Notice2021-12362
Submission of Information Collection for OMB Review; Comment Request; Survey of Nonparticipating Single Premium Group Annuity Rates
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 14, 2021
Issuing agencies
Pension Benefit Guaranty Corporation
Abstract
The Pension Benefit Guaranty Corporation (PBGC) is requesting that the Office of Management and Budget (OMB) extend approval, under the Paperwork Reduction Act, of a collection of information with modifications. The purpose of this information collection is to survey insurance companies that provide group annuities for premium rates and related information to calibrate actuarial interest rate assumptions. The American Council of Life Insurers conducts this voluntary survey for PBGC. This notice informs the public of PBGC's request and solicits public comment on the collection.
Full Text
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<title>Federal Register, Volume 86 Issue 112 (Monday, June 14, 2021)</title>
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[Federal Register Volume 86, Number 112 (Monday, June 14, 2021)]
[Notices]
[Pages 31539-31540]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-12362]
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PENSION BENEFIT GUARANTY CORPORATION
Submission of Information Collection for OMB Review; Comment
Request; Survey of Nonparticipating Single Premium Group Annuity Rates
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of request for extension of OMB approval, with
modifications.
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SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) is requesting
that the Office of Management and Budget
[[Page 31540]]
(OMB) extend approval, under the Paperwork Reduction Act, of a
collection of information with modifications. The purpose of this
information collection is to survey insurance companies that provide
group annuities for premium rates and related information to calibrate
actuarial interest rate assumptions. The American Council of Life
Insurers conducts this voluntary survey for PBGC. This notice informs
the public of PBGC's request and solicits public comment on the
collection.
DATES: Comments must be submitted by July 14, 2021.
ADDRESSES: Written comments and recommendations for the proposed
information collection should be sent within 30 days of publication of
this notice to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
A copy of the request will be posted on PBGC's website at <a href="https://www.pbgc.gov/prac/laws-and-regulation/federal-register-notices-open-for-comment">https://www.pbgc.gov/prac/laws-and-regulation/federal-register-notices-open-for-comment</a>. It may also be obtained without charge by writing to the
Disclosure Division of the Office of the General Counsel of PBGC, 1200
K Street NW, Washington, DC 20005-4026; faxing a request to 202-326-
4042; or, calling 202-326-4040 during normal business hours (TTY users
may call the Federal Relay Service toll-free at 800-877-8339 and ask to
be connected to 202-326-4040). The Disclosure Division will email, fax,
or mail the information to you, as you request.
FOR FURTHER INFORMATION CONTACT: Hilary Duke (<a href="/cdn-cgi/l/email-protection#b1d5c4dad49fd9d8ddd0c3c8f1c1d3d6d29fd6dec7"><span class="__cf_email__" data-cfemail="1a7e6f717f347273767b68635a6a787d79347d756c">[email protected]</span></a>),
Assistant General Counsel for Regulatory Affairs, Office of the General
Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW,
Washington, DC 20005-4026, 202-229-3839; or Gregory Katz
(<a href="/cdn-cgi/l/email-protection#f398928789dd948196949c818ab383919490dd949c85"><span class="__cf_email__" data-cfemail="ec878d9896c28b9e898b839e95ac9c8e8b8fc28b839a">[email protected]</span></a>), Attorney, Regulatory Affairs Division, Office
of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K
Street NW, Washington, DC 20005-4026, 202-229-3829. TTY users may call
the Federal Relay Service toll-free at 800-877-8339 and ask to be
connected to 202-229-3839 or 202-229-3829.
SUPPLEMENTARY INFORMATION: PBGC's regulations prescribe actuarial
valuation methods and assumptions (including interest rate assumptions)
to be used to determine the actuarial present value of benefits under
single-employer plans in involuntary or distress terminations (29 CFR
part 4044) and the value of benefits and certain assets under
multiemployer plans that undergo a mass withdrawal of contributing
employers (29 CFR part 4281). In each month immediately preceding the
start of a new calendar quarter, PBGC publishes the interest rates to
be used under those regulations for plans terminating or undergoing
mass withdrawal during the next quarter.
The interest rates are intended to reflect current conditions in
the annuity markets. To determine these interest rates, PBGC gathers
premium rate data from insurance companies that are providing group
annuity contracts to terminating pension plans through a quarterly
survey. The American Council of Life Insurers (ACLI) distributes the
survey and provides PBGC with ``blind'' data (i.e., PBGC is unable to
match responses with the insurance companies that submitted them). PBGC
also uses the information from the survey in determining the interest
rates it uses to value benefits payable to participants and
beneficiaries in PBGC-trusteed plans for purposes of PBGC's financial
statements.
PBGC is proposing several changes to the survey distributed by
ACLI:
<bullet> Addition of a question asking for specific information
about the interest assumptions underlying the annuity premium rates
reported in parts I and II of the survey. This information is needed to
allow PBGC to better analyze annuity price data provided in the survey.
<bullet> Increases to the dollar ranges in the questions on
respondents' group annuity business in part III to allow the survey to
continue to capture the variability and range of business accepted by
respondents as the prices of plan termination annuity contracts
increase with inflation.
<bullet> Changes to the instructions to clarify that respondents
should provide pricing information only for full plan terminations (and
transactions priced consistently with full plan terminations), that the
annuity premium rates provided should include reductions for investment
expenses but exclude administrative expenses, and that respondents
should assume that plan provisions are straightforward and do not
contain significant levels of anti-selection, expensive options, or
subsidies.
<bullet> Addition of a confirmation that administrative expenses
are excluded from pricing information and an option to comment on any
exceptions. This is needed for PBGC to compare pricing information
amongst survey responses when respondents are unable to completely
exclude administrative expenses from pricing information.
<bullet> Consolidation and simplification of former parts III and
IV into a new part III and elimination of questions asking for
information PBGC no longer uses. These changes streamline and simplify
the response process.
<bullet> Modification of a question asking for the volume of
respondents' plan termination annuity business so that it requests
annual data instead of quarterly data to reduce volatility in survey
responses.
<bullet> Addition of a question soliciting feedback on how PBGC
could improve the survey process.
<bullet> Addition of flexibility to conduct the survey
electronically.
This voluntary survey is directed at insurance companies most, if
not all, of which are members of ACLI. The survey is conducted
quarterly and approximately 20 insurance companies will be asked to
participate.
The existing collection of information was approved under OMB
control number 1212-0030 (expires August 31, 2021). On April 1, 2021,
PBGC published in the Federal Register (at 86 FR 17217) a notice
informing the public of its intent to request an extension of this
collection of information, as modified. No comments were received. PBGC
is requesting that OMB extend approval of the collection (with
modifications) for three years. An agency may not conduct or sponsor,
and a person is not required to respond to, a collection of information
unless it displays a currently valid OMB control number.
PBGC estimates that about 6 insurance companies will respond to the
survey each quarter, and that each survey will require approximately 30
minutes to complete and return. The total burden is estimated to be 12
hours (30 minutes per survey x 4 surveys per year x 6 respondents per
quarter).
Issued in Washington, DC.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit
Guaranty Corporation.
[FR Doc. 2021-12362 Filed 6-11-21; 8:45 am]
BILLING CODE 7709-02-P
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