Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 58249-58250 [E7-20270]
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Federal Register / Vol. 72, No. 198 / Monday, October 15, 2007 / Rules and Regulations
implications for purposes of the
executive order.
The Treasury and General Government
Appropriations Act, 1999—Assessment
of Federal Regulations and Policies on
Families
The NCUA has determined that this
rule will not affect family well-being
within the meaning of section 654 of the
Treasury and General Government
Appropriations Act, 1999, Pub. L. 105–
277, 112 Stat. 2681 (1998).
Small Business Regulatory Enforcement
Fairness Act
The Small Business Regulatory
Enforcement Fairness Act of 1996 (Pub.
L. 104–121) (SBREFA) provides
generally for congressional review of
agency rules. A reporting requirement is
triggered in instances where NCUA
issues a final rule as defined by Section
551 of the APA. 5 U.S.C. 551. The Office
of Management and Budget is currently
reviewing this rule as it pertains to
SBREFA.
List of Subjects in 12 CFR Part 711
Antitrust, Banks, Banking, Credit
unions.
By the National Credit Union
Administration Board on October 9, 2007.
Mary Rupp,
Secretary of the Board.
For the reasons discussed above,
NCUA is amending part 711 as follows:
I
PART 711—MANAGEMENT OFFICIAL
INTERLOCKS
1. The authority citation for part 711
continues to read as follows:
I
Authority: 12 U.S.C. 1757 and 3201–3208.
2. Section 711.3(b) is amended by
removing the number ‘‘20’’ and adding
number ‘‘50’’ in its place.
I
[FR Doc. E7–20266 Filed 10–12–07; 8:45 am]
BILLING CODE 7535–01–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Parts 4022 and 4044
yshivers on PROD1PC62 with RULES
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:
The Pension Benefit Guaranty
Corporation’s regulations on Benefits
SUMMARY:
VerDate Aug<31>2005
12:51 Oct 12, 2007
Jkt 214001
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 November 2007. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective November 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 November 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
November 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
November 2007.
For valuation of benefits for allocation
purposes, the interest assumptions that
the PBGC will use (set forth in
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
58249
Appendix B to part 4044) will be 5.46
percent for the first 20 years following
the valuation date and 5.13 percent
thereafter. These interest assumptions
represent a decrease (from those in
effect for October 2007) of 0.05 percent
for the first 20 years following the
valuation date and 0.05 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 3.25 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 no change from those in effect
for October 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 November 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.
In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
I
E:\FR\FM\15OCR1.SGM
15OCR1
58250
Federal Register / Vol. 72, No. 198 / Monday, October 15, 2007 / Rules and Regulations
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.
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
2. In appendix B to part 4022, Rate Set
169, as set forth below, is added to the
table.
*
I
For plans with a valuation
date
Rate set
On or after
*
*
*
169 ............................................................................
3. In appendix C to part 4022, Rate Set
169, as set forth below, is added to the
table.
I
Before
Immediate annuity rate
(percent)
*
12–1–07
11–1–07
*
*
*
*
Deferred annuities
(percent)
i2
i1
*
3.25
i3
*
4.00
4.00
n1
n2
*
4.00
7
8
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
*
*
*
For plans with a valuation
date
Rate set
On or after
*
*
*
169 ............................................................................
11–1–07
Before
Immediate annuity rate
(percent)
*
12–1–07
Deferred annuities
(percent)
i2
i1
*
3.25
i3
*
4.00
4.00
n1
n2
*
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 November 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
*
*
*
*
November 2007 ................................................................................................................
Issued in Washington, DC, on this 10th day
of October 2007.
Vincent K. Snowbarger,
Deputy Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E7–20270 Filed 10–12–07; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
yshivers on PROD1PC62 with RULES
[CGD08–07–025]
AGENCY:
Coast Guard, DHS.
VerDate Aug<31>2005
12:51 Oct 12, 2007
Notice of temporary deviation
from regulations.
ACTION:
SUMMARY: The Commander, Eighth
Coast Guard District, has issued a
temporary deviation from the regulation
governing the operation of the BNSF
Railway Company Swing Bridge across
the Charenton Drainage and
Navigational Canal, mile 0.4, at
Baldwin, St. Mary Parish, LA. This
deviation provides for the bridge to
remain closed to navigation for 5 days
with three hour openings each day to
conduct maintenance repairs to the
drawbridge.
This deviation is effective from
8 a.m. on October 22, 2007 through 8
p.m. on October 26, 2007.
ADDRESSES: Materials referred to in this
document are available for inspection or
copying at the office of the Eighth Coast
DATES:
Drawbridge Operation Regulations;
Charenton Drainage and Navigation
Canal, Baldwin, LA
Jkt 214001
*
.0546
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
for t =
it
1-20
*
.0513
for t =
>20
it
*
N/A
for t =
N/A
Guard District, Bridge Administration
Branch, Hale Boggs Federal Building,
Room 1313, 500 Poydras Street, New
Orleans, Louisiana 70130–3310 between
7 a.m. and 3 p.m., Monday through
Friday, except Federal holidays. The
telephone number is (504) 671–2128.
The Bridge Administration Branch
maintains the public docket for this
temporary deviation.
FOR FURTHER INFORMATION CONTACT: Bart
Marcules, Bridge Administration
Branch, telephone (504) 671–2128.
SUPPLEMENTARY INFORMATION: The BNSF
Railway Company has requested a
temporary deviation in order to replace
or repair a bent shaft, bearings, and
housing that are integral to the safe
operation of the swing bridge across the
Charenton Drainage and Navigational
Canal, mile 0.4, at Baldwin, St. Mary
Parish, LA. This bridge opens on signal
E:\FR\FM\15OCR1.SGM
15OCR1
]]>Agencies
[Federal Register Volume 72, Number 198 (Monday, October 15, 2007)]
[Rules and Regulations]
[Pages 58249-58250]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-20270]
=======================================================================
-----------------------------------------------------------------------
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 November 2007. Interest assumptions
are also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective November 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 November 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 November 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 November 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 5.46 percent for the first 20 years following the
valuation date and 5.13 percent thereafter. These interest assumptions
represent a decrease (from those in effect for October 2007) of 0.05
percent for the first 20 years following the valuation date and 0.05
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 3.25
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 no change from those in
effect for October 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 November
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:
[[Page 58250]]
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 169, 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 Immediate Deferred annuities (percent)
valuation date annuity ----------------------------------------------
Rate set -------------------------- rate
On or after Before (percent) i1 i2 i3 n1 n2
----------------------------------------------------------------------------------------------------------------
* * * * * * *
169......................... 11-1-07 12-1-07 3.25 4.00 4.00 4.00 7 8
----------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 169, 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 Immediate Deferred annuities (percent)
valuation date annuity ----------------------------------------------
Rate set -------------------------- rate
On or after Before (percent) i1 i2 i3 n1 n2
----------------------------------------------------------------------------------------------------------------
* * * * * * *
169......................... 11-1-07 12-1-07 3.25 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 November 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
November 2007............................................. .0546 1-20 .0513 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 10th day of October 2007.
Vincent K. Snowbarger,
Deputy Director, Pension Benefit Guaranty Corporation.
[FR Doc. E7-20270 Filed 10-12-07; 8:45 am]
BILLING CODE 7709-01-P
