[Federal Register Volume 77, Number 246 (Friday, December 21, 2012)]
[Rules and Regulations]
[Pages 75549-75550]
From the Federal Register Online via the Government Printing Office [http://www.gpo.gov/]
[FR Doc No: 2012-30819]



29 CFR Part 4044

Allocation of Assets in Single-Employer Plans; Interest 
Assumptions for Valuing Benefits

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Final rule.


[[Page 75550]]

SUMMARY: This final rule amends the Pension Benefit Guaranty 
Corporation's regulation on Allocation of Assets in Single-Employer 
Plans to prescribe interest assumptions for valuation dates in the 
first quarter of 2013. The interest assumptions are used for valuing 
benefits under terminating single-employer plans covered by the pension 
insurance system administered by PBGC. As discussed below, PBGC has 
published a separate final rule document dealing with interest 
assumptions under its regulation on Benefits Payable in Terminated 
Single-Employer Plans for January 2013.

DATES: Effective January 1, 2013.

(Klion.Catherine@PBGC.gov), Manager, Regulatory and Policy Division, 
Legislative and Regulatory Department, 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 Allocation of Assets in 
Single-Employer Plans (29 CFR part 4044) prescribes actuarial 
assumptions--including interest assumptions--for valuing 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 
    The interest assumptions in Appendix B to Part 4044 are used to 
value benefits for allocation purposes under ERISA section 4044. 
Assumptions under the asset allocation regulation are updated quarterly 
and are intended to reflect current conditions in the financial and 
annuity markets. This final rule updates the asset allocation interest 
assumptions for the first quarter (January through March) of 2013.
    The first quarter 2013 interest assumptions under the allocation 
regulation will be 2.67 percent for the first 20 years following the 
valuation date and 3.01 percent thereafter. In comparison with the 
interest assumptions in effect for the fourth quarter of 2012, these 
interest assumptions represent no change in the select period (the 
period during which the select rate (the initial rate) applies), a 
decrease of 0.40 percent in the select rate, and an increase of 0.01 
percent in the ultimate rate (the final rate).
    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 
of benefits under plans with valuation dates during the first quarter 
of 2013, PBGC finds that good cause exists for making the assumptions 
set forth in this amendment effective less than 30 days after 
    PBGC has determined that this action is not a ``significant 
regulatory action'' under the criteria set forth in Executive Order 
    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 4044

    Employee benefit plans, Pension insurance, Pensions.

    In consideration of the foregoing, 29 CFR part 4044 is amended as 


1. The authority citation for part 4044 continues to read as follows:

    Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.

2. In appendix B to part 4044, a new entry for January--March 2013, as 
set forth below, is added to the table.

Appendix B to Part 4044--Interest Rates Used to Value Benefits

* * * * *

                                                                         The values of it are:
    For valuation dates occurring in the month--     -----------------------------------------------------------
                                                         it      for t =     it      for t =     it      for t =
                                                  * * * * * * *
January-March 2013..................................    0.0267      1-20    0.0301       >20       N/A       N/A

    Issued in Washington, DC, on this 18th day of December 2012.
Laricke Blanchard,
Deputy Director for Policy, Pension Benefit Guaranty Corporation.
[FR Doc. 2012-30819 Filed 12-20-12; 8:45 am]