Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 40881-40882 [05-13906]
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Federal Register / Vol. 70, No. 135 / Friday, July 15, 2005 / Rules and Regulations
data and information submitted to
support approval of this application
may be seen in the Division of Dockets
Management (HFA–305), Food and Drug
Administration, 5630 Fishers Lane, rm.
1061, Rockville, MD 20852, between 9
a.m. and 4 p.m., Monday through
Friday.
The agency has determined under 21
CFR 25.33(a)(1) that this action is of a
type that does not individually or
cumulatively have a significant effect on
the human environment. Therefore,
neither an environmental assessment
nor an environmental impact statement
is required.
This rule does not meet the definition
of ‘‘rule’’ in 5 U.S.C. 804(3)(A) because
it is a rule of ‘‘particular applicability.’’
Therefore, it is not subject to the
congressional review requirements in 5
U.S.C. 801–808.
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 August 2005. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective August 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
List of Subjects in 21 CFR Part 520
PBGC’s regulations prescribe actuarial
assumptions—including interest
Animal drugs.
assumptions—for valuing and paying
I Therefore, under the Federal Food,
plan benefits of terminating singleDrug, and Cosmetic Act and under
authority delegated to the Commissioner employer plans covered by title IV of
of Food and Drugs and redelegated to the the Employee Retirement Income
Security Act of 1974. The interest
Center for Veterinary Medicine, 21 CFR
assumptions are intended to reflect
part 520 is amended as follows:
current conditions in the financial and
annuity markets.
PART 520—ORAL DOSAGE FORM
Three sets of interest assumptions are
NEW ANIMAL DRUGS
prescribed: (1) A set for the valuation of
benefits for allocation purposes under
I 1. The authority citation for 21 CFR
section 4044 (found in Appendix B to
part 520 continues to read as follows:
Part 4044), (2) a set for the PBGC to use
Authority: 21 U.S.C. 360b.
to determine whether a benefit is
§ 520.1265 [Amended]
payable as a lump sum and to determine
lump-sum amounts to be paid by the
I 2. Section 520.1265 is amended in
PBGC (found in Appendix B to Part
paragraph (b)(2) by removing ‘‘No.
059130’’ and by adding in its place ‘‘Nos. 4022), and (3) a set for private-sector
pension practitioners to refer to if they
059130 and 061623’’.
wish to use lump-sum interest rates
Dated: July 1, 2005.
determined using the PBGC’s historical
Catherine P. Beck,
methodology (found in Appendix C to
Acting Director, Center for Veterinary
Part 4022).
Medicine.
Accordingly, this amendment (1) adds
[FR Doc. 05–13975 Filed 7–14–05; 8:45 am]
to Appendix B to Part 4044 the interest
BILLING CODE 4160–01–S
assumptions for valuing benefits for
allocation purposes in plans with
valuation dates during August 2005, (2)
adds to Appendix B to Part 4022 the
PENSION BENEFIT GUARANTY
interest assumptions for the PBGC to
CORPORATION
use for its own lump-sum payments in
29 CFR Parts 4022 and 4044
plans with valuation dates during
August 2005, and (3) adds to Appendix
Benefits Payable in Terminated Single- C to Part 4022 the interest assumptions
Employer Plans; Allocation of Assets
for private-sector pension practitioners
in Single-Employer Plans; Interest
to refer to if they wish to use lump-sum
Assumptions for Valuing and Paying
interest rates determined using the
Benefits
PBGC’s historical methodology for
valuation dates during August 2005.
AGENCY: Pension Benefit Guaranty
For valuation of benefits for allocation
Corporation.
purposes, the interest assumptions that
ACTION: Final rule.
the PBGC will use (set forth in
SUMMARY: The Pension Benefit Guaranty Appendix B to part 4044) will be 3.40
percent for the first 20 years following
Corporation’s regulations on Benefits
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40881
the valuation date and 4.75 percent
thereafter. These interest assumptions
represent a decrease (from those in
effect for July 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 2.25 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 July 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).
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 August 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.
In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended as
follows:
I
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15JYR1
40882
Federal Register / Vol. 70, No. 135 / Friday, July 15, 2005 / Rules and Regulations
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
1. The authority citation for part 4022
continues to read as follows:
I
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
table. (The introductory text of the table
is omitted.)
2. In appendix B to part 4022, Rate Set
142, as set forth below, is added to the
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
I
*
For plans with a valuation
date
On or after
Rate set
*
142 ....................................
Before
*
9–1–05
2.25
8–1–05
3. In appendix C to part 4022, Rate Set
142, as set forth below, is added to the
table. (The introductory text of the table
is omitted.)
I
*
142 ....................................
i1
i3
4.00
*
*
*
*
Before
*
*
9–1–05
*
4.00
4.00
n2
*
*
7
8
n1
i1
i2
i3
4.00
*
4.00
4.00
*
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
n2
*
*
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:
n1
Deferred annuities
(percent)
2.25
I
*
*
Immediate
annuity rate
(percent)
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
*
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
For plans with a valuation
date
8–1–05
i2
*
On or after
Rate set
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
*
*
*
*
*
*
The values of it are:
For valuation dates occurring in the month—
it
*
*
*
August 2005 ..........................................................................
for t =
*
.0340
it
*
1–20
Issued in Washington, DC, on this 7th day
of July, 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. 05–13906 Filed 7–14–05; 8:45 am]
DEPARTMENT OF HOMELAND
SECURITY
BILLING CODE 7708–01–P
[CGD05–05–073]
Coast Guard
33 CFR Part 100
RIN 1625–AA08
Special Local Regulations for Marine
Events; Manasquan River, Manasquan
Inlet and Atlantic Ocean, Point
Pleasant Beach to Bay Head, NJ
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
SUMMARY: The Coast Guard is
establishing temporary special local
regulations for the ‘‘Point Pleasant OPA/
NJ Offshore Grand Prix’’, a marine event
to be held on the waters of the
VerDate jul<14>2003
15:17 Jul 14, 2005
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for t =
.0475
*
>20
it
N/A
for t =
*
N/A
Manasquan River, Manasquan Inlet and
Atlantic Ocean between Point Pleasant
Beach and Bay Head, New Jersey. These
special local regulations are necessary to
provide for the safety of life on
navigable waters during the event. This
action is intended to restrict vessel
traffic in the regulated area during the
event.
DATES: This rule is effective from 9:30
a.m. on August 12, 2005 to 3:30 p.m. on
August 13, 2005.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket, are part of docket CGD05–05–
073 and are available for inspection or
copying at Commander (oax), Fifth
Coast Guard District, 431 Crawford
Street, Portsmouth, Virginia 23704–
5004, between 9 a.m. and 2 p.m.,
Monday through Friday, except Federal
holidays.
\\ALPHA3\E\FR\FM\15JYR1.SGM
15JYR1
]]>Agencies
[Federal Register Volume 70, Number 135 (Friday, July 15, 2005)]
[Rules and Regulations]
[Pages 40881-40882]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-13906]
=======================================================================
-----------------------------------------------------------------------
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 August 2005. Interest assumptions are
also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective August 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 August 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 August 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 August 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 3.40 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 July 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 2.25
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 July 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).
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 August
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:
[[Page 40882]]
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 142, 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 Deferred annuities (percent)
date Immediate ---------------------------------------------------------------------
Rate set ---------------------------- annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
142..................................... 8-1-05 9-1-05 2.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 142, 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 Deferred annuities (percent)
date Immediate ---------------------------------------------------------------------
Rate set ---------------------------- annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
142..................................... 8-1-05 9-1-05 2.25 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
August 2005.................. .0340 1-20 .0475 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 7th day of July, 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 05-13906 Filed 7-14-05; 8:45 am]
BILLING CODE 7708-01-P
