Federal Register / Vol. 80, No. 178 / Tuesday, September 15, 2015 / Rules and Regulations 55249 

§ 70.413 [Amended] 

■ 9. In § 70.413: 

■ a. Paragraph (c)(2)(ii) is amended by 

removing the words ‘‘as 

unmerchantable,’’; 

■ b. Paragraph (d)(2) is amended by 

removing the words ‘‘unmerchantable 

domestic’’; and 

■ c. The first parenthetical phrase at the 

end of the section is amended by 

removing the Office of Management and 

Budget control number ‘‘1512–0141’’ 

and adding, in its place, the number 

‘‘1513–0030’’. 

§ 70.414 [Amended] 

■ 10. Section 70.414 is amended by 

removing the words ‘‘unmerchantable 

domestic’’ from paragraph (d)(3). 

Signed: June 11, 2015. 

John J. Manfreda, 

Administrator. 

Approved: June 19, 2015. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 2015–23132 Filed 9–14–15; 8:45 am] 

BILLING CODE 4810–31–P 

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 October 2015 and 

interest assumptions under the asset 

allocation regulation for valuation dates 

in the fourth quarter of 2015. 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 October 1, 2015. 

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 

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 October 2015 

and updates the asset allocation interest 

assumptions for the fourth quarter 

(October through December) of 2015. 

The fourth quarter 2015 interest 

assumptions under the allocation 

regulation will be 2.46 percent for the 

first 20 years following the valuation 

date and 2.98 percent thereafter. In 

comparison with the interest 

assumptions in effect for the third 

quarter of 2015, these interest 

assumptions represent no change in the 

select period (the period during which 

the select rate (the initial rate) applies), 

an increase of 0.14 percent in the select 

rate, and an increase of 0.68 percent in 

the ultimate rate (the final rate). 

The October 2015 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 September 

2015, 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 valuation 

and payment of benefits under plans 

with valuation dates during October 

2015, 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 consideration 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 

264, as set forth below, is added to the 

table. 

Appendix B to Part 4022—Lump Sum 

Interest Rates for PBGC Payments 

* * * * * 

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55250 Federal Register / Vol. 80, No. 178 / Tuesday, September 15, 2015 / Rules and Regulations 

Rate set 

For plans with a valuation 

date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i1 i2 i3 n1 n2

*******

264 10–1–15 11–1–15 1.25 4.00 4.00 4.00 7 8 

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

264, 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

*******

264 10–1–15 11–1–15 1.25 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 October–December 2015, 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 = 

*******

October–December 2015 ..................................................... 0.0246 1–20 0.0298 >20 N/A N/A 

Issued in Washington, DC, on this 10th day 

of September 2015. 

Judith Starr, 

General Counsel, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2015–23231 Filed 9–14–15; 8:45 am] 

BILLING CODE 7709–02–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 199 

[DOD–2006–HA–0207] 

RIN 0720–AB15 

Civilian Health and Medical Program of 

the Uniformed Services (CHAMPUS); 

TRICARE Reserve Select; TRICARE 

Dental Program; Early Eligibility for 

TRICARE for Certain Reserve 

Component Members 

AGENCY: Office of the Secretary, DoD. 

ACTION: Final rule. 

SUMMARY: TRICARE Reserve Select 

(TRS) is a premium-based TRICARE 

health plan available for purchase 

worldwide by qualified members of the 

Ready Reserve and by qualified 

survivors of TRS members. TRICARE 

Dental Program (TDP) is a premiumbased TRICARE dental plan available 

for purchase worldwide by qualified 

Service members. This final rule revises 

requirements and procedures for the 

TRS program to specify the appropriate 

actuarial basis for calculating premiums 

in addition to making other minor 

clarifying administrative changes. For a 

member who is involuntarily separated 

from the Selected Reserve under other 

than adverse conditions this final rule 

provides a time-limited exception that 

allows TRS coverage in effect to 

continue for up to 180 days after the 

date on which the member is separated 

from the Selected Reserve and TDP 

coverage in effect to continue for no less 

than 180 days after the separation date. 

It also expands early TRICARE 

eligibility for certain Reserve 

Component members from a maximum 

of 90 days to a maximum of 180 days 

prior to activation in support of a 

contingency operation for more than 30 

days. 

DATES: This rule is effective October 15, 

2015. 

FOR FURTHER INFORMATION CONTACT: 

Brian Smith, Defense Health Agency, 

TRICARE Health Plan Division, 

telephone (703) 681–0039. 

Questions regarding payment of 

specific claims under the TRICARE 

allowable charge method should be 

addressed to the appropriate TRICARE 

contractor. 

SUPPLEMENTARY INFORMATION: 

I. Introduction and Background 

A. Overview 

An interim final rule was published 

in the Federal Register on August 20, 

2007 (72 FR 46380). That interim final 

rule addressed provisions of the 

National Defense Authorization Act for 

Fiscal Year 2007 (NDAA–07) (Pub. L. 

109–364),which expanded eligibility for 

the TRICARE Reserve Select program to 

include all Selected Reservists except 

those individuals either enrolled or 

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