Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 1553 

maximum amount provided for by 

Federal law; (2) assessed or enforced by 

an agency pursuant to Federal law; and 

(3) assessed or enforced pursuant to an 

administrative proceeding or a civil 

action in the Federal courts. 

The Inflation Adjustment Act, as 

amended, requires agencies to adjust 

civil monetary penalties by the inflation 

adjustment described in section 5 of the 

Inflation Adjustment Act no later than 

January 15 of every year thereafter. The 

Act also provides that any increase in a 

civil monetary penalty shall apply only 

to civil monetary penalties, including 

those whose associated violation 

predated such an increase, which are 

assessed after the date the increase takes 

effect. 

The Inflation Adjustment Act, as 

amended, provides that the inflation 

adjustment does not apply to civil 

monetary penalties under the Internal 

Revenue Code of 1986 or the Tariff Act 

of 1930. 

Alcoholic Beverage Labeling Act 

The Alcohol and Tobacco Tax and 

Trade Bureau (TTB) administers the 

Federal Alcohol Administration Act 

(FAA Act) pursuant to section 1111(d) 

of the Homeland Security Act of 2002, 

codified at 6 U.S.C. 531(d). The 

Secretary has delegated various 

authorities through Treasury 

Department Order 120–01, dated 

December 10, 2013, (superseding 

Treasury Department Order 120–01, 

dated January 24, 2003), to the TTB 

Administrator to perform the functions 

and duties in the administration and 

enforcement of this law. 

The FAA Act contains the Alcoholic 

Beverage Labeling Act (ABLA) of 1988, 

Public Law 100–690, 27 U.S.C. 213– 

219a, which was enacted on November 

18, 1988. Section 204 of the ABLA, 

codified in 27 U.S.C. 215, requires that 

a health warning statement appear on 

the labels of all containers of alcoholic 

beverages manufactured, imported, or 

bottled for sale or distribution in the 

United States, as well as on containers 

of alcoholic beverages that are 

manufactured, imported, bottled, or 

labeled for sale, distribution, or 

shipment to members or units of the 

U.S. Armed Forces, including those 

located outside the United States. 

The health warning statement 

requirement applies to containers of 

alcoholic beverages manufactured, 

imported, or bottled for sale or 

distribution in the United States on or 

after November 18, 1989. The statement 

reads as follows: 

GOVERNMENT WARNING: (1) According 

to the Surgeon General, women should not 

drink alcoholic beverages during pregnancy 

because of the risk of birth defects. (2) 

Consumption of alcoholic beverages impairs 

your ability to drive a car or operate 

machinery, and may cause health problems. 

Section 204 of the ABLA also 

specifies that the Secretary of the 

Treasury shall have the power to ensure 

the enforcement of the provisions of the 

ABLA and issue regulations to carry out 

them out. In addition, section 207 of the 

ABLA, codified in 27 U.S.C. 218, 

provides that any person who violates 

the provisions of the ABLA is subject to 

a civil penalty of not more than $10,000, 

with each day constituting a separate 

offense. 

Most of the civil monetary penalties 

administered by TTB are imposed by 

the Internal Revenue Code of 1986, and 

thus are not subject to the inflation 

adjustment mandated by the Inflation 

Adjustment Act. The only civil 

monetary penalty enforced by TTB that 

is subject to the inflation adjustment is 

the penalty imposed by the ABLA at 27 

U.S.C. 218. 

TTB Regulations 

The TTB regulations implementing 

the ABLA are found in 27 CFR part 16, 

and the regulations implementing the 

Inflation Adjustment Act with respect to 

the ABLA penalty are found in 27 CFR 

16.33. This section indicates that the 

ABLA provides that any person who 

violates the provisions of this part shall 

be subject to a civil penalty of not more 

than $10,000, but also states that, 

pursuant to the provisions of the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended, 

this civil penalty is subject to periodic 

cost-of-living adjustment. Accordingly, 

any person who violates the provisions 

of 27 CFR part 16 shall be subject to a 

civil penalty of not more than the 

amount listed at https://www.ttb.gov/ 

regulation_guidance/ablapenalty.html. 

Each day shall constitute a separate 

offense. 

To adjust the penalty, § 16.33(b) 

indicates that TTB will provide notice 

in the Federal Register and at the 

website mentioned above of cost-ofliving adjustments to the civil penalty 

for violations of 27 CFR part 16. 

Penalty Adjustment 

In this document, TTB is publishing 

its yearly adjustment to the maximum 

ABLA penalty, as required by the 

amended Inflation Adjustment Act. 

As mentioned earlier, the ABLA 

contains a maximum civil monetary 

penalty. For such penalties, Section 5 of 

the Inflation Adjustment Act indicates 

that the inflation adjustment shall be 

determined by increasing the maximum 

penalty by the cost-of-living adjustment. 

The cost-of-living adjustment means the 

percentage (if any) by which the 

Consumer Price Index for all-urban 

consumers (CPI–U) for the month of 

October preceding the date of the 

adjustment exceeds the CPI–U for the 

month of October 1 year before the 

month of October preceding the date of 

the adjustment. 

The CPI–U in October 2016 was 

241.729, and the CPI–U in October 2017 

was 246.663. The rate of inflation 

between October 2016 and October 2017 

is therefore 2.041 percent. When 

applied to the current ABLA penalty of 

$20,111, this rate of inflation yields a 

raw (unrounded) inflation adjustment of 

$410.46551. Rounded to the nearest 

dollar, the inflation adjustment is $410, 

meaning that the new maximum civil 

penalty for violations of the ABLA will 

be $20,521. 

The new maximum civil penalty will 

apply to all penalties that are assessed 

after January 12, 2018. TTB will also 

update its web page at https://

www.ttb.gov/regulation_guidance/ 

ablapenalty.html to reflect the adjusted 

penalty. 

Dated: January 8, 2018. 

Amy R. Greenberg, 

Director, Regulations and Rulings Division. 

[FR Doc. 2018–00417 Filed 1–11–18; 8:45 am] 

BILLING CODE 4810–31–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 

February 2018. The interest 

assumptions are used for paying 

benefits under terminating singleemployer plans covered by the pension 

insurance system administered by 

PBGC. 

DATES: Effective February 1, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Daniel S. Liebman (liebman.daniel@

pbgc.gov), Acting Assistant General 

Counsel for Regulatory Affairs, Pension 

Benefit Guaranty Corporation, 1200 K 

Street NW, Washington, DC 20005, 202– 


sradovich on DSK3GMQ082PROD with RULES
1554 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / 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. 

326–4400 ext. 6510. (TTY/ASCII users 

may call the Federal relay service tollfree at 1–800–877–8339 and ask to be 

connected to 202–326–4400, ext. 6510.) 

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 terminated 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 

website (http://www.pbgc.gov). 

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 February 2018.1

The February 2018 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 January 2018, 

these 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 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 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 

292 is added at the end of 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

*******

292 2–1–18 3–1–18 0.75 4.00 4.00 4.00 7 8 

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

292 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

*******

292 2–1–18 3–1–18 0.75 4.00 4.00 4.00 7 8 


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Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 1555 

1Under the Federal Civil Penalties Inflation 

Adjustment Act of 1990, a penalty is a civil 

monetary penalty if (among other things) it is for 

a specific monetary amount or has a maximum 

amount specified by Federal law. Title IV also 

provides (in section 4007) for penalties for late 

payment of premiums, but those penalties are 

neither in a specified amount nor subject to a 

specified maximum amount. 

2Sec. 701, Public Law 114–74, 129 Stat. 599–601 

(Bipartisan Budget Act of 2015). 

3The Office of Management and Budget issued 

memorandum M–16–06 on implementation of the 

2015 act, including multipliers to use in the initial 

adjustment. 

4The Office of Management and Budget issued 

memorandum M–17–11 on December 16, 2016, on 

implementation of the 2015 act, including the costof-living adjustment multiplier for 2017. 

5https://www.whitehouse.gov/wp-content/ 

uploads/2017/11/M-18-03.pdf 

Issued in Washington, DC. 

Daniel S. Liebman, 

Acting Assistant General Counsel for 

Regulatory Affairs, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2018–00348 Filed 1–11–18; 8:45 am] 

BILLING CODE 7709–02–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4071 and 4302 

RIN 1212–AB45 

Adjustment of Civil Penalties for 

Inflation 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: The Pension Benefit Guaranty 

Corporation is required to amend its 

regulations annually to adjust for 

inflation the maximum civil penalty for 

failure to provide certain notices or 

other material information and for 

failure to provide certain multiemployer 

plan notices. 

DATES: Effective date: This rule is 

effective on January 12, 2018. 

Applicability date: The increases in 

the civil monetary penalties under 

sections 4071 and 4302 provided for in 

this rule apply to such penalties 

assessed after January 12, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Stephanie Cibinic, Deputy Assistant 

General Counsel for Regulatory Affairs 

(cibinic.stephanie@pbgc.gov), Office of 

the General Counsel, Pension Benefit 

Guaranty Corporation, 1200 K Street 

NW, Washington, DC 20005–4026; 202– 

326–4400 extension 6352. (TTY and 

TDD users may call the Federal relay 

service toll-free at 800–877–8339 and 

ask to be connected to 202–326–4400 

extension 6352.) 

SUPPLEMENTARY INFORMATION: 

Executive Summary 

Purpose of the Regulatory Action 

This rule is needed to carry out the 

requirements of the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015 and Office of 

Management and Budget guidance M– 

18–03. The rule adjusts, as required for 

2018, the maximum civil penalties 

under 29 CFR part 4071 and 29 CFR part 

4302 that PBGC may assess for failure to 

provide certain notices or other material 

information and certain multiemployer 

plan notices. 

PBGC’s legal authority for this action 

comes from the Federal Civil Penalties 

Inflation Adjustment Act of 1990 as 

amended by the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 and from sections 

4002(b)(3), 4071, and 4302 of the 

Employee Retirement Income Security 

Act of 1974 (ERISA). 

Major Provisions of the Regulatory 

Action 

This rule adjusts as required by law 

the maximum civil penalties that PBGC 

may assess under sections 4071 and 

4302 of ERISA. The new maximum 

amounts are $2,140 for section 4071 

penalties and $285 for section 4302 

penalties. 

Background 

The Pension Benefit Guaranty 

Corporation (PBGC) administers title IV 

of the Employee Retirement Income 

Security Act of 1974 (ERISA). Title IV 

has two provisions that authorize PBGC 

to assess civil monetary penalties.1

Section 4302, added to ERISA by the 

Multiemployer Pension Plan 

Amendments Act of 1980, authorizes 

PBGC to assess a civil penalty of up to 

$100 a day for failure to provide a notice 

under subtitle E of title IV of ERISA 

(dealing with multiemployer plans). 

Section 4071, added to ERISA by the 

Omnibus Budget Reconciliation Act of 

1987, authorizes PBGC to assess a civil 

penalty of up to $1,000 a day for failure 

to provide a notice or other material 

information under subtitles A, B, and C 

of title IV and sections 303(k)(4) and 

306(g)(4) of title I of ERISA. 

Adjustment of Civil Penalties 

On November 2, 2015, the President 

signed into law the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015,2 which 

requires agencies to adjust civil 

monetary penalties for inflation and to 

publish the adjustments in the Federal 

Register. An initial adjustment was 

required to be made by interim final 

rule published by July 1, 2016, and 

effective by August 1, 2016. Subsequent 

adjustments must be promulgated in 

January each year after 2016. In an 

interim final rule published on May 13, 

2016 (at 81 FR 29765), PBGC adjusted 

the maximum penalty under section 

4071 to $2,063 and adjusted the 

maximum penalty under section 4302 to 

$275.3 In a final rule published on 

January 31, 2017 (at 82 FR 8813), PBGC 

finalized its interim final rule and 

adjusted the maximum penalty under 

section 4071 to $2,097 and the 

maximum penalty under section 4302 to 

$279.4

On December 15, 2017, the Office of 

Management and Budget issued 

memorandum M–18–03 on 

implementation of the 2018 annual 

inflation adjustment pursuant to the 

2015 act.5 The memorandum provides 

agencies with the cost-of-living 

adjustment multiplier for 2018, which is 

based on the Consumer Price Index 

(CPI–U) for the month of October 2017, 

not seasonally adjusted. The multiplier 

for 2018 is 1.02041. The adjusted 

maximum amounts are $2,140 for 

section 4071 penalties and $285 for 

section 4302 penalties. 

Compliance With Regulatory 

Requirements 

The Office of Management and Budget 

has determined that this rule is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866 and therefore not 

subject to their review. As this is not a 

significant regulatory action under E.O. 

12866, it is not considered an E.O. 

13771 regulatory action. 

The Office of Management and Budget 

also has determined that notice and 

public comment on this final rule are 

unnecessary because the adjustment of 

civil penalties implemented in the rule 

is required by law. See 5 U.S.C. 553(b). 

Because no general notice of proposed 

rulemaking is required for this rule, the 

Regulatory Flexibility Act of 1980 does 

not apply. See 5 U.S.C. 601(2). 

List of Subjects 

29 CFR Part 4071 

Penalties. 

29 CFR Part 4302 

Penalties. 

In consideration of the foregoing, 

PBGC amends 29 CFR parts 4071 and 

4302 as follows: 


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