Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 19890-19892 [05-7549]
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19890
Federal Register / Vol. 70, No. 72 / Friday, April 15, 2005 / Rules and Regulations
Inapplicability of Prior Notice and
Comment and Delayed Effective Date
Procedures
This temporary rule merely
implements an existing agency practice
by facilitating the removal, without
Federal tax, of tobacco products and
cigarette papers and tubes for the use of
Federal agencies in law enforcement
operations. The regulatory changes
address immediate needs of Federal law
enforcement agencies and relieve an
existing administrative burden on TTB
and tobacco industry members. In
addition, the supplying of tobacco
products and cigarette papers and tubes
by manufacturers to Federal agencies
continues to be voluntary, and this
regulatory change would only ease an
existing burden on manufacturers who
wish to provide their products for this
purpose. Accordingly, pursuant to 5
U.S.C. 553(b)(B), we have determined
that prior public notice and comment
procedures on this regulation are
unnecessary and contrary to the public
interest. For the same reasons, pursuant
to 5 U.S.C. 553(d) (1) and (3), we find
that there is good cause for dispensing
with a delayed effective date.
Drafting Information
The principle author of this document
is Linda Wade Chapman, Regulations
and Procedures Division, Alcohol and
Tobacco Tax and Trade Bureau.
List of Subjects in 27 CFR Part 45
Authority delegations (Government
agencies), Cigars and cigarettes, Excise
taxes, Labeling, Packaging and
containers, Reporting and recordkeeping
requirements, Tobacco.
Amendments to the Regulations
For the reasons discussed in the
preamble, we amend part 45 of the TTB
regulations (27 CFR part 45) as follows:
I
PART 45—REMOVAL OF TOBACCO
PRODUCTS AND CIGARETTE PAPERS
AND TUBES, WITHOUT PAYMENT OF
TAX, FOR USE OF THE UNITED
STATES
1. The authority citation for part 45
continues to read as follows:
I
Authority: 26 U.S.C. 5703, 5704, 5705,
5723, 5741, 5751, 5762, 5763, 6313, 7212,
7342, 7606, 7805, 44 U.S.C. 3504(h).
2. Revise the section heading and text
of § 45.31 to read as follows:
I
§ 45.31 Removals for delivery to a Federal
agency.
(a) Removal of articles. A
manufacturer may remove tobacco
products or cigarette papers and tubes
without payment of tax, in accordance
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14:19 Apr 14, 2005
Jkt 205001
with this part, for delivery to a Federal
agency if:
(1) The removed articles were
purchased by the Federal agency with
funds appropriated by the Congress of
the United States and are for gratuitous
distribution under the supervision of
the Federal agency;
(2) The removed articles were
purchased by a donor from the
manufacturer, or donated directly by the
manufacturer, for gratuitous distribution
under the supervision of the Federal
agency to:
(i) Charges of the United States; or
(ii) Patients in a hospital or institution
operated by the Government of a State
or the District of Columbia where the
Federal agency maintains a program for
distribution to members or veterans of
the armed forces of the United States in
the hospital or institution; or
(3) The removed articles are intended
for use by the Federal agency in an
investigation or other Federal law
enforcement activity.
(b) Sale prohibited. Except in the case
of articles described in paragraph (a)(3)
of this section where a sale is incident
to the Federal law enforcement activity,
tobacco products and cigarette papers
and tubes removed under this section
may not be sold after their removal.
I 3. Amend § 45.46 by removing the
word ‘‘Every’’ and adding, in its place,
the words ‘‘Except in the case of articles
described in § 45.31(a)(3), every’’.
Signed: January 31, 2005.
John J. Manfreda,
Administrator.
Approved: February 16, 2005.
Timothy E. Skud,
Deputy Assistant Secretary, (Tax, Trade, and
Tariff Policy).
[FR Doc. 05–7582 Filed 4–14–05; 8:45 am]
BILLING CODE 4810–31–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
PO 00000
Frm 00014
Fmt 4700
Sfmt 4700
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 May 2005. Interest assumptions
are also published on the PBGC’s Web
site (https://www.pbgc.gov).
DATES: Effective Date: May 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 singleemployer 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 May 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 May
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 May 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 3.90
percent for the first 20 years following
the valuation date and 4.75 percent
thereafter. These interest assumptions
represent an increase (from those in
E:\FR\FM\15APR1.SGM
15APR1
19891
Federal Register / Vol. 70, No. 72 / Friday, April 15, 2005 / Rules and Regulations
effect for April 2005) of 0.10 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 are
unchanged from those in effect for April
2005.
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).
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
Rate set
*
Rate set
*
139
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
2. In appendix B to part 4022, Rate Set
139, as set forth below, is added to the
table. (The introductory text of the table
is omitted.)
I
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
*
*
*
4.00
*
*
*
*
i3
n1
*
n2
*
*
4.00
7
8
n1
n2
Deferred annuities
(percent)
i1
2.75
i2
*
4.00
*
i3
4.00
*
*
*
4.00
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
7
8
Appendix B to Part 4044—Interest
Rates Used to Value Benefits
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.)
I
4. The authority citation for part 4044
continues to read as follows:
*
*
Immediate
annuity rate
(percent)
6–1–05
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
*
Appendix C to Part 4022—Lump Sum
Interest Rates For Private-Sector
Payments
Before
I
1. The authority citation for part 4022
continues to read as follows:
I
i2
*
4.00
2.75
*
5–1–05
i1
*
For plans with a valuation
date
On or after
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
6–1–05
3. In appendix C to part 4022, Rate Set
139, 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
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
*
I
Employee benefit plans, Pension
insurance, Pensions.
29 CFR Part 4022
Before
5–1–05
29 CFR Part 4044
List of Subjects
For plans with a valuation
date
On or after
139
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 May 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).
*
*
*
*
*
The values of it are:
For valuation dates occurring in the month—
it
*
*
*
May 2005 ..............................................................................
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for t =
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it
for t =
*
1–20
*
>20
.0475
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N/A
for t =
*
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19892
Federal Register / Vol. 70, No. 72 / Friday, April 15, 2005 / Rules and Regulations
Issued in Washington, DC, on this 11th day
of April 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. 05–7549 Filed 4–14–05; 8:45 am]
BILLING CODE 7708–01–P
DEPARTMENT OF THE TREASURY
FOR FURTHER INFORMATION CONTACT:
Heather L. Dostaler at (202) 622–4940 or
Brinton T. Warren at (202) 622–7800
(not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9165) that
are the subject of these corrections are
under 31 CFR sections 10.33, 10.35,
10.36, 10.37, 10.38, 10.52 and 10.93.
Need for Correction
As published, TD 9165 contains errors
that may prove to be misleading and are
in need of clarification.
Office of the Secretary
31 CFR Part 10
[TD 9165]
RIN 1545–BA70
Regulations Governing Practice Before
the Internal Revenue Service;
Correction
List of Subjects in 31 CFR Part 10
Practice before the Internal Revenue
Service.
Correction of Publication
Office of the Secretary,
Treasury.
ACTION: Correcting amendment.
AGENCY:
This document contains
corrections to (TD 9165), which were
published in the Federal Register on
Monday, December 20, 2004 (69 FR
75839) revising the regulations
governing practice before the Internal
Revenue Service (Circular 230).
DATES: This correction is effective
December 20, 2004.
SUMMARY:
VerDate jul<14>2003
14:19 Apr 14, 2005
Jkt 205001
Accordingly, 31 CFR Part 10 is
corrected by making the following
correcting amendments:
I
PART 10—PRACTICE BEFORE THE
INTERNAL REVENUE SERVICE
Paragraph 1. The authority citation for
31 CFR, part 10 continues to read in part
as follows:
I
Authority: Sec.3, 23 Stat. 258, secs. 2–12,
60 Stat. 237 et seq.; 5 U.S.C. 301, 500, 551–
559; 31 U.S.C. 330; Reorg. Plan No. 26 of
1950, 15 FR 4935, 64 Stat. 1280, 3 CFR,
1949–1953 Comp., p. 1017.
PO 00000
Frm 00016
Fmt 4700
Sfmt 4700
§ 10.35
[Corrected]
I Par. 2. Section 10.35 is amended by
revising paragraphs (b)(2)(ii)(B)
introductory text and (b)(4)(i) to read as
follows:
10.35
Requirements for covered opinions.
*
*
*
*
*
(b) * * *
(2) * * * (ii) * * *
(A) * * *
(B) Written advice, other than advice
described in paragraph (b)(2)(i)(A) of
this section (concerning listed
transactions) or paragraph (b)(2)(i)(B) of
this section (concerning the principal
purpose of avoidance or evasion) that—
*
*
*
*
*
(4) Reliance opinion—(i) Written
advice is a reliance opinion if the advice
concludes at a confidence level of at
least more likely than not (a greater than
50 percent likelihood) that one or more
significant Federal tax issues would be
resolved in the taxpayer’s favor.
*
*
*
*
*
Dated: April 11, 2005.
Richard S. Carro,
Senior Advisor to the General Counsel
(Regulatory Affairs).
[FR Doc. 05–7552 Filed 4–14–05; 8:45 am]
BILLING CODE 4830–01–P
E:\FR\FM\15APR1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 72 (Friday, April 15, 2005)]
[Rules and Regulations]
[Pages 19890-19892]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-7549]
=======================================================================
-----------------------------------------------------------------------
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 May 2005. Interest assumptions are
also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective Date: May 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 May 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 May 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 May 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 3.90 percent for the first 20 years following the
valuation date and 4.75 percent thereafter. These interest assumptions
represent an increase (from those in
[[Page 19891]]
effect for April 2005) of 0.10 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 are unchanged from those in effect
for April 2005.
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).
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 May 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 139, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
139 5-1-05 6-1-05 2.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 139, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
139 5-1-05 6-1-05 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
May 2005..................... .0390 1-20 .0475 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
[[Page 19892]]
Issued in Washington, DC, on this 11th day of April 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 05-7549 Filed 4-14-05; 8:45 am]
BILLING CODE 7708-01-P
