38948 Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations 

Subpart G—Measures To Protect the 

Integrity of the Compensation Program 

§ 104.71 Procedures to prevent and detect 

fraud. 

(a) Review of claims. For the purpose 

of detecting and preventing the payment 

of fraudulent claims and for the purpose 

of assuring accurate and appropriate 

payments to eligible claimants, the 

Special Master shall implement 

procedures to: 

(1) Verify, authenticate, and audit 

claims; 

(2) Analyze claim submissions to 

detect inconsistencies, irregularities, 

duplication, and multiple claimants; 

and 

(3) Ensure the quality control of 

claims review procedures. 

(b) Quality control. The Special 

Master shall institute periodic quality 

control audits designed to evaluate the 

accuracy of submissions and the 

accuracy of payments, subject to the 

oversight of the Inspector General of the 

Department of Justice. 

(c) False or fraudulent claims. The 

Special Master shall refer all evidence of 

false or fraudulent claims to appropriate 

law enforcement authorities. 

Subpart H—Attorney Fees 

§ 104.81 Limitation on attorney fees. 

(a) In general—(1) In general. 

Notwithstanding any contract, the 

representative of an individual may not 

charge, for services rendered in 

connection with the claim of an 

individual under this title, including 

expenses routinely incurred in the 

course of providing legal services, more 

than 10 percent of an award paid under 

this title on such claim. Expenses 

incurred in connection with the claim of 

an individual in this title other than 

those that are routinely incurred in the 

course of providing legal services may 

be charged to a claimant only if they 

have been approved by the Special 

Master. 

(2) Certification. In the case of any 

claim in connection with which services 

covered by this section were rendered, 

the representative shall certify his or her 

compliance with this section and shall 

provide such information as the Special 

Master requires to ensure such 

compliance. 

(b) Limitation—(1) In general. Except 

as provided in paragraph (b)(2) of this 

section, in the case of an individual who 

was charged a legal fee in connection 

with the settlement of a civil action 

described in section 405(c)(3)(C)(iii) of 

the Act, the representative who charged 

such legal fee may not charge any 

amount for compensation for services 

rendered in connection with a claim 

filed by or on behalf of that individual 

under this title. 

(2) Exception. If the legal fee charged 

in connection with the settlement of a 

civil action described in section 

405(c)(3)(C)(iii) of the Act of an 

individual is less than 10 percent of the 

aggregate amount of compensation 

awarded to such individual through 

such settlement, the representative who 

charged such legal fee to that individual 

may charge an amount for compensation 

for services rendered to the extent that 

such amount charged is not more than 

Ten (10) percent of such aggregate 

amount through the settlement, minus 

the total amount of all legal fees charged 

for services rendered in connection with 

such settlement. 

(c) Discretion to lower fee. In the event 

that the Special Master finds that the fee 

limit set by paragraph (a) or (b) of this 

section provides excessive 

compensation for services rendered in 

connection with such claim, the Special 

Master may, in the discretion of the 

Special Master, award as reasonable 

compensation for services rendered an 

amount lesser than that permitted for in 

paragraph (a) of this section. 

Dated: June 13, 2016. 

Sheila L. Birnbaum, 

Special Master. 

[FR Doc. 2016–14259 Filed 6–13–16; 4:15 pm] 

BILLING CODE 4410–12–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 July 2016 and 

interest assumptions under the asset 

allocation regulation for valuation dates 

in the third quarter of 2016. 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, 2016. 

FOR FURTHER INFORMATION CONTACT: 

Deborah C. Murphy (Murphy.Deborah@

PBGC.gov), Deputy 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 July 2016 and 

updates the asset allocation interest 

assumptions for the third quarter (July 

through September) of 2016. 

The third quarter 2016 interest 

assumptions under the allocation 

regulation will be 2.50 percent for the 

first 20 years following the valuation 

date and 2.85 percent thereafter. In 

comparison with the interest 

assumptions in effect for the second 

quarter of 2016, these interest 

assumptions represent no change in the 

select period (the period during which 

the select rate (the initial rate) applies), 

a decrease of 0.27 percent in the select 

rate, and a decrease of 0.01 percent in 

the ultimate rate (the final rate). 


ehiers on DSK5VPTVN1PROD with RULES
Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations 38949 

The July 2016 interest assumptions 

under the benefit payments regulation 

will be 0.75 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 June 2016, 

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 July 2016, 

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 

273, 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

*******

273 7–1–16 8–1–16 0.75 4.00 4.00 4.00 7 8 

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

273, 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

*******

273 7–1–16 8–1–16 0.75 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 July–September 2016, 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 2016 ............................................................................... 0.0250 1–20 0.0285 >20 N/A N/A 


ehiers on DSK5VPTVN1PROD with RULES
38950 Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations 

Issued in Washington, DC, on this 9th day 

of June 2016. 

Judith Starr, 

General Counsel, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2016–14076 Filed 6–14–16; 8:45 am] 

BILLING CODE 7709–02–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Docket ID: DOD–2016–OS–0063] 

32 CFR Part 311 

Privacy Act of 1974; Implementation 

AGENCY: Office of the Secretary, DoD. 

ACTION: Direct final rule. 

SUMMARY: The Office of the Secretary of 

Defense is exempting those records 

contained in DMDC 24 DoD, entitled 

‘‘Defense Information System for 

Security (DISS),’’ when investigatory 

material is compiled solely for the 

purpose of determining suitability, 

eligibility, or qualifications for Federal 

civilian employment, military service, 

Federal contracts, or access to classified 

information, but only to the extent that 

such material would reveal the identity 

of a confidential source. 

This direct final rule establishes a 

new exemption to the Office of the 

Secretary Privacy Program. The Defense 

Information System for Security is the 

new DoD enterprise-wide information 

system for personnel security; it 

provides a common, comprehensive 

medium to request, record, document, 

and identify personnel security actions 

within the Department including: 

Determinations of eligibility and access 

to classified information, national 

security, suitability and/or fitness for 

employment, and HSPD–12 

determination for Personal Identity 

Verification (PIV) to access government 

facilities and systems, submitting 

adverse information, verification of 

investigation and or adjudicative status, 

support of continuous evaluation and 

insider threat detection, prevention, and 

mitigation activities. DISS consists of 

two applications, the Case Adjudication 

Tracking system (CATS) and the Joint 

Verification System (JVS). CATS is used 

by the DoD Adjudicative Community for 

the purpose of recording eligibility 

determinations. JVS is used by DoD 

Security Managers and Industry Facility 

Security Officers for the purpose of 

verifying eligibility, recording access 

determinations, submitting incidents for 

subsequent adjudication, and visit 

requests from the field (worldwide). The 

records may also be used as a 

management tool for statistical analyses, 

tracking, reporting, evaluating program 

effectiveness, and conducting research. 

This direct final rule is consistent with 

the rule currently published regarding 

DMDC 11, Investigative Records 

Repository. 

DATES: The rule is effective on 

September 13, 2016 unless adverse 

comments are received by August 15, 

2016. If adverse comment is received, 

the Department of Defense will publish 

a timely withdrawal of the rule in the 

Federal Register. 

ADDRESSES: You may submit comments, 

identified by docket number and title, 

by any of the following methods: 

• Federal Rulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Department of Defense, Office 

of the Deputy Chief Management 

Officer, Directorate for Oversight and 

Compliance, 4800 Mark Center Drive, 

Mailbox #24, Alexandria, VA 22350– 

1700. 

Instructions: All submissions received 

must include the agency name and 

docket number for this Federal Register 

document. The general policy for 

comments and other submissions from 

members of the public is to make these 

submissions available for public 

viewing on the Internet at http://

www.regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

FOR FURTHER INFORMATION CONTACT: Mrs. 

Luz D. Ortiz, 571–372–0478. 

SUPPLEMENTARY INFORMATION: This rule 

is being published as a direct final rule 

as the Department of Defense does not 

expect to receive any adverse 

comments, and so a proposed rule is 

unnecessary. 

Direct Final Rule and Significant 

Adverse Comments 

DoD has determined this rulemaking 

meets the criteria for a direct final rule 

because it involves non-substantive 

changes dealing with DoD’s 

management of its Privacy Programs. 

DoD expects no opposition to the 

changes and no significant adverse 

comments. However, if DoD receives a 

significant adverse comment, the 

Department will withdraw this direct 

final rule by publishing a notice in the 

Federal Register. A significant adverse 

comment is one that explains: (1) Why 

the direct final rule is inappropriate, 

including challenges to the rule’s 

underlying premise or approach; or (2) 

why the direct final rule will be 

ineffective or unacceptable without a 

change. In determining whether a 

comment necessitates withdrawal of 

this direct final rule, DoD will consider 

whether it warrants a substantive 

response in a notice and comment 

process. 

Executive Order 12866, ‘‘Regulatory 

Planning and Review’’ and Executive 

Order 13563, ‘‘Improving Regulation 

and Regulatory Review’’ 

It has been determined that Privacy 

Act rules for the Department of Defense 

are not significant rules. The rules do 

not (1) Have an annual effect on the 

economy of $100 million or more or 

adversely affect in a material way the 

economy; a sector of the economy; 

productivity; competition; jobs; the 

environment; public health or safety; or 

State, local, or tribal governments or 

communities; (2) Create a serious 

inconsistency or otherwise interfere 

with an action taken or planned by 

another Agency; (3) Materially alter the 

budgetary impact of entitlements, 

grants, user fees, or loan programs, or 

the rights and obligations of recipients 

thereof; or (4) Raise novel legal or policy 

issues arising out of legal mandates, the 

President’s priorities, or the principles 

set forth in these Executive orders. 

Public Law 96–354, ‘‘Regulatory 

Flexibility Act’’ (5 U.S.C. Chapter 6) 

It has been determined that this 

Privacy Act rule for the Department of 

Defense does not have significant 

economic impact on a substantial 

number of small entities because it is 

concerned only with the administration 

of Privacy Act systems of records within 

the Department of Defense. A 

Regulatory Flexibility Analysis is not 

required. 

Public Law 95–511, ‘‘Paperwork 

Reduction Act’’ (44 U.S.C. Chapter 35) 

It has been determined that this 

Privacy Act rule for the Department of 

Defense imposes no additional 

information requirements beyond the 

Department of Defense and that the 

information collected within the 

Department of Defense is necessary and 

consistent with 5 U.S.C. 552a, known as 

the Privacy Act of 1074. 

Section 202, Public Law 104–4, 

‘‘Unfunded Mandates Reform Act’’ 

It has been determined that this 

Privacy Act rule for the Department of 

Defense does not involve a Federal 

mandate that may result in the 

expenditure by State, local and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

and that this rulemaking will not 

significantly or uniquely affect small 

governments. 


ehiers on DSK5VPTVN1PROD with RULES