Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 7651-7653 [05-2858]
Download as PDF
<![CDATA[
Federal Register / Vol. 70, No. 30 / Tuesday, February 15, 2005 / Rules and Regulations
Federal mandates (under the regulatory
provisions of title II of the UMRA) for
State, local, and tribal governments or
the private sector. Thus, the rule is not
subject to the requirements of section
202 and 205 of the UMRA.
Environmental Impact Statement
This document has been reviewed in
accordance with 7 CFR part 1940,
subpart G, ‘‘Environmental Program.’’
The Agencies have determined that this
final action does not constitute a major
Federal action significantly affecting the
quality of human environment, and in
accordance with the National
Environmental Policy Act of 1969, 42
U.S.C. 4321 et seq., an Environmental
Impact Statement is not required.
Executive Order 13132, Federalism
The policies contained in this rule do
not have any substantial direct effect on
States, on the relationship between the
national government and the States, or
on the distribution of power and
responsibilities among the various
levels of government. Nor does this rule
impose substantial direct compliance
costs on State and local governments.
Therefore, consultation with the States
is not required.
Background
In November 2003, the Federal
Register published a Final Rule that
implemented changes to the
governmentwide nonprocurment
debarment and suspension common
rule (NCR) and the associated rule on
drug-free workplace requirements. The
NCR set forth the common policies and
procedures that Federal Executive
branch agencies must use in taking
suspension or debarment actions. It also
established procedures for participants
and Federal agencies in entering
covered transactions. Following the
procedures set forth in the NCR will
help ensure that the agency action
complies with due process standards
and provides the public with uniform
procedures.
List of Subjects in 7 CFR Part 1944
Administrative practice and
procedure, Grant programs, Housing
and community development, Loan
Programs, Migrant labor, Nonprofit
organizations, Reporting requirements,
Rural Housing.
For the reasons set forth in the
summary, chapter XVIII, title 7, Code of
Federal Regulations is amended as
follows:
I
VerDate jul<14>2003
16:11 Feb 14, 2005
Jkt 205001
PART 1944—HOUSING
1. The authority citation for part 3550
continues to read as follows:
I
Authority: 5 U.S.C. 301; 42 U.S.C. 1480.
Subpart B—Housing Application
Packaging Grants
2. Section 1944.74 is revised to read as
follows:
I
§ 1944.74
Debarment or Suspension.
Certified packagers whose actions or
acts warrant they not be allowed to
participate in the program are to be
investigated in accordance with agency
procedures (available in any Rural
Development office).
Dated: January 18, 2005.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. 05–2903 Filed 2–14–05; 8:45 am]
BILLING CODE 3410–XV–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Parts 4022 and 4044
Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets
in Single-Employer Plans; Interest
Assumptions for Valuing and Paying
Benefits
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
SUMMARY: The Pension Benefit Guaranty
Corporation’s regulations on Benefits
Payable in Terminated Single-Employer
Plans and Allocation of Assets in
Single-Employer Plans prescribe interest
assumptions for valuing and paying
benefits under terminating singleemployer plans. This final rule amends
the regulations to adopt interest
assumptions for plans with valuation
dates in March 2005. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
EFFECTIVE DATE: March 1, 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: The
PBGC’s regulations prescribe actuarial
assumptions—including interest
assumptions—for valuing and paying
plan benefits of terminating single-
PO 00000
Frm 00019
Fmt 4700
Sfmt 4700
7651
employer plans covered by title IV of
the Employee Retirement Income
Security Act of 1974. The interest
assumptions are intended to reflect
current conditions in the financial and
annuity markets.
Three sets of interest assumptions are
prescribed: (1) A set for the valuation of
benefits for allocation purposes under
section 4044 (found in Appendix B to
part 4044), (2) a set for the PBGC to use
to determine whether a benefit is
payable as a lump sum and to determine
lump-sum amounts to be paid by the
PBGC (found in Appendix B to part
4022), and (3) a set for private-sector
pension practitioners to refer to if they
wish to use lump-sum interest rates
determined using the PBGC’s historical
methodology (found in Appendix C to
part 4022).
Accordingly, this amendment (1) adds
to Appendix B to part 4044 the interest
assumptions for valuing benefits for
allocation purposes in plans with
valuation dates during March 2005, (2)
adds to Appendix B to part 4022 the
interest assumptions for the PBGC to
use for its own lump-sum payments in
plans with valuation dates during
March 2005, and (3) adds to Appendix
C to part 4022 the interest assumptions
for private-sector pension practitioners
to refer to if they wish to use lump-sum
interest rates determined using the
PBGC’s historical methodology for
valuation dates during March 2005.
For valuation of benefits for allocation
purposes, the interest assumptions that
the PBGC will use (set forth in
Appendix B to part 4044) will be 3.80
percent for the first 20 years following
the valuation date and 4.75 percent
thereafter. These interest assumptions
represent a decrease (from those in
effect for February 2005) of 0.20 percent
for the first 20 years following the
valuation date and are otherwise
unchanged.
The interest assumptions that the
PBGC will use for its own lump-sum
payments (set forth in Appendix B to
part 4022) will be 2.75 percent for the
period during which a benefit is in pay
status and 4.00 percent during any years
preceding the benefit’s placement in pay
status. These interest assumptions
represent a decrease (from those in
effect for February 2005) of 0.25 percent
for the period during which a benefit is
in pay status and are otherwise
unchanged.
For private-sector payments, the
interest assumptions (set forth in
Appendix C to part 4022) will be the
same as those used by the PBGC for
determining and paying lump sums (set
forth in Appendix B to part 4022).
E:\FR\FM\15FER1.SGM
15FER1
7652
Federal Register / Vol. 70, No. 30 / Tuesday, February 15, 2005 / Rules and Regulations
The PBGC has determined that notice
and public comment on this amendment
are impracticable and contrary to the
public interest. This finding is based on
the need to determine and issue new
interest assumptions promptly so that
the assumptions can reflect, as
accurately as possible, current market
conditions.
Because of the need to provide
immediate guidance for the valuation
and payment of benefits in plans with
valuation dates during March 2005, the
PBGC finds that good cause exists for
making the assumptions set forth in this
amendment effective less than 30 days
after publication.
The PBGC has determined that this
action is not a ‘‘significant regulatory
Rate set
For plans with a valuation
date
On or after
*
137
Before
29 CFR Part 4022
For plans with a valuation
date
On or after
*
Before
Employee benefit plans, Pension
insurance, Pensions.
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
I
*
*
*
*
*
Deferred annuities (percent)
Immediate
annuity rate
(percent)
i1
i2
*
4.00
2.75
i3
4.00
n1
*
n2
*
*
4.00
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates For Private-Sector
Payments
*
*
*
*
*
Deferred annuities (percent)
Immediate
annuity rate
(percent)
i1
2.75
i2
*
4.00
*
4–1–05
i3
4.00
*
*
*
4.00
7
8
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
table. (The introductory text of the table
is omitted.)
5. In appendix B to part 4044, a new
entry, as set forth below, is added to the
Appendix B to Part 4044—Interest
Rates Used To Value Benefits
I
4. The authority citation for part 4044
continues to read as follows:
I
1. The authority citation for part 4022
continues to read as follows:
I
29 CFR Part 4044
*
3–1–05
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
2. In appendix B to part 4022, Rate Set
137, as set forth below, is added to the
table. (The introductory text of the table
is omitted.)
*
3. In appendix C to part 4022, Rate Set
137, as set forth below, is added to the
table. (The introductory text of the table
is omitted.)
In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended as
follows:
I
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
4–1–05
I
137
List of Subjects
*
3–1–05
Rate set
action’’ under the criteria set forth in
Executive Order 12866.
Because no general notice of proposed
rulemaking is required for this
amendment, the Regulatory Flexibility
Act of 1980 does not apply. See 5 U.S.C.
601(2).
*
*
*
*
*
The values of it are:
For valuation dates occurring in the month—
it
*
*
*
March 2005 .......................................................................
VerDate jul<14>2003
14:53 Feb 14, 2005
Jkt 205001
PO 00000
Frm 00020
for t =
*
.0380
Fmt 4700
for t =
*
1–20
Sfmt 4700
it
*
>20
.0475
E:\FR\FM\15FER1.SGM
15FER1
it
for t =
*
N/A
N/A
Federal Register / Vol. 70, No. 30 / Tuesday, February 15, 2005 / Rules and Regulations
Issued in Washington, DC, on this 9th day
of February 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. 05–2858 Filed 2–14–05; 8:45 am]
BILLING CODE 7708–01–P
due speed in order to return the bridge
to normal operation as soon as possible.
Dated: January 31, 2005.
Gary Kassof,
Bridge Program Manager, First Coast Guard
District.
[FR Doc. 05–2870 Filed 2–14–05; 8:45 am]
BILLING CODE 4910–15–P
DEPARTMENT OF HOMELAND
SECURITY
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
Coast Guard
33 CFR Part 117
[CGD01–05–007]
33 CFR Part 165
Drawbridge Operation Regulations:
Fore River, ME
[COTP Western Alaska–05–002]
Coast Guard, DHS.
Notice of temporary deviation
from regulations.
Safety Zones; Gulf of Alaska, Narrow
Cape, Kodiak Island, AK
The Commander, First Coast
Guard District, has issued a temporary
deviation from the drawbridge operation
regulations for the Casco Bay Bridge,
mile 1.5, across the Fore River between
Portland and South Portland, Maine.
Under this temporary deviation, from
February 28, 2005 through March 4,
2005, bridge openings between the
hours of 6 a.m. and 6 p.m. will require
a 24-hour advance notice. The bridge
will open on signal at all other times.
This temporary deviation is necessary to
facilitate mechanical repairs at the
bridge.
DATES: This deviation is effective from
February 28, 2005 through March 4,
2005.
FOR FURTHER INFORMATION CONTACT: John
McDonald, Project Officer, First Coast
Guard District, at (617) 223–8364.
SUPPLEMENTARY INFORMATION: The Casco
Bay Bridge has a vertical clearance in
the closed position of 55 feet at mean
high water and 64 feet at mean low
water. The existing drawbridge
operation regulations are listed at 33
CFR 117.5.
The bridge owner, Maine Department
of Transportation, requested a
temporary deviation from the
drawbridge operation regulations to
facilitate scheduled mechanical
maintenance, span lock repairs, at the
bridge.
Under this temporary deviation from
February 28, 2005 through March 4,
2005, bridge openings between the
hours of 6 a.m. and 6 p.m. will require
a 24-hour advance notice. The bridge
will open on signal at all other times.
This deviation from the operating
regulations is authorized under 33 CFR
117.35, and will be performed with all
ACTION:
RIN 1625–AA00
AGENCY:
ACTION:
SUMMARY:
VerDate jul<14>2003
14:53 Feb 14, 2005
Jkt 205001
Coast Guard, DHS.
Temporary final rule.
AGENCY:
SUMMARY: The Coast Guard is
establishing two temporary safety zones
in the Gulf of Alaska, in the proximity
of Narrow Cape, Kodiak Island, Alaska.
These zones are needed to protect
persons and vessels operating in the
vicinity of the safety zones during a
rocket launch from the Alaska
Aerospace Development Corporation,
Narrow Cape, Kodiak Island facility.
Entry of vessels or persons into these
zones is prohibited unless specifically
authorized by the Commander,
Seventeenth Coast Guard District, the
Coast Guard Captain of the Port,
Western Alaska, or their on-scene
representative.
This temporary final rule is
effective from 4 p.m. on February 12,
2005 through 11 p.m. on March 31,
2005. The safety zones will be enforced
each day of the effective period from 4
p.m. through 11 p.m.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket are available for inspection and
copying at Coast Guard Marine Safety
Office Anchorage, 510 ‘‘L’’ Street, Suite
100, Anchorage, AK 99501. Normal
Office hours are 7:30 a.m. to 4 p.m.,
Monday through Friday, except federal
holidays.
FOR FURTHER INFORMATION CONTACT: LT
Meredith Gillman, Marine Safety Office
Anchorage, at (907) 271–6700.
SUPPLEMENTARY INFORMATION:
DATES:
Regulatory History
We did not publish a notice of
proposed rulemaking (NPRM) for this
regulation. Under 5 U.S.C. 553(b)(8), the
Coast Guard finds that good cause exists
PO 00000
Frm 00021
Fmt 4700
Sfmt 4700
7653
for not publishing an NPRM. Because
the hazardous condition is expected to
last for approximately six (6) hours of
each day, and because general
permission to enter the safety zones will
be given during non-hazardous times,
the impact of this rule on commercial
and recreational traffic is expected to be
minimal. Any delay encountered in this
regulation’s effective date would be
contrary to public interest because
immediate action is needed to protect
human life and property from possible
fallout from the rocket launch. The
parameters of the zones will not unduly
impair business and transits of vessels.
The Coast Guard will announce via
Broadcast Notice to Mariners the
anticipated date and time of each
launch and will grant general
permission to enter the safety zones
during those times in which the launch
does not pose a hazard to mariners.
Under 5 U.S.C. 553(d)(3), the Coast
Guard finds that good cause exists for
making this rule effective less than 30
days after publication in the Federal
Register. The process of scheduling a
rocket launch is uncertain due to
unforeseen delays such as weather that
can cause cancellation of the launch.
The Coast Guard attempts to publish a
final rule as close to the expected
launch date as possible, however, these
attempts often prove futile due to
frequent re-scheduling. Any delay
encountered in this regulation’s
effective date would be contrary to
public interest since immediate action is
needed to protect human life and
property from possible fallout from the
rocket launch. The parameters of the
zones will not unduly impair business
and transits of vessels. The Coast Guard
will announce via Broadcast Notice to
Mariners the anticipated date and time
of each launch and will grant general
permission to enter the safety zones
during those times in which the launch
does not pose a hazard to mariners.
Background and Purpose
The Alaska Aerospace Development
Corporation will launch an unmanned
rocket from their facility at Narrow
Cape, Kodiak Island, Alaska between 5
p.m. and 11 p.m. during a seven-day
period between February 12, 2005 and
March 31, 2005. The safety zones are
necessary to protect spectators and
transiting vessels from the potential
hazards associated with the launch.
The Coast Guard will announce via
Broadcast Notice to Mariners the
anticipated date and time of the launch
and will grant general permission to
enter the safety zones during those
times in which a launch schedule does
not pose a hazard to mariners. Because
E:\FR\FM\15FER1.SGM
15FER1
]]>Agencies
[Federal Register Volume 70, Number 30 (Tuesday, February 15, 2005)]
[Rules and Regulations]
[Pages 7651-7653]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-2858]
=======================================================================
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Parts 4022 and 4044
Benefits Payable in Terminated Single-Employer Plans; Allocation
of Assets in Single-Employer Plans; Interest Assumptions for Valuing
and Paying Benefits
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Pension Benefit Guaranty Corporation's regulations on
Benefits Payable in Terminated Single-Employer Plans and Allocation of
Assets in Single-Employer Plans prescribe interest assumptions for
valuing and paying benefits under terminating single-employer plans.
This final rule amends the regulations to adopt interest assumptions
for plans with valuation dates in March 2005. Interest assumptions are
also published on the PBGC's Web site (https://www.pbgc.gov).
EFFECTIVE DATE: March 1, 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: The PBGC's regulations prescribe actuarial
assumptions--including interest assumptions--for valuing and paying
plan benefits of terminating single-employer plans covered by title IV
of the Employee Retirement Income Security Act of 1974. The interest
assumptions are intended to reflect current conditions in the financial
and annuity markets.
Three sets of interest assumptions are prescribed: (1) A set for
the valuation of benefits for allocation purposes under section 4044
(found in Appendix B to part 4044), (2) a set for the PBGC to use to
determine whether a benefit is payable as a lump sum and to determine
lump-sum amounts to be paid by the PBGC (found in Appendix B to part
4022), and (3) a set for private-sector pension practitioners to refer
to if they wish to use lump-sum interest rates determined using the
PBGC's historical methodology (found in Appendix C to part 4022).
Accordingly, this amendment (1) adds to Appendix B to part 4044 the
interest assumptions for valuing benefits for allocation purposes in
plans with valuation dates during March 2005, (2) adds to Appendix B to
part 4022 the interest assumptions for the PBGC to use for its own
lump-sum payments in plans with valuation dates during March 2005, and
(3) adds to Appendix C to part 4022 the interest assumptions for
private-sector pension practitioners to refer to if they wish to use
lump-sum interest rates determined using the PBGC's historical
methodology for valuation dates during March 2005.
For valuation of benefits for allocation purposes, the interest
assumptions that the PBGC will use (set forth in Appendix B to part
4044) will be 3.80 percent for the first 20 years following the
valuation date and 4.75 percent thereafter. These interest assumptions
represent a decrease (from those in effect for February 2005) of 0.20
percent for the first 20 years following the valuation date and are
otherwise unchanged.
The interest assumptions that the PBGC will use for its own lump-
sum payments (set forth in Appendix B to part 4022) will be 2.75
percent for the period during which a benefit is in pay status and 4.00
percent during any years preceding the benefit's placement in pay
status. These interest assumptions represent a decrease (from those in
effect for February 2005) of 0.25 percent for the period during which a
benefit is in pay status and are otherwise unchanged.
For private-sector payments, the interest assumptions (set forth in
Appendix C to part 4022) will be the same as those used by the PBGC for
determining and paying lump sums (set forth in Appendix B to part
4022).
[[Page 7652]]
The PBGC has determined that notice and public comment on this
amendment are impracticable and contrary to the public interest. This
finding is based on the need to determine and issue new interest
assumptions promptly so that the assumptions can reflect, as accurately
as possible, current market conditions.
Because of the need to provide immediate guidance for the valuation
and payment of benefits in plans with valuation dates during March
2005, the PBGC finds that good cause exists for making the assumptions
set forth in this amendment effective less than 30 days after
publication.
The PBGC has determined that this action is not a ``significant
regulatory action'' under the criteria set forth in Executive Order
12866.
Because no general notice of proposed rulemaking is required for
this amendment, the Regulatory Flexibility Act of 1980 does not apply.
See 5 U.S.C. 601(2).
List of Subjects
29 CFR Part 4022
Employee benefit plans, Pension insurance, Pensions, Reporting and
recordkeeping requirements.
29 CFR Part 4044
Employee benefit plans, Pension insurance, Pensions.
0
In consideration of the foregoing, 29 CFR parts 4022 and 4044 are
amended as follows:
PART 4022--BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS
0
1. The authority citation for part 4022 continues to read as follows:
Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344.
0
2. In appendix B to part 4022, Rate Set 137, as set forth below, is
added to the table. (The introductory text of the table is omitted.)
Appendix B to Part 4022--Lump Sum Interest Rates For PBGC Payments
* * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
137 3-1-05 4-1-05 2.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 137, as set forth below, is
added to the table. (The introductory text of the table is omitted.)
Appendix C to Part 4022--Lump Sum Interest Rates For Private-Sector
Payments
* * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
For plans with a valuation date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
137 3-1-05 4-1-05 2.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS
0
4. The authority citation for part 4044 continues to read as follows:
Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.
0
5. In appendix B to part 4044, a new entry, as set forth below, is
added to the table. (The introductory text of the table is omitted.)
Appendix B to Part 4044--Interest Rates Used To Value Benefits
* * * * *
----------------------------------------------------------------------------------------------------------------
The values of it are:
For valuation dates occurring in -----------------------------------------------------------------------------
the month-- it for t = it for t = it for t =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
March 2005........................ .0380 1-20 .0475 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
[[Page 7653]]
Issued in Washington, DC, on this 9th day of February 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 05-2858 Filed 2-14-05; 8:45 am]
BILLING CODE 7708-01-P
