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, 60590-60591 [E6-16957]
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<![CDATA[
60590
Federal Register / Vol. 71, No. 198 / Friday, October 13, 2006 / Notices
individual to initiate an action challenging
the results of an FBI criminal history records
check after the record is made available for
his/her review. The Licensee may make a
final SGI access determination based upon
the criminal history record only upon receipt
of the FBI’s ultimate confirmation or
correction of the record. Upon a final adverse
determination on access to SGI, the Licensee
shall provide the individual its documented
basis for denial. Access to SGI shall not be
granted to an individual during the review
process.
PENSION BENEFIT GUARANTY
CORPORATION
Protection of Information
AGENCY:
1. Each Licensee who obtains a criminal
history record on an individual pursuant to
this Order shall establish and maintain a
system of files and procedures for protecting
the record and the personal information from
unauthorized disclosure.
2. The Licensee may not disclose the
record or personal information collected and
maintained to persons other than the subject
individual, his/her representative, or to those
who have a need to access the information
in performing assigned duties in the process
of determining access to Safeguards
Information. No individual authorized to
have access to the information may redisseminate the information to any other
individual who does not have a need-toknow.
3. The personal information obtained on an
individual from a criminal history record
check may be transferred to another Licensee
if the Licensee holding the criminal history
record check receives the individual’s
written request to re-disseminate the
information contained in his/her file, and the
gaining Licensee verifies information such as
the individual’s name, date of birth, social
security number, sex, and other applicable
physical characteristics for identification
purposes.
4. The Licensee shall make criminal
history records, obtained under this section,
available for examination by an authorized
representative of the NRC to determine
compliance with the regulations and laws.
5. The Licensee shall retain all fingerprint
and criminal history records received from
the FBI, or a copy if the individual’s file has
been transferred, for three (3) years after
termination of employment or determination
of access to SGI (whether access was
approved or denied). After the required three
(3) year period, these documents shall be
destroyed by a method that will prevent
reconstruction of the information in whole or
in part.
[FR Doc. E6–16996 Filed 10–12–06; 8:45 am]
ycherry on PROD1PC64 with NOTICES2
BILLING CODE 7590–01–P
VerDate Aug<31>2005
15:21 Oct 12, 2006
Jkt 211001
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.
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 October
2006. The interest assumptions for
performing multiemployer plan
valuations following mass withdrawal
under part 4281 apply to valuation dates
occurring in November 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 fourth
quarter (October through December) of
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:
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
PO 00000
Frm 00130
Fmt 4703
Sfmt 4703
premium. Pursuant to the Pension
Protection Act of 2006, for premium
payment years beginning in 2006 or
2007, the required interest rate is the
‘‘applicable percentage’’ (currently 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 (the
‘‘premium payment year’’). Thus, the
required interest rate to be used in
determining variable-rate premiums for
premium payment years beginning in
October 2006 is 5.06 percent (i.e., 85
percent of the 5.95 percent composite
corporate bond rate for September 2006
as determined by the Treasury).
The following table lists the required
interest rates to be used in determining
variable-rate premiums for premium
payment years beginning between
November 2005 and October 2006.
For premium payment years
beginning in:
The required
interest rate is:
November 2005 ....................
December 2005 ....................
January 2006 ........................
February 2006 ......................
March 2006 ...........................
April 2006 .............................
May 2006 ..............................
June 2006 .............................
July 2006 ..............................
August 2006 .........................
September 2006 ...................
October 2006 ........................
4.83
4.91
4.86
4.80
4.87
5.01
5.25
5.35
5.36
5.36
5.19
5.06
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
fourth quarter (October through
December) of 2006, as announced by the
IRS, is 8 percent.
The following table lists the late
payment interest rates for premiums and
E:\FR\FM\13OCN1.SGM
13OCN1
Federal Register / Vol. 71, No. 198 / Friday, October 13, 2006 / Notices
employer liability for the specified time
periods:
From—
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 ........
Through—
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
12/31/06
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
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 fourth
quarter (October through December) of
2006 (i.e., the rate reported for
September 15, 2006) is 8.25 percent.
The following table lists the
withdrawal liability underpayment and
overpayment interest rates for the
specified time periods:
ycherry on PROD1PC64 with NOTICES2
From
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 ........
10/1/06 ......
VerDate Aug<31>2005
Through
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
12/31/06
15:21 Oct 12, 2006
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
8.25
Jkt 211001
60591
Multiemployer Plan Valuations
Following Mass Withdrawal
operational capability, and insolvency
and FICC ceasing to act for members.
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
November 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.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FICC included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. FICC has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.2
Issued in Washington, DC, on this 5th day
of October 2006.
James C. Gerber,
Acting Interim Director, Pension Benefit
Guaranty Corporation.
[FR Doc. E6–16957 Filed 10–12–06; 8:45 am]
BILLING CODE 7709–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54570); File No. SR–FICC–
2006–12]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of a Proposed Rule Change
Relating to Financial Responsibility,
Operational Capability, Insolvency, and
Ceasing To Act
October 4, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
June 15, 2006, the Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) and on
September 22, 2006, amended the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared primarily by FICC.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change would
amend FICC’s Government Securities
Division’s (‘‘GSD’’) and Mortgage
Backed Securities Division’s (‘‘MBSD’’)
rules relating to members’’ or
applicants’ financial responsibility,
1 15
PO 00000
U.S.C. 78s(b)(1).
Frm 00131
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Cease To Act and Insolvency Rules
In order to achieve greater legal and
administrative consistency and
efficiency, FICC proposes to harmonize
GSD’s rules governing when FICC will
cease to act for a member in a
noninsolvency situation 3 and in an
insolvency situation 4 with the rules of
FICC’s affiliate, the National Securities
Clearing Corporation (‘‘NSCC’’).5
Under the proposed rule change, GSD
Rule 21 would be renamed ‘‘Restriction
on Access to Services,’’ would address
noninsolvency situations, and would be
structured similar to NSCC Rule 46.
While new Rule 21 would be triggered
by essentially the same criteria that are
contained in the current GSD rule,6 the
new rule would expand the remedies
that FICC could exercise beyond only
‘‘ceasing to act’’ or ‘‘ceasing to accept
data’’ on behalf of the member.
Specifically, FICC, after notifying and
providing an opportunity to request a
hearing to the member, would be able to
suspend, prohibit, or limit a member’s
access to one or more of FICC’s services.
GSD Rule 22, which covers situations
when a member becomes insolvent,
would remain in its current form except
that its close-out provisions would be
amended and would be moved to a new
Rule 22A. Rule 22A would set forth the
procedures that FICC would follow
when it ceases to act for a member
2 The Commission has modified the text of the
summaries prepared by FICC.
3 GSD Rule 21.
4 GSD Rule 22.
5 The text of the proposed rules can be found on
FICC’s Web site at <https://ficc.com/gov/gov.
docs.jsp?NS-query=#rf>.
6 Such triggers include the member failing to
perform its obligations to FICC and FICC’s
determination that the member is in or is
approaching financial difficulty.
E:\FR\FM\13OCN1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 198 (Friday, October 13, 2006)]
[Notices]
[Pages 60590-60591]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-16957]
=======================================================================
-----------------------------------------------------------------------
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
October 2006. The interest assumptions for performing multiemployer
plan valuations following mass withdrawal under part 4281 apply to
valuation dates occurring in November 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 fourth quarter (October through December) of 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:
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. Pursuant to the Pension
Protection Act of 2006, for premium payment years beginning in 2006 or
2007, the required interest rate is the ``applicable percentage''
(currently 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 (the
``premium payment year''). Thus, the required interest rate to be used
in determining variable-rate premiums for premium payment years
beginning in October 2006 is 5.06 percent (i.e., 85 percent of the 5.95
percent composite corporate bond rate for September 2006 as determined
by the Treasury).
The following table lists the required interest rates to be used in
determining variable-rate premiums for premium payment years beginning
between November 2005 and October 2006.
------------------------------------------------------------------------
The required
For premium payment years beginning in: interest rate
is:
------------------------------------------------------------------------
November 2005........................................... 4.83
December 2005........................................... 4.91
January 2006............................................ 4.86
February 2006........................................... 4.80
March 2006.............................................. 4.87
April 2006.............................................. 5.01
May 2006................................................ 5.25
June 2006............................................... 5.35
July 2006............................................... 5.36
August 2006............................................. 5.36
September 2006.......................................... 5.19
October 2006............................................ 5.06
------------------------------------------------------------------------
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 fourth quarter (October
through December) of 2006, as announced by the IRS, is 8 percent.
The following table lists the late payment interest rates for
premiums and
[[Page 60591]]
employer liability for the specified time periods:
------------------------------------------------------------------------
Interest rate
From-- Through-- (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.................................. 12/31/06 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 fourth quarter (October through December) of
2006 (i.e., the rate reported for September 15, 2006) is 8.25 percent.
The following table lists the withdrawal liability underpayment and
overpayment interest rates for the specified time periods:
------------------------------------------------------------------------
Interest rate
From Through (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
10/1/06................................. 12/31/06 8.25
------------------------------------------------------------------------
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 November 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 5th day of October 2006.
James C. Gerber,
Acting Interim Director, Pension Benefit Guaranty Corporation.
[FR Doc. E6-16957 Filed 10-12-06; 8:45 am]
BILLING CODE 7709-01-P
