Source: https://www.federalregister.gov/documents/2009/02/13/E9-3135/benefits-payable-in-terminated-single-employer-plans-interest-assumptions-for-valuing-and-paying
Timestamp: 2017-08-17 04:31:46
Document Index: 403812255

Matched Legal Cases: ['art 4022', 'art 4022', 'art 4022', 'art 4022', 'art 4022', 'art 4022', 'art 4022', 'art 4022', 'art 4022']

A Rule by the Pension Benefit Guaranty Corporation on 02/13/2009
Effective March 1, 2009.
E9-3135
https://www.federalregister.gov/d/E9-3135 https://www.federalregister.gov/d/E9-3135
Two sets of interest assumptions are prescribed under the benefit payments regulation: (1) A set for PBGC to use to determine whether a benefit is payable as a lump sum and to determine lump-sum amounts to be paid by PBGC (found in Appendix B to Part 4022), and (2) a set for private-sector pension practitioners to refer to if they wish to Start Printed Page 7181use lump-sum interest rates determined using PBGC's historical methodology (found in Appendix C to Part 4022).
This amendment (1) adds to Appendix B to Part 4022 the interest assumptions for PBGC to use for its own lump-sum payments in plans with valuation dates during March 2009, and (2) adds to Appendix C to Part 4022 the 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 for valuation dates during March 2009.
The interest assumptions that PBGC will use for its own lump-sum payments (set forth in Appendix B to part 4022) will be 3.50 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. These interest assumptions represent an increase (from those in effect for February 2009) of 0.50 percent in the immediate annuity rate and are otherwise unchanged. For private-sector payments, the interest assumptions (set forth in Appendix C to part 4022) will be the same as those used by PBGC for determining and paying lump sums (set forth in Appendix B to part 4022).
Because of the need to provide immediate guidance for the valuation and payment of benefits in plans with valuation dates during March 2009, PBGC finds that good cause exists for making the assumptions set forth in this amendment effective less than 30 days after publication.
2. In appendix B to part 4022, Rate Set 185, as set forth below, is added to the table.
3. In appendix C to part 4022, Rate Set 185, as set forth below, is added to the table.
Issued in Washington, DC, on this 6th day of February 2009.
[FR Doc. E9-3135 Filed 2-12-09; 8:45 am]