Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 18576-18577 [E7-7071]
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18576
Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Rules and Regulations
Need for Correction
As published, temporary regulations
(TD 9313) contain an error that may
prove to be misleading and is in need
of clarification.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is
corrected by making the following
amendment:
I
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read, in part, as
follows:
I
Authority: 26 U.S.C. 7805 * * *
I Par. 2. Section 1.368–2T is amended
by revising paragraph (l)(2)(iv) to read as
follows:
§ 1.368–2T
Definition of terms (temporary).
*
*
*
*
*
(l) * * *
(2) * * *
(iv) Exception. This paragraph (l)(2)
does not apply to a transaction
otherwise described in section 1.358–
6(b)(2) or section 368(a)(1)(G) by reason
of section 368(a)(2)(D).
*
*
*
*
*
LaNita Van Dyke,
Chief, Publications and Regulations Branch
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. E7–6979 Filed 4–12–07; 8:45 am]
BILLING CODE 4830–01–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.
cprice-sewell on PRODPC61 with RULES
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
VerDate Aug<31>2005
14:52 Apr 12, 2007
Jkt 211001
dates in May 2007. Interest assumptions
are also published on the PBGC’s Web
site (https://www.pbgc.gov).
DATES: Effective May 1, 2007.
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 May 2007, (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 May
2007, 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 May 2007.
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 5.20
percent for the first 20 years following
the valuation date and 4.87 percent
thereafter. These interest assumptions
represent an increase (from those in
effect for April 2007) of 0.21 percent for
the first 20 years following the valuation
date and 0.21 percent for all years
thereafter.
PO 00000
Frm 00014
Fmt 4700
Sfmt 4700
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 April 2007) 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 May 2007, 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.
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
163, as set forth below, is added to the
table.
I
E:\FR\FM\13APR1.SGM
13APR1
18577
Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Rules and Regulations
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
*
For plans with a valuation
date
Rate set
On or after
*
Before
*
163
6–1–07
3. In appendix C to part 4022, Rate Set
163, as set forth below, is added to the
table.
I
For plans with a valuation
date
On or after
*
Before
i3
4.00
n1
*
n2
*
*
4.00
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
*
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
i1
6–1–07
3.00
i2
*
4.00
*
5–1–07
i2
*
4.00
3.00
*
163
i1
*
5–1–07
Rate set
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
i3
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 May 2007, 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
*
*
*
May 2007 ..........................................................................
ACTION:
Issued in Washington, DC, on this 10th day
of April 2007.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E7–7071 Filed 4–12–07; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 250
cprice-sewell on PRODPC61 with RULES
RIN 1010–AD10
Oil, Gas, and Sulphur Operations in the
Outer Continental Shelf (OCS)—Plans
and Information—Protection of Marine
Mammals and Threatened and
Endangered Species
Minerals Management Service
(MMS), Interior.
AGENCY:
VerDate Aug<31>2005
14:52 Apr 12, 2007
Jkt 211001
for t =
it
*
.0520
for t =
*
1–20
.0487
Final rule.
SUMMARY: This final rule requires
lessees of Federal oil and gas leases in
the OCS to provide information on how
they will conduct their proposed
activities in a manner consistent with
provisions of the Endangered Species
Act (ESA) and the Marine Mammal
Protection Act (MMPA). It identifies
environmental, monitoring, and
mitigation information that lessees must
submit with plans for exploration and
development and production. This final
rulemaking specifies what information
the MMS needs to ensure compliance
with the OCSLA, the ESA, and the
MMPA. The final rule will help assure
that lessees conduct their activities in a
manner consistent with the provisions
of the ESA and the MMPA.
DATES: Effective Date: This regulation is
effective as of May 14, 2007.
FOR FURTHER INFORMATION CONTACT: Judy
Wilson, Chief, Environmental
PO 00000
Frm 00015
Fmt 4700
Sfmt 4700
*
>20
it
for t =
*
N/A
N/A
Compliance Unit, Environmental
Division, (703) 787–1075.
SUPPLEMENTARY INFORMATION: The OCS
Lands Act (OCSLA) at 43 U.S.C. 1333,
mandates ‘‘The Constitution and laws
and civil and political jurisdiction of the
United States (U.S.) are extended to the
subsoil and seabed of the OCS and to all
artificial islands, and all installations
and other devices permanently or
temporarily attached to the seabed
which may be erected thereon for the
purpose of exploring for, developing, or
producing resources therefrom, or any
such installation or other device (other
than a ship or vessel) for the purpose of
transporting such resources * * *’’
Those laws include the ESA and the
MMPA. Every lease the MMS issues
contains a requirement that the lessee
must comply with applicable laws. The
OCSLA at 43 U.S.C. 1332, requires
‘‘* * * expeditious and orderly
development, subject to environmental
safeguards * * *’’
E:\FR\FM\13APR1.SGM
13APR1
]]>Agencies
[Federal Register Volume 72, Number 71 (Friday, April 13, 2007)]
[Rules and Regulations]
[Pages 18576-18577]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-7071]
=======================================================================
-----------------------------------------------------------------------
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 May 2007. Interest assumptions are
also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective May 1, 2007.
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 May 2007, (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 May 2007, 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 May 2007.
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 5.20 percent for the first 20 years following the
valuation date and 4.87 percent thereafter. These interest assumptions
represent an increase (from those in effect for April 2007) of 0.21
percent for the first 20 years following the valuation date and 0.21
percent for all years thereafter.
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 April 2007) 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 May 2007,
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 163, as set forth below, is
added to the table.
[[Page 18577]]
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
163 5-1-07 6-1-07 3.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 163, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
163 5-1-07 6-1-07 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 May 2007, 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
May 2007.......................... .0520 1-20 .0487 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 10th day of April 2007.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty Corporation.
[FR Doc. E7-7071 Filed 4-12-07; 8:45 am]
BILLING CODE 7709-01-P
