Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 7871-7873 [06-1375]

Download as PDF Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Rules and Regulations subject to review under the Executive order. The Regulatory Flexibility Act requires agencies to analyze regulatory options that would minimize any significant impact of a rule on small entities. Because classification of this device in class II will relieve manufacturers of the device of the cost of complying with the premarket approval requirements of section 515 of the act (21 U.S.C. 360e), and may permit small potential competitors to enter the marketplace by lowering their costs, the agency certifies that the final rule will not have a significant economic impact on a substantial number of small entities. Section 202(a) of the Unfunded Mandates Reform Act of 1995 requires that agencies prepare a written statement, which includes an assessment of anticipated costs and benefits, before proposing ‘‘any rule that includes any Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or the private sector, of $100,000,000 or more (adjusted annually for inflation) in any one year.’’ The current threshold after adjustment for inflation is $115 million, using the most current (2003) Implicit Price Deflator for the Gross Domestic Product. FDA does not expect this final rule to result in any 1-year expenditure that would meet or exceed this amount. cprice-sewell on PROD1PC66 with RULES IV. Does This Rule Have Federalism Implications? FDA has analyzed this final rule in accordance with the principles set forth in Executive Order 13132. FDA has determined that the rule does not contain policies that have substantial direct effects on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. Accordingly, the agency has concluded that the rule does not contain policies that have federalism implications as defined in the Executive order and, consequently, a federalism summary impact statement is not required. V. How Does This Rule Comply With the Paperwork Reduction Act of 1995? This final rule contains no collection of information. Therefore, clearance by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (the PRA) (44 U.S.C. 3501– 3520) is not required. FDA also concludes that the special controls guidance document does not contain new information collection VerDate Aug<31>2005 13:14 Feb 14, 2006 Jkt 208001 7871 provisions that are subject to review and clearance by OMB under the PRA. PENSION BENEFIT GUARANTY CORPORATION VI. What References are on Display? 29 CFR Parts 4022 and 4044 The following reference has been placed on display in the Division of Dockets Management (HFA–305), Food and Drug Administration, 5630 Fishers Lane, rm. 1061, Rockville, MD 20852, and may be seen by interested persons between 9 a.m. and 4 p.m., Monday through Friday. Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits 1. Petition from CardioMEMS, Inc., dated August 9, 2005. List of Subjects in 21 CFR Part 870 Medical devices. Therefore, under the Federal Food, Drug, and Cosmetic Act and under authority delegated to the Commissioner of Food and Drugs, 21 CFR part 870 is amended as follows: I PART 870—CARDIOVASCULAR DEVICES 1. The authority citation for 21 CFR part 870 continues to read as follows: I Authority: 21 U.S.C. 351, 360, 360c, 360e, 360j, 371. 2. Section 870.2855 is added to subpart C to read as follows: I § 870.2855 Implantable Intra-aneurysm Pressure Measurement System. (a) Identification. Implantable intraaneurysm pressure measurement system is a device used to measure the intra-sac pressure in a vascular aneurysm. The device consists of a pressure transducer that is implanted into the aneurysm and a monitor that reads the pressure from the transducer. (b) Classification. Class II (special controls). The special control is FDA’s guidance document entitled ‘‘Class II Special Controls Guidance Document: Implantable Intra-Aneurysm Pressure Measurement System.’’ See § 870.1 (e) for the availability of this guidance document. Dated: February 6, 2006. Linda S. Kahan, Deputy Director, Center for Devices and Radiological Health. [FR Doc. 06–1417 Filed 2–14–06; 8:45 am] BILLING CODE 4160–01–S PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 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 March 2006. Interest assumptions are also published on the PBGC’s Web site (https://www.pbgc.gov). DATES: Effective March 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, 202–326–4024. (TTY/TDD users should call the Federal relay service by dialing 711 and ask for 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 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 March 2006, (2) adds to Appendix B to Part 4022 the E:\FR\FM\15FER1.SGM 15FER1 7872 Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Rules and Regulations interest assumptions for the PBGC to use for its own lump-sum payments in plans with valuation dates during March 2006, 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 March 2006. 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 5.70 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 February 2006) of 0.10 percent for the first 20 years following the valuation date and are otherwise unchanged. These interest assumptions reflect the PBGC’s recently updated mortality assumptions, which are effective for terminations on or after January 1, 2006. See the PBGC’s final rule published December 2, 2005 (70 FR 72205), which is available at https:// www.pbgc.gov/docs/05–23554.pdf. Because the updated mortality assumptions reflect improvements in mortality, these interest assumptions are higher than they would have been using the old mortality assumptions. The interest assumptions that the PBGC will use for its own lump-sum Rate set For plans with a valuation date On or after * 149 Before payments (set forth in Appendix B to part 4022) will be 2.75 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 no change from those in effect for February 2006. 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 March 2006, 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. 3. In appendix C to part 4022, Rate Set 149, as set forth below, is added to the table. On or after * cprice-sewell on PROD1PC66 with RULES 149 Before 2.75 Jkt 208001 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 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 149, as set forth below, is added to the table. I Appendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments * * * * * i3 4.00 n1 * n2 * * 4.00 7 8 * n1 n2 * Deferred annuities (percent) i1 i2 * 4.00 i3 4.00 * * * 4.00 7 8 Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362. Appendix B to Part 4044—Interest Rates Used to Value Benefits 5. In appendix B to part 4044, a new entry for March 2006, as set forth below, is added to the table. * I 4. The authority citation for part 4044 continues to read as follows: I 13:14 Feb 14, 2006 * * 4–1–06 PART 4044—ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS VerDate Aug<31>2005 * Immediate annuity rate (percent) * 3–1–06 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. Appendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments * For plans with a valuation date 29 CFR Part 4022 i2 * 4.00 2.75 I Rate set i1 * 4–1–06 List of Subjects Deferred annuities (percent) Immediate annuity rate (percent) * 3–1–06 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). PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 E:\FR\FM\15FER1.SGM * * 15FER1 * * 7873 Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Rules and Regulations The values of it are: For valuation dates occurring in the month— for t = it * * * March 2006 ........................................................................... Issued in Washington, DC, on this 8th day of February 2006. Vincent K. Snowbarger, Deputy Executive Director, Pension Benefit Guaranty Corporation. [FR Doc. 06–1375 Filed 2–14–06; 8:45 am] BILLING CODE 7709–01–P NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Part 1802 RIN: 2700–AD21 Change in Definition of Head of the Contracting Activity National Aeronautics and Space Administration. ACTION: Final rule. AGENCY: SUMMARY: This final rule amends the NASA FAR Supplement (NFS) by revising the definition for ‘‘Head of the contracting activity (HCA).’’ DATES: Effective Date: February 15, 2006. FOR FURTHER INFORMATION CONTACT: Sheryl Goddard, NASA, Office of Procurement, Program Operations Division; (703) 553–2519; e-mail: Sheryl.Goddard@nasa.gov. SUPPLEMENTARY INFORMATION: cprice-sewell on PROD1PC66 with RULES A. Background This final rule revises the definition of ‘‘Head of the contracting activity (HCA)’’ in NFS 1802.101 to designate the Associate Administrator for the VerDate Aug<31>2005 13:14 Feb 14, 2006 Jkt 208001 * .0570 it for t = * 1–20 Space Operations Mission Directorate (SOMD) as head of the contracting activity for SOMD contracts. Previously, the center director of the NASA installation cognizant for award of an SOMD contract was the designated HCA. This administrative change is consistent with the roles and responsibilities of NASA officials. B. Regulatory Flexibility Act The Regulatory Flexibility Act does not apply to this final rule. This final rule does not constitute a significant revision within the meaning of FAR 1.501 and Public Law 98–577, and publication for public comment is not required. However, NASA will consider comments from small entities concerning the affected NFS part 1802 in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 601, et seq., in correspondence. C. Paperwork Reduction Act The Paperwork Reduction Act does not apply because the changes do not impose recordkeeping or information collection requirements which require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq. List of Subjects in 48 CFR Part 1802 Government Procurement. * >20 .0475 1. The authority citation for 48 CFR part 1802 continues to read as follows: Authority: 42 U.S.C. 2473(c)(1). 2. Amend section 1802.101 by revising the definition of ‘‘Head of the contracting activity (HCA)’’ to read as follows: I 1802.101 Definitions. * * * * * Head of the contracting activity (HCA) means, for field installations, the Director or other head, and for NASA Headquarters, the Assistant Administrator for Management Systems. For Space Operations Mission Directorate (SOMD) contracts, the HCA is the Associate Administrator for SOMD in lieu of the field Center Director(s). For Exploration Systems Mission Directorate (ESMD) contracts, the HCA is the Associate Administrator for ESMD in lieu of the field Center Director(s). For NASA Shared Services Center (NSSC) contracts, the HCA is the Executive Director of the NSSC in lieu of the field Center Director(s). * * * * * [FR Doc. 06–1430 Filed 2–14–06; 8:45 am] BILLING CODE 7510–01–P Accordingly, 48 CFR part 1802 is amended as follows: Fmt 4700 Sfmt 4700 * N/A I I Frm 00031 N/A for t = PART 1802—DEFINITIONS OF WORDS AND TERMS Tom Luedtke, Assistant Administrator for Procurement. PO 00000 it E:\FR\FM\15FER1.SGM 15FER1

Agencies

[Federal Register Volume 71, Number 31 (Wednesday, February 15, 2006)]
[Rules and Regulations]
[Pages 7871-7873]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-1375]


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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 March 2006. Interest assumptions are 
also published on the PBGC's Web site (https://www.pbgc.gov).

DATES: Effective March 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, 202-326-4024. 
(TTY/TDD users should call the Federal relay service by dialing 711 and 
ask for 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 March 2006, (2) adds to Appendix B to Part 4022 
the

[[Page 7872]]

interest assumptions for the PBGC to use for its own lump-sum payments 
in plans with valuation dates during March 2006, 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 March 2006.
    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 5.70 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 February 2006) of 0.10 
percent for the first 20 years following the valuation date and are 
otherwise unchanged. These interest assumptions reflect the PBGC's 
recently updated mortality assumptions, which are effective for 
terminations on or after January 1, 2006. See the PBGC's final rule 
published December 2, 2005 (70 FR 72205), which is available at https://
www.pbgc.gov/docs/05-23554.pdf. Because the updated mortality 
assumptions reflect improvements in mortality, these interest 
assumptions are higher than they would have been using the old 
mortality assumptions.
    The interest assumptions that the PBGC will use for its own lump-
sum payments (set forth in Appendix B to part 4022) will be 2.75 
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 no change from those in 
effect for February 2006.
    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 March 
2006, 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 149, 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 valuation date     Immediate                                Deferred annuities  (percent)
    Rate set     ----------------------------------   annuity rate  ------------------------------------------------------------------------------------
                    On or after         Before         (percent)            i1               i2               i3               n1               n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          149            3-1-06           4-1-06             2.75             4.00             4.00             4.00                7                8
--------------------------------------------------------------------------------------------------------------------------------------------------------


0
3. In appendix C to part 4022, Rate Set 149, 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 valuation date     Immediate                                Deferred annuities  (percent)
    Rate set     ----------------------------------   annuity rate  ------------------------------------------------------------------------------------
                    On or after         Before         (percent)            i1               i2               i3               n1               n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          149            3-1-06           4-1-06             2.75             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 March 2006, as set forth 
below, is added to the table.

Appendix B to Part 4044--Interest Rates Used to Value Benefits

* * * * *

[[Page 7873]]



----------------------------------------------------------------------------------------------------------------
                                                             The values of it are:
For valuation dates occurring ----------------------------------------------------------------------------------
        in the month--              it        for t =         it        for t =          it           for t =
----------------------------------------------------------------------------------------------------------------
                                                  * * * * * * *
March 2006...................        .0570         1-20        .0475          >20  N/A             N/A
----------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC, on this 8th day of February 2006.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. 06-1375 Filed 2-14-06; 8:45 am]
BILLING CODE 7709-01-P
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