Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 66455-66457 [E6-19257]
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Federal Register / Vol. 71, No. 220 / Wednesday, November 15, 2006 / Rules and Regulations
viticultural area, TTB is amending
paragraph (a) of 27 CFR 9.32. This
technical amendment clarifies the fact
that either ‘‘Los Carneros’’ or
‘‘Carneros’’ standing alone may be used
as the name of the viticultural area, and
that both terms are viticulturally
significant for the purposes of part 4 of
the TTB regulations.
Impact on Current Wine Labels
This technical amendment to the Los
Carneros viticultural area does not affect
currently approved wine labels that use
the ‘‘Los Carneros’’ or ‘‘Carneros’’
names. Part 4 of the TTB regulations
prohibits any label reference on a wine
that indicates or implies an origin other
than the wine’s true place of origin. For
a wine to be eligible to use as an
appellation of origin a viticultural area
name or other term specified as being
viticulturally significant in part 9 of the
TTB regulations, at least 85 percent of
the wine must be derived from grapes
grown within the area represented by
that name or other term, and the wine
must meet the other conditions listed in
27 CFR 4.25(e)(3). Different rules apply
if a wine has a brand name containing
a viticultural area name or other
viticulturally significant term that was
used as a brand name on a label
approved before July 7, 1986. See 27
CFR 4.39(i)(2) for details.
Regulatory Flexibility Act
Because no notice of proposed
rulemaking is required, the provisions
of the Regulatory Flexibility Act (5
U.S.C. chapter 6) do not apply.
Inapplicability of Prior Notice and
Comment and Delayed Effective Date
Procedures
List of Subjects in 27 CFR Part 9
Wine.
The Regulatory Amendment
For the reasons discussed in the
preamble, we amend 27 CFR, chapter 1,
part 9, as follows:
PART 9—AMERICAN VITICULTURAL
AREAS
1. The authority citation for part 9
continues to read as follows:
I
Authority: 27 U.S.C. 205.
Subpart C—Approved American
Viticultural Areas
2. Section § 9.32 is amended by
revising paragraph (a) to read as follows:
I
§ 9.32
Los Carneros.
(a) Name. The name of the viticultural
area described in this section is ‘‘Los
Carneros’’. ‘‘Carneros’’ may also be used
as the name of the viticultural area
described in this section. For purposes
of part 4 of this chapter, ‘‘Los Carneros’’
and ‘‘Carneros’’ are terms of viticultural
significance.
*
*
*
*
*
Signed: October 2, 2006.
John J. Manfreda,
Administrator.
Approved: October 13, 2006.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. E6–19231 Filed 11–14–06; 8:45 am]
BILLING CODE 4810–31–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Parts 4022 and 4044
Executive Order 12866
rmajette on PROD1PC67 with RULES1
Because this regulatory action merely
codifies an existing policy adopted in
1983 as part of a prior rulemaking action
that included a public notice and
comment period, TTB has determined
that no notice of proposed rulemaking
and public comment period are required
under 5 U.S.C. 553(b). For the same
reason, this final rule is not subject to
the delayed effective date requirement
of 5 U.S.C. 553(d).
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 December 2006. Interest
This final rule is not a significant
regulatory action as defined by
Executive Order 12866, 58 FR 51735.
Therefore, it requires no regulatory
assessment.
Drafting Information
N. A. Sutton of the Regulations and
Rulings Division drafted this notice.
VerDate Aug<31>2005
14:33 Nov 14, 2006
Jkt 211001
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:
PO 00000
Frm 00025
Fmt 4700
Sfmt 4700
66455
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective December 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 December 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
December 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
December 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 5.80
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 November 2006) of 0.10
percent for the first 20 years following
the valuation date and are otherwise
unchanged. These interest assumptions
E:\FR\FM\15NOR1.SGM
15NOR1
66456
Federal Register / Vol. 71, No. 220 / Wednesday, November 15, 2006 / Rules and Regulations
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 an increase (from those in
effect for November 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 December 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).
For plans with a valuation date
On or after
*
158
Before
*
12–1–06
*
1–1–07
3. In appendix C to part 4022, Rate Set
158, as set forth below, is added to the
table.
I
29 CFR Part 4044
Employee benefit plans, Pension
insurance, Pensions.
I In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
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
158, as set forth below, is added to the
table.
I
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
*
3.00
i1
i2
i3
n1
*
4.00
*
*
*
For plans with a valuation date
Rate set
On or after
Before
*
12–1–06
*
1–1–07
n2
4.00
*
4.00
7
8
n2
*
*
*
Deferred annuities
(percent)
Immediate annuity
rate
(percent)
3.00
i2
i3
n1
*
4.00
*
i1
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 December 2006, as set forth
below, is added to the table.
*
I
4. The authority citation for part 4044
continues to read as follows:
I
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
158
29 CFR Part 4022
Deferred annuities
(percent)
Immediate annuity
rate
(percent)
Rate set
List of Subjects
*
*
*
*
The values of it are:
rmajette on PROD1PC67 with RULES1
For valuation dates occurring in the month—
it
*
*
*
*
December 2006 ........................................................................................
VerDate Aug<31>2005
15:23 Nov 14, 2006
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1–20
it
for t =
it
for t =
*
.0475
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*
>20
N/A
N/A
Federal Register / Vol. 71, No. 220 / Wednesday, November 15, 2006 / Rules and Regulations
Issued in Washington, DC, on this 8th day
of November 2006.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E6–19257 Filed 11–14–06; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 235
[DOD–2005–OS–0149]
RIN 0790–AH86
Sale or Rental of Sexually Explicit
Material on DoD Property (DoD
Instruction 4105.70)
Department of Defense.
Final rule.
AGENCY:
ACTION:
SUMMARY: This rule prohibits the sale or
rental of sexually explicit material on
property under DoD jurisdiction. It
establishes responsibilities for
monitoring compliance, establishes a
review board to determine whether a
material offered for sale or rental is
sexually explicit as consistent with the
definition in 10 U.S.C. 2489a, and
delineates review board procedures.
This updated rule includes
administrative changes and one new
policy allowing materials which have
been determined by the Board to be
sexually explicit to be submitted for
reconsideration every 5 years.
DATES: Effective Date: December 15,
2006.
FOR FURTHER INFORMATION CONTACT:
Commander F. Stich, 703–602–4601.
On
December 19, 2005 (70 FR 75091) the
Department of Defense published the
proposed rule for public comment.
Twenty-eight comments were posted, 14
of which merited a response:
1. Comment posted 1/12/06:
General Comment: I don’t think the
DoD should be selling or renting
sexually explicit material other than
artistic publications such as Playboy.
DoD response: The Part, which
implements 10 U.S.C. 2489a, prohibits
the sale or rental of sexually explicit
material on property under DoD
jurisdiction, as well as the sale or rental
of sexually explicit material by DoD
military and civilian personnel acting in
an official capacity.
2. Comment posted 2/2/06:
General Comment: In addition to
appointing senior representative to the
rmajette on PROD1PC67 with RULES1
SUPPLEMENTARY INFORMATION:
VerDate Aug<31>2005
14:33 Nov 14, 2006
Jkt 211001
Resale Activities Board of Review, there
should also be a consumer group
composed of enlisted members and
officers to help analyze material for
decency.
DoD response: Forming the suggested
consumer group is unnecessary. The
Resale Activities Board of Review
includes civilian representatives from
the Army, Navy, and Air Force who are
capable of identifying sexually explicit
material.
3. Comment posted 2/6/06:
General Comment: I think that the
proposed rule to prohibit sexually
explicit material being sold on the
property of the Department of Defense
and by those employed by the
Department of Defense is a bit too
restricting. I can understand prohibiting
it on government property, however,
prohibiting those employed by the
Department of Defense has gone too far.
It is not the government’s job to regulate
what people do with their private lives.
It’s like telling people that they can’t
smoke if they want to work for that
person.
DoD response: The Part does not
prohibit DoD personnel from possessing
sexually explicit material. It prohibits
the sale or rental of sexually explicit
material on property under DoD
jurisdiction, and it prohibits the sale or
rental of sexually explicit material by
DoD military and civilian personnel
when acting in an official capacity.
4. Comment posted 2/6/06:
General Comment: It seems that if
magazines and videos containing
sexually explicit materials are to be
restricted but books containing sexually
explicit materials are not, then a double
standard is being created. In essence
sexually explicit materials are
acceptable in one format but not in
another. Either all sexually explicit
materials should be allowed or it all
should be banned.
DoD response: The Part is consistent
with 10 U.S.C. 2489a, which does not
include books in the definition of
‘‘sexually explicit material.’’
5. Comment posted 2/6/06:
General Comment: I think the military
should be able to possess whatever
types of media they choose, as long as
it does not violate the law.
DoD response: The Part does not
regulate possession of sexually explicit
material by DoD military and civilian
employees. It prohibits the sale or rental
of sexually explicit material on property
under the DoD jurisdiction, and it
prohibits the sale or rental of sexually
explicit material by DoD military and
civilian employees acting in an official
capacity.
PO 00000
Frm 00027
Fmt 4700
Sfmt 4700
66457
6. Comment posted 2/6/06:
General Comment: I don’t see how the
barring of sale or rental of pornographic
materials is going to help anything. If
the issue is pornography on property
owned by the Dept. of Defense, then
possession of it should be banned
entirely.
DoD response: The Part does not
regulate the possession of sexually
explicit material by DoD military and
civilian employees. It prohibits the sale
or rental of sexually explicit material on
property under DoD jurisdiction, and by
DoD civilian and military employees
when acting in an official capacity.
7. Comment posted 2/6/06:
General Comment: I believe that this
proposed rule is too restrictive based on
the fact that all DoD property is
included. While explicit materials
should be restricted from certain areas
under DoD’s property, such as work
areas, other property, such as personal
living areas, should not be included.
DoD response: The Part does not
prohibit the possession of sexually
explicit material by DoD military and
civilian employees. It prohibits the sale
or rental of sexually explicit material on
property under DoD jurisdiction, and by
DoD military and civilian employees
when acting in an official capacity.
8. Comment posted 2/6/06:
General Comment: I think this
regulation needs some clarification. I
would also like to know why the
government has banned trade of
sexually explicit material in the armed
forces.
DoD response: The Part implements
10 U.S.C. 2489a, which prohibits the
sale or rental of sexually explicit
material on property under DoD
jurisdiction, and by DoD military and
civilian employees when acting in an
official capacity.
9. Comment posted 2/6/06:
General Comment: The Department of
Defense should not restrict the rights of
military personnel more so than the
general public. If military people want
to look at pornographic material that is
available in the open market, they
should be allowed to do so.
DoD response: The Part does not
prohibit the possession of sexually
explicit material by DoD civilian or
military employees. It prohibits the sale
or rental of sexually explicit material on
property under DoD jurisdiction, and by
DoD military and civilian employees
when acting in an official capacity.
10. Comment posted 2/6/06:
General Comment: What is rationale
behind not allowing members of the
armed forces to view these materials?
E:\FR\FM\15NOR1.SGM
15NOR1
]]>Agencies
[Federal Register Volume 71, Number 220 (Wednesday, November 15, 2006)]
[Rules and Regulations]
[Pages 66455-66457]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19257]
=======================================================================
-----------------------------------------------------------------------
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 December 2006. Interest assumptions
are also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective December 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 December 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 December 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 December 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 5.80 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 November 2006) of 0.10
percent for the first 20 years following the valuation date and are
otherwise unchanged. These interest assumptions
[[Page 66456]]
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 an increase (from those in
effect for November 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 December
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 158, 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 Deferred annuities (percent)
Rate set -------------------------------------------- Immediate annuity ---------------------------------------------------------------------
On or after Before rate (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
158 12-1-06 1-1-07 3.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 158, 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 Deferred annuities (percent)
Rate set -------------------------------------------- Immediate annuity ---------------------------------------------------------------------
On or after Before rate (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
158 12-1-06 1-1-07 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 December 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
December 2006................................. .0580 1-20 .0475 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
[[Page 66457]]
Issued in Washington, DC, on this 8th day of November 2006.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty Corporation.
[FR Doc. E6-19257 Filed 11-14-06; 8:45 am]
BILLING CODE 7709-01-P
