Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 40011-40012 [E6-11101]
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40011
Federal Register / Vol. 71, No. 135 / Friday, July 14, 2006 / Rules and Regulations
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 August 2006. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective August 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
For plans with a valuation
date
On or after
Rate set
cprice-sewell on PROD1PC66 with RULES
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 August 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
August 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 August 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 6.40
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 July 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 no change from those in effect
for July 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
*
154 ....................................
VerDate Aug<31>2005
15:14 Jul 13, 2006
Before
*
9–1–06
3.50
8–1–06
Jkt 208001
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Frm 00009
29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
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
154, as set forth below, is added to the
table.
I
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
*
*
*
i1
i2
*
i3
4.00
*
4.00
4.00
*
Fmt 4700
List of Subjects
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
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 August 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).
Sfmt 4700
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n1
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14JYR1
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7
8
40012
Federal Register / Vol. 71, No. 135 / Friday, July 14, 2006 / Rules and Regulations
3. In appendix C to part 4022, Rate Set
154, as set forth below, is added to the
table.
I
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
For plans with a valuation
date
*
*
On or after
Rate set
*
154 ....................................
Before
*
9–1–06
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
*
3.50
8–1–06
i1
i2
i3
4.00
*
4.00
4.00
*
n1
*
n2
*
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 August 2006, as set forth
below, is added to the table.
*
I
4. The authority citation for part 4044
continues to read as follows:
I
*
*
*
*
The values of it are:
For valuation dates occurring in the month—
it
*
*
*
August 2006 ......................................................................
Issued in Washington, DC, on this 7th day
of July 2006.
Vincent K. Snowbarger,
Acting Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. E6–11101 Filed 7–13–06; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 100
[CGD07–06–108]
RIN 1625–AA08
Coast Guard, DHS.
Temporary final rule.
AGENCY:
cprice-sewell on PROD1PC66 with RULES
SUMMARY: This rule temporarily
suspends the current special local
regulations, established for the Annual
Greater Jacksonville Kingfish
Tournament, Jacksonville, Florida, and
adds a temporary final rule for the event
due to changes in the tournament this
year. This special local regulation is
necessary to reflect the changes made to
the tournament by the sponsor and to
ensure the safety of participating vessels
and spectators within the regulated area.
VerDate Aug<31>2005
15:14 Jul 13, 2006
Jkt 208001
it
for t =
1–20
*
.0475
>20
*
.0640
This rule is effective from July
17, 2006 to July 22, 2006.
ADDRESSES: Documents mentioned in
this preamble as being available in the
docket are part of docket [CGD 07–06–
108] and are available for inspection
and copying at Coast Guard Sector
Jacksonville Prevention Department,
7820 Arlington Expressway, Suite 400,
Jacksonville, Florida, 32211, between 8
a.m. and 4 p.m., Monday through
Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT:
Ensign Kira Peterson at Coast Guard
Sector Jacksonville Prevention
Department, Florida, tel: (904) 232–
2640, ext. 108.
SUPPLEMENTARY INFORMATION:
DATES:
Regulatory Information
Special Local Regulation; Annual
Greater Jacksonville Kingfish
Tournament; Jacksonville, FL
ACTION:
for t =
We did not publish a notice of
proposed rulemaking (NPRM) for this
regulation. Under 5 U.S.C. 553(b)(B), the
Coast Guard finds that good cause exists
for not publishing a NPRM. The changes
to this event were not relayed to the
Coast Guard with enough time to allow
for public comment. Publishing a NPRM
with a comment period would delay the
rule’s effective date and is contrary to
public interest because immediate
action is necessary to protect the public
and waters of the United States.
For the same reasons, under 5 U.S.C.
553(d)(3), the Coast Guard finds that
good cause exists for making this rule
effective less than 30 days after
publication in the Federal Register. The
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
it
*
for t =
*
N/A
N/A
Coast Guard will issue a broadcast
notice to mariners and Coast Guard or
local law enforcement vessels will be in
the vicinity of this zone to advise
mariners of the restriction.
Background and Purpose
The Greater Jacksonville Kingfish
Tournament is held annually the second
full week of July along the waters of the
St. Johns River and the Atlantic Ocean.
This regulation will temporarily change
the eastern boundary of the regulated
area found in paragraph (a) of Section
100.710 from Lighted Buoy 7 (LLNR
7145) in approximate position 30–
23.56N, 081–23.04W, and Lighted Buoy
8 (LLNR 7150) in position 30–24.03N,
081–23.01W, to Lighted Buoy 10 (LLNR
2190) at approximate position 30–
24.376N, 081–24.998W. Changes are
also being made to the effective dates
found in paragraph (c) of Section
100.710 as the tournament will now
take place the second full week after
July 4th. Additionally, a new paragraph
(b) is being added to define ‘‘Minimum
Safe Speed’’ and existing paragraphs (b)
and (c) are being redesignated (c) and
(d) accordingly. Coast Guard Sector
Jacksonville will issue a Local Notice to
Mariners announcing times and dates
the regulated area is in effect. Vessels
transiting within the regulated area
must travel at a Minimum Safe Speed.
Discussion of Rule
This temporary rule is necessary to
accommodate the changes by the
E:\FR\FM\14JYR1.SGM
14JYR1
]]>Agencies
[Federal Register Volume 71, Number 135 (Friday, July 14, 2006)]
[Rules and Regulations]
[Pages 40011-40012]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-11101]
[[Page 40011]]
=======================================================================
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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 August 2006. Interest assumptions are
also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective August 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 August 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 August 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 August 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 6.40 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 July 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 no change from those in
effect for July 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 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 August
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 154, 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 Deferred annuities (percent)
date Immediate ---------------------------------------------------------------------
Rate set ---------------------------- annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
154..................................... 8-1-06 9-1-06 3.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 40012]]
0
3. In appendix C to part 4022, Rate Set 154, 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 Deferred annuities (percent)
date Immediate ---------------------------------------------------------------------
Rate set ---------------------------- annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
154..................................... 8-1-06 9-1-06 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 August 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
August 2006................. .0640 1-20 .0475 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 7th day of July 2006.
Vincent K. Snowbarger,
Acting Executive Director, Pension Benefit Guaranty Corporation.
[FR Doc. E6-11101 Filed 7-13-06; 8:45 am]
BILLING CODE 7709-01-P
