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, 18693-18694 [E7-7097]
Download as PDF
<![CDATA[
18693
Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices
• Evaluate whether the collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
• Evaluate the accuracy of the
agency’s estimate of the burden of the
collection of information, including the
validity of the methodology and
assumptions used;
• Enhance the quality, utility, and
clarity of the information to be
collected; and
• Minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology,
e.g., permitting electronic submission of
responses.
Issued in Washington, DC, this 11th day of
April 2007.
Marc A. Felton,
Deputy Chief Information Officer, Pension
Benefit Guaranty Corporation.
[FR Doc. E7–7126 Filed 4–12–07; 10:57 am]
BILLING CODE 7709–01–P
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
Pension Benefit Guaranty
Corporation.
ACTION: Notice of interest rates and
assumptions.
AGENCY:
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 April 2007.
The interest assumptions for performing
multiemployer plan valuations
following mass withdrawal under part
4281 apply to valuation dates occurring
pwalker on PROD1PC71 with NOTICES
SUMMARY:
VerDate Aug<31>2005
17:52 Apr 12, 2007
Jkt 211001
in May 2007. 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 second quarter
(April through June) of 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:
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
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’’ 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’’).
On February 2, 2007 (at 72 FR 4955),
the Internal Revenue Service (IRS)
published final regulations containing
updated mortality tables for determining
current liability under section 412(l)(7)
of the Code and section 302(d)(7) of
ERISA for plan years beginning on or
after January 1, 2007. As a result, in
accordance with section
4006(a)(3)(E)(iii)(II) of ERISA, the
‘‘applicable percentage’’ to be used in
determining the required interest rate
for plan years beginning in 2007 is 100
percent.
The required interest rate to be used
in determining variable-rate premiums
for premium payment years beginning
in April 2007 is 5.84 percent (i.e., 100
percent of the 5.84 percent composite
corporate bond rate for March 2007 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 May
2006 and April 2007.
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
For premium payment years
beginning in:
May 2006 ..................................
June 2006 .................................
July 2006 ..................................
August 2006 .............................
September 2006 .......................
October 2006 ............................
November 2006 ........................
December 2006 ........................
January 2007 ............................
February 2007 ..........................
March 2007 ...............................
April 2007 .................................
The required interest rate is:
5.25
5.35
5.36
5.36
5.19
5.06
5.05
4.90
5.75
5.89
5.85
5.84
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
second quarter (April through June) of
2007, as announced by the IRS, is 8
percent.
The following table lists the late
payment interest rates for premiums and
employer liability for the specified time
periods:
From
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)
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
6/30/07
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
E:\FR\FM\13APN1.SGM
13APN1
8
7
6
5
4
5
4
5
6
7
8
18694
Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices
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 second
quarter (April through June) of 2007
(i.e., the rate reported for March 15,
2007) is 8.25 percent.
The following table lists the
withdrawal liability underpayment and
overpayment interest rates for the
specified time periods:
From
Through
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 ..............
Interest rate
(percent)
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
6/30/07
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
Multiemployer Plan Valuations
Following Mass Withdrawal
pwalker on PROD1PC71 with NOTICES
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 May
2007 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 10th day
of April 2007.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E7–7097 Filed 4–12–07; 8:45 am]
BILLING CODE 7709–01–P
VerDate Aug<31>2005
17:52 Apr 12, 2007
Jkt 211001
RAILROAD RETIREMENT BOARD
Agency Forms Submitted for OMB
Review, Request for Comments
Summary: In accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35), the Railroad
Retirement Board (RRB) is forwarding
an Information Collection Request (ICR)
to the Office of Information and
Regulatory Affairs (OIRA), Office of
Management and Budget (OMB) to
request a revision to the following
collection of information: 3220–0052,
Application to Act as Representative
Payee, consisting of RRB Form(s) AA–5,
Application for Substitution of Payee,
G–478, Statement Regarding Patient’s
Capability to Manage Payments and
booklet RB–5, Your Duties as
Representative Payee-Representative
Payee Record. Our ICR describes the
information we seek to collect from the
public. Completion is required to obtain
or retain benefits. One response is
required of each respondent. Review
and approval by OIRA ensures that we
impose appropriate paperwork burdens.
The RRB invites comments on the
proposed collection of information to
determine (1) The practical utility of the
collection; (2) the accuracy of the
estimated burden of the collection; (3)
ways to enhance the quality, utility and
clarity of the information that is the
subject of collection; and (4) ways to
minimize the burden of collections on
respondents, including the use of
automated collection techniques or
other forms of information technology.
Comments to RRB or OIRA must contain
the OMB control number of the ICR. For
proper consideration of your comments,
it is best if RRB and OIRA receive them
within 30 days of publication date.
Previous Requests for Comments: The
RRB has already published the initial
60-day notice (71 FR No. 227 on 68644
and 68645 on November 27, 2006)
required by 44 U.S.C. 3506(c)(2). That
request elicited no comments.
Information Collection Request (ICR)
Title: Application to Act as
Representative Payee.
OMB Control Number: 3220–0052.
Form(s) submitted: AA–5, Application
for Substitution of Payee; G–478,
Statement Regarding Patient’s
Capability to Manage Payments; and
RB–5, your duties as Representative
Payee’s Record.
Type of request: Revision of a
currently approved collection.
Affected public: Individuals or
households; Business or other for Profit.
Abstract: Under Section 12 of the
Railroad Retirement Act, the Railroad
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
Retirement Board (RRB) may pay
benefits to a representative payee when
an employee, spouse or survivor
annuitant is incompetent or is a minor.
The collection obtains information
related to the representative payee
application, supporting documentation,
and the maintenance of records
pertaining to the receipt and use of the
benefits.
Changes Proposed: The RRB proposes
a revised title for the information
collection (currently Railroad
Retirement Act Continuing Entitlement),
Application to Act as Representative
Payee, to more accurately reflect the
information collected. No changes are
proposed to the forms in the collection.
The burden estimate for the ICR is as
follows:
Estimated annual number of
respondents: 17,300.
Total annual responses: 20,300.
Total annual reporting hours: 16,350.
Additional Information or Comments:
Copies of the forms and supporting
documents can be obtained from
Charles Mierzwa, the agency clearance
officer (312–751–3363) or
Charles.Mierzwa@rrb.gov.
Comments regarding the information
collection should be addressed to
Ronald J. Hodapp, Railroad Retirement
Board, 844 North Rush Street, Chicago,
Illinois, 60611–2092 or
Ronald.Hodapp@rrb.gov and to the
OMB Desk Officer for the RRB, at the
Office of Management and Budget,
Room 10230, New Executive Office
Building, Washington, DC 20503.
Charles Mierzwa,
Clearance Officer.
[FR Doc. E7–7001 Filed 4–12–07; 8:45 am]
BILLING CODE 7905–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Filings and
Information Services, Washington, DC
20549
Extension: Rule 6a–3, SEC File No. 270–
0015, OMB Control No. 3235–0021
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
E:\FR\FM\13APN1.SGM
13APN1
]]>Agencies
[Federal Register Volume 72, Number 71 (Friday, April 13, 2007)]
[Notices]
[Pages 18693-18694]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-7097]
-----------------------------------------------------------------------
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
April 2007. The interest assumptions for performing multiemployer plan
valuations following mass withdrawal under part 4281 apply to valuation
dates occurring in May 2007. 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 second quarter (April through June) of 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:
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'' 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'').
On February 2, 2007 (at 72 FR 4955), the Internal Revenue Service
(IRS) published final regulations containing updated mortality tables
for determining current liability under section 412(l)(7) of the Code
and section 302(d)(7) of ERISA for plan years beginning on or after
January 1, 2007. As a result, in accordance with section
4006(a)(3)(E)(iii)(II) of ERISA, the ``applicable percentage'' to be
used in determining the required interest rate for plan years beginning
in 2007 is 100 percent.
The required interest rate to be used in determining variable-rate
premiums for premium payment years beginning in April 2007 is 5.84
percent (i.e., 100 percent of the 5.84 percent composite corporate bond
rate for March 2007 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 May 2006 and April 2007.
------------------------------------------------------------------------
The
required
For premium payment years beginning in: interest
rate is:
------------------------------------------------------------------------
May 2006................................................... 5.25
June 2006.................................................. 5.35
July 2006.................................................. 5.36
August 2006................................................ 5.36
September 2006............................................. 5.19
October 2006............................................... 5.06
November 2006.............................................. 5.05
December 2006.............................................. 4.90
January 2007............................................... 5.75
February 2007.............................................. 5.89
March 2007................................................. 5.85
April 2007................................................. 5.84
------------------------------------------------------------------------
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 second quarter (April
through June) of 2007, as announced by the IRS, is 8 percent.
The following table lists the late payment interest rates for
premiums and employer liability for the specified time periods:
------------------------------------------------------------------------
Interest
From Through rate
(percent)
------------------------------------------------------------------------
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........................................ 6/30/07 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
[[Page 18694]]
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 second quarter (April
through June) of 2007 (i.e., the rate reported for March 15, 2007) is
8.25 percent.
The following table lists the withdrawal liability underpayment and
overpayment interest rates for the specified time periods:
------------------------------------------------------------------------
Interest
From Through rate
(percent)
------------------------------------------------------------------------
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....................................... 6/30/07 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 May 2007 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 10th day of April 2007.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty Corporation.
[FR Doc. E7-7097 Filed 4-12-07; 8:45 am]
BILLING CODE 7709-01-P
