[Federal Register Volume 86, Number 61 (Thursday, April 1, 2021)]
[Notices]
[Pages 17217-17219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06729]


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PENSION BENEFIT GUARANTY CORPORATION


Proposed 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 intent to request extension of OMB approval of 
information collection, with modifications.

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SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) intends to 
request 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 company rates for pricing annuity contracts to obtain 
information

[[Page 17218]]

needed to set actuarial assumptions. The American Council of Life 
Insurers conducts this voluntary survey for PBGC. This notice informs 
the public of PBGC's intent and solicits public comment on the 
collection of information.

DATES: Comments should be submitted by June 1, 2021.

ADDRESSES: Comments may be submitted by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the website instructions for submitting comments.
     Email: [email protected]. Refer to Survey of 
Insurance Company Rates or OMB control number 1212-0030 in the subject 
line.
     Mail or Hand Delivery: Regulatory Affairs Division, Office 
of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K 
Street NW, Washington, DC 20005-4026.
    All submissions received must include the agency's name (Pension 
Benefit Guaranty Corporation, or PBGC) and refer to the Survey of 
Insurance Company Rates or OMB control number 1212-0030. All comments 
received will be posted without change to PBGC's website, https://www.pbgc.gov, including any personal information provided.
    Copies of the collection of information may be obtained by writing 
to Disclosure Division, Office of the General Counsel, Pension Benefit 
Guaranty Corporation, 1200 K Street NW, Washington, DC 20005-4026, 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.

FOR FURTHER INFORMATION CONTACT: Hilary Duke ([email protected]), 
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 
([email protected]), 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 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:
     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.
     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.
     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 rates provided should include reductions for investment 
expenses but exclude administrative expenses and reductions for 
competitive bidding, and that respondents should assume that plan 
provisions are straightforward and do not contain significant levels of 
anti-selection, expensive options, or subsidies.
     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.
     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.
     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.
     Addition of a question soliciting feedback on how PBGC 
could improve the survey process.
     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. PBGC estimates that about six 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 four surveys per year 
six respondents per quarter).
    The existing collection of information was approved under OMB 
control number 1212-0030 (expires August 31, 2021). PBGC intends to 
request that OMB approve PBGC's use of this form for 3 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 is soliciting public comments to--
     Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
     Evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodologies and assumptions used;
     Enhance the quality, utility, and clarity of the 
information to be collected; and
     Minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology,

[[Page 17219]]

e.g. permitting electronic submission of responses.

    Issued in Washington DC by.
Hilary Duke,
Assistant General Counsel for Regulatory Affairs, Pension Benefit 
Guaranty Corporation.
[FR Doc. 2021-06729 Filed 3-31-21; 8:45 am]
BILLING CODE 7709-02-P