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, 41060-41061 [05-13905]
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41060
Federal Register / Vol. 70, No. 135 / Friday, July 15, 2005 / Notices
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
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 July 2005.
The interest assumptions for performing
multiemployer plan valuations
following mass withdrawal under part
4281 apply to valuation dates occurring
in August 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 third quarter (July
through September) 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
VerDate jul<14>2003
17:47 Jul 14, 2005
Jkt 205001
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 July 2005 is 4.47 percent
(i.e., 85 percent of the 5.26 percent
composite corporate bond rate for June
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
August 2004 and July 2005.
For premium payment years
beginning in:
The required
interest rate is:
August 2004 .........................
September 2004 ...................
October 2004 ........................
November 2004 ....................
December 2004 ....................
January 2005 ........................
February 2005 ......................
March 2005 ...........................
April 2005 .............................
May 2005 ..............................
June 2005 .............................
July 2005 ..............................
5.10
4.95
4.79
4.73
4.75
4.73
4.66
4.56
4.78
4.72
4.60
4.47
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 third
quarter (July through September) 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:
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
From—
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 ................
Through—
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
9/30/05
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
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 third
quarter (July through September) of
2005 (i.e., the rate reported for June 15,
2005) is 6.00 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 ................
7/1/05 ................
Through—
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
9/30/05
Interest rate
(percent)
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
6.00
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
E:\FR\FM\15JYN1.SGM
15JYN1
Federal Register / Vol. 70, No. 135 / Friday, July 15, 2005 / Notices
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 August
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 7th day
of July 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. 05–13905 Filed 7–14–05; 8:45 am]
BILLING CODE 7708–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52004; File No. SR–Amex–
2005–043]
Self-Regulatory Organizations;
American Stock Exchange LLC; Notice
of Filing and Order Granting
Accelerated Approval to a Proposed
Rule Change and Amendment No. 1
Thereto to Extend Pilots Relating to
Allocation and Performance Evaluation
Procedures for Securities Admitted to
Dealings on an Unlisted Trading
Privileges Basis
July 8, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 22,
2005, the American Stock Exchange LLC
(‘‘Amex’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change, as described in Items I and II
below, which Items have been
substantially prepared by the Exchange.
On June 14, 2005, the Exchange filed
Amendment No. 1 to the proposed rule
change. The Commission is publishing
this notice to solicit comments on the
proposed rule change, as amended, from
interested persons and simultaneously
approving the filing.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Amex proposes to retroactively
extend from April 6, 2005, through
April 6, 2006, the pilot programs
comprising its allocations and
performance evaluation procedures for
securities admitted to dealings on an
1 15
2 17
U.S.C 78s(b)(1).
CFR 240.19b–4.
VerDate jul<14>2003
17:47 Jul 14, 2005
Jkt 205001
unlisted trading privileges (‘‘UTP’’)
basis to permit these programs to remain
in effect while the Commission
considers permanent approval of these
procedures. The text of the proposed
rule change is available on the Amex’s
Web site at https://www.amex.com, at the
Amex and at the Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Amex included statements concerning
the purpose of and basis for the
proposed rule change, as amended, and
discussed any comments it received on
the proposed rule change. The text of
these statements may be examined at
the places specified in Item III below.
The Amex has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to
reestablish and extend its allocations
and performance evaluation procedures
for securities admitted to dealings on a
UTP basis for one year. The Commission
previously approved the Exchange’s
allocation and performance evaluation
procedures on a pilot basis through two
independent approval orders
(‘‘Pilots’’).3 In 2003, the Pilots were
extended until October 5, 2003,4 and
April 5, 2004.5 In 2004, the Pilots were
extended through April 6, 2005.6 The
instant proposed rule change makes no
substantive change to the Pilots other
than to retroactively reinstate their
operation from April 5, 2005, so that the
Pilots may continue without having
lapsed, and extend them until April 6,
2006.
2. Statutory Basis
The Exchange believes that the
proposed rule change, as amended, is
3 See Securities Exchange Act Release Nos. 45698
(April 5, 2002), 67 FR 18051 (April 12, 2002) (SR–
AMEX–2001–107); and 46750 (October 30, 2002),
67 FR 67880 (November 7, 2002) (SR–AMEX–2002–
19) (‘‘Pilot Approval Orders’’).
4 See Securities Exchange Act Release No. 47779
(May 1, 2003), 68 FR 24777 (May 8, 2003) (SR–
Amex–2003–23).
5 See Securities Exchange Act Release No. 48657
(October 17, 2003), 68 FR 61025 (October 24, 2003)
(SR–Amex–2003–87).
6 See Securities Exchange Act Release No. 49613
(April 26, 2004); 69 FR 24204 (May 3, 2004) (‘‘2004
Notice’’).
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
41061
consistent with Section 6 of the Act,7 in
general, and furthers the objectives of
Section 6(b)(5),8 in particular, in that
the Exchange’s proposed rule change is
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes that the
proposed rule change, as amended, will
impose no burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were solicited
or received by the Exchange on the
proposed rule change, as amended.
III. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–Amex–2005–043 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9309.
All submissions should refer to File
Number SR–Amex–2005–043. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
7 15
8 15
E:\FR\FM\15JYN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
15JYN1
]]>Agencies
[Federal Register Volume 70, Number 135 (Friday, July 15, 2005)]
[Notices]
[Pages 41060-41061]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-13905]
[[Page 41060]]
=======================================================================
-----------------------------------------------------------------------
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 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
July 2005. The interest assumptions for performing multiemployer plan
valuations following mass withdrawal under part 4281 apply to valuation
dates occurring in August 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 third quarter (July through September) 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 July 2005 is 4.47 percent (i.e.,
85 percent of the 5.26 percent composite corporate bond rate for June
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 August 2004 and July 2005.
------------------------------------------------------------------------
The required
For premium payment years beginning in: interest rate
is:
------------------------------------------------------------------------
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
May 2005................................................ 4.72
June 2005............................................... 4.60
July 2005............................................... 4.47
------------------------------------------------------------------------
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 third quarter (July through
September) 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........................................ 9/30/05 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 third quarter (July through September) of
2005 (i.e., the rate reported for June 15, 2005) is 6.00 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
7/1/05........................................ 9/30/05 6.00
------------------------------------------------------------------------
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
[[Page 41061]]
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 August 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 7th day of July 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 05-13905 Filed 7-14-05; 8:45 am]
BILLING CODE 7708-01-P
