Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 34532-34534 [E6-9345]
Download as PDF
<![CDATA[
34532
Federal Register / Vol. 71, No. 115 / Thursday, June 15, 2006 / Rules and Regulations
Road, a medium duty road, in section
11; then
(21) Follow Palomares Road in a
northerly direction for approximately
0.7 miles to the road’s intersection with
the power transmission line shown in
section 11, T4S, R1W; then
(22) Proceed northwest along the
power transmission line for
approximately 6.4 miles, passing
through the Dublin map near Walpert
Ridge, onto the Hayward map to the
point where the power transmission line
turns nearly west, approximately 500
feet south of an unnamed, 891-foot,
peak, T3S, R2W; then
(23) Continue north-northwest in a
straight line approximately 1.4 miles to
an unnamed, 840-foot peak, T3S, R2W;
then
(24) Proceed north-northeast in a
straight line approximately 3.4 miles,
returning to the Dublin map, to the
point where the Contra Costa CountyAlameda County line turns to the
northwest, about 0.4 mile west of
Wiedemann Hill (elevation 1,854 feet),
section 20, T2S, R1W; then
(25) Proceed in a northwesterly
direction along the meandering Contra
Costa County-Alameda County line for
approximately 6.0 miles, passing briefly
onto the Hayward, Las Trampas Ridge,
and Diablo maps, before returning to the
Las Trampas Ridge map and continuing
to the point where the Contra Costa
County-Alameda County line turns to
the west-northwest, section 35, T1S,
R2W; then
(26) Continue north-northwest in a
straight line approximately 2.7 miles to
the summit of Las Trampas Peak
(elevation 1,827 feet) in section 22, T1S,
R2W; then
(27) Proceed east-northeast in a
straight line approximately 8.8 miles,
passing through the Diablo map, and
return to the beginning point.
cprice-sewell on PROD1PC66 with RULES
Dated: April 25, 2006.
John J. Manfreda,
Administrator.
Approved: May 25, 2006.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. E6–9366 Filed 6–14–06; 8:45 am]
BILLING CODE 4810–31–P
VerDate Aug<31>2005
14:45 Jun 14, 2006
Jkt 208001
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 July 2006. Interest assumptions
are also published on the PBGC’s Web
site (https://www.pbgc.gov).
DATES: Effective July 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 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
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 July 2006, (2)
PO 00000
Frm 00026
Fmt 4700
Sfmt 4700
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 July
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 July 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 6.30
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 June 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 3.50 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 June 2006) 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 current
market conditions as accurately as
possible.
Because of the need to provide
immediate guidance for the valuation
and payment of benefits in plans with
valuation dates during July 2006, the
PBGC finds that good cause exists for
making the assumptions set forth in this
E:\FR\FM\15JNR1.SGM
15JNR1
34533
Federal Register / Vol. 71, No. 115 / Thursday, June 15, 2006 / Rules and Regulations
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.
List of Subjects
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
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).
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.
29 CFR Part 4044
2. In appendix B to part 4022, Rate Set
153, as set forth below, is added to the
table.
I
Employee benefit plans, Pension
insurance, Pensions.
In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
I
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
*
Rate set
For plans with a valuation
date
On or after
*
153
Before
3. In appendix C to part 4022, Rate Set
153, as set forth below, is added to the
table.
I
For plans with a valuation
date
On or after
*
153
Before
*
*
4.00
*
*
i3
n1
*
n2
*
*
4.00
7
8
n1
n2
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
i1
3.50
i2
*
4.00
*
8–1–06
i3
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 July 2006, as set forth below,
is added to the table.
*
I
4. The authority citation for part 4044
continues to read as follows:
I
*
Appendix C to Part 4022—Lump Sum
Interest Rates For Private-Sector
Payments
*
7–1–06
i2
*
4.00
3.50
*
Rate set
i1
*
8–1–06
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
7–1–06
*
*
*
*
*
the values of it are:
For valuation dates occurring in the month—
it
cprice-sewell on PROD1PC66 with RULES
*
*
*
July 2006 ..........................................................................
VerDate Aug<31>2005
16:54 Jun 14, 2006
Jkt 208001
PO 00000
Frm 00027
for t =
it
for t =
1–20
*
.0475
>20
*
.0630
Fmt 4700
Sfmt 4700
E:\FR\FM\15JNR1.SGM
it
*
15JNR1
for t =
*
N/A
N/A
34534
Federal Register / Vol. 71, No. 115 / Thursday, June 15, 2006 / Rules and Regulations
Issued in Washington, DC, on this 8th day
of June 2006.
Vincent K. Snowbarger,
Acting Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. E6–9345 Filed 6–14–06; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 622
[Docket No. 060322083–6147–02; I.D.
032006C]
RIN 0648–AU04
Fisheries of the Caribbean, Gulf of
Mexico, and South Atlantic; Gulf of
Mexico Recreational Grouper Fishery
Management Measures
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Final rule.
AGENCY:
SUMMARY: NMFS issues this final rule to
implement the bag limit provisions of a
regulatory amendment to the Fishery
Management Plan for the Reef Fish
Resources of the Gulf of Mexico (FMP)
prepared by the Gulf of Mexico Fishery
Management Council (Council). This
final rule will establish a recreational
bag limit for Gulf red grouper of one fish
per person per day and prohibit the
captain and crew of a vessel operating
as a charter vessel or headboat from
retaining any Gulf grouper, i.e.,
establish a zero bag limit for captain and
crew. The intended effect of this final
rule is to help maintain recreational
landings at levels consistent with the
red grouper rebuilding plan.
DATES: This final rule is effective July
17, 2006.
ADDRESSES: Copies of the Final
Regulatory Flexibility Analysis (FRFA),
are available from Andy Strelcheck,
NMFS, Southeast Regional Office, 263
13th Avenue South, St. Petersburg, FL
33701; telephone 727–824–5305; fax
727–824–5308; e-mail
Andy.Strelcheck@noaa.gov.
cprice-sewell on PROD1PC66 with RULES
FOR FURTHER INFORMATION CONTACT:
Andy Strelcheck, telephone 727–824–
5305; fax 727–824–5308; e-mail
Andy.Strelcheck@noaa.gov.
The reef
fish fishery of the Gulf of Mexico is
managed under the FMP. The FMP was
prepared by the Council and is
implemented under the authority of the
SUPPLEMENTARY INFORMATION:
VerDate Aug<31>2005
14:45 Jun 14, 2006
Jkt 208001
Magnuson-Stevens Fishery
Conservation and Management Act
(Magnuson-Stevens Act) by regulations
at 50 CFR part 622.
In accordance with the FMP’s
framework procedure, the Council
recommended and NMFS published a
proposed rule to implement the
regulatory amendment and requested
public comment on the proposed rule
through May 1, 2006 (71 FR 16275,
March 31, 2006). In addition to the
measures contained in this final rule,
the proposed rule included a February
15 to March 15 recreational closure for
red grouper, gag, and black grouper.
NMFS expects a new stock assessment
for gag to be completed in July 2006 that
might contain new information
pertinent to evaluating the need for the
seasonal closure. Also, the Florida Fish
and Wildlife Conservation Commission
expressed concerns about
implementation of the seasonal closure.
Therefore, NMFS is implementing the
bag limit and captain and crew
provisions in this final rule but will
defer possible implementation of the
seasonal closure until the new gag
assessment is completed. If the seasonal
closure is warranted based on the
results of the gag stock assessment,
another final rule will be published for
that action. The seasonal closure
provision has been removed from this
final rule. The rationale for the
measures in the regulatory amendment
is provided in the preamble to the
proposed rule and is not repeated here.
A summary of the public comments
received by NMFS on the proposed rule
and NMFS’ responses are provided
below.
Comments and Responses
NMFS received a total of 8 different
comments from 12 commenters.
Following is a summary of the
comments received on the proposed
rule and NMFS’ responses.
Comment 1: Eight commenters
opposed the February 15 to March 15
recreational seasonal closure and
believed the closure period would
severely impact the livelihood of charter
boat captains, crew, and their families.
Response: NMFS expects a new stock
assessment for gag to be completed in
July 2006 that might contain new
information pertinent to evaluating the
need for the seasonal closure for red
grouper, gag, and black grouper.
Therefore, NMFS intends to defer
possible implementation of the seasonal
closure until the new gag assessment is
completed. If the seasonal closure is
warranted based on the results of the
gag stock assessment, the closure may
PO 00000
Frm 00028
Fmt 4700
Sfmt 4700
be implemented via appropriate
rulemaking.
Comment 2: Two commenters
opposed prohibiting for-hire captain
and crew from retaining bag limits of
grouper while under charter. Two
commenters were in favor of prohibiting
for-hire captain and crew from retaining
bag limits of grouper.
Response: With a reduction in the red
grouper bag limit to one fish per person
per day, there is a greater incentive for
captain and crew on for-hire vessels to
retain fish and supplement the landings
of their clients, negating some of the
benefit of the lower red grouper bag
limit. Although past regulations allowed
captains and crew to socially and
economically benefit from the
enjoyment of fishing and supplying
their families with fresh fish, continuing
to allow captain and crew to retain bag
limits reduces the effectiveness of the
red grouper bag limit. Implementing this
measure increases the likelihood that
red grouper landings reduction targets
are reached, as specified in the
rebuilding plan for red grouper. Not
implementing this measure may result
in more severe management reductions
with accompanying increased adverse
economic impacts to captains and crew.
Additionally, prohibiting for-hire
captains and crew from retaining bag
limits of grouper while under charter is
considered equitable because
commercial fishermen would be
prohibited from retaining bag limits of
reef fish while commercially fishing if
Amendment 18A to the FMP is
implemented.
Comment 3: Two commenters were in
favor of reducing the bag limit from two
to one red grouper per person per day.
Response: The reduction in red
grouper bag limit is part of management
measures to return recreational red
grouper landings to levels specified in
the rebuilding plan. Reducing the red
grouper bag limit to one is estimated to
reduce landings of red grouper by 29.7
percent.
Comment 4: One commenter
suggested creating a closed season of
September 15 to October 15 instead of
February 15 to March 15.
Response: The seasonal closure was
proposed for February 15 to March 15
because the commercial seasonal
closure occurs at this time and includes
important spawning seasons for red,
black, and gag grouper. The Council also
considered seasonal closures during
April-May and August and was
presented with analyses for seasonal
closures in September and October. A
September 15 to October 15 seasonal
closure would result in similar,
although slightly greater, reductions in
E:\FR\FM\15JNR1.SGM
15JNR1
]]>Agencies
[Federal Register Volume 71, Number 115 (Thursday, June 15, 2006)]
[Rules and Regulations]
[Pages 34532-34534]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-9345]
=======================================================================
-----------------------------------------------------------------------
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 July 2006. Interest assumptions are
also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective July 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 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 July 2006, (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 July 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 July 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 6.30 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 June 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 3.50
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 June 2006) 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 current market
conditions as accurately as possible.
Because of the need to provide immediate guidance for the valuation
and payment of benefits in plans with valuation dates during July 2006,
the PBGC finds that good cause exists for making the assumptions set
forth in this
[[Page 34533]]
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 153, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
153 7-1-06 8-1-06 3.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 153, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
153 7-1-06 8-1-06 3.50 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 July 2006, 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
July 2006................... .0630 1-20 .0475 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
[[Page 34534]]
Issued in Washington, DC, on this 8th day of June 2006.
Vincent K. Snowbarger,
Acting Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. E6-9345 Filed 6-14-06; 8:45 am]
BILLING CODE 7709-01-P
