Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations 10707 

the CFTC to be eligible contract 

participants pursuant to Section 

1a(12)(C) of the Commodity Exchange 

Act. Based on our existing information 

about the security-based swaps market, 

including our existing information 

about participants in the security-based 

swaps market, we believe that the 

interim final rules apply to few, if any, 

small entities. For this reason, the 

extension of the expiration dates in the 

interim final rules should not have a 

significant economic impact on a 

substantial number of small entities. 

VI. Statutory Authority and Text of the 

Rules and Amendments 

The amendments described in this 

release are being adopted under the 

authority set forth in Sections 19 and 28 

of the Securities Act, Sections 12(h), 

23(a) and 36 of the Exchange Act, and 

Section 304(d) of the Trust Indenture 

Act. 

List of Subjects in 17 CFR Parts 230, 

240 and 260 

Reporting and recordkeeping 

requirements, Securities. 

Text of the Rules and Amendments 

For the reasons set out in the 

preamble, the Commission amends 17 

CFR parts 230, 240, and 260 as follows: 

PART 230—GENERAL RULES AND 

REGULATIONS, SECURITIES ACT OF 

1933 

■ 1. The authority citation for part 230 

continues to read, in part, as follows: 

Authority: 15 U.S.C. 77b, 77b note, 77c, 

77d, 77d note, 77f, 77g, 77h, 77j, 77r, 77s, 

77z–3, 77sss, 78c, 78d, 78j, 78l, 78m, 78n, 

78o, 78o–7 note, 78t, 78w, 78ll(d), 78mm, 

80a–8, 80a–24, 80a–28, 80a–29, 80a–30, and 

80a–37, and Pub. L. 112–106, sec. 201(a), sec. 

401, 126 Stat. 313 (2012), unless otherwise 

noted. 

* * * * * 

§ 230.240 [Amended] 

■ 2. Section 230.240 is revised to read 

as follows: 

§ 230.240 Exemption for certain securitybased swaps. 

(a) Except as expressly provided in 

paragraph (b) of this section, the Act 

does not apply to the offer or sale of any 

security-based swap that is: 

(1) A security-based swap agreement, 

as defined in Section 2A of the Act (15 

U.S.C. 77b(b)–1) as in effect prior to July 

16, 2011; and 

(2) Entered into between eligible 

contract participants (as defined in 

Section 1a(12) of the Commodity 

Exchange Act (7 U.S.C. 1a(12)) as in 

effect prior to July 16, 2011, other than 

a person who is an eligible contract 

participant under Section 1a(12)(C) of 

the Commodity Exchange Act as in 

effect prior to July 16, 2011). 

(b) The exemption provided in 

paragraph (a) of this section does not 

apply to the provisions of Section 17(a) 

of the Act (15 U.S.C. 77q(a)). 

(c) This section will expire on 

February 11, 2018. 

PART 240—GENERAL RULES AND 

REGULATIONS, SECURITIES 

EXCHANGE ACT OF 1934 

■ 3. The authority citation for part 240 

continues to read, in part, as follows: 

Authority: 15 U.S.C. 77c, 77d, 77g, 77j, 

77s, 77z–2, 77z–3, 77eee, 77ggg, 77nnn, 

77sss, 77ttt, 78c, 78c–3, 78c–5, 78d, 78e, 78f, 

78g, 78i, 78j, 78j–1, 78k, 78k–1, 78l, 78m, 

78n, 78n–1, 78o, 78o–4, 78o–10, 78p, 78q, 

78q–1, 78s, 78u–5, 78w, 78x, 78ll, 78mm, 

80a–20, 80a–23, 80a–29, 80a–37, 80b–3, 80b– 

4, 80b–11, 7201 et seq. and 8302; 7 U.S.C. 

2(c)(2)(E); 12 U.S.C. 5221(e)(3); 18 U.S.C. 

1350; Pub. L. 111–203, 939A, 124 Stat. 1376 

(2010); and Pub. L. 112–106, sec. 503 and 

602, 126 Stat. 326 (2012), unless otherwise 

noted. 

* * * * * 

§ 240.12a–11 [Amended] 

■ 4. Section 240.12a–11 is revised to 

read as follows: 

§ 240.12a–11 Exemption of security-based 

swaps sold in reliance on Securities Act of 

1933 Rule 240 (§ 230.240) from section 12(a) 

of the Act. 

(a) The provisions of Section 12(a) of 

the Act (15 U.S.C. 78l(a)) do not apply 

to any security-based swap offered and 

sold in reliance on § 230.240 of this 

chapter. 

(b) This section will expire on 

February 11, 2018. 

§ 240.12h–1 [Amended] 

■ 5. In § 240.12h–1, paragraph (i) is 

revised to read as follows: 

§ 240.12h–1 Exemptions from registration 

under section 12(g) of the Act. 

* * * * * 

(i) Any security-based swap offered 

and sold in reliance on § 230.240 of this 

chapter. This section will expire on 

February 11, 2018. 

PART 260—GENERAL RULES AND 

REGULATIONS, TRUST INDENTURE 

ACT OF 1939 

■ 6. The authority citation for part 260 

continues to read as follows: 

Authority: 15 U.S.C. 77c, 77ddd, 77eee, 

77ggg, 77nnn, 77sss, 78ll(d), 80b–3, 80b–4, 

and 80b–11, unless otherwise noted. 

* * * * * 

§ 260.4d–12 [Amended] 

■ 7. Section 260.4d–12 is revised to read 

as follows: 

§ 260.4d–12 Exemption for security-based 

swaps offered and sold in reliance on 

Securities Act of 1933 Rule 240 (§ 230.240). 

Any security-based swap offered and 

sold in reliance on § 230.240 of this 

chapter, whether or not issued under an 

indenture, is exempt from the Act. This 

section will expire on February 11, 

2018. 

By the Commission. 

Dated: February 10, 2017. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–03121 Filed 2–14–17; 8:45 am] 

BILLING CODE 8011–01–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 

March 2017. The interest assumptions 

are used for paying benefits under 

terminating single-employer plans 

covered by the pension insurance 

system administered by PBGC. 

DATES: Effective March 1, 2017. 

FOR FURTHER INFORMATION CONTACT: 

Deborah C. Murphy (Murphy.Deborah@

pbgc.gov), Assistant General Counsel for 

Regulatory Affairs, Pension Benefit 

Guaranty Corporation, 1200 K Street 

NW., Washington, DC 20005, 202–326– 

4400 ext. 3451. (TTY/TDD users may 

call the Federal relay service toll-free at 

1–800–877–8339 and ask to be 

connected to 202–326–4400 ext. 3451.) 

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). 

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10708 Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / 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. 

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 March 2017.1

The March 2017 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 January 2017, 

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 February 2017, 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 

281 is added to the table to read as 

follows: 

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

*******

281 3–1–17 4–1–17 1.25 4.00 4.00 4.00 7 8 

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

281 is added to the table to read as 

follows: 

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

*******

281 3–1–17 4–1–17 1.25 4.00 4.00 4.00 7 8 

Issued in Washington, DC, by 

Deborah Chase Murphy, 

Assistant General Counsel for Regulatory 

Affairs, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2017–02761 Filed 2–14–17; 8:45 am] 

BILLING CODE 7709–02–P 

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