Federal Employees' Retirement System; Normal Cost Percentages, 31631 [E7-11084]
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Federal Register / Vol. 72, No. 109 / Thursday, June 7, 2007 / Notices
Office of Personnel Management.
Linda M. Springer,
Director.
[FR Doc. E7–11083 Filed 6–6–07; 8:45 am]
BILLING CODE 6325–38–P
OFFICE OF PERSONNEL
MANAGEMENT
Federal Employees’ Retirement
System; Normal Cost Percentages
Office of Personnel
Management.
ACTION: Notice.
rwilkins on PROD1PC63 with NOTICES
AGENCY:
SUMMARY: The Office of Personnel
Management (OPM) is providing notice
of revised normal cost percentages for
employees covered by the Federal
Employees’ Retirement System (FERS)
Act of 1986.
DATES: The revised normal cost
percentages are effective at the
beginning of the first pay period
commencing on or after October 1, 2007.
Agency appeals of the normal cost
percentages must be filed no later than
December 7, 2007.
ADDRESSES: Send or deliver agency
appeals of the normal cost percentages
and requests for actuarial assumptions
and data to the Board of Actuaries, care
of Gregory Kissel, Manager, Office of
Actuaries, Strategic Human Resources
Policy Division, Office of Personnel
Management, Room 4307, 1900 E Street,
NW., Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT:
Jessica Johnson, (202) 606–0299.
SUPPLEMENTARY INFORMATION: The FERS
Act of 1986, Public Law 99–335, created
a new retirement system intended to
cover most Federal employees hired
after 1983. Most Federal employees
hired before 1984 are under the older
Civil Service Retirement System (CSRS).
Section 8423 of title 5, United States
Code, as added by the FERS Act of 1986,
provides for the payment of the
Government’s share of the cost of the
retirement system under FERS.
Employees’ contributions are
established by law and constitute only
a small fraction of the cost of funding
the retirement system; employing
agencies are required to pay the
remaining costs. The amount of funding
required, known as ‘‘normal cost,’’ is the
entry age normal cost of the provisions
of FERS that relate to the Civil Service
Retirement and Disability Fund (Fund).
The normal cost must be computed by
OPM in accordance with generally
accepted actuarial practices and
standards (using dynamic assumptions).
Subpart D of part 841 of title 5, Code of
VerDate Aug<31>2005
20:59 Jun 06, 2007
Jkt 211001
Federal Regulations, regulates how
normal costs are determined.
Recently, the Board of Actuaries of
the Civil Service Retirement System
approved a revised set of economic
assumptions for use in the dynamic
actuarial valuations of FERS. These
assumptions were adopted after the
Board reviewed statistical data prepared
by the OPM actuaries and considered
trends that may affect future experience
under the System.
Based on its analysis, the Board
concluded that it would be appropriate
to assume a rate of investment return of
6.25 percent, with no difference from
the current rate of 6.25 percent. The
Board increased the anticipated
inflation rate from 3.25 percent to 3.50
percent, and increased the projected rate
of General Schedule salary increases
from 4.00 percent to 4.25 percent. These
salary increases are in addition to
assumed within-grade increases that
reflect past experience.
The new assumptions anticipate that,
over the long term, the annual rate of
investment return will exceed inflation
by 2.75 percent and General Schedule
salary increases will exceed inflation by
.75 percent a year, as compared to 3
percent and .75 percent, respectively,
under the previous assumptions. In
addition, the Board found changes in all
the demographic assumptions listed as
factors under § 841.404(a) of title 5,
Code of Federal Regulations.
The normal cost calculations depend
on both the economic and demographic
assumptions. The demographic
assumptions are determined separately
for each of a number of special groups,
in cases where separate experience data
is available. Based on the new economic
assumptions and the change in the
demographic assumption, OPM has
determined the normal cost percentage
for each category of employees under
§ 841.403 of title 5, Code of Federal
Regulations. The Governmentwide
normal cost percentages, including the
employee contributions, are as follows:
Members .......................................
Congressional employees ............
Law enforcement officers, members of the Supreme Court Police, firefighters, nuclear materials couriers and employees
under section 302 of the Central Intelligence Agency Retirement Act of 1964 for Certain
Employees ................................
Air traffic controllers ......................
Military reserve technicians ..........
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
31631
Percent
Employees under section 303 of
the Central Intelligence Agency
Retirement Act of 1964 for Certain Employees (when serving
abroad) ......................................
All other employees ......................
17.0
12.0
Under section 841.408 of title 5, Code
of Federal Regulations, these normal
cost percentages are effective at the
beginning of the first pay period
commencing on or after October 1, 2007.
The time limit and address for filing
agency appeals under sections 841.409
through 841.412 of title 5, Code of
Federal Regulations, are stated in the
DATES and ADDRESSES sections of this
notice.
Office of Personnel Management.
Linda M. Springer,
Director.
[FR Doc. E7–11084 Filed 6–6–07; 8:45 am]
BILLING CODE 6325–38–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
27843; 813–306]
Stephens Inc., et al.; Notice of
Application
May 29, 2007.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application for an
order under sections 6(b) and 6(e) of the
Investment Company Act of 1940 (the
‘‘Act’’) granting an exemption from all
provisions of the Act, except section 9
and sections 36 through 53, and the
rules and regulations under the Act.
With respect to sections 17 and 30 of the
Act, and the rules and regulations
thereunder, and rule 38a–1 under the
Act, the exemption is limited as set
forth in the application.
AGENCY:
Applicants
request an order to exempt certain
limited liability companies and other
entities (‘‘Companies’’) formed for the
benefit of key employees of Stephens
Percent
Inc. (‘‘Stephens’’) and its affiliates from
18.6 certain provisions of the Act. Each
17.1 Company will be an ‘‘employees’
securities company’’ within the
meaning of section 2(a)(13) of the Act.
APPLICANTS: Stephens; Stephens
Investment Partners 2001 LLC, Stephens
Investment Partners 2001A LLC,
Stephens Investment Partners 2001B
26.2 LLC, Stephens Investment Partners
25.8 2001C LLC, Stephens Investment
14.8 Partners 2003 LLC, Stephens Investment
SUMMARY OF APPLICATION:
E:\FR\FM\07JNN1.SGM
07JNN1
]]>Agencies
[Federal Register Volume 72, Number 109 (Thursday, June 7, 2007)]
[Notices]
[Page 31631]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-11084]
-----------------------------------------------------------------------
OFFICE OF PERSONNEL MANAGEMENT
Federal Employees' Retirement System; Normal Cost Percentages
AGENCY: Office of Personnel Management.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is providing notice
of revised normal cost percentages for employees covered by the Federal
Employees' Retirement System (FERS) Act of 1986.
DATES: The revised normal cost percentages are effective at the
beginning of the first pay period commencing on or after October 1,
2007. Agency appeals of the normal cost percentages must be filed no
later than December 7, 2007.
ADDRESSES: Send or deliver agency appeals of the normal cost
percentages and requests for actuarial assumptions and data to the
Board of Actuaries, care of Gregory Kissel, Manager, Office of
Actuaries, Strategic Human Resources Policy Division, Office of
Personnel Management, Room 4307, 1900 E Street, NW., Washington, DC
20415.
FOR FURTHER INFORMATION CONTACT: Jessica Johnson, (202) 606-0299.
SUPPLEMENTARY INFORMATION: The FERS Act of 1986, Public Law 99-335,
created a new retirement system intended to cover most Federal
employees hired after 1983. Most Federal employees hired before 1984
are under the older Civil Service Retirement System (CSRS). Section
8423 of title 5, United States Code, as added by the FERS Act of 1986,
provides for the payment of the Government's share of the cost of the
retirement system under FERS. Employees' contributions are established
by law and constitute only a small fraction of the cost of funding the
retirement system; employing agencies are required to pay the remaining
costs. The amount of funding required, known as ``normal cost,'' is the
entry age normal cost of the provisions of FERS that relate to the
Civil Service Retirement and Disability Fund (Fund). The normal cost
must be computed by OPM in accordance with generally accepted actuarial
practices and standards (using dynamic assumptions). Subpart D of part
841 of title 5, Code of Federal Regulations, regulates how normal costs
are determined.
Recently, the Board of Actuaries of the Civil Service Retirement
System approved a revised set of economic assumptions for use in the
dynamic actuarial valuations of FERS. These assumptions were adopted
after the Board reviewed statistical data prepared by the OPM actuaries
and considered trends that may affect future experience under the
System.
Based on its analysis, the Board concluded that it would be
appropriate to assume a rate of investment return of 6.25 percent, with
no difference from the current rate of 6.25 percent. The Board
increased the anticipated inflation rate from 3.25 percent to 3.50
percent, and increased the projected rate of General Schedule salary
increases from 4.00 percent to 4.25 percent. These salary increases are
in addition to assumed within-grade increases that reflect past
experience.
The new assumptions anticipate that, over the long term, the annual
rate of investment return will exceed inflation by 2.75 percent and
General Schedule salary increases will exceed inflation by .75 percent
a year, as compared to 3 percent and .75 percent, respectively, under
the previous assumptions. In addition, the Board found changes in all
the demographic assumptions listed as factors under Sec. 841.404(a) of
title 5, Code of Federal Regulations.
The normal cost calculations depend on both the economic and
demographic assumptions. The demographic assumptions are determined
separately for each of a number of special groups, in cases where
separate experience data is available. Based on the new economic
assumptions and the change in the demographic assumption, OPM has
determined the normal cost percentage for each category of employees
under Sec. 841.403 of title 5, Code of Federal Regulations. The
Governmentwide normal cost percentages, including the employee
contributions, are as follows:
------------------------------------------------------------------------
Percent
------------------------------------------------------------------------
Members...................................................... 18.6
Congressional employees...................................... 17.1
Law enforcement officers, members of the Supreme Court 26.2
Police, firefighters, nuclear materials couriers and
employees under section 302 of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees.........
Air traffic controllers...................................... 25.8
Military reserve technicians................................. 14.8
Employees under section 303 of the Central Intelligence 17.0
Agency Retirement Act of 1964 for Certain Employees (when
serving abroad).............................................
All other employees.......................................... 12.0
------------------------------------------------------------------------
Under section 841.408 of title 5, Code of Federal Regulations,
these normal cost percentages are effective at the beginning of the
first pay period commencing on or after October 1, 2007.
The time limit and address for filing agency appeals under sections
841.409 through 841.412 of title 5, Code of Federal Regulations, are
stated in the DATES and ADDRESSES sections of this notice.
Office of Personnel Management.
Linda M. Springer,
Director.
[FR Doc. E7-11084 Filed 6-6-07; 8:45 am]
BILLING CODE 6325-38-P
