This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

75897 

Vol. 78, No. 240 

Friday, December 13, 2013 

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 January 2014 and 

interest assumptions under the asset 

allocation regulation for valuation dates 

in the first quarter of 2014. 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 January 1, 2014. 

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 January 2014 

and updates the asset allocation interest 

assumptions for the first quarter 

(January through March) of 2014. 

The first quarter 2014 interest 

assumptions under the allocation 

regulation will be 3.35 percent for the 

first 20 years following the valuation 

date and 3.50 percent thereafter. In 

comparison with the interest 

assumptions in effect for the fourth 

quarter of 2013, these interest 

assumptions represent no change in the 

select period (the period during which 

the select rate (the initial rate) applies), 

an increase of 0.35 percent in the select 

rate, and an increase of 0.19 percent in 

the ultimate rate (the final rate). 

The January 2014 interest 

assumptions under the benefit payments 

regulation will be 1.75 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 December 

2013, 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 January 

2014, 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 

243, as set forth below, is added to the 

table. 

Appendix B to Part 4022—Lump Sum 

Interest Rates for PBGC Payments 

* * * * * 


emcdonald on DSK67QTVN1PROD with RULES
75898 Federal Register / Vol. 78, No. 240 / Friday, December 13, 2013 / Rules and Regulations 

Rate set 

For plans with a 

valuation date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i 1 i 2 i 3 n 1 n 2

*******

243 1–1–14 2–1–14 1.75 4.00 4.00 4.00 7 8 

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

243, 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 i 1 i 2 i 3 n 1 n 2

*******

243 1–1–14 2–1–14 1.75 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 January–March 2014, 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 i t are: 

i t for t = i t for t = i t for t = 

*******

January–March 2014 ................................................................................ 0.0335 1–20 0.0350 >20 N/A N/A 

Issued in Washington, DC, on this 9th day 

of December 2013. 

Judith Starr, 

General Counsel, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2013–29755 Filed 12–12–13; 8:45 am] 

BILLING CODE 7709–02–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2013–0969] 

Safety Zone; Sacramento New Years 

Eve Fireworks Display, Sacramento 

River, Sacramento, CA 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of enforcement of 

regulation. 

SUMMARY: The Coast Guard will enforce 

the 1,000 foot safety zone in the 

navigable waters of the Sacramento 

River in Sacramento, CA on December 

31, 2013 during the Sacramento New 

Years Eve Fireworks Display. The 

fireworks display will occur from 9 p.m. 

to 9:20 p.m. on December 31, 2013 for 

the annual Sacramento New Years Eve 

Fireworks Display. This action is 

necessary to control vessel traffic and to 

help protect the safety of event 

participants and spectators. During the 

enforcement period, unauthorized 

persons or vessels are prohibited from 

entering into, transiting through, or 

anchoring in the safety zone, unless 

authorized by the Patrol Commander 

(PATCOM). 

DATES: The regulation in 33 CFR 

165.1191, Table 1, Item number 29, will 

be enforced from 9 p.m. to 9:20 p.m. on 

December 31, 2013. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this notice, call 

or email Lieutenant Junior Grade 

William Hawn, U.S. Coast Guard Sector 

San Francisco; telephone (415) 399– 

7442 or email at D11-PF-MarineEvents@

uscg.mil. 

SUPPLEMENTARY INFORMATION: The Coast 

Guard will enforce the Sacramento New 

Years Eve Fireworks Display safety zone 

in the navigable waters of the 

Sacramento River around the Tower 

Bridge in Sacramento, CA in 

approximate position 38°34′49.98′′ N, 

121°30′29.61′′ W (NAD 83). Upon the 

commencement of the fireworks 

display, scheduled to begin at 9 p.m. on 

December 31, 2013, the safety zone will 

encompass the navigable waters around 

the fireworks launch site on the Tower 

Bridge in Sacramento, CA in 

approximate position: 38°34′49.98′′ N, 

121°30′29.61′′ W (NAD 83) within a 

radius of 1,000 feet. At the conclusion 

of the fireworks display the safety zone 

shall terminate. This safety zone will be 

in effect from 9 p.m. to 9:20 p.m. on 

December 31, 2013. 

Under the provisions of 33 CFR 

165.1191, unauthorized persons or 

vessels are prohibited from entering 

into, transiting through, or anchoring in 

the safety zone during all applicable 

effective dates and times, unless 

authorized to do so by the PATCOM. 

Additionally, each person who receives 

notice of a lawful order or direction 

issued by an official patrol vessel shall 


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