Federal Register / Vol. 76, No. 231 / Thursday, December 1, 2011 / Rules and Regulations 74699 

and copying by authorized employees of 

the Administration under the provisions 

of section 510 of the Act (21 U.S.C. 880). 

(h) A record developed and 

maintained to comply with a State law 

may be used to meet the requirements 

of this section if the record includes the 

information specified in this section. 

Dated: November 22, 2011. 

Joseph T. Rannazzisi, 

Deputy Assistant Administrator, Office of 

Diversion Control. 

[FR Doc. 2011–30630 Filed 11–30–11; 8:45 am] 

BILLING CODE 4410–09–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Part 4044 

Allocation of Assets in SingleEmployer Plans; Valuation of Benefits 

and Assets; Expected Retirement Age 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: This rule amends Pension 

Benefit Guaranty Corporation’s 

regulation on Allocation of Assets in 

Single-Employer Plans by substituting a 

new table for determining expected 

retirement ages for participants in 

pension plans undergoing distress or 

involuntary termination with valuation 

dates falling in 2012. This table is 

needed in order to compute the value of 

early retirement benefits and, thus, the 

total value of benefits under a plan. 

DATES: Effective Date: January 1, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion, 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: The 

Pension Benefit Guaranty Corporation 

(PBGC) administers the pension plan 

termination insurance program under 

Title IV of the Employee Retirement 

Income Security Act of 1974 (ERISA). 

PBGC’s regulation on Allocation of 

Assets in Single-Employer Plans (29 

CFR part 4044) sets forth (in subpart B) 

the methods for valuing plan benefits of 

terminating single-employer plans 

covered under Title IV. Guaranteed 

benefits and benefit liabilities under a 

plan that is undergoing a distress 

termination must be valued in 

accordance with subpart B of part 4044. 

In addition, when PBGC terminates an 

underfunded plan involuntarily 

pursuant to ERISA section 4042(a), it 

uses the subpart B valuation rules to 

determine the amount of the plan’s 

underfunding. 

Under § 4044.51(b) of the asset 

allocation regulation, early retirement 

benefits are valued based on the annuity 

starting date, if a retirement date has 

been selected, or the expected 

retirement age, if the annuity starting 

date is not known on the valuation date. 

Sections 4044.55 through 4044.57 set 

forth rules for determining the expected 

retirement ages for plan participants 

entitled to early retirement benefits. 

Appendix D of part 4044 contains tables 

to be used in determining the expected 

early retirement ages. 

Table I in appendix D (Selection of 

Retirement Rate Category) is used to 

determine whether a participant has a 

low, medium, or high probability of 

retiring early. The determination is 

based on the year a participant would 

reach ‘‘unreduced retirement age’’ (i.e., 

the earlier of the normal retirement age 

or the age at which an unreduced 

benefit is first payable) and the 

participant’s monthly benefit at 

unreduced retirement age. The table 

applies only to plans with valuation 

dates in the current year and is updated 

annually by the PBGC to reflect changes 

in the cost of living, etc. 

Tables II–A, II–B, and II–C (Expected 

Retirement Ages for Individuals in the 

Low, Medium, and High Categories 

respectively) are used to determine the 

expected retirement age after the 

probability of early retirement has been 

determined using Table I. These tables 

establish, by probability category, the 

expected retirement age based on both 

the earliest age a participant could retire 

under the plan and the unreduced 

retirement age. This expected retirement 

age is used to compute the value of the 

early retirement benefit and, thus, the 

total value of benefits under the plan. 

This document amends appendix D to 

replace Table I–11 with Table I–12 in 

order to provide an updated correlation, 

appropriate for calendar year 2012, 

between the amount of a participant’s 

benefit and the probability that the 

participant will elect early retirement. 

Table I–12 will be used to value benefits 

in plans with valuation dates during 

calendar year 2012. 

PBGC has determined that notice of 

and public comment on this rule are 

impracticable and contrary to the public 

interest. Plan administrators need to be 

able to estimate accurately the value of 

plan benefits as early as possible before 

initiating the termination process. For 

that purpose, if a plan has a valuation 

date in 2012, the plan administrator 

needs the updated table being 

promulgated in this rule. Accordingly, 

the public interest is best served by 

issuing this table expeditiously, without 

an opportunity for notice and comment, 

to allow as much time as possible to 

estimate the value of plan benefits with 

the proper table for plans with valuation 

dates in early 2012. 

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 

regulation, the Regulatory Flexibility 

Act of 1980 does not apply (5 U.S.C. 

601(2)). 

List of Subjects in 29 CFR Part 4044 

Pension insurance, Pensions. 

In consideration of the foregoing, 29 

CFR part 4044 is amended as follows: 

PART 4044—ALLOCATION OF 

ASSETS IN SINGLE-EMPLOYER 

PLANS 

■ 1. The authority citation for part 4044 

continues to read as follows: 

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

1341, 1344, 1362. 

■ 2. Appendix D to part 4044 is 

amended by removing Table I–11 and 

adding in its place Table I–12 to read as 

follows: 

Appendix D to Part 4044—Tables Used 

To Determine Expected Retirement Age 


emcdonald on DSK5VPTVN1PROD with RULES
74700 Federal Register / Vol. 76, No. 231 / Thursday, December 1, 2011 / Rules and Regulations 

TABLE I–12— SELECTION OF RETIREMENT RATE CATEGORY

[For plans with valuation dates after December 31, 2011, and before January 1, 2013] 

If participant reaches URA in year— 

Participant’s Retirement Rate Category is— 

Low 1 if 

monthly 

benefit at 

URA is less 

than— 

Medium 2 if monthly benefit 

at URA is— 

High 3 if 

monthly 

benefit at 

URA is 

greater 

From— To— than— 

2013 ................................................................................................................................. 575 575 2,431 2,431 

2014 ................................................................................................................................. 586 586 2,477 2,477 

2015 ................................................................................................................................. 598 598 2,527 2,527 

2016 ................................................................................................................................. 610 610 2,577 2,577 

2017 ................................................................................................................................. 623 623 2,632 2,632 

2018 ................................................................................................................................. 636 636 2,687 2,687 

2019 ................................................................................................................................. 649 649 2,743 2,743 

2020 ................................................................................................................................. 663 663 2,801 2,801 

2021 ................................................................................................................................. 677 677 2,860 2,860 

2022 or later .................................................................................................................... 691 691 2,920 2,920 

1 Table II–A. 2 Table II–B. 3 Table II–C. 

* * * * * 

Issued in Washington, DC, this 18th day of 

November 2011. 

Laricke Blanchard, 

Deputy Director for Policy, Pension Benefit 

Guaranty Corporation. 

[FR Doc. 2011–30849 Filed 11–30–11; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF COMMERCE 

Patent and Trademark Office 

37 CFR Part 1 

[Docket No. PTO–P–2011–0014] 

RIN 0651–AC56 

Revision of Patent Term Adjustment 

Provisions Relating to Information 

Disclosure Statements 

AGENCY: United States Patent and 

Trademark Office, Commerce. 

ACTION: Final rule. 

SUMMARY: The United States Patent and 

Trademark Office (Office) is revising the 

patent term adjustment provisions of the 

rules of practice in patent cases. The 

patent term adjustment provisions of the 

American Inventors Protection Act of 

1999 (AIPA) provide for a reduction of 

any patent term adjustment if the 

applicant failed to engage in reasonable 

efforts to conclude prosecution of the 

application. The Office is revising the 

rules of practice pertaining to the 

reduction of patent term adjustment for 

applicant delays to exclude information 

disclosure statements resulting from the 

citation of information in a counterpart 

application that are promptly filed with 

the Office. The rule change allows the 

diligent applicant to avoid patent term 

adjustment reduction for an IDS 

submission that results from a 

communication from the Office. 

Presently, the rule only provides relief 

if the IDS was cited as a result of a 

communication from a foreign patent 

office. Under this final rule, there will 

be no reduction of patent term 

adjustment in the following situations: 

when applicant promptly submits a 

reference in an information disclosure 

statement after the mailing of a notice of 

allowance if the reference was cited by 

the Office in another application, or 

when applicant promptly submits a 

copy of an Office communication (e.g., 

an Office action) in an information 

disclosure statement after the mailing of 

a notice of allowance if the Office 

communication was issued by the Office 

in another application or by a foreign 

patent office in a counterpart foreign 

application. The above changes are 

intended to ensure compliance with 

AIPA in light of the evolving case law. 

DATES: Effective Date: December 1, 2011. 

FOR FURTHER INFORMATION CONTACT: Kery 

A. Fries, Senior Legal Advisor, Office of 

Patent Legal Administration, by 

telephone at (571) 272–7757, by mail 

addressed to: Box Comments—Patents, 

Commissioner for Patents, P.O. Box 

1450, Alexandria, VA 22313–1450, 

marked to the attention of Kery A. Fries. 

SUPPLEMENTARY INFORMATION: The AIPA 

amended 35 U.S.C. 154(b) to provide 

patent term adjustment for certain 

delays during the patent examination 

process. See Public Law 106–113, 113 

Stat. 1501, 1501A–552 through 1501A– 

591 (1999)). Specifically, under the 

patent term adjustment provisions of 35 

U.S.C. 154(b) as amended by the AIPA, 

an applicant is entitled to patent term 

adjustment for the following reasons: (1) 

If the Office fails to take certain actions 

during the examination and issue 

process within specified time frames (35 

U.S.C. 154(b)(1)(A)); (2) if the Office 

fails to issue a patent within three years 

of the actual filing date of the 

application in the United States (35 

U.S.C. 154(b)(1)(B)); and (3) for delays 

due to interference, secrecy order, or 

successful appellate review (35 U.S.C. 

154(b)(1)(C)). The AIPA, however, sets 

forth a number of conditions and 

limitations on any patent term 

adjustment accrued under 35 U.S.C. 

154(b)(1). Specifically, 35 U.S.C. 

154(b)(2)(C) provides, in part, that ‘‘[t]he 

period of adjustment of the term of a 

patent under [35 U.S.C. 154(b)(1)] shall 

be reduced by a period equal to the 

period of time during which the 

applicant failed to engage in reasonable 

efforts to conclude prosecution of the 

application’’ and that ‘‘[t]he Director 

shall prescribe regulations establishing 

the circumstances that constitute a 

failure of an applicant to engage in 

reasonable efforts to conclude 

processing or examination of an 

application.’’ 35 U.S.C. 154(b)(2)(C)(i) 

and (iii). The Office implemented the 

patent term adjustment provisions of 35 

U.S.C. 154(b) as amended by the AIPA, 

including setting forth the 

circumstances that constitute a failure of 

an applicant to engage in reasonable 

efforts to conclude processing or 

examination of an application, in a final 

rule published in September of 2000. 

See Changes to Implement Patent Term 

Adjustment Under Twenty-Year Patent 


emcdonald on DSK5VPTVN1PROD with RULES