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Federal Register / Vol. 86, No. 230 / Friday, December 3, 2021 / Rules and Regulations new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation dates falling in 2022. This table is needed to compute the value of early retirement benefits and, thus, the total value of benefits under a plan.
DATES: This rule is effective January 1, 2022.
FOR FURTHER INFORMATION CONTACT:
Hilary Duke duke.hilary@pbgc.gov, Assistant General Counsel for Regulatory Affairs, Office of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW, Washington, DC 20005, 2022293839.
TTY users may call the Federal relay service toll-free at 18008778339 and ask to be connected to 2022293839.
SUPPLEMENTARY INFORMATION: The Pension Benefit Guaranty Corporation PBGC administers the pension plan termination insurance program under title IV of the Employee Retirement Income Security Act of 1974 ERISA.
PBGCs regulation on Allocation of Assets in Single-Employer Plans 29
CFR part 4044 sets forth in subpart B
the methods for valuing plan benefits of terminating single-employer plans covered under title IV. Guaranteed benefits and benefit liabilities under a plan that is undergoing a distress termination must be valued in accordance with subpart B of part 4044.
In addition, when PBGC terminates an underfunded plan involuntarily pursuant to ERISA section 4042a, it uses the subpart B valuation rules to determine the amount of the plans underfunding.
Under 4044.51b of the asset allocation regulation, early retirement benefits are valued based on the annuity starting date, if a retirement date has been selected, or the expected retirement age, if the annuity starting date is not known on the valuation date.
Sections 4044.55 through 4044.57 set
forth rules for determining the expected retirement ages for plan participants entitled to early retirement benefits.
Appendix D of part 4044 contains tables to be used in determining the expected early retirement ages.
Table I in appendix D Selection of Retirement Rate Category is used to determine whether a participant has a low, medium, or high probability of retiring early. The determination is based on the year a participant would reach unreduced retirement age i.e., the earlier of the normal retirement age or the age at which an unreduced benefit is first payable and the participants monthly benefit at unreduced retirement age. The table applies only to plans with valuation dates in the current year and is updated annually by PBGC to reflect changes in the cost of living, etc.
Tables IIA, IIB, and IIC Expected Retirement Ages for Individuals in the Low, Medium, and High Categories respectively are used to determine the expected retirement age after the probability of early retirement has been determined using Table I. These tables establish, by probability category, the expected retirement age based on both the earliest age a participant could retire under the plan and the unreduced retirement age. This expected retirement age is used to compute the value of the early retirement benefit and, thus, the total value of benefits under the plan.
This document amends appendix D to replace Table I21 with Table I22 to provide an updated correlation, appropriate for calendar year 2022, between the amount of a participants benefit and the probability that the participant will elect early retirement.
Table I22 will be used to value benefits in plans with valuation dates during calendar year 2022.
PBGC has determined that notice of, and public comment on, this rule are impracticable, unnecessary, and
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contrary to the public interest. PBGCs update of appendix D for calendar year 2022 is routine. If a plan has a valuation date in 2022, the plan administrator needs the updated table being promulgated in this rule to value benefits. Accordingly, PBGC finds that the public interest is best served by issuing this table expeditiously, without an opportunity for notice and comment, and that good cause exists for making the table set forth in this amendment effective less than 30 days after publication to allow the use of the proper table to estimate the value of plan benefits for plans with valuation dates in early 2022.
PBGC has determined that this action is not a significant regulatory action under the criteria set forth in Executive Order 12866 and Executive Order 13771.
Because no general notice of proposed rulemaking is required for this regulation, the Regulatory Flexibility Act of 1980 does not apply 5 U.S.C.
6012.
List of Subjects in 29 CFR Part 4044
Employee benefit plans, Pension insurance.
In consideration of the foregoing, 29
CFR part 4044 is amended as follows:
PART 4044ALLOCATION OF
ASSETS IN SINGLEEMPLOYER
PLANS
1. The authority citation for part 4044
continues to read as follows:

Authority: 29 U.S.C. 1301a, 1302b3, 1341, 1344, 1362.

2. Appendix D to part 4044 is amended by removing Table I21 and adding in its place Table I22 to read as follows:

Appendix D to Part 4044Tables Used To Determine Expected Retirement Age
TABLE I22SELECTION OF RETIREMENT RATE CATEGORY
For valuation dates in 2022 1
Participants retirement rate category is Low 2 if monthly benefit at URA is less than
jspears on DSK121TN23PROD with RULES1

If participant reaches URA in year
2023
2024
2025
2026
2027
2028
2029
2030
2031

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691
706
723
739
756
774
791
810
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Medium 3 if monthly benefit at URA is From
To 691
706
723
739
756
774
791
810
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2,919
2,984
3,052
3,122
3,194
3,268
3,343
3,420
3,498

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High 4 if monthly benefit at URA is greater than 2,919
2,984
3,052
3,122
3,194
3,268
3,343
3,420
3,498