Required Interest Rate Assumption for Determining Variable-Rate Premium for Single-Employer Plans; Interest on Late Premium Payments; Interest on Underpayments and Overpayments of Single-Employer Plan Termination Liability and Multiemployer Withdrawal Liability; Interest Assumptions for Multiemployer Plan Valuations Following Mass Withdrawal, 40171-40172 [E6-11100]

Download as PDF Federal Register / Vol. 71, No. 135 / Friday, July 14, 2006 / Notices located in ADAMS should contact the NRC PDR Reference staff at 1–800–397– 4209, or 301–415–4737, or send an email to pdr@nrc.gov. Dated at Rockville, Maryland, this 10th day of July, 2006. For the Nuclear Regulatory Commission. Timothy G. Colburn, Senior Project Manager, Plant Licensing Branch I–1, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation. [FR Doc. E6–11113 Filed 7–13–06; 8:45 am] BILLING CODE 7590–01–P OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Determination of Eligibility for Retroactive Duty Treatment Under the Dominican Republic—Central America—United States Free Trade Agreement Office of the United States Trade Representative. ACTION: Notice. countries are eligible countries for purposes of Section 205(a). Article 3.20 provides that importers may claim retroactive duty treatment for imports of certain textile or apparel goods entered on or after January 1, 2004 and before the entry into force of CAFTA–DR from those CAFTA–DR countries that will provide reciprocal retroactive duty treatment or a benefit for textile or apparel goods that is equivalent to retroactive duty treatment. Pursuant to Section 205(b) of the Act, I have determined that Guatemala will provide an equivalent benefit for textile or apparel goods of the United States within the meaning of Article 3.20 of the CAFTA–DR. I therefore determine that Guatemala is an eligible country for purposes of Section 205 of the Act. Susan C. Schwab, U.S. Trade Representative. [FR Doc. E6–11065 Filed 7–13–06; 8:45 am] BILLING CODE 3190–W6–P jlentini on PROD1PC65 with NOTICES AGENCY: SUMMARY: Pursuant to Section 205(b) of the Dominican Republic—Central America—United States Free Trade Agreement Implementation Act (the Act), the United States Trade Representative (USTR) is providing notice of her determination that Guatemala is an eligible country for purposes of retroactive duty treatment as provided in Section 205 of the Act. DATES: Effective Date: July 14, 2006. ADDRESSES: Inquiries may be mailed, delivered, or faxed to Abiola Heyliger, Director of Textile Trade Policy, Office of the United States Trade Representative, 600 17th Street, NW., Washington, DC 20508, fax number, (202) 395–5639. FOR FURTHER INFORMATION CONTACT: Abiola Heyliger, Office of the United States Trade Representative, 202–395– 3026. SUPPLEMENTARY INFORMATION: Section 205(a) of the Act (Pub. Law 109–53; 119 Stat. 462, 483; 19 U.S.C. 4034) provides that certain entries of textile or apparel goods of designated eligible countries that are parties to the Dominican Republic—Central America—United States Free Trade Agreement (CAFTA– DR) made on or after January 1, 2004 may be liquidated or reliquidated at the applicable rate of duty for those goods established in the Schedule of the United States to Annex 3.3 of the CAFTA–DR. Section 205(b) of the Act requires the USTR to determine, in accordance with Article 3.20 of the CAFTA–DR, which CAFTA–DR VerDate Aug<31>2005 17:44 Jul 13, 2006 Jkt 208001 PENSION BENEFIT GUARANTY CORPORATION Required Interest Rate Assumption for Determining Variable-Rate Premium for Single-Employer Plans; Interest on Late Premium Payments; Interest on Underpayments and Overpayments of Single-Employer Plan Termination Liability and Multiemployer Withdrawal Liability; Interest Assumptions for Multiemployer Plan Valuations Following Mass Withdrawal Pension Benefit Guaranty Corporation. ACTION: Notice of interest rates and assumptions. AGENCY: SUMMARY: This notice informs the public of the interest rates and assumptions to be used under certain Pension Benefit Guaranty Corporation regulations. These rates and assumptions are published elsewhere (or can be derived from rates published elsewhere), but are collected and published in this notice for the convenience of the public. Interest rates are also published on the PBGC’s Web site (https://www.pbgc.gov). DATES: The required interest rate for determining the variable-rate premium under part 4006 applies to premium payment years beginning in July 2006. The interest assumptions for performing multiemployer plan valuations following mass withdrawal under part 4281 apply to valuation dates occurring in August 2006. The interest rates for late premium payments under part 4007 and for underpayments and overpayments of single-employer plan PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 40171 termination liability under part 4062 and multiemployer withdrawal liability under part 4219 apply to interest accruing during the third quarter (July through September) of 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: Variable-Rate Premiums Section 4006(a)(3)(E)(iii)(II) of the Employee Retirement Income Security Act of 1974 (ERISA) and § 4006.4(b)(1) of the PBGC’s regulation on Premium Rates (29 CFR part 4006) prescribe use of an assumed interest rate (the ‘‘required interest rate’’) in determining a single-employer plan’s variable-rate premium. The required interest rate is the ‘‘applicable percentage’’ (currently 85 percent) of the annual yield on 30year Treasury securities for the month preceding the beginning of the plan year for which premiums are being paid (the ‘‘premium payment year’’). The required interest rate to be used in determining variable-rate premiums for premium payment years beginning in July 2006 is 4.39 percent (i.e., 85 percent of the 5.16 percent Treasury Securities Rate for June 2006). The Pension Funding Equity Act of 2004 (‘‘PFEA’’)—under which the required interest rate is 85 percent of the annual rate of interest determined by the Secretary of the Treasury on amounts invested conservatively in long-term investment grade corporate bonds for the month preceding the beginning of the plan year for which premiums are being paid—applies only for premium payment years beginning in 2004 or 2005. Congress is considering legislation that would extend the PFEA rate for one more year. If legislation that changes the rules for determining the required interest rate for plan years beginning in July 2006 is adopted, the PBGC will promptly publish a Federal Register notice with the new rate. The following table lists the required interest rates to be used in determining variable-rate premiums for premium payment years beginning between August 2005 and July 2006. For premium payment years beginning in: August 2005 ......................... September 2005 ................... E:\FR\FM\14JYN1.SGM 14JYN1 The required interest rate is: 4.56 4.61 40172 Federal Register / Vol. 71, No. 135 / Friday, July 14, 2006 / Notices For premium payment years beginning in: The required interest rate is: October 2005 ........................ November 2005 .................... December 2005 .................... January 2006 ........................ February 2006 ...................... March 2006 ........................... April 2006 ............................. May 2006 .............................. June 2006 ............................. July 2006 .............................. 4.62 4.83 4.91 3.95 3.90 3.89 4.02 4.30 4.42 4.39 Late Premium Payments; Underpayments and Overpayments of Single-Employer Plan Termination Liability Section 4007(b) of ERISA and § 4007.7(a) of the PBGC’s regulation on Payment of Premiums (29 CFR part 4007) require the payment of interest on late premium payments at the rate established under section 6601 of the Internal Revenue Code. Similarly, § 4062.7 of the PBGC’s regulation on Liability for Termination of SingleEmployer Plans (29 CFR part 4062) requires that interest be charged or credited at the section 6601 rate on underpayments and overpayments of employer liability under section 4062 of ERISA. The section 6601 rate is established periodically (currently quarterly) by the Internal Revenue Service. The rate applicable to the third quarter (July through September) of 2006, as announced by the IRS, is 8 percent. The following table lists the late payment interest rates for premiums and employer liability for the specified time periods: Through— 4/1/00 .......... 4/1/01 .......... 7/1/01 .......... 1/1/02 .......... 1/1/03 .......... 10/1/03 ........ 4/1/04 .......... 7/1/04 .......... 10/1/04 ........ 4/1/05 .......... 10/1/05 ........ 7/1/06 .......... jlentini on PROD1PC65 with NOTICES From— Interest rate (percent) 3/31/01 ............ 6/30/01 ............ 12/31/01 ........... 12/31/02 ........... 9/30/03 ............ 3/31/04 ............ 6/30/04 ............ 9/30/04 ............ 3/31/05 ............ 9/30/05 ............ 6/30/06 ............ 9/30/06 ............ 9 8 7 6 5 4 5 4 5 6 7 8 Underpayments and Overpayments of Multiemployer Withdrawal Liability Section 4219.32(b) of the PBGC’s regulation on Notice, Collection, and Redetermination of Withdrawal Liability (29 CFR part 4219) specifies the rate at which a multiemployer plan is to charge or credit interest on underpayments and overpayments of withdrawal liability under section 4219 VerDate Aug<31>2005 17:44 Jul 13, 2006 Jkt 208001 of ERISA unless an applicable plan provision provides otherwise. For interest accruing during any calendar quarter, the specified rate is the average quoted prime rate on short-term commercial loans for the fifteenth day (or the next business day if the fifteenth day is not a business day) of the month preceding the beginning of the quarter, as reported by the Board of Governors of the Federal Reserve System in Statistical Release H.15 (‘‘Selected Interest Rates’’). The rate for the third quarter (July through September) of 2006 (i.e., the rate reported for June 15, 2006) is 8.00 percent. The following table lists the withdrawal liability underpayment and overpayment interest rates for the specified time periods: From— Through— 7/1/00 .......... 4/1/01 .......... 7/1/01 .......... 10/1/01 ........ 1/1/02 .......... 1/1/03 .......... 10/1/03 ........ 10/1/04 ........ 1/1/05 .......... 4/1/05 .......... 7/1/05 .......... 10/1/05 ........ 1/1/06 .......... 4/1/06 .......... 7/1/06 .......... Interest rate (percent) 3/31/01 ............ 6/30/01 ............ 9/30/01 ............ 12/31/01 .......... 12/31/02 ........... 9/30/03 ............ 9/30/04 ............ 12/31/04 .......... 3/31/05 ............ 6/30/05 ............ 9/30/05 ............ 12/31/05 .......... 3/31/06 ............ 6/30/06 ............ 9/30/06 ............ 9.50 8.50 7.00 6.50 4.75 4.25 4.00 4.50 5.25 5.50 6.00 6.50 7.25 7.50 8.00 Multiemployer Plan Valuations Following Mass Withdrawal The PBGC’s regulation on Duties of Plan Sponsor Following Mass Withdrawal (29 CFR part 4281) prescribes the use of interest assumptions under the PBGC’s regulation on Allocation of Assets in Single-Employer Plans (29 CFR part 4044). The interest assumptions applicable to valuation dates in August 2006 under part 4044 are contained in an amendment to part 4044 published elsewhere in today’s Federal Register. Tables showing the assumptions applicable to prior periods are codified in Appendix B to 29 CFR part 4044. Issued in Washington, DC, on this 7th day of July 2006. Vincent K. Snowbarger, Acting Executive Director, Pension Benefit Guaranty Corporation. [FR Doc. E6–11100 Filed 7–13–06; 8:45 am] BILLING CODE 7709–01–P PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 POSTAL RATE COMMISSION [Docket No. MC2006–5; Order No. 1470] Periodicals Nominal Rate Minor Classification Change Postal Rate Commission. Notice and order. AGENCY: ACTION: SUMMARY: This order announces a mail classification docket to consider a proposal to amend the definition of ‘‘nominal rate’’ subscription for publications in the Periodicals class. Estabishing this docket will allow interested persons to participate in the Commission’s consideration of the proposed change, which liberalizes the current definition. It will also allow them to comment on the appropriateness of treating the case on an expedited basis. The order identifies preliminary procedural steps, including appointment of the Postal Service as settlement coordinator. DATES: 1. Deadline for filing library reference containing documentation of definition change adopted by national audit bureaus: July 25, 2006; 2. Deadline for filing notices of intervention and participants’ statements concerning compliance with filing requirements and conditional motion for waiver: August 1, 2006; 3. Deadline for filing status report on settlement negotiations: August 4, 2006. ADDRESSES: File all documents referred to in this order electronically via the Commission’s Filing Online system at https://www.prc.gov. FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, 202–789–6820. SUPPLEMENTARY INFORMATION: I. Introduction Notice is hereby given that on July 6, 2006, the Postal Service filed a request with the Postal Rate Commission for a recommended decision on a proposal to amend the definition of a ‘‘nominal rate’’ subscription for publications in the Periodicals class.1 The Service filed its Request pursuant to section 3623 of the Postal Reorganization Act, 39 U.S.C. 101 et seq. It has denominated its proposal as a minor mail classification change and has requested expedited 1 Request of the United States Postal Service for a Recommended Decision on Change of Definition of Nominal Rate for Periodicals Subscriptions, July 6, 2006 (Request). The Request includes three attachments. Attachment A to the Request sets out the proposed change to the text of the Domestic Mail Classification Schedule. Attachment B is an index of testimony. Attachment C contains the Service’s Compliance Statement addressing the filing requirements of rules 64 and 69a, or noting a request for waiver of certain filing requirements. E:\FR\FM\14JYN1.SGM 14JYN1

Agencies

Pension Benefit Guaranty Corporation

[Federal Register Volume 71, Number 135 (Friday, July 14, 2006)]
[Notices]
[Pages 40171-40172]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-11100]


=======================================================================
-----------------------------------------------------------------------

PENSION BENEFIT GUARANTY CORPORATION


Required Interest Rate Assumption for Determining Variable-Rate 
Premium for Single-Employer Plans; Interest on Late Premium Payments; 
Interest on Underpayments and Overpayments of Single-Employer Plan 
Termination Liability and Multiemployer Withdrawal Liability; Interest 
Assumptions for Multiemployer Plan Valuations Following Mass Withdrawal

AGENCY: Pension Benefit Guaranty Corporation.

ACTION: Notice of interest rates and assumptions.

-----------------------------------------------------------------------

SUMMARY: This notice informs the public of the interest rates and 
assumptions to be used under certain Pension Benefit Guaranty 
Corporation regulations. These rates and assumptions are published 
elsewhere (or can be derived from rates published elsewhere), but are 
collected and published in this notice for the convenience of the 
public. Interest rates are also published on the PBGC's Web site 
(https://www.pbgc.gov).

DATES: The required interest rate for determining the variable-rate 
premium under part 4006 applies to premium payment years beginning in 
July 2006. The interest assumptions for performing multiemployer plan 
valuations following mass withdrawal under part 4281 apply to valuation 
dates occurring in August 2006. The interest rates for late premium 
payments under part 4007 and for underpayments and overpayments of 
single-employer plan termination liability under part 4062 and 
multiemployer withdrawal liability under part 4219 apply to interest 
accruing during the third quarter (July through September) of 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:

Variable-Rate Premiums

    Section 4006(a)(3)(E)(iii)(II) of the Employee Retirement Income 
Security Act of 1974 (ERISA) and Sec.  4006.4(b)(1) of the PBGC's 
regulation on Premium Rates (29 CFR part 4006) prescribe use of an 
assumed interest rate (the ``required interest rate'') in determining a 
single-employer plan's variable-rate premium. The required interest 
rate is the ``applicable percentage'' (currently 85 percent) of the 
annual yield on 30-year Treasury securities for the month preceding the 
beginning of the plan year for which premiums are being paid (the 
``premium payment year''). The required interest rate to be used in 
determining variable-rate premiums for premium payment years beginning 
in July 2006 is 4.39 percent (i.e., 85 percent of the 5.16 percent 
Treasury Securities Rate for June 2006).
    The Pension Funding Equity Act of 2004 (``PFEA'')--under which the 
required interest rate is 85 percent of the annual rate of interest 
determined by the Secretary of the Treasury on amounts invested 
conservatively in long-term investment grade corporate bonds for the 
month preceding the beginning of the plan year for which premiums are 
being paid--applies only for premium payment years beginning in 2004 or 
2005. Congress is considering legislation that would extend the PFEA 
rate for one more year. If legislation that changes the rules for 
determining the required interest rate for plan years beginning in July 
2006 is adopted, the PBGC will promptly publish a Federal Register 
notice with the new rate.
    The following table lists the required interest rates to be used in 
determining variable-rate premiums for premium payment years beginning 
between August 2005 and July 2006.

------------------------------------------------------------------------
                                                           The required
         For premium payment years beginning in:          interest  rate
                                                                is:
------------------------------------------------------------------------
August 2005.............................................            4.56
September 2005..........................................            4.61

[[Page 40172]]

 
October 2005............................................            4.62
November 2005...........................................            4.83
December 2005...........................................            4.91
January 2006............................................            3.95
February 2006...........................................            3.90
March 2006..............................................            3.89
April 2006..............................................            4.02
May 2006................................................            4.30
June 2006...............................................            4.42
July 2006...............................................            4.39
------------------------------------------------------------------------

Late Premium Payments; Underpayments and Overpayments of Single-
Employer Plan Termination Liability

    Section 4007(b) of ERISA and Sec.  4007.7(a) of the PBGC's 
regulation on Payment of Premiums (29 CFR part 4007) require the 
payment of interest on late premium payments at the rate established 
under section 6601 of the Internal Revenue Code. Similarly, Sec.  
4062.7 of the PBGC's regulation on Liability for Termination of Single-
Employer Plans (29 CFR part 4062) requires that interest be charged or 
credited at the section 6601 rate on underpayments and overpayments of 
employer liability under section 4062 of ERISA. The section 6601 rate 
is established periodically (currently quarterly) by the Internal 
Revenue Service. The rate applicable to the third quarter (July through 
September) of 2006, as announced by the IRS, is 8 percent.
    The following table lists the late payment interest rates for 
premiums and employer liability for the specified time periods:

------------------------------------------------------------------------
                                                               Interest
               From--                       Through--            rate
                                                              (percent)
------------------------------------------------------------------------
4/1/00.............................  3/31/01...............            9
4/1/01.............................  6/30/01...............            8
7/1/01.............................  12/31/01..............            7
1/1/02.............................  12/31/02..............            6
1/1/03.............................  9/30/03...............            5
10/1/03............................  3/31/04...............            4
4/1/04.............................  6/30/04...............            5
7/1/04.............................  9/30/04...............            4
10/1/04............................  3/31/05...............            5
4/1/05.............................  9/30/05...............            6
10/1/05............................  6/30/06...............            7
7/1/06.............................  9/30/06...............            8
------------------------------------------------------------------------

Underpayments and Overpayments of Multiemployer Withdrawal Liability

    Section 4219.32(b) of the PBGC's regulation on Notice, Collection, 
and Redetermination of Withdrawal Liability (29 CFR part 4219) 
specifies the rate at which a multiemployer plan is to charge or credit 
interest on underpayments and overpayments of withdrawal liability 
under section 4219 of ERISA unless an applicable plan provision 
provides otherwise. For interest accruing during any calendar quarter, 
the specified rate is the average quoted prime rate on short-term 
commercial loans for the fifteenth day (or the next business day if the 
fifteenth day is not a business day) of the month preceding the 
beginning of the quarter, as reported by the Board of Governors of the 
Federal Reserve System in Statistical Release H.15 (``Selected Interest 
Rates''). The rate for the third quarter (July through September) of 
2006 (i.e., the rate reported for June 15, 2006) is 8.00 percent.
    The following table lists the withdrawal liability underpayment and 
overpayment interest rates for the specified time periods:

------------------------------------------------------------------------
                                                               Interest
               From--                       Through--            rate
                                                              (percent)
------------------------------------------------------------------------
7/1/00.............................  3/31/01...............         9.50
4/1/01.............................  6/30/01...............         8.50
7/1/01.............................  9/30/01...............         7.00
10/1/01............................  12/31/01..............         6.50
1/1/02.............................  12/31/02..............         4.75
1/1/03.............................  9/30/03...............         4.25
10/1/03............................  9/30/04...............         4.00
10/1/04............................  12/31/04..............         4.50
1/1/05.............................  3/31/05...............         5.25
4/1/05.............................  6/30/05...............         5.50
7/1/05.............................  9/30/05...............         6.00
10/1/05............................  12/31/05..............         6.50
1/1/06.............................  3/31/06...............         7.25
4/1/06.............................  6/30/06...............         7.50
7/1/06.............................  9/30/06...............         8.00
------------------------------------------------------------------------

Multiemployer Plan Valuations Following Mass Withdrawal

    The PBGC's regulation on Duties of Plan Sponsor Following Mass 
Withdrawal (29 CFR part 4281) prescribes the use of interest 
assumptions under the PBGC's regulation on Allocation of Assets in 
Single-Employer Plans (29 CFR part 4044). The interest assumptions 
applicable to valuation dates in August 2006 under part 4044 are 
contained in an amendment to part 4044 published elsewhere in today's 
Federal Register. Tables showing the assumptions applicable to prior 
periods are codified in Appendix B to 29 CFR part 4044.

    Issued in Washington, DC, on this 7th day of July 2006.
Vincent K. Snowbarger,
Acting Executive Director, Pension Benefit Guaranty Corporation.
 [FR Doc. E6-11100 Filed 7-13-06; 8:45 am]
BILLING CODE 7709-01-P

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