Federal Register / Vol. 80, No. 49 / Friday, March 13, 2015 / Rules and Regulations 13239 

required for a transfer of a section 1256 

option that is a covered security: 

(i) The original basis of the option; 

and 

(ii) The fair market value of the option 

as of the end of the prior calendar year. 

(f) Additional information required 

for a debt instrument. In addition to the 

information required in § 1.6045A– 

1(b)(3) for a transfer of a debt instrument 

that is a covered security, the transferor 

must provide the last date on or before 

the transfer date that the transferor 

made an adjustment for a particular 

item (for example, the last date on or 

before the transfer date that bond 

premium was amortized). This 

paragraph (f) applies to a transfer that 

occurs on or after June 30, 2015. 

(g) Expiration date. The applicability 

of this section expires on or before 

March 12, 2018. 

■ Par. 6. Section 1.6049–5 is amended 

by adding a sentence after the third 

sentence in paragraph (f) to read as 

follows: 

§ 1.6049–5 Interest and original issue 

discount subject to reporting after 

December 31, 1982. 

* * * * * 

(f) * * * However, see § 1.6049–9 for 

the reporting of premium for a debt 

instrument acquired on or after January 

1, 2014. * * * 

* * * * * 

■ Par. 7. Section 1.6049–9 is added to 

read as follows: 

§ 1.6049–9 Premium subject to reporting 

for a debt instrument acquired on or after 

January 1, 2014. 

(a) General rule. Notwithstanding 

§ 1.6049–5(f), for a debt instrument 

acquired on or after January 1, 2014, if 

a broker (as defined in § 1.6045–1(a)(1)) 

is required to file a statement for the 

debt instrument under § 1.6049–6, the 

broker generally must report any bond 

premium (as defined in § 1.171–1(d)) or 

acquisition premium (as defined in 

§ 1.1272–2(b)(3)) for the calendar year. 

This section, however, only applies to a 

debt instrument that is a covered 

security as defined in § 1.6045–1(a)(15). 

(b) Reporting of bond premium 

amortization. Unless a broker has been 

notified in writing in accordance with 

§ 1.6045–1(n)(5) that a customer does 

not want to amortize bond premium 

under section 171, the broker must 

report the amount of any amortizable 

bond premium allocable to a stated 

interest payment made to the customer 

during the calendar year. See §§ 1.171– 

2 and 1.171–3 to determine the amount 

of amortizable bond premium allocable 

to a stated interest payment. Instead of 

reporting a gross amount for both stated 

interest and amortizable bond premium, 

a broker may report a net amount of 

stated interest that reflects the offset of 

the stated interest payment by the 

amount of amortizable bond premium 

allocable to the payment. In this case, 

the broker must not report the 

amortizable bond premium as a separate 

item. This paragraph (b) also applies to 

amortizable bond premium on a taxexempt obligation, which is required to 

be amortized under section 171. 

(c) Reporting of acquisition premium 

amortization. A broker must report the 

amount of any acquisition premium 

amortization that reduces the amount of 

original issue discount includible in 

income by the customer during a 

calendar year. For a debt instrument 

acquired on or after January 1, 2015, a 

broker must use the rules in § 1.1272– 

2(b)(4) to determine the amount of 

acquisition premium amortization. 

However, for a debt instrument acquired 

on or after January 1, 2014, and before 

January 1, 2015, if a customer timely 

notifies the broker in accordance with 

§ 1.6045–1(n)(5), a broker may use the 

rules in § 1.1272–3 to determine the 

amount of acquisition premium 

amortization. Instead of reporting a 

gross amount for both original issue 

discount and acquisition premium 

amortization, a broker may report a net 

amount of original issue discount that 

reflects the offset of the original issue 

discount includible in income by the 

customer for the calendar year by the 

amount of acquisition premium 

allocable to the original issue discount. 

In this case, the broker must not report 

the acquisition premium amortization as 

a separate item. See § 1.6049–10T for 

the reporting of acquisition premium on 

a tax-exempt obligation. 

§ 1.6049–9T [Removed] 

■ Par. 8. Section 1.6049–9T is removed. 

■ Par. 9. Section 1.6049–10T is added to 

read as follows: 

§ 1.6049–10T Reporting of original issue 

discount on a tax-exempt obligation 

(temporary). 

(a) In general. For purposes of section 

6049, a payor (as defined in § 1.6049– 

4(a)(2)) of original issue discount (OID) 

on a tax-exempt obligation (as defined 

in section 1288(b)(2)) is required to 

report the daily portions of OID on the 

obligation as if the daily portions of OID 

that accrued during a calendar year 

were paid to the holder (or holders) of 

the obligation in the calendar year. The 

amount of the daily portions of OID that 

accrues during a calendar year is 

determined as if section 1272 and 

§ 1.1272–1 applied to a tax-exempt 

obligation. Notwithstanding any other 

rule in section 6049 and the regulations 

thereunder, a payor must determine 

whether a tax-exempt obligation was 

issued with OID and the amount of OID 

that accrues for each relevant period. As 

prescribed by section 1288(b)(1), OID on 

a tax-exempt obligation is determined 

without regard to the de minimis rules 

in section 1273(a)(3) and § 1.1273–1(d). 

(b) Acquisition premium. A payor is 

required to report acquisition premium 

amortization on a tax-exempt obligation 

in accordance with the rules in 

§ 1.6049–9(c) as if section 1272 applied 

to a tax-exempt obligation. See 

paragraph (a) of this section to 

determine the amount of OID allocable 

to an accrual period. 

(c) Effective/applicability date. This 

section applies to a tax-exempt 

obligation acquired on or after January 

1, 2017. 

(d) Expiration date. The applicability 

of this section expires on or before 

March 12, 2018. 

John Dalrymple, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: February 19, 2015. 

Mark J. Mazur, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2015–05648 Filed 3–12–15; 8:45 am] 

BILLING CODE 4830–01–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 April 2015 and 

interest assumptions under the asset 

allocation regulation for valuation dates 

in the second 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 April 1, 2015. 


tkelley on DSK3SPTVN1PROD with RULES
13240 Federal Register / Vol. 80, No. 49 / Friday, March 13, 2015 / Rules and Regulations 

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 April 2015 and 

updates the asset allocation interest 

assumptions for the second quarter 

(April through June) of 2015. 

The second quarter 2015 interest 

assumptions under the allocation 

regulation will be 2.71 percent for the 

first 20 years following the valuation 

date and 2.78 percent thereafter. In 

comparison with the interest 

assumptions in effect for the first 

quarter of 2015, these interest 

assumptions represent no change in the 

select period (the period during which 

the select rate (the initial rate) applies), 

a decrease of 0.18 percent in the select 

rate, and a decrease of 0.34 percent in 

the ultimate rate (the final rate). 

The April 2015 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 March 2015, 

these interest assumptions represent an 

increase of 0.25 percent in the 

immediate annuity rate and are 

otherwise 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 April 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 

258, 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

*******

258 .......... 4–1–15 5–1–15 0.75 4.00 4.00 4.00 7 8 

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

258, 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

*******

258 .......... 4–1–15 5–1–15 0.75 4.00 4.00 4.00 7 8 


tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 80, No. 49 / Friday, March 13, 2015 / Rules and Regulations 13241 

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 April–June 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 = 

*******

April–June 2015 ................................................................ 0.0271 1–20 0.0278 >20 N/A N/A 

Issued in Washington, DC, on this 6th day 

of March 2015. 

Judith Starr, 

General Counsel, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2015–05780 Filed 3–12–15; 8:45 am] 

BILLING CODE 7709–02–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[Docket No. USCG–2014–0966] 

Drawbridge Operation Regulation; 

Mokelumne River, East Isleton, CA 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of deviation from 

drawbridge regulation. 

SUMMARY: The Coast Guard has issued a 

temporary deviation from the operating 

schedule that governs the California 

Department of Transportation highway 

drawbridge across the Mokelumne 

River, mile 3.0, at East Isleton, CA. The 

deviation is necessary to allow the 

bridge owner to perform structural 

repair work to the bridge. This deviation 

allows the bridge to remain in the 

closed-to-navigation position during the 

deviation period. 

DATES: This deviation is effective 

without actual notice from March 13, 

2015 through 10 p.m. on May 29, 2015. 

For the purposes of enforcement, actual 

notice will be used from 5 a.m. on 

March 2, 2015, until March 13, 2015. 

ADDRESSES: The docket for this 

deviation, [USCG–2014–0966], is 

available at http://www.regulations.gov. 

Type the docket number in the 

‘‘SEARCH’’ box and click ‘‘SEARCH.’’ 

Click on Open Docket Folder on the line 

associated with this deviation. You may 

also visit the Docket Management 

Facility in Room W12–140 on the 

ground floor of the Department of 

Transportation West Building, 1200 

New Jersey Avenue SE., Washington, 

DC 20590, between 9 a.m. and 5 p.m., 

Monday through Friday, except Federal 

holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this temporary 

deviation, call or email David H. 

Sulouff, Chief, Bridge Section, Eleventh 

Coast Guard District; telephone 510– 

437–3516, email David.H.Sulouff@

uscg.mil. If you have questions on 

viewing the docket, call Cheryl Collins, 

Program Manager, Docket Operations, 

telephone 202–366–9826. 

SUPPLEMENTARY INFORMATION: California 

Department of Transportation has 

requested a temporary change to the 

operation of the California Department 

of Transportation highway drawbridge 

across the Mokelumne River, mile 3.0, 

at East Isleton, CA. The drawbridge 

navigation span provides approximately 

7 feet vertical clearance above Mean 

High Water in the closed-to-navigation 

position. In accordance with 33 CFR 

117.175(a), the draw opens on signal 

from November 1 through April 30 from 

9 a.m. to 5 p.m.; and from May 1 

through October 31 from 6 a.m. to 10 

p.m., except that during the following 

periods the draw need only open for 

recreational vessels on the hour, 20 

minutes past the hour, and 40 minutes 

past the hour: Saturdays, 10 a.m. until 

2 p.m.; Sundays, 11 a.m. until 6 p.m.; 

and Memorial Day, Fourth of July and 

Labor Day 11 a.m. until 6 p.m. At all 

other times the drawbridge shall open 

on signal if at least 4 hours notice is 

given. Navigation on the waterway is 

commercial and recreational. 

The drawspan will be secured in the 

closed-to-navigation position from 5 

a.m. on March 2, 2015 to 10 p.m. on 

May 29, 2015, due to replacement of 

bridge deck and rehabilitation of the 

bridge control house. This temporary 

deviation has been coordinated with the 

waterway users. Caltrans work plan and 

dates have been tailored to produce the 

least possible impacts to waterway 

traffic, land traffic, businesses and 

potential flood response plans, while 

allowing the work to be performed, to 

ensure dependable future operation of 

the drawbridge. Vessels able to pass 

through the drawbridge in the closed 

position may do so at any time. The 

drawbridge will not be able to open for 

emergencies. Alternative paths for 

recreational vessel traffic are available 

via Little Potato Slough and Georgiana 

Slough. Alternative paths for land traffic 

are also available. The Coast Guard will 

inform waterway users of this temporary 

deviation via our Local and Broadcast 

Notices to Mariners, to minimize 

resulting navigational impacts. 

In accordance with 33 CFR 117.35(e), 

the drawbridge must return to its regular 

operating schedule immediately at the 

end of the effective period of this 

temporary deviation. This deviation 

from the operating regulations is 

authorized under 33 CFR 117.35. 

Dated: February 27, 2015. 

D.H. Sulouff, 

District Bridge Chief, Eleventh Coast Guard 

District. 

[FR Doc. 2015–05745 Filed 3–12–15; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2015–0076] 

RIN 1625–AA00 

Safety Zone; Tuscaloosa Regional Air 

Show; Black Warrior River; 

Tuscaloosa, AL 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone 

encompassing the waters of the Black 

Warrior River in Tuscaloosa, AL. This 

action is necessary for the safeguard of 

participants and spectators, including 

all crews, vessels, and persons on 


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