Source: https://regulations.vlex.com/vid/benefits-payable-in-terminated-577975382
Timestamp: 2020-06-04 02:46:49
Document Index: 595053945

Matched Legal Cases: ['art 4022', 'art 4044', 'art 4022', 'art 4022', 'art 4022', 'art 4022']

Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Paying Benefits - July 15, 2015 - Regulations - VLEX 577975382
Pages 41436-41437
FR Doc No: 2015-17376
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 August 2015. The interest assumptions are used for paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC.
DATES: Effective August 1, 2015.
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 regulation on Benefits Payable in Terminated Single-Employer Plans (29 CFR part 4022) prescribes actuarial assumptions--including interest assumptions--for paying plan benefits under terminating 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 Web site (http://www.pbgc.gov).
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 August 2015.\1\
\1\ Appendix 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.
The August 2015 interest assumptions under the benefit payments regulation will be 1.50 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
Page 41437
status. In comparison with the interest assumptions in effect for July 2015, these interest assumptions represent an increase of 0.25 percent in the immediate annuity rate and are otherwise unchanged.
Because of the need to provide immediate guidance for the payment of benefits under plans with valuation dates during August 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.
Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements.
The authority citation for part 4022 continues to read as follows:
In appendix B to part 4022, Rate Set 262, as set forth below, is added to the table.
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
262 8-1-15 9-1-15 1.50 4.00 4.00 4.00 7 8
In appendix C to part 4022, Rate Set 262, as set forth below, is added to the table.
Appendix C to Part 4022--Lump Sum Interest Rates for Private-Sector Payments
Issued in Washington, DC, on this 7th day of July 2015.
FR Doc. 2015-17376 Filed 7-14-15; 8:45 am