 

Folder on the line associated with the 

rulemaking. You may also visit the 

Docket Management Facility in Room 

W12–140 on the ground floor of the 

Department of Transportation, West 

Building, 1200 New Jersey Avenue SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this temporary 

final rule, call or email Mr. Mark Cutter, 

Coast Guard Sector Boston Waterways 

Management Division, telephone 617– 

223–4000, email 

Mark.E.Cutter@uscg.mil. If you have 

questions on viewing or submitting 

material to the docket, call Renee V. 

Wright, Program Manager, Docket 

Operations, telephone 202–366–9826. 

SUPPLEMENTARY INFORMATION: 

Table of Acronyms 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of Proposed Rulemaking 

A. Regulatory History and Information 

On April 3, 2012, we published a 

notice of proposed rulemaking (NPRM) 

entitled: Special Local Regulation and 

Security Zone: War of 1812 Bicentennial 

Commemoration, Port of Boston, 

Massachusetts; in the Federal Register 

(77 FR 19963). Two comments were 

received in the proposed rule’s docket: 

• One comment was accidentally 

misfiled from an unrelated FAA 

regulation and did not pertain to our 

proposed rulemaking. It has since been 

removed from the docket for this rule by 

the Docket Management System. 

• One comment asked simply ‘‘Will 

there be any provisions for Press Boats 

for the event? If so how should the 

vessel be flagged or identified as such?’’ 

The Coast Guard recommends that a 

boat with members of the media 

onboard, display something with the 

word ‘‘MEDIA’’ that is visible to other 

vessels. 

No public meeting was requested of 

the Coast Guard, and none was held. 

The event sponsor hosted a planning 

and coordination meeting that was open 

to the public on October 12, 2011 and 

held an Initial Planning Conference on 

February 14–15, 2012 and a mid-term 

planning conference on May 8, 2012 in 


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