Federal Register / Vol. 83, No. 179 / Friday, September 14, 2018 / Rules and Regulations 46641 

pay $63 for each additional area code of 

data not initially selected. To obtain 

access to additional area codes of data 

during the second six months of the 

annual period, each person required to 

pay the fee under paragraph (c) of this 

section must first pay $32 for each 

additional area code of data not initially 

selected. The payment of the additional 

fee will permit the person to access the 

additional area codes of data for the 

remainder of the annual period. 

* * * * * 

By direction of the Commission. 

Donald S. Clark, 

Secretary. 

[FR Doc. 2018–20048 Filed 9–13–18; 8:45 am] 

BILLING CODE 6750–01–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 October 2018 and 

interest assumptions under the asset 

allocation regulation for valuation dates 

in the fourth quarter of 2018. 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 October 1, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Melissa Rifkin (rifkin.melissa@

PBGC.gov), Attorney, Regulatory Affairs 

Division, Pension Benefit Guaranty 

Corporation, 1200 K Street NW, 

Washington, DC 20005, 202–326–4400, 

ext. 6563. (TTY users may call the 

Federal relay service toll free at 1–800– 

877–8339 and ask to be connected to 

202–326–4400, ext. 6563.) 

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 (ERISA). The 

interest assumptions in the regulations 

are also published on PBGC’s website 

(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 October 2018 

and updates the asset allocation interest 

assumptions for the fourth quarter 

(October through December) of 2018. 

The fourth quarter 2018 interest 

assumptions under the allocation 

regulation will be 2.84 percent for the 

first 20 years following the valuation 

date and 2.76 percent thereafter. In 

comparison with the interest 

assumptions in effect for the third 

quarter of 2018, these interest 

assumptions represent a decrease of 5 

years in the select period (the period 

during which the select rate (the initial 

rate) applies), an increase of 0.31 

percent in the select rate, and an 

increase of 0.12 percent in the ultimate 

rate (the final rate). 

The October 2018 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 September 

2018, these interest assumptions 

represent no change in the immediate 

rate and no changes in i1, i2, or i3. 

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 October 

2018, 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 

300 is added at the end of the table to 

read as follows: 

Appendix B to Part 4022—Lump Sum 

Interest Rates For PBGC Payments 

* * * * * 


daltland on DSKBBV9HB2PROD with RULES
46642 Federal Register / Vol. 83, No. 179 / Friday, September 14, 2018 / Rules and Regulations 

Rate 

set 

For plans with a valuation date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i1 i2 i3 n1 n2

*******

300 .... 10–1–18 11–1–18 1.25 4.00 4.00 4.00 7 8 

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

300 is added at the end of 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

*******

300 .... 10–1–18 11–1–18 1.25 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, an entry 

for ‘‘October–December 2018’’ is added 

at the end of the table to read as follows: 

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 = 

*******

October–December 2018 ......................... 0.0284 1–20 0.0276 >20 N/A N/A 

Issued in Washington, DC. 

Hilary Duke, 

Assistant General Counsel, Pension Benefit 

Guaranty Corporation. 

[FR Doc. 2018–19835 Filed 9–13–18; 8:45 am] 

BILLING CODE 7709–02–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Part 4231 

RIN 1212–AB31 

Mergers and Transfers Between 

Multiemployer Plans 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: PBGC is issuing a final rule 

amending its regulation on Mergers and 

Transfers Between Multiemployer Plans 

to implement procedures and 

information requirements for a request 

for a facilitated merger. This final rule 

also reorganizes and updates provisions 

in the existing regulation. 

DATES: This rule is effective October 15, 

2018. 

FOR FURTHER INFORMATION CONTACT: 

Theresa B. Anderson 

(anderson.theresa@pbgc.gov), Deputy 

Assistant General Counsel, Office of the 

General Counsel, Pension Benefit 

Guaranty Corporation, 1200 K Street 

NW, Washington DC 20005–4026; 202– 

326–4400, ext. 6353. (TTY users may 

call the Federal relay service toll-free at 

800–877–8339 and ask to be connected 

to 202–326–4400, extension 6353.) 

SUPPLEMENTARY INFORMATION: 

Executive Summary 

Purpose of the Regulatory Action 

This final rule is needed to implement 

statutory changes under the 

Multiemployer Pension Reform Act of 

2014 (MPRA) affecting mergers of 

multiemployer plans under title IV of 

the Employee Retirement Income 

Security Act of 1974 (ERISA) and to 

update PBGC’s existing regulatory 

requirements applicable to mergers and 

transfers between multiemployer plans. 

On June 6, 2016, PBGC published a 

proposed rule to amend its regulation 

on Mergers and Transfers Between 

Multiemployer Plans (81 FR 36229). In 

this final rule, PBGC adopts its 

proposed changes implementing MPRA, 

with some modifications in response to 

public comments, and some of its 

proposed changes updating and 

reorganizing the existing regulation. To 

allow more consideration of the 

concerns raised by the public 

comments, PBGC is not adopting its 

proposed changes to provisions of the 

existing regulation related to plan 

solvency. 

PBGC’s legal authority for this action 

is based on section 4002(b)(3) of ERISA, 

which authorizes PBGC to issue 

regulations to carry out the purposes of 

title IV of ERISA, and section 4231 of 

ERISA, which sets forth the statutory 

requirements for mergers and transfers 

between multiemployer plans. 

Major Provisions of the Regulatory 

Action 

This final rule makes one major and 

numerous minor changes to PBGC’s 

regulation on Mergers and Transfers 


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