Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 27243-27244 [E7-9331]
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27243
Federal Register / Vol. 72, No. 93 / Tuesday, May 15, 2007 / Rules and Regulations
[FR Doc. E7–9243 Filed 5–14–07; 8:45 am]
BILLING CODE 4910–13–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.
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
dates in June 2007. Interest assumptions
are also published on the PBGC’s Web
site (https://www.pbgc.gov).
DATES: Effective June 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 June 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 June
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 June 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 5.14
percent for the first 20 years following
the valuation date and 4.81 percent
thereafter. These interest assumptions
represent a decrease (from those in
effect for May 2007) of 0.06 percent for
the first 20 years following the valuation
date and 0.06 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 are
unchanged from those in effect for May
2007. 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).
For plans with a valuation date
Rate set
cprice-sewell on PROD1PC62 with RULES
On or after
*
*
164 ........................................
VerDate Aug<31>2005
15:26 May 14, 2007
Before
*
6–1–07
Jkt 211001
PO 00000
Immediate
annuity rate
(percent)
*
7–1–07
Frm 00003
3.00
Fmt 4700
Sfmt 4700
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 June 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
164, as set forth below, is added to the
table.
I
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
*
Deferred annuities (percent)
i1
i2
*
4.00
E:\FR\FM\15MYR1.SGM
i3
n1
*
4.00
15MYR1
4.00
n2
*
7
8
27244
Federal Register / Vol. 72, No. 93 / Tuesday, May 15, 2007 / Rules and Regulations
3. In appendix C to part 4022, Rate Set
164, as set forth below, is added to the
table.
I
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
*
*
For plans with a valuation date
Immediate annuity rate
(percent)
Rate set
On or after
*
*
164 ........................................
*
Before
*
Deferred annuities (percent)
*
6–1–07
7–1–07
i2
i1
*
4.00
3.00
i3
n1
*
4.00
n2
*
7
4.00
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 June 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
*
*
*
June 2007 .........................................................................
Issued in Washington, DC, on this 10th day
of May 2007.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E7–9331 Filed 5–14–07; 8:45 am]
for t =
it
*
*
.0514
1–20
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
ADDRESSES:
.0481
W, and continues west along the North
and South shoreline of the mooring slip
to the shoreline of the right descending
bank of the Savannah River. This
regulation is necessary to protect life
and property on the navigable waters of
the Savannah River and within the LNG
slip due to potential security risks
associated with the LNG Facility.
DATES: This rule is effective June 14,
2007.
BILLING CODE 7709–01–P
33 CFR Part 165
[COTP SAVANNAH 06–160]
RIN 1625–AA87
Security Zone, Elba Island LNG
Mooring Slip, Savannah River,
Savannah, GA
Coast Guard, DHS.
Final rule.
AGENCY:
ACTION:
cprice-sewell on PROD1PC62 with RULES
for t =
SUMMARY: The Coast Guard is
establishing a permanent security zone
due to recent changes in Liquefied
Natural Gas (LNG) tankship mooring
arrangements following the activation of
two new berths within a slip at the
Southern LNG Facility on the Savannah
River. The Security zone includes all
the waters from surface to bottom of the
northeastern most mooring dolphin,
located at approximately 32°05.01′ N,
080°59.38′ W, to the southeastern most
mooring dolphin, located at
approximately 32°04.79′ N, 080°59.35′
VerDate Aug<31>2005
15:53 May 14, 2007
Jkt 211001
Comments and material
received from the public, as well as
documents indicated in this preamble as
being available in the docket, are part of
docket [COTP Savannah 06–160], and
are available for inspection or copying
at Marine Safety Unit Savannah, Juliette
Gordon Low Federal Building, Suite
1017, 100 W. Oglethorpe, Savannah,
Georgia 31401, between 7:30 a.m. and
4:30 p.m., Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT:
Lieutenant Robert Webb, Waterways
Management Officer, Marine Safety Unit
Savannah; (912) 652–4353.
SUPPLEMENTARY INFORMATION:
Regulatory Information
On January 9, 2007, we published an
interim rule with request for comments
titled Security Zone, Elba Island LNG
Mooring Slip, Savannah River,
Savannah, GA in the Federal Register
(72 FR 907). We received one comment
on the rule. No public meeting was
requested, and none was held.
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
*
>20
it
for t =
*
N/A
N/A
Background and Purpose
In May of 2002, Southern LNG, Inc.,
submitted a letter of intent to expand
the LNG facility on Elba Island that
would nearly double the LNG storage
capacity and substantially increase the
number of LNG tankship arrivals. The
expansion project, completed in early
2006, resulted in the creation of two
new berths within a slip at the Southern
LNG Facility on the Savannah River.
The design of the new slip inadvertently
creates a safe refuge off the Savannah
River with unrestricted access to LNG
berths. As a result, the LNG facility and
arriving LNG vessels are put at risk of
sabotage or other adverse action that
could result in significant damage to
property and loss of life.
This concern was confirmed by a
recent incident where on June 6, 2006,
a sailing vessel entered the LNG slip
and anchored for six hours, one day
before the scheduled arrival of an LNG
carrier. This incident raised security
concerns and prompted the LNG facility
to conduct a visual inspection of the
above water mooring features and a
complete underwater survey, in turn
delaying the LNG vessel. The visual
inspection and underwater survey was
necessary to ensure no objects that
could potentially harm the vessel or
facility were left in the slip. Although
E:\FR\FM\15MYR1.SGM
15MYR1
]]>Agencies
[Federal Register Volume 72, Number 93 (Tuesday, May 15, 2007)]
[Rules and Regulations]
[Pages 27243-27244]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-9331]
=======================================================================
-----------------------------------------------------------------------
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 June 2007. Interest assumptions are
also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective June 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 June 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 June 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 June 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 5.14 percent for the first 20 years following the
valuation date and 4.81 percent thereafter. These interest assumptions
represent a decrease (from those in effect for May 2007) of 0.06
percent for the first 20 years following the valuation date and 0.06
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 are unchanged from those in effect
for May 2007. 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 June 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 164, 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 Deferred annuities (percent)
date Immediate --------------------------------------------------------
Rate set -------------------------------- annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
164............................................ 6-1-07 7-1-07 3.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 27244]]
0
3. In appendix C to part 4022, Rate Set 164, 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 Deferred annuities (percent)
date Immediate --------------------------------------------------------
Rate set -------------------------------- annuity rate
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
164............................................ 6-1-07 7-1-07 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 June 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 = it
----------------------------------------------------------------------------------------------------------- ---------
* * * * * * *
June 2007.................... .0514 1-20 .0481 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 10th day of May 2007.
Vincent K. Snowbarger,
Interim Director, Pension Benefit Guaranty Corporation.
[FR Doc. E7-9331 Filed 5-14-07; 8:45 am]
BILLING CODE 7709-01-P
