Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 60002-60003 [05-20581]
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Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Rules and Regulations
and continue southwesterly along the
pipeline to the point of beginning at the
intersection of the pipeline intersection
and the T23S/T24S township line in
section 35, T23S/R5W (Yoncalla
Quadrangle).
Signed: July 22, 2005.
John J. Manfreda,
Administrator.
Approved: September 2, 2005.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. 05–20551 Filed 10–13–05; 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
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 November 2005. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective November 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
Rate set
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).
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 November 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
November 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
November 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 3.70
percent for the first 20 years following
the valuation date and 4.75 percent
thereafter. These interest assumptions
represent an increase (from those in
effect for October 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 2.50 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
represent an increase (from those in
effect for October 2005) of 0.25 percent
for the period during which a benefit is
in pay status and are otherwise
unchanged.
For plans with a valuation
date
On or after
VerDate Aug<31>2005
15:42 Oct 13, 2005
Jkt 208001
PO 00000
Before
Frm 00016
Immediate
annuity rate
(percent)
Fmt 4700
Sfmt 4700
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 November 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.
I In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
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.
2. In appendix B to part 4022, Rate Set
145, as set forth below, is added to the
table.
I
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
*
*
*
*
*
Deferred annuities
(percent)
i1
i2
E:\FR\FM\14OCR1.SGM
i3
14OCR1
n1
n2
60003
Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Rules and Regulations
Rate set
For plans with a valuation
date
On or after
*
*
145 ............................................
Before
*
11–1–05
3. In appendix C to part 4022, Rate Set
145, as set forth below, is added to the
table.
I
i2
i3
*
n1
n2
*
4.00
4.00
*
4.00
7
8
Appendix C to Part 4022—Lump Sum
Interest Rates For Private-Sector
Payments
*
*
For plans with a valuation
date
On or after
*
*
145 ............................................
i1
*
2.50
12–1–05
*
Rate set
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Before
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
11–1–05
*
*
2.50
12–1–05
i2
i1
i3
*
n1
n2
*
4.00
4.00
*
4.00
7
8
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
PART 4044—ALLOCATION OF
ASSETS IN SINGLE-EMPLOYER
PLANS
Appendix B to Part 4044—Interest
Rates Used to Value Benefits
5. In appendix B to part 4044, a new
entry for November 2005, as set forth
below, is added to the table.
*
I
4. The authority citation for part 4044
continues to read as follows:
I
*
*
*
*
The values of it are:
For valuation dates occurring in the month—
it
*
*
*
November 2005 ....................................................................
Issued in Washington, DC, on this 7th day
of October 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. 05–20581 Filed 10–13–05; 8:45 am]
BILLING CODE 7708–01–P
DEPARTMENT OF THE TREASURY
31 CFR Part 29
RIN 1505–AB55
Federal Benefit Payments Under
Certain District of Columbia
Retirement Plans
Departmental Offices, Treasury.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Department of the
Treasury is issuing final regulations to
amend its DC Pensions rules
promulgated pursuant to Title XI of the
Balanced Budget Act of 1997, as
amended, which was effective on
October 1, 1997. The Act assigns to the
Secretary of the Treasury responsibility
for payment of benefits based on service
VerDate Aug<31>2005
15:42 Oct 13, 2005
Jkt 208001
for t =
*
.0370
it
*
1–20
accrued as of June 30, 1997, under the
retirement plans for District of Columbia
teachers and police officers and
firefighters, and payment of past and
future benefits under the retirement
plan for District of Columbia judges.
The amended regulations implement the
provisions of the Act that provide the
Secretary with the responsibility to
ensure the accuracy of payments made
to annuitants before the effective date of
the Act.
DATES: This final rule is effective
October 14, 2005.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Cuffe, Office of the General
Counsel, MT Room 2209A, Department
of the Treasury, 1500 Pennsylvania
Avenue, NW., Washington, DC 20220,
(202–622–1682, not a toll-free call).
SUPPLEMENTARY INFORMATION: On April
13, 2005, the Department of the
Treasury published (at 70 FR 19366)
proposed regulations to amend the
regulations in Part 29 that implement
Title XI of the Balanced Budget Act of
1997, Public Law 105–33, 111 Stat. 251,
712–731, 756–759, as amended (the
Act). The Act transferred certain
PO 00000
Frm 00017
Fmt 4700
Sfmt 4700
for t =
*
>20
.0475
it
N/A
for t =
*
N/A
pension liabilities from the District of
Columbia Government to the Federal
Government. The Act requires that the
Secretary of the Treasury (the Secretary)
pay certain benefits under the
retirement plans for District of Columbia
teachers (Teachers Plan) and police
officers and firefighters (Police and
Firefighters Plan) based on service
accrued on or before June 30, 1997, and
benefits under the retirement plan for
District of Columbia judges (Judges
Plan) regardless of when service
accrued. On December 23, 2004, the
District of Columbia Retirement
Protection Improvement Act of 2004,
Public Law 108–489, 118 Stat. 3966 (the
2004 Act) was enacted. The 2004 Act
amended the Act, in part, to create a
new fund from the two funds that had
financed the Teachers Plan and the
Police and Firefighters Plan and to
provide the Judges Plan with procedures
for resolving denied benefit claims.
The Act provides the Secretary with
authority to ensure the accuracy of
Federal Benefit Payments made before
October 1, 1997, under the Police and
Firefighters Plan and the Teachers Plan.
Section 11012 of the Act requires the
E:\FR\FM\14OCR1.SGM
14OCR1
]]>Agencies
[Federal Register Volume 70, Number 198 (Friday, October 14, 2005)]
[Rules and Regulations]
[Pages 60002-60003]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-20581]
=======================================================================
-----------------------------------------------------------------------
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 November 2005. Interest assumptions
are also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective November 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).
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 November 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 November 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 November 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 3.70 percent for the first 20 years following the
valuation date and 4.75 percent thereafter. These interest assumptions
represent an increase (from those in effect for October 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 2.50
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 represent an increase (from those in
effect for October 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 November
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 145, as set forth below, is
added to the table.
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 60003]]
* * * * * * *
145................................................. 11-1-05 12-1-05 2.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 145, as set forth below, is
added to the table.
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
-----------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
145....................................... 11-1-05 12-1-05 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 for November 2005, as set
forth below, is added to the table.
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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
November 2005................ .0370 1-20 .0475 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 7th day of October 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 05-20581 Filed 10-13-05; 8:45 am]
BILLING CODE 7708-01-P
