Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 34655-34656 [05-11769]
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Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Rules and Regulations
any Canadian national (including
Canadian business entities organized
under the laws of Canada), dual citizen
of Canada and a third country (subject
to section 126.1), and permanent
resident registered in Canada in
accordance with the Canadian Defense
Production Act, and such other
Canadian Crown Corporations identified
by the Department of State in a list of
such persons publicly available through
the Internet Web site of the Directorate
of Defense Trade Controls and by other
means. The defense articles, related
technical data, and defense services
identified in 22 CFR 121.1 continuing to
require a license are:
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(6) Firearms, close assault weapons
and combat shotguns listed in Category
I.
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*
(10) All Category VIII(a) items, and
developmental aircraft, engines and
components identified in Category
VIII(f).
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*
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*
(13) Nuclear radiation measuring
devices manufactured to military
specifications listed in Category XVI(c).
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*
*
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*
(18) Nuclear weapons, design and
testing equipment listed in Category
XVI.
*
*
*
*
*
(21) Man-portable air defense systems,
and their parts and components, and
technical data for such systems covered
by Category IV.
(c) Defense service exemption. A
defense service is exempt from the
licensing requirements of part 124 of
this subchapter, when the following
criteria can be met.
(1) The item, technical data, defense
service and transaction is not identified
in paragraphs (b)(1) through (21) of this
section; and
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Notes to Sec. 126.5
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2. Additional exemptions exist in
other sections of this subchapter that are
applicable to Canada, for example Secs.
123.9, 125.4 and 124.2, which allows for
the performance of defense services
related to training in basic operations
and maintenance, without a license, for
defense articles lawfully exported,
including those identified in paragraphs
(b)(1) through (21) of this section.
PART 127—VIOLATIONS AND
PENALTIES
9. The authority citation for part 127 is
amended to read as follows:
I
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Jkt 205001
Authority: Secs. 2, 38, and 42, Pub. L. 90–
629, 90 Stat. 744 (22 U.S.C. 2752, 2778,
2791); E.O. 11958, 42 FR 4311; 3 CFR, 1977
Com. p. 79; 22 U.S.C. 401; 22 U.S.C. 2651a;
22 U.S.C. 2779a; 22 U.S.C. 2780.
10. Section 127.12 is amended by
revising paragraph (g) as follows:
I
§ 127.12
Voluntary disclosures.
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(g) Voluntary disclosures should be
sent to the Office of Defense Trade
Controls Compliance, Directorate of
Defense Trade Controls. Exporters
should consult the Directorate of
Defense Trade Controls Web site at
https://www.pmdtc.org for the
appropriate street address.
*
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Dated: May 10, 2005.
John R. Bolton,
Under Secretary, Arms Control and
International Security, Department of State.
[FR Doc. 05–11892 Filed 6–14–05; 8:45 am]
BILLING CODE 4710–25–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 July 2005. Interest assumptions
are also published on the PBGC’s Web
site (https://www.pbgc.gov).
DATES: Effective July 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
PO 00000
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Fmt 4700
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34655
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 July 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 July
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 July 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 3.60
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 June 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 2.50 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 June
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
E:\FR\FM\15JNR1.SGM
15JNR1
34656
Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Rules and Regulations
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 July 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.
Rate set
*
3. In appendix C to part 4022, Rate Set
141, as set forth below, is added to the
table. (The introductory text of the table
is omitted.)
*
141 ....................................
*
i2
i1
*
4.00
*
*
4. The authority citation for part 4044
continues to read as follows:
n2
*
7
8
*
Deferred annuities (percent)
Immediate
annuity rate
(percent)
i1
i2
*
i3
*
2.50
4.00
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.)
n1
*
4.00
4.00
I
I
n1
*
4.00
4.00
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
i3
*
2.50
*
8–1–05
7–1–05
Deferred annuities (percent)
Immediate
annuity rate
(percent)
*
Before
*
2. In appendix B to part 4022, Rate Set
141, as set forth below, is added to the
table. (The introductory text of the table
is omitted.)
I
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
For plans with a valuation
date
On or after
1. The authority citation for part 4022
continues to read as follows:
I
29 CFR Part 4044
Employee benefit plans, Pension
Appendix B to Part 4022—Lump Sum
insurance, Pensions.
Interest Rates for PBGC Payments
I In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended as *
*
*
*
*
follows:
*
8–1–05
7–1–05
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
Before
I
Rate set
List of Subjects
For plans with a valuation
date
On or after
*
141 ....................................
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).
n2
*
7
8
Appendix B to Part 4044—Interest
Rates Used To Value Benefits
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The values of it are:
For valuation dates occurring in the month—
it
*
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*
July 2005 ..........................................................................
Issued in Washington, DC, on this 8th day
of June 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. 05–11769 Filed 6–14–05; 8:45 am]
for t =
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.0360
for t =
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N/A
N/A
Final rule.
ACTION:
Office of the Secretary
SUMMARY: The Office of the Secretary of
Defense is exempting those records
contained in DCIFA 01, entitled ‘‘CIFA
Operational and Analytical Records’’
when an exemption has been previously
claimed for the records in another
Privacy Act system of records. The
exemption will preserve the exempt
32 CFR Part 311
[Administrative Instruction 81]
AGENCY:
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>20
.0475
it
DEPARTMENT OF DEFENSE
Privacy Act; Implementation
16:54 Jun 14, 2005
for t =
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1–20
BILLING CODE 7708–01–P
VerDate jul<14>2003
it
PO 00000
Office of the Secretary, DoD.
Frm 00030
Fmt 4700
Sfmt 4700
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15JNR1
]]>Agencies
[Federal Register Volume 70, Number 114 (Wednesday, June 15, 2005)]
[Rules and Regulations]
[Pages 34655-34656]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-11769]
=======================================================================
-----------------------------------------------------------------------
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 July 2005. Interest assumptions are
also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective July 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 July 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 July 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 July 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 3.60 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 June 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 2.50
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 June 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
[[Page 34656]]
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 July 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 141, 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 Immediate Deferred annuities (percent)
valuation date annuity ----------------------------------------------------------------
Rate set -------------------------- rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
141............................................. 7-1-05 8-1-05 2.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 141, 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 Immediate Deferred annuities (percent)
valuation date annuity ----------------------------------------------------------------
Rate set -------------------------- rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
141............................................. 7-1-05 8-1-05 2.50 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
July 2005......................... .0360 1-20 .0475 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 8th day of June 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 05-11769 Filed 6-14-05; 8:45 am]
BILLING CODE 7708-01-P
