Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age, 72076-72077 [05-23516]
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Federal Register / Vol. 70, No. 230 / Thursday, December 1, 2005 / Rules and Regulations
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4044
Allocation of Assets in SingleEmployer Plans; Valuation of Benefits
and Assets; Expected Retirement Age
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
SUMMARY: This rule amends the Pension
Benefit Guaranty Corporation’s
regulation on Allocation of Assets in
Single-Employer Plans by substituting a
new table that applies to any plan being
terminated either in a distress
termination or involuntarily by the
PBGC with a valuation date falling in
2006, and is used to determine expected
retirement ages for plan participants.
This table is needed in order to compute
the value of early retirement benefits
and, thus, the total value of benefits
under the plan.
EFFECTIVE DATE: January 1, 2006.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Attorney, Legislative
and Regulatory Department, Pension
Benefit Guaranty Corporation, 1200 K
Street, NW., Washington, DC 20005–
4026; 202–326–4024. (TTY/TDD users
may call the Federal relay service tollfree at 1–800–877–8339 and ask to be
connected to 202–326–4024.)
SUPPLEMENTARY INFORMATION: The
PBGC’s regulation on Allocation of
Assets in Single-Employer Plans (29
CFR part 4044) sets forth (in subpart B)
the methods for valuing plan benefits of
terminating single-employer plans
covered under Title IV of the Employee
Retirement Income Security Act of 1974.
Under ERISA section 4041(c),
guaranteed benefits and benefit
liabilities under a plan that is
undergoing a distress termination must
be valued in accordance with part 4044,
subpart B. In addition, when the PBGC
terminates an underfunded plan
involuntarily pursuant to ERISA Section
4042(a), it uses the subpart B valuation
rules to determine the amount of the
plan’s underfunding.
Under § 4044.51(b) of the asset
allocation regulation, early retirement
benefits are valued based on the annuity
starting date, if a retirement date has
been selected, or the expected
retirement age, if the annuity starting
date is not known on the valuation date.
Sections 4044.55 through 4044.57 set
forth rules for determining the expected
retirement ages for plan participants
entitled to early retirement benefits.
Appendix D of part 4044 contains tables
to be used in determining the expected
early retirement ages.
Table I in appendix D (Selection of
Retirement Rate Category) is used to
determine whether a participant has a
low, medium, or high probability of
retiring early. The determination is
based on the year a participant would
reach ‘‘unreduced retirement age’’ (i.e.,
the earlier of the normal retirement age
or the age at which an unreduced
benefit is first payable) and the
participant’s monthly benefit at
unreduced retirement age. The table
applies only to plans with valuation
dates in the current year and is updated
annually by the PBGC to reflect changes
in the cost of living, etc.
Tables II–A, II–B, and II–C (Expected
Retirement Ages for Individuals in the
Low, Medium, and High Categories
respectively) are used to determine the
expected retirement age after the
probability of early retirement has been
determined using Table I. These tables
establish, by probability category, the
expected retirement age based on both
the earliest age a participant could retire
under the plan and the unreduced
retirement age. This expected retirement
age is used to compute the value of the
early retirement benefit and, thus, the
total value of benefits under the plan.
This document amends appendix D to
replace Table I–05 with Table I–06 in
order to provide an updated correlation,
appropriate for calendar year 2006,
between the amount of a participant’s
benefit and the probability that the
participant will elect early retirement.
Table I–06 will be used to value benefits
in plans with valuation dates during
calendar year 2006.
The PBGC has determined that notice
of and public comment on this rule are
impracticable and contrary to the public
interest. Plan administrators need to be
able to estimate accurately the value of
plan benefits as early as possible before
initiating the termination process. For
that purpose, if a plan has a valuation
date in 2006, the plan administrator
needs the updated table being
promulgated in this rule. Accordingly,
the public interest is best served by
issuing this table expeditiously, without
an opportunity for notice and comment,
to allow as much time as possible to
estimate the value of plan benefits with
the proper table for plans with valuation
dates in early 2006.
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
regulation, the Regulatory Flexibility
Act of 1980 does not apply (5 U.S.C.
601(2)).
List of Subjects in 29 CFR Part 4044
Pension insurance, Pensions.
In consideration of the foregoing, 29
CFR part 4044 is amended as follows:
I
PART 4044—[AMENDED]
1. The authority citation for part 4044
continues to read as follows:
I
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
2. Appendix D to part 4044 is
amended by removing Table I–05 and
adding in its place Table I–06 to read as
follows:
I
Appendix D to Part 4044—Tables Used
To Determine Expected Retirement Age
TABLE I–06.—SELECTION OF RETIREMENT RATE CATEGORY
[For plans with valuation dates after December 31, 2005, and before January 1, 2007]
Participant’s retirement rate category is—
Low 1
if monthly
benefit at URA is
less than—
Participant reaches URA in year—
2007
2008
2009
2010
2011
2012
2013
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
.........................................................................................
VerDate Aug<31>2005
14:55 Nov 30, 2005
Jkt 208001
PO 00000
Frm 00012
500
512
524
536
549
562
576
Fmt 4700
Sfmt 4700
Medium 2 if monthly benefit at URA is
From
To
500
512
524
536
549
562
576
E:\FR\FM\01DER1.SGM
2,113
2,164
2,216
2,269
2,324
2,379
2,437
01DER1
High 3 if monthly
benefit is greater
than—
2,113
2,164
2,216
2,269
2,324
2,379
2,437
Federal Register / Vol. 70, No. 230 / Thursday, December 1, 2005 / Rules and Regulations
72077
TABLE I–06.—SELECTION OF RETIREMENT RATE CATEGORY—Continued
[For plans with valuation dates after December 31, 2005, and before January 1, 2007]
Participant’s retirement rate category is—
Low 1 if monthly
benefit at URA is
less than—
Participant reaches URA in year—
2014 .........................................................................................
2015 .........................................................................................
2016 or later ............................................................................
1 Table
2 Table
3 Table
*
*
Medium 2 if monthly benefit at URA is
From
590
604
618
To
590
604
618
High 3 if monthly
benefit is greater
than—
2,495
2,555
2,616
2,495
2,555
2,616
II–A.
II–B.
II–C.
*
*
*
Issued in Washington, DC, this 16th day of
November, 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. 05–23516 Filed 11–30–05; 8:45 am]
BILLING CODE 7708–01–P
LIBRARY OF CONGRESS
Copyright Royalty Board
37 CFR Part 253
[Docket No. 2005–6 CRB NCBRA]
Cost of Living Adjustment for
Performance of Musical Compositions
by Colleges and Universities
Copyright Royalty Board,
Library of Congress.
ACTION: Final rule.
AGENCY:
SUMMARY: The Copyright Royalty Board
of the Library of Congress announces a
cost of living adjustment of 4.3% in the
royalty rates paid by colleges,
universities, or other nonprofit
educational institutions that are not
affiliated with National Public Radio for
the use of copyrighted published
nondramatic musical compositions in
the BMI, ASCAP and SESAC
repertoires. The cost of living
adjustment is based on the change in the
Consumer Price Index from October
2004 to October 2005.
DATES: January 3, 2006.
FOR FURTHER INFORMATION CONTACT:
William J. Roberts, Jr., Senior Attorney,
or Abioye E. Oyewole, CRB Program
Specialist, Copyright Royalty Board
(CRB), P.O. Box 70977, Southwest
Station, Washington, DC 20024.
Telephone: (202) 707–8380. Telefax:
(202) 252–3423.
SUPPLEMENTARY INFORMATION: Section
118 of the Copyright Act, 17 U.S.C.,
creates a compulsory license for the use
of published nondramatic musical
VerDate Aug<31>2005
14:55 Nov 30, 2005
Jkt 208001
works and published pictorial, graphic,
and sculptural works in connection
with noncommercial broadcasting.
Terms and rates for this compulsory
license, applicable to parties who are
not subject to privately negotiated
licenses, are published in 37 CFR part
253 and are subject to adjustment at
five-year intervals. 17 U.S.C. 118 (c).
The most recent proceeding to
consider the terms and rates for the
section 118 license occurred in 2002. 67
FR 15414 (April 1, 2002). Final
regulations governing the terms and
rates of copyright royalty payments with
respect to certain uses by public
broadcasting entities of published
nondramatic musical works, and
published pictorial, graphic, and
sculptural works for the license period
beginning January 1, 2003, and ending
December 31, 2007, were published in
the Federal Register on December 17,
2002. 67 FR 77170 (December 17, 2002).
Pursuant to these regulations, on
December 1 of each year the Librarian
shall publish a notice of the change in
the cost of living as determined by the
Consumer Price Index (all consumers,
all items) during the period from the
most recent Index published prior to the
previous notice, to the most recent
Index published prior to December 1 of
that year. 37 CFR 253.10 (a). The
regulations also require that the
Librarian publish a revised schedule of
rates for the public performance of
musical compositions in the ASCAP,
BMI, and SESAC repertoires by public
broadcasting entities licensed to
colleges and universities, reflecting the
change in the Consumer Price Index. 37
CFR 253.10 (b). Accordingly, the
Copyright Royalty Board of the Library
of Congress is hereby announcing the
change in the Consumer Price Index and
performing the annual cost of living
adjustment to the rates set out in § 253.5
(c).
The change in the cost of living as
determined by the Consumer Price
Index (all consumers, all items) during
the period from the most recent Index
PO 00000
Frm 00013
Fmt 4700
Sfmt 4700
published before December 1, 2004, to
the most recent Index published before
December 1, 2005, is 4.3% (2004’s figure
was 190.9; the figure for 2004 is 199.2,
based on 1982–1984 = 100 as a reference
base). Rounding off to the nearest dollar,
the royalty rates for the use of musical
compositions in the repertories of
ASCAP, BMI, and SESAC are $273,
$273, and $89 respectively.
List of Subjects in 37 CFR Part 253
Copyright, Radio, Television.
Final Regulations
For the reasons set forth in the
preamble, the Copyright Royalty Board
amends 37 CFR part 253 as follows:
I
PART 253—USE OF CERTAIN
COPYRIGHTED WORKS IN
CONNECTION WITH
NONCOMMERCIAL EDUCATIONAL
BROADCASTING
1. The authority citation for part 253
continues to read as follows:
I
Authority: 17 U.S.C. 118, 801(b)(1) and
803.
§ 253.5
[Amended]
2. Section 253.5 (c) (1) is amended by
removing ‘‘$262’’ and adding ‘‘$273’’ in
its place.
I
§ 253.5
[Amended]
3. Section 253.5 (c) (2) is amended by
removing ‘‘$262’’ and adding ‘‘$273’’ in
its place.
I
§ 253.5
[Amended]
4. Section 253.5 (c) (3) is amended by
removing ‘‘$85’’ and adding ‘‘$89’’ in its
place.
I
Dated: November 28, 2005.
Bruce G. Forrest,
Interim Chief Copyright Royalty Judge.
[FR Doc. 05–23548 Filed 11–30–05; 8:45 am]
BILLING CODE 1410–72–P
E:\FR\FM\01DER1.SGM
01DER1
]]>Agencies
[Federal Register Volume 70, Number 230 (Thursday, December 1, 2005)]
[Rules and Regulations]
[Pages 72076-72077]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-23516]
[[Page 72076]]
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4044
Allocation of Assets in Single-Employer Plans; Valuation of
Benefits and Assets; Expected Retirement Age
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the Pension Benefit Guaranty Corporation's
regulation on Allocation of Assets in Single-Employer Plans by
substituting a new table that applies to any plan being terminated
either in a distress termination or involuntarily by the PBGC with a
valuation date falling in 2006, and is used to determine expected
retirement ages for plan participants. This table is needed in order to
compute the value of early retirement benefits and, thus, the total
value of benefits under the plan.
EFFECTIVE DATE: January 1, 2006.
FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Attorney,
Legislative and Regulatory Department, Pension Benefit Guaranty
Corporation, 1200 K Street, NW., Washington, DC 20005-4026; 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 regulation on Allocation of
Assets in Single-Employer Plans (29 CFR part 4044) sets forth (in
subpart B) the methods for valuing plan benefits of terminating single-
employer plans covered under Title IV of the Employee Retirement Income
Security Act of 1974. Under ERISA section 4041(c), guaranteed benefits
and benefit liabilities under a plan that is undergoing a distress
termination must be valued in accordance with part 4044, subpart B. In
addition, when the PBGC terminates an underfunded plan involuntarily
pursuant to ERISA Section 4042(a), it uses the subpart B valuation
rules to determine the amount of the plan's underfunding.
Under Sec. 4044.51(b) of the asset allocation regulation, early
retirement benefits are valued based on the annuity starting date, if a
retirement date has been selected, or the expected retirement age, if
the annuity starting date is not known on the valuation date. Sections
4044.55 through 4044.57 set forth rules for determining the expected
retirement ages for plan participants entitled to early retirement
benefits. Appendix D of part 4044 contains tables to be used in
determining the expected early retirement ages.
Table I in appendix D (Selection of Retirement Rate Category) is
used to determine whether a participant has a low, medium, or high
probability of retiring early. The determination is based on the year a
participant would reach ``unreduced retirement age'' (i.e., the earlier
of the normal retirement age or the age at which an unreduced benefit
is first payable) and the participant's monthly benefit at unreduced
retirement age. The table applies only to plans with valuation dates in
the current year and is updated annually by the PBGC to reflect changes
in the cost of living, etc.
Tables II-A, II-B, and II-C (Expected Retirement Ages for
Individuals in the Low, Medium, and High Categories respectively) are
used to determine the expected retirement age after the probability of
early retirement has been determined using Table I. These tables
establish, by probability category, the expected retirement age based
on both the earliest age a participant could retire under the plan and
the unreduced retirement age. This expected retirement age is used to
compute the value of the early retirement benefit and, thus, the total
value of benefits under the plan.
This document amends appendix D to replace Table I-05 with Table I-
06 in order to provide an updated correlation, appropriate for calendar
year 2006, between the amount of a participant's benefit and the
probability that the participant will elect early retirement. Table I-
06 will be used to value benefits in plans with valuation dates during
calendar year 2006.
The PBGC has determined that notice of and public comment on this
rule are impracticable and contrary to the public interest. Plan
administrators need to be able to estimate accurately the value of plan
benefits as early as possible before initiating the termination
process. For that purpose, if a plan has a valuation date in 2006, the
plan administrator needs the updated table being promulgated in this
rule. Accordingly, the public interest is best served by issuing this
table expeditiously, without an opportunity for notice and comment, to
allow as much time as possible to estimate the value of plan benefits
with the proper table for plans with valuation dates in early 2006.
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 regulation, the Regulatory Flexibility Act of 1980 does not apply
(5 U.S.C. 601(2)).
List of Subjects in 29 CFR Part 4044
Pension insurance, Pensions.
0
In consideration of the foregoing, 29 CFR part 4044 is amended as
follows:
PART 4044--[AMENDED]
0
1. 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
2. Appendix D to part 4044 is amended by removing Table I-05 and adding
in its place Table I-06 to read as follows:
Appendix D to Part 4044--Tables Used To Determine Expected Retirement
Age
Table I-06.--Selection of Retirement Rate Category
[For plans with valuation dates after December 31, 2005, and before January 1, 2007]
----------------------------------------------------------------------------------------------------------------
Participant's retirement rate category is--
---------------------------------------------------------------------------
Low \1\ if Medium \2\ if monthly benefit at URA
Participant reaches URA in year-- monthly benefit is High \3\ if
at URA is less -------------------------------------- monthly benefit
than-- From To is greater than--
----------------------------------------------------------------------------------------------------------------
2007................................ 500 500 2,113 2,113
2008................................ 512 512 2,164 2,164
2009................................ 524 524 2,216 2,216
2010................................ 536 536 2,269 2,269
2011................................ 549 549 2,324 2,324
2012................................ 562 562 2,379 2,379
2013................................ 576 576 2,437 2,437
[[Page 72077]]
2014................................ 590 590 2,495 2,495
2015................................ 604 604 2,555 2,555
2016 or later....................... 618 618 2,616 2,616
----------------------------------------------------------------------------------------------------------------
\1\ Table II-A.
\2\ Table II-B.
\3\ Table II-C.
* * * * *
Issued in Washington, DC, this 16th day of November, 2005.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 05-23516 Filed 11-30-05; 8:45 am]
BILLING CODE 7708-01-P
