Required Interest Rate Assumption for Determining Variable-Rate Premium; Interest Assumptions for Multiemployer Plan Valuations Following Mass Withdrawal, 7779 [05-2857]
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Federal Register / Vol. 70, No. 30 / Tuesday, February 15, 2005 / Notices
PENSION BENEFIT GUARANTY
CORPORATION
Required Interest Rate Assumption for
Determining Variable-Rate Premium;
Interest Assumptions for
Multiemployer Plan Valuations
Following Mass Withdrawal
Pension Benefit Guaranty
Corporation.
ACTION: Notice of interest rates and
assumptions.
AGENCY:
For premium payment years
beginning in:
SUMMARY: This notice informs the public
of the interest rates and assumptions to
be used under certain Pension Benefit
Guaranty Corporation regulations. These
rates and assumptions are published
elsewhere (or can be derived from rates
published elsewhere), but are collected
and published in this notice for the
convenience of the public. Interest rates
are also published on the PBGC’s Web
site (https://www.pbgc.gov).
DATES: The required interest rate for
determining the variable-rate premium
under part 4006 applies to premium
payment years beginning in February
2005. The interest assumptions for
performing multiemployer plan
valuations following mass withdrawal
under part 4281 apply to valuation dates
occurring in March 2005.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Attorney, 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:
Variable-Rate Premiums
Section 4006(a)(3)(E)(iii)(II) of the
Employee Retirement Income Security
Act of 1974 (ERISA) and § 4006.4(b)(1)
of the PBGC’s regulation on Premium
Rates (29 CFR part 4006) prescribe use
of an assumed interest rate (the
‘‘required interest rate’’) in determining
a single-employer plan’s variable-rate
premium. Pursuant to the Pension
Funding Equity Act of 2004, for
premium payment years beginning in
2004 or 2005, the required interest rate
is the ‘‘applicable percentage’’
(currently 85 percent) of the annual rate
of interest determined by the Secretary
of the Treasury on amounts invested
conservatively in long-term investment
grade corporate bonds for the month
preceding the beginning of the plan year
for which premiums are being paid.
Thus, the required interest rate to be
used in determining variable-rate
premiums for premium payment years
VerDate jul<14>2003
17:50 Feb 14, 2005
Jkt 205001
beginning in February 2005 is 4.66
percent (i.e., 85 percent of the 5.48
percent composite corporate bond rate
for January 2005 as determined by the
Treasury).
The following table lists the required
interest rates to be used in determining
variable-rate premiums for premium
payment years beginning between
March 2004 and February 2005.
The required interest rate is:
March 2004 ...............................
April 2004 .................................
May 2004 ..................................
June 2004 .................................
July 2004 ..................................
August 2004 .............................
September 2004 .......................
October 2004 ............................
November 2004 ........................
December 2004 ........................
January 2005 ............................
February 2005 ..........................
4.79
4.62
4.98
5.26
5.25
5.10
4.95
4.79
4.73
4.75
4.73
4.66
Multiemployer Plan Valuations
Following Mass Withdrawal
The PBGC’s regulation on Duties of
Plan Sponsor Following Mass
Withdrawal (29 CFR part 4281)
prescribes the use of interest
assumptions under the PBGC’s
regulation on Allocation of Assets in
Single-Employer Plans (29 CFR part
4044). The interest assumptions
applicable to valuation dates in March
2005 under part 4044 are contained in
an amendment to part 4044 published
elsewhere in today’s Federal Register.
Tables showing the assumptions
applicable to prior periods are codified
in appendix B to 29 CFR part 4044.
Issued in Washington, DC, on this 9th day
of February 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. 05–2857 Filed 2–14–05; 8:45 am]
BILLING CODE 7708–01–P
OFFICE OF PERSONNEL
MANAGEMENT
Federal Prevailing Rate Advisory
Committee; Open Committee Meetings
According to the provisions of section
10 of the Federal Advisory Committee
Act (Pub. L. 92–463), notice is hereby
given that meetings of the Federal
Prevailing Rate Advisory Committee
will be held on—Thursday, March 10,
2005, Thursday, March 17, 2005,
Thursday, April 7, 2005, Thursday,
April 21, 2005.
PO 00000
Frm 00069
Fmt 4703
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7779
The meetings will start at 10 a.m. and
will be held in Room 5A06A, Office of
Personnel Management Building, 1900 E
Street, NW., Washington, DC.
The Federal Prevailing Rate Advisory
Committee is composed of a Chair, five
representatives from labor unions
holding exclusive bargaining rights for
Federal blue-collar employees, and five
representatives from Federal agencies.
Entitlement to membership on the
Committee is provided for in 5 U.S.C.
5347.
The Committee’s primary
responsibility is to review the Prevailing
Rate System and other matters pertinent
to establishing prevailing rates under
subchapter IV, chapter 53, 5 U.S.C., as
amended, and from time to time advise
the Office of Personnel Management.
These scheduled meetings will start
in open session with both labor and
management representatives attending.
During the meetings either the labor
members or the management members
may caucus separately with the Chair to
devise strategy and formulate positions.
Premature disclosure of the matters
discussed in these caucuses would
unacceptably impair the ability of the
Committee to reach a consensus on the
matters being considered and would
disrupt substantially the disposition of
its business. Therefore, these caucuses
will be closed to the public because of
a determination made by the Director of
the Office of Personnel Management
under the provisions of section 10(d) of
the Federal Advisory Committee Act
(Pub. L. 92–463) and 5 U.S.C.
552b(c)(9)(B). These caucuses may,
depending on the issues involved,
constitute a substantial portion of a
meeting.
Annually, the Chair compiles a report
of pay issues discussed and concluded
recommendations. These reports are
available to the public, upon written
request to the Committee’s Secretary.
The public is invited to submit
material in writing to the Chair on
Federal Wage System pay matters felt to
be deserving of the Committee’s
attention. Additional information on
these meetings may be obtained by
contacting the Committee’s Secretary,
Office of Personnel Management,
Federal Prevailing Rate Advisory
Committee, Room 5538, 1900 E Street,
NW., Washington, DC 20415 (202) 606–
1500.
Dated: February 8, 2005.
Mary M. Rose,
Chairperson, Federal Prevailing Rate
Advisory Committee.
[FR Doc. 05–2811 Filed 2–14–05; 8:45 am]
BILLING CODE 6325–49–P
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15FEN1
]]>Agencies
[Federal Register Volume 70, Number 30 (Tuesday, February 15, 2005)]
[Notices]
[Page 7779]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-2857]
[[Page 7779]]
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PENSION BENEFIT GUARANTY CORPORATION
Required Interest Rate Assumption for Determining Variable-Rate
Premium; Interest Assumptions for Multiemployer Plan Valuations
Following Mass Withdrawal
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Notice of interest rates and assumptions.
-----------------------------------------------------------------------
SUMMARY: This notice informs the public of the interest rates and
assumptions to be used under certain Pension Benefit Guaranty
Corporation regulations. These rates and assumptions are published
elsewhere (or can be derived from rates published elsewhere), but are
collected and published in this notice for the convenience of the
public. Interest rates are also published on the PBGC's Web site
(https://www.pbgc.gov).
DATES: The required interest rate for determining the variable-rate
premium under part 4006 applies to premium payment years beginning in
February 2005. The interest assumptions for performing multiemployer
plan valuations following mass withdrawal under part 4281 apply to
valuation dates occurring in March 2005.
FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Attorney,
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:
Variable-Rate Premiums
Section 4006(a)(3)(E)(iii)(II) of the Employee Retirement Income
Security Act of 1974 (ERISA) and Sec. 4006.4(b)(1) of the PBGC's
regulation on Premium Rates (29 CFR part 4006) prescribe use of an
assumed interest rate (the ``required interest rate'') in determining a
single-employer plan's variable-rate premium. Pursuant to the Pension
Funding Equity Act of 2004, for premium payment years beginning in 2004
or 2005, the required interest rate is the ``applicable percentage''
(currently 85 percent) of the annual rate of interest determined by the
Secretary of the Treasury on amounts invested conservatively in long-
term investment grade corporate bonds for the month preceding the
beginning of the plan year for which premiums are being paid. Thus, the
required interest rate to be used in determining variable-rate premiums
for premium payment years beginning in February 2005 is 4.66 percent
(i.e., 85 percent of the 5.48 percent composite corporate bond rate for
January 2005 as determined by the Treasury).
The following table lists the required interest rates to be used in
determining variable-rate premiums for premium payment years beginning
between March 2004 and February 2005.
------------------------------------------------------------------------
The
required
For premium payment years beginning in: interest
rate is:
------------------------------------------------------------------------
March 2004................................................. 4.79
April 2004................................................. 4.62
May 2004................................................... 4.98
June 2004.................................................. 5.26
July 2004.................................................. 5.25
August 2004................................................ 5.10
September 2004............................................. 4.95
October 2004............................................... 4.79
November 2004.............................................. 4.73
December 2004.............................................. 4.75
January 2005............................................... 4.73
February 2005.............................................. 4.66
------------------------------------------------------------------------
Multiemployer Plan Valuations Following Mass Withdrawal
The PBGC's regulation on Duties of Plan Sponsor Following Mass
Withdrawal (29 CFR part 4281) prescribes the use of interest
assumptions under the PBGC's regulation on Allocation of Assets in
Single-Employer Plans (29 CFR part 4044). The interest assumptions
applicable to valuation dates in March 2005 under part 4044 are
contained in an amendment to part 4044 published elsewhere in today's
Federal Register. Tables showing the assumptions applicable to prior
periods are codified in appendix B to 29 CFR part 4044.
Issued in Washington, DC, on this 9th day of February 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 05-2857 Filed 2-14-05; 8:45 am]
BILLING CODE 7708-01-P
