Required Interest Rate Assumption for Determining Variable-Rate Premium; Interest on Late Premium Payments; Interest on Underpayments and Overpayments of Single-Employer Plan Termination Liability and Multiemployer Withdrawal Liability; Interest Assumptions for Multiemployer Plan Valuations Following Mass Withdrawal, 19974-19975 [05-7550]

Download as PDF 19974 Federal Register / Vol. 70, No. 72 / Friday, April 15, 2005 / Notices White Paper. In addition, the Committee will discuss progress on specific sections of this White Paper, for example Section 1, ‘‘Origins and History.’’ • 5 p.m.–6 p.m.: Discussion of April 14–15, 2005, Visit to the Center for Nuclear Waste Regulatory Analyses (CNWRA) (Open)—An ACNW Subcommittee will report on the outcome of its recent visit to the CNWRA to review ongoing technical assistance work for NMSS’ HLW programs. All the other items remain the same as previously published in the Federal Register on Thursday, April 7, 2005 (70 FR 17722). For further information, contact Mr. Richard K. Major (telephone 301–415– 7366), between 8:15 a.m. and 6 p.m. e.t. Dated: April 11, 2005. Andrew L. Bates, Advisory Committee Management Officer. [FR Doc. E5–1782 Filed 4–14–05; 8:45 am] BILLING CODE 7590–01–P 1 p.m.—Briefing on Office of Nuclear Reactor Regulation (NRR) Programs, Performance, and Plans (Public Meeting) (Contact: Laura Gerke, 301–415–4099) (Note: New Meeting Time). This meeting will be Web cast live at the Web address—https://www.nrc.gov. 3:15 p.m.—Meeting with Advisory Committee on the Medical Uses of Isotopes (ACMUI) (Public Meeting) (Contact: Angela McIntosh, 301– 415–5030) (Note: New Meeting Time). This meeting will be Web cast live at the Web address—htt://www.nrc.gov. Thursday, April 21, 2005 1:30 p.m.—Discussion of Security Issues (Closed—Ex. 1). 3 p.m.—Discussion of Security Issues (Closed—Ex. 1). Week of April 25, 2005—Tentative Tuesday, April 26, 2005 9:30 a.m.—Briefing on Grid Stability and Offsite Power Issues (Public Meeting) (Contact: John Lamb, 301– 415–1446). This meeting will be Web cast live at the Web address—https://www.nrc.gov. NUCLEAR REGULATORY COMMISSION Sunshine Federal Register Notice AGENCY HOLDING THE MEETINGS: Nuclear Regulatory Commission. DATES: Weeks of April 18, 25, May 2, 9, 16, 23, 2005. PLACE: Commissioner’s Conference Room, 11555 Rockville Pike, Rockville, Maryland. STATUS: Public and closed. MATTERS TO BE CONSIDERED: Week of April 18, 2005 Week of May 2, 2005—Tentative There are no meetings scheduled for the Week of May 2, 2005. Week of May 9, 2005—Tentative Wednesday, May 11, 2005 10:30 a.m.—All Employees Meeting (Public Meeting). 1:30 p.m.—All Employees Meeting (Public Meeting). Dated: April 12, 2005. Dave Gamberoni, Office of the Secretary. [FR Doc. 05–7654 Filed 4–13–05; 9:22 am] BILLING CODE 7590–01–M Tuesday, April 19, 2005 9 a.m.—Discussion of Enforcement Issue (Closed—Ex. 5). 9:30 a.m.—Discussion of Security Issues (Closed—Ex. 1). Week of May 16, 2005—Tentative Wednesday, April 20, 2005 12:55 p.m.—Affirmation Session (Public Meeting) (Tentative) (Note: New Meeting Time). a. (1) EXELON GENERATION COMPANY, LLC (Early Site Permit for Clinton ESP Site), Docket No. 52–007– ESP; (2) DOMINION NUCLEAR NORTH ANNA, LLC (Early Site Permit for North Anna ESP Site), Docket No. 52–008– ESP; (3) SYSTEM ENERGY RESOURCES, INC. (Early Site Permit for Grand Gulf ESP Site), Docket No. 52– 009–ESP; (4) LOUISIANA ENERGY SERVICES, L.P. (National Enrichment Facility), Docket No. 70–3103–ML; (5) USEC Inc. (American Centrifuge Plant), Docket No. 70–7004 (Tentative) Monday, May 23, 2005 VerDate jul<14>2003 14:34 Apr 14, 2005 Jkt 205001 Contact person for more information: Dave Gamberoni, (301) 415–1651. * * * * * The NRC Commission Meeting Schedule can be found on the Internet at: https://www.nrc.gov/what-we-do/ policy-making/schedule.html. * * * * * The NRC provides reasonable accommodation to individuals with disabilities where appropriate. If you need a reasonable accommodation to participate in these public meetings, or need this meeting notice or the transcript or other information from the public meetings in another format (e.g. braille, large print), please notify the NRC’s Disability Program Coordinator, August Spector, at 301–415–7080, TDD: 301–415–2100, or by e-mail at aks@nrc.gov. Determinations on requests for reasonable accommodation will be made on a case-by-case basis. * * * * * This notice is distributed by mail to several hundred subscribers; If you no longer wish to receive it, or would like to be added to the distribution, please contact the Office of the Secretary, Washington, DC 20555 (301–415–1969). In addition, distribution of this meeting notice over the Internet system is available. If you are interested in receiving this Commission meeting schedule electronically, please send an electronic message to dkw@nrc.gov. There are no meetings scheduled for the Week of May 16, 2005. Week of May 23, 2005—Tentative 1:30 p.m.—Discussion of Security Issues (Closed—Ex. 1). Wednesday, May 25, 2005 9:30 a.m.—Briefing on Results of the Agency Review Meeting (Public Meeting) (Contact: Lois James, 301– 415–1112). This meeting will be Web cast at the Web address—https://www.nrc.gov. 1:30 p.m.—Briefing on Threat Environment Assessment (Closed— Ex. 1). *The schedule for Commission meetings is subject to change on short notice. To verify the status of meetings call (recording)—(301) 415–1292. PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 PENSION BENEFIT GUARANTY CORPORATION Required Interest Rate Assumption for Determining Variable-Rate Premium; Interest on Late Premium Payments; Interest on Underpayments and Overpayments of Single-Employer Plan Termination Liability and Multiemployer Withdrawal Liability; Interest Assumptions for Multiemployer Plan Valuations Following Mass Withdrawal Pension Benefit Guaranty Corporation. ACTION: Notice of interest rates and assumptions. AGENCY: 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 E:\FR\FM\15APN1.SGM 15APN1 19975 Federal Register / Vol. 70, No. 72 / Friday, April 15, 2005 / Notices 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 April 2005. The interest assumptions for performing multiemployer plan valuations following mass withdrawal under part 4281 apply to valuation dates occurring in May 2005. The interest rates for late premium payments under part 4007 and for underpayments and overpayments of single-employer plan termination liability under part 4062 and multiemployer withdrawal liability under part 4219 apply to interest accruing during the second quarter (April through June) of 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 beginning in April 2005 is 4.78 percent (i.e., 85 percent of the 5.62 percent composite corporate bond rate for March 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 May 2004 and April 2005. VerDate jul<14>2003 14:34 Apr 14, 2005 Jkt 205001 For premium payment years beginning in: May 2004 .................................... June 2004 ................................... July 2004 .................................... August 2004 ............................... September 2004 ......................... October 2004 .............................. November 2004 .......................... December 2004 .......................... January 2005 .............................. February 2005 ............................ March 2005 ................................. April 2005 ................................... The required interest rate is: 4.98 5.26 5.25 5.10 4.95 4.79 4.73 4.75 4.73 4.66 4.56 4.78 Late Premium Payments; Underpayments and Overpayments of Single-Employer Plan Termination Liability Section 4007(b) of ERISA and § 4007.7(a) of the PBGC’s regulation on Payment of Premiums (29 CFR part 4007) require the payment of interest on late premium payments at the rate established under section 6601 of the Internal Revenue Code. Similarly, § 4062.7 of the PBGC’s regulation on Liability for Termination of SingleEmployer Plans (29 CFR part 4062) requires that interest be charged or credited at the section 6601 rate on underpayments and overpayments of employer liability under section 4062 of ERISA. The section 6601 rate is established periodically (currently quarterly) by the Internal Revenue Service. The rate applicable to the second quarter (April through June) of 2005, as announced by the IRS, is 6 percent. The following table lists the late payment interest rates for premiums and employer liability for the specified time periods: From— Through— 4/1/99 .................... 4/1/00 .................... 4/1/01 .................... 7/1/01 .................... 1/1/02 .................... 1/1/03 .................... 10/1/03 .................. 4/1/04 .................... 7/1/04 .................... 10/1/04 .................. 4/1/05 .................... Interest rate (percent) 3/31/00 3/31/01 6/30/01 12/31/01 12/31/02 9/30/03 3/31/04 6/30/04 9/30/04 3/31/05 6/30/05 8 9 8 7 6 5 4 5 4 5 6 Underpayments and Overpayments of Multiemployer Withdrawal Liability Section 4219.32(b) of the PBGC’s regulation on Notice, Collection, and Redetermination of Withdrawal Liability (29 CFR part 4219) specifies the rate at which a multiemployer plan PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 is to charge or credit interest on underpayments and overpayments of withdrawal liability under section 4219 of ERISA unless an applicable plan provision provides otherwise. For interest accruing during any calendar quarter, the specified rate is the average quoted prime rate on short-term commercial loans for the fifteenth day (or the next business day if the fifteenth day is not a business day) of the month preceding the beginning of the quarter, as reported by the Board of Governors of the Federal Reserve System in Statistical Release H.15 (‘‘Selected Interest Rates’’). The rate for the second quarter (April through June) of 2005 (i.e., the rate reported for March 15, 2005) is 5.50 percent. The following table lists the withdrawal liability underpayment and overpayment interest rates for the specified time periods: From— 1/1/99 .................... 10/1/99 .................. 1/1/00 .................... 4/1/00 .................... 7/1/00 .................... 4/1/01 .................... 7/1/01 .................... 10/1/01 .................. 1/1/02 .................... 1/1/03 .................... 10/1/03 .................. 10/1/04 .................. 1/1/05 .................... 4/1/05 .................... Through— Interest rate (percent) 9/30/99 12/31/99 3/31/00 6/30/00 3/31/01 6/30/01 9/30/01 12/31/01 12/31/02 9/30/03 9/30/04 12/31/04 3/31/05 6/30/05 7.75 8.25 8.50 8.75 9.50 8.50 7.00 6.50 4.75 4.25 4.00 4.50 5.25 5.50 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 May 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 11th day of April 2005. Vincent K. Snowbarger, Deputy Executive Director, Pension Benefit Guaranty Corporation. [FR Doc. 05–7550 Filed 4–14–05; 8:45 am] BILLING CODE 7708–01–P E:\FR\FM\15APN1.SGM 15APN1

Agencies

Pension Benefit Guaranty Corporation

[Federal Register Volume 70, Number 72 (Friday, April 15, 2005)]
[Notices]
[Pages 19974-19975]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-7550]


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PENSION BENEFIT GUARANTY CORPORATION


Required Interest Rate Assumption for Determining Variable-Rate 
Premium; Interest on Late Premium Payments; Interest on Underpayments 
and Overpayments of Single-Employer Plan Termination Liability and 
Multiemployer Withdrawal Liability; 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

[[Page 19975]]

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 
April 2005. The interest assumptions for performing multiemployer plan 
valuations following mass withdrawal under part 4281 apply to valuation 
dates occurring in May 2005. The interest rates for late premium 
payments under part 4007 and for underpayments and overpayments of 
single-employer plan termination liability under part 4062 and 
multiemployer withdrawal liability under part 4219 apply to interest 
accruing during the second quarter (April through June) of 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 April 2005 is 4.78 percent 
(i.e., 85 percent of the 5.62 percent composite corporate bond rate for 
March 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 May 2004 and April 2005.

------------------------------------------------------------------------
                                                                  The
                                                               required
           For premium payment years beginning in:             interest
                                                               rate is:
------------------------------------------------------------------------
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
March 2005..................................................        4.56
April 2005..................................................        4.78
------------------------------------------------------------------------

Late Premium Payments; Underpayments and Overpayments of Single-
Employer Plan Termination Liability

    Section 4007(b) of ERISA and Sec.  4007.7(a) of the PBGC's 
regulation on Payment of Premiums (29 CFR part 4007) require the 
payment of interest on late premium payments at the rate established 
under section 6601 of the Internal Revenue Code. Similarly, Sec.  
4062.7 of the PBGC's regulation on Liability for Termination of Single-
Employer Plans (29 CFR part 4062) requires that interest be charged or 
credited at the section 6601 rate on underpayments and overpayments of 
employer liability under section 4062 of ERISA. The section 6601 rate 
is established periodically (currently quarterly) by the Internal 
Revenue Service. The rate applicable to the second quarter (April 
through June) of 2005, as announced by the IRS, is 6 percent.
    The following table lists the late payment interest rates for 
premiums and employer liability for the specified time periods:

------------------------------------------------------------------------
                                                               Interest
                     From--                        Through--     rate
                                                               (percent)
------------------------------------------------------------------------
4/1/99..........................................     3/31/00           8
4/1/00..........................................     3/31/01           9
4/1/01..........................................     6/30/01           8
7/1/01..........................................    12/31/01           7
1/1/02..........................................    12/31/02           6
1/1/03..........................................     9/30/03           5
10/1/03.........................................     3/31/04           4
4/1/04..........................................     6/30/04           5
7/1/04..........................................     9/30/04           4
10/1/04.........................................     3/31/05           5
4/1/05..........................................     6/30/05           6
------------------------------------------------------------------------

Underpayments and Overpayments of Multiemployer Withdrawal Liability

    Section 4219.32(b) of the PBGC's regulation on Notice, Collection, 
and Redetermination of Withdrawal Liability (29 CFR part 4219) 
specifies the rate at which a multiemployer plan is to charge or credit 
interest on underpayments and overpayments of withdrawal liability 
under section 4219 of ERISA unless an applicable plan provision 
provides otherwise. For interest accruing during any calendar quarter, 
the specified rate is the average quoted prime rate on short-term 
commercial loans for the fifteenth day (or the next business day if the 
fifteenth day is not a business day) of the month preceding the 
beginning of the quarter, as reported by the Board of Governors of the 
Federal Reserve System in Statistical Release H.15 (``Selected Interest 
Rates''). The rate for the second quarter (April through June) of 2005 
(i.e., the rate reported for March 15, 2005) is 5.50 percent.
    The following table lists the withdrawal liability underpayment and 
overpayment interest rates for the specified time periods:

------------------------------------------------------------------------
                                                               Interest
                     From--                        Through--     rate
                                                               (percent)
------------------------------------------------------------------------
1/1/99..........................................     9/30/99        7.75
10/1/99.........................................    12/31/99        8.25
1/1/00..........................................     3/31/00        8.50
4/1/00..........................................     6/30/00        8.75
7/1/00..........................................     3/31/01        9.50
4/1/01..........................................     6/30/01        8.50
7/1/01..........................................     9/30/01        7.00
10/1/01.........................................    12/31/01        6.50
1/1/02..........................................    12/31/02        4.75
1/1/03..........................................     9/30/03        4.25
10/1/03.........................................     9/30/04        4.00
10/1/04.........................................    12/31/04        4.50
1/1/05..........................................     3/31/05        5.25
4/1/05..........................................     6/30/05        5.50
------------------------------------------------------------------------

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 May 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 11th day of April 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 05-7550 Filed 4-14-05; 8:45 am]
BILLING CODE 7708-01-P

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