Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 54415-54416 [E6-15314]
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Federal Register / Vol. 71, No. 179 / Friday, September 15, 2006 / Rules and Regulations
the part of a Department employee
(except those allegations of misconduct
that are required to be reported to the
Department of Justice Office of
Professional Responsibility pursuant to
§ 45.12); and
(c) Any investigation of allegations of
criminal misconduct against any
Department employee.
§ 45.12 Reporting to the Department of
Justice Office of Professional
Responsibility.
Department employees have a duty to,
and shall, report to the Department of
Justice Office of Professional
Responsibility (DOJ–OPR), or to their
supervisor, or their component’s
internal affairs office for referral to DOJ–
OPR, any allegations of misconduct by
a Department attorney that relate to the
exercise of the attorney’s authority to
investigate, litigate or provide legal
advice, as well as allegations of
misconduct by law enforcement
personnel when such allegations are
related to allegations of attorney
misconduct within the jurisdiction of
DOJ–OPR.
§ 45.13 Duty to cooperate in an official
investigation.
Department employees have a duty to,
and shall, cooperate fully with the
Office of the Inspector General and
Office of Professional Responsibility,
and shall respond to questions posed
during the course of an investigation
upon being informed that their
statement will not be used to
incriminate them in a criminal
proceeding. Refusal to cooperate could
lead to disciplinary action.
Dated: September 11, 2006.
Alberto R. Gonzales,
Attorney General.
[FR Doc. E6–15315 Filed 9–14–06; 8:45 am]
BILLING CODE 4410–BD–P
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.
ycherry on PROD1PC64 with RULES
AGENCY:
SUMMARY: The Pension Benefit Guaranty
Corporation’s regulations on Benefits
Payable in Terminated Single-Employer
Plans and Allocation of Assets in
VerDate Aug<31>2005
14:39 Sep 14, 2006
Jkt 208001
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 October 2006. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective October 1, 2006.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Manager, Regulatory
and Policy Division, 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 October 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
October 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 October 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 6.00
percent for the first 20 years following
the valuation date and 4.75 percent
PO 00000
Frm 00015
Fmt 4700
Sfmt 4700
54415
thereafter. These interest assumptions
represent a decrease (from those in
effect for September 2006) of 0.20
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 3.00 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 a decrease (from those in
effect for September 2006) of 0.25
percent in the immediate annuity rate
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 October 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.
E:\FR\FM\15SER1.SGM
15SER1
54416
Federal Register / Vol. 71, No. 179 / Friday, September 15, 2006 / Rules and Regulations
29 CFR Part 4044
2. In appendix B to part 4022, Rate Set
156, as set forth below, is added to the
table.
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
Employee benefit plans, Pension
insurance, Pensions.
In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
I
I
I
1. The authority citation for part 4022
continues to read as follows:
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
*
For plans with a valuation date
On or after
*
*
156 ..............................................
Before
*
10–1–06
3. In appendix C to part 4022, Rate Set
156, as set forth below, is added to the
table.
I
*
11–1–06
*
*
i1
i3
4.00
*
3.00
i2
n1
*
4.00
4.00
n2
*
7
8
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
*
*
*
For plans with a valuation date
On or after
Before
*
10–1–06
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Rate set
*
*
156 ..............................................
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Rate set
*
*
11–1–06
i1
i3
4.00
*
3.00
i2
n1
*
4.00
4.00
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 October 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
*
*
*
*
October 2006 ....................................................................................................................
Issued in Washington, DC, on this 11th day
of September 2006.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E6–15314 Filed 9–14–06; 8:45 am]
DEPARTMENT OF HOMELAND
SECURITY
BILLING CODE 7709–01–P
*
.0600
[CGD05–06–093]
Coast Guard
33 CFR Part 165
Safety Zone; Susquehanna River,
Havre de Grace, MD
Coast Guard, DHS.
ACTION: Temporary final rule.
ycherry on PROD1PC64 with RULES
AGENCY:
SUMMARY: The Coast Guard is
establishing a temporary safety zone on
the Susquehanna River during a
fireworks display. This action is
necessary to provide for the safety of life
14:39 Sep 14, 2006
Jkt 208001
PO 00000
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Fmt 4700
it
1–20
*
.0475
for t =
it
for t =
*
>20
N/A
N/A
and property on navigable waters during
a fireworks display launched from a
barge, located between Havre de Grace,
Maryland and Perryville, Maryland, on
September 30, 2006. This action will
restrict vessel traffic in a portion of the
Susquehanna River.
This rule is effective from 7:30
p.m. to 10:30 p.m. on September 30,
2006.
DATES:
RIN 1625–AA00
VerDate Aug<31>2005
for t =
Sfmt 4700
Documents indicated in this
preamble as being available in the
docket are part of docket CGD05–06–
093 and are available for inspection or
copying at Commander, Coast Guard
Sector Baltimore, 2401 Hawkins Point
Road, Baltimore, Maryland 21226–1791,
between 9 a.m. and 3 p.m., Monday
through Friday, except Federal holidays.
ADDRESSES:
E:\FR\FM\15SER1.SGM
15SER1
]]>Agencies
[Federal Register Volume 71, Number 179 (Friday, September 15, 2006)]
[Rules and Regulations]
[Pages 54415-54416]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-15314]
=======================================================================
-----------------------------------------------------------------------
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 October 2006. Interest assumptions
are also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective October 1, 2006.
FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Manager,
Regulatory and Policy Division, 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 October 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 October 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 October 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 6.00 percent for the first 20 years following the
valuation date and 4.75 percent thereafter. These interest assumptions
represent a decrease (from those in effect for September 2006) of 0.20
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 3.00
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 a decrease (from those in
effect for September 2006) of 0.25 percent in the immediate annuity
rate 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 October
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.
[[Page 54416]]
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 156, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
156............................................... 10-1-06 11-1-06 3.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 156, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
156............................................... 10-1-06 11-1-06 3.00 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 October 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
October 2006............................................ .0600 1-20 .0475 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 11th day of September 2006.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty Corporation.
[FR Doc. E6-15314 Filed 9-14-06; 8:45 am]
BILLING CODE 7709-01-P
