ALL
There seems to be a consistent misunderstanding of the Code (both piping and pressure vessel) amongst a large number of individuals regarding the design margins. Let me summarize:
The minimum design margin with respect to yielding is 1.5. The Code calculations are all based on materials that exhibit elastic-perfectly-plastic behavior. That is, once the general membrane stress has exceeded yeild, and the pipe or vessel cannot localize that stress, the strain (and hence deflection) will become very very large (theoretically infinite). For most REAL materials, this is obviously not the case. However, consider mild carbon steel - say SA-106 Gr. B. If you were to look at a stress-strain curve for this material, you would see the very large "yield plateau" aftert the yied stress has been reached where the slope of the stress-strain curve is essentially zero. This continues on until approximately 5-10% strain. For all practical piping and pressure vessels made from this material, this level of strain woudl be "failure". Therefore, this limit would govern many materials.
The minimum Code design margin against the material reaching its ultimate stress is indeed 3 (or 3.5 in Div. 1). However, for most materials to achieve that level of stress, they have undergone extreme amounts of strain - necking has probably occured. Any piping or pressure vessel that has experienced a pressure near that which would cause stresses approaching ultimate stress would have to be scrapped immediately afterwards, because they would be significcantly dimensionally unlike the vessel or piping that was designed.
So, in summary - IF you are ever asked what the design margin (note how I haven't used the term safety factor - that's a deliberate choice) is for piping or pressure vessels - the answer is 1.5.
And for the process engineering reading this forum - please leave the design of the piping to the pipign engineers and do not optimize the temperature /pressure of you process system to a perceived design of the piping system. Choose a pressure/temperature that is appropriate for your process (taking into account rotating equipment, etc) with reasonable margins - and leave the design of the piping to the piping engineers.
Rant over.