Allocation of Assets in Single-Employer Plans; Valuation of Benefits and Assets; Expected Retirement Age, 67645-67646 [E7-23270]
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Federal Register / Vol. 72, No. 230 / Friday, November 30, 2007 / Rules and Regulations
terminated either in a distress
termination or involuntarily by the
PBGC with a valuation date falling in
2008, and is used to determine expected
List of Subjects in 29 CFR Part 4022
retirement ages for plan participants.
Pension insurance, Pensions,
This table is needed in order to compute
Reporting and recordkeeping
the value of early retirement benefits
requirements.
and, thus, the total value of benefits
I In consideration of the foregoing, 29
under the plan.
CFR part 4022 is amended as follows:
DATES: Effective Date: January 1, 2008.
FOR FURTHER INFORMATION CONTACT:
PART 4022—BENEFITS PAYABLE IN
Catherine B. Klion, Manager, Regulatory
TERMINATED SINGLE-EMPLOYER
and Policy Division, Legislative and
PLANS
Regulatory Department, Pension Benefit
I 1. The authority citation for part 4022
Guaranty Corporation, 1200 K Street,
continues to read as follows:
NW., Washington, DC 20005, 202–326–
Authority: 29 U.S.C. 1302, 1322, 1322b,
4024. (TTY/TDD users may call the
1341(c)(3)(D), and 1344.
Federal relay service toll-free at 1–800–
877–8339 and ask to be connected to
I 2. Appendix D to part 4022 is
202–326–4024.)
amended by adding a new entry to the
end of the table to read as follows. The
SUPPLEMENTARY INFORMATION: The
introductory text is reproduced for the
PBGC’s regulation on Allocation of
convenience of the reader and remains
Assets in Single-Employer Plans (29
unchanged.
CFR part 4044) sets forth (in subpart B)
the methods for valuing plan benefits of
Appendix D to Part 4022—Maximum
terminating single-employer plans
Guaranteeable Monthly Benefit
covered under Title IV of the Employee
The following table lists by year the
Retirement Income Security Act of 1974.
maximum guaranteeable monthly benefit
Under ERISA section 4041(c),
payable in the form of a life annuity
guaranteed benefits and benefit
commencing at age 65 as described by
liabilities under a plan that is
§ 4022.22(b) to a participant in a plan that
undergoing a distress termination must
terminated in that year:
be valued in accordance with part 4044,
Maximum
subpart B. In addition, when the PBGC
guaranteeable terminates an underfunded plan
Year
monthly
involuntarily pursuant to ERISA Section
benefit
4042(a), it uses the subpart B valuation
rules to determine the amount of the
plan’s underfunding.
*
*
*
*
*
2008 ......................................
$4,312.50
Under § 4044.51(b) of the asset
allocation regulation, early retirement
benefits are valued based on the annuity
Issued in Washington, DC, this 27th day of
November, 2007.
starting date, if a retirement date has
been selected, or the expected
Vincent K. Snowbarger,
retirement age, if the annuity starting
Deputy Director, Pension Benefit Guaranty
date is not known on the valuation date.
Corporation.
Sections 4044.55 through 4044.57 set
[FR Doc. E7–23267 Filed 11–29–07; 8:45 am]
forth rules for determining the expected
BILLING CODE 7709–01–P
retirement ages for plan participants
entitled to early retirement benefits.
Appendix D of part 4044 contains tables
PENSION BENEFIT GUARANTY
to be used in determining the expected
CORPORATION
early retirement ages.
29 CFR Part 4044
Table I in appendix D (Selection of
Retirement Rate Category) is used to
Allocation of Assets in Singledetermine whether a participant has a
Employer Plans; Valuation of Benefits
low, medium, or high probability of
and Assets; Expected Retirement Age
retiring early. The determination is
based on the year a participant would
AGENCY: Pension Benefit Guaranty
reach ‘‘unreduced retirement age’’ (i.e.,
Corporation.
the earlier of the normal retirement age
ACTION: Final rule.
or the age at which an unreduced
SUMMARY: This rule amends the Pension
benefit is first payable) and the
Benefit Guaranty Corporation’s
participant’s monthly benefit at
regulation on Allocation of Assets in
unreduced retirement age. The table
Single-Employer Plans by substituting a applies only to plans with valuation
new table that applies to any plan being dates in the current year and is updated
rwilkins on PROD1PC63 with RULES
regulation, the Regulatory Flexibility
Act of 1980 does not apply (5 U.S.C.
601(2)).
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16:09 Nov 29, 2007
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67645
annually by the PBGC to reflect changes
in the cost of living, etc.
Tables II–A, II–B, and II–C (Expected
Retirement Ages for Individuals in the
Low, Medium, and High Categories
respectively) are used to determine the
expected retirement age after the
probability of early retirement has been
determined using Table I. These tables
establish, by probability category, the
expected retirement age based on both
the earliest age a participant could retire
under the plan and the unreduced
retirement age. This expected retirement
age is used to compute the value of the
early retirement benefit and, thus, the
total value of benefits under the plan.
This document amends appendix D to
replace Table I–07 with Table I–08 in
order to provide an updated correlation,
appropriate for calendar year 2008,
between the amount of a participant’s
benefit and the probability that the
participant will elect early retirement.
Table I–08 will be used to value benefits
in plans with valuation dates during
calendar year 2008.
The PBGC has determined that notice
of and public comment on this rule are
impracticable and contrary to the public
interest. Plan administrators need to be
able to estimate accurately the value of
plan benefits as early as possible before
initiating the termination process. For
that purpose, if a plan has a valuation
date in 2008, the plan administrator
needs the updated table being
promulgated in this rule. Accordingly,
the public interest is best served by
issuing this table expeditiously, without
an opportunity for notice and comment,
to allow as much time as possible to
estimate the value of plan benefits with
the proper table for plans with valuation
dates in early 2008.
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
regulation, the Regulatory Flexibility
Act of 1980 does not apply (5 U.S.C.
601(2)).
List of Subjects in 29 CFR Part 4044
Pension insurance, Pensions.
In consideration of the foregoing, 29
CFR part 4044 is amended as follows:
I
PART 4044—[AMENDED]
1. The authority citation for part 4044
continues to read as follows:
I
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
2. Appendix D to part 4044 is
amended by removing Table I–07 and
I
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67646
Federal Register / Vol. 72, No. 230 / Friday, November 30, 2007 / Rules and Regulations
adding in its place Table I–08 to read as
follows:
Appendix D to Part 4044—Tables Used
to Determine Expected Retirement Age
TABLE I–08.—SELECTION OF RETIREMENT RATE CATEGORY
[(For Plans with valuation dates after December 31, 2007, and before January 1, 2009)]
Participant’s Retirement Rate Category is—
Low 1 if
monthly
benefit at
URA is less
than—
Participant reaches URA in year—
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
1
2
3
*
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
or later ....................................................................................................
From
536
549
563
576
589
602
616
630
645
660
To
536
549
563
576
589
602
616
630
645
660
2,264
2,320
2,376
2,430
2,486
2,544
2,602
2,662
2,723
2,786
High 3 if
monthly
benefit at
URA is greater
than—
2,264
2,320
2,376
2,430
2,486
2,544
2,602
2,662
2,723
2,786
Table II–A.
Table II–B.
Table II–C.
*
*
*
*
Issued in Washington, DC, this 27th day of
November, 2007.
Vincent K. Snowbarger,
Deputy Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E7–23270 Filed 11–29–07; 8:45 am]
BILLING CODE 7709–01–P
LIBRARY OF CONGRESS
Copyright Royalty Board
37 CFR Part 381
[Docket No. 2006–2 CRB NCBRA]
Noncommercial Educational
Broadcasting Statutory License
Copyright Royalty Board,
Library of Congress.
ACTION: Final rule.
AGENCY:
SUMMARY: The Copyright Royalty Judges
are publishing final regulations setting
the royalty rates and terms under the
Copyright Act for the noncommercial
educational broadcasting statutory
license for the license period 2008–
2012.
Effective Date: January 1, 2008.
Applicability Date: The regulations
apply to the license period January 1,
2008 through December 31, 2012.
FOR FURTHER INFORMATION CONTACT:
Richard Strasser, Senior Attorney, or
Gina Giuffreda, Attorney-Advisor, by
telephone at (202) 707–7658 or e-mail at
crb@loc.gov.
SUPPLEMENTARY INFORMATION:
DATES:
rwilkins on PROD1PC63 with RULES
Medium 2 if monthly benefit at
URA is
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16:09 Nov 29, 2007
Jkt 214001
Background
Section 118 of the Copyright Act, title
17 of the United States Code, establishes
a statutory license for the use of certain
copyrighted works in connection with
noncommercial television and radio
broadcasting. The terms and rates for
this statutory license have been adjusted
periodically by the Librarian of
Congress and appear in 37 CFR part 253.
However, the Copyright Royalty and
Distribution Reform Act of 2004, Pub. L.
108–419, transferred jurisdiction over
these rates and terms to the Copyright
Royalty Judges (‘‘Judges’’). 17 U.S.C.
801(b)(1). This is a window year for the
establishment of new rates and terms for
the 2008–2012 license period.
On January 9, 2006, pursuant to 17
U.S.C. 803(b)(1)(A)(i)(V), the Copyright
Royalty Judges published a notice in the
Federal Register announcing the
commencement of proceedings under 17
U.S.C. 118 and requesting interested
parties to submit their petitions to
participate. 71 FR 1453 (January 9,
2006). Petitions to participate were
received from: The American Council
on Education (‘‘ACE’’); the National
Music Publishers Association, Inc.
(‘‘NMPA’’); the Harry Fox Agency
(‘‘HFA’’); the National Religious
Broadcasters Noncommercial Music
License Committee (‘‘NRBNMLC’’);
Royalty Logic, Inc., the American
Society of Composers, Authors and
Publishers (‘‘ASCAP’’); Broadcast
Music, Inc. (‘‘BMI’’); SESAC, Inc.;
National Public Radio (‘‘NPR’’); the
Corporation for Public Broadcasting
(‘‘CPB’’); the Public Broadcasting
Service (‘‘PBS’’); and the Church Music
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Publishers Association. The Judges set
the timetable for the three-month
negotiation period, see 17 U.S.C.
803(b)(3), and directed the participants
to submit their written direct statements
no later than January 20, 2007. Instead
of written direct statements, the parties
submitted notification of settlements
and proposed rates and terms for the
Judges to adopt.
Section 801(b)(7)(A) allows for the
adoption of rates and terms negotiated
by ‘‘some or all of the participants in a
proceeding at any time during the
proceeding’’ provided they are
submitted to the Copyright Royalty
Judges for approval. This section
provides that in such event:
(i) The Copyright Royalty Judges shall
provide to those that would be bound by the
terms, rates, or other determination set by
any agreement in a proceeding to determine
royalty rates an opportunity to comment on
the agreement and shall provide to
participants in the proceeding under section
803(b)(2) that would be bound by the terms,
rates, or other determination set by the
agreement to comment on the agreement and
object to its adoption as a basis for statutory
terms and rates; and
(ii) the Copyright Royalty Judges may
decline to adopt the agreement as a basis for
statutory terms and rates for participants that
are not parties to the agreement, if any
participant described in clause (i) objects to
the agreement and the Copyright Royalty
Judges conclude, based on the record before
them if one exists, that the agreement does
not provide a reasonable basis for setting
statutory terms or rates.
17 U.S.C. 801(b)(7)(A). Accordingly, on
April 17, 2007, the Judges published a
Notice of Proposed Rulemaking
(‘‘NPRM’’) requesting comment on the
E:\FR\FM\30NOR1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 230 (Friday, November 30, 2007)]
[Rules and Regulations]
[Pages 67645-67646]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23270]
-----------------------------------------------------------------------
PENSION BENEFIT GUARANTY CORPORATION
29 CFR Part 4044
Allocation of Assets in Single-Employer Plans; Valuation of
Benefits and Assets; Expected Retirement Age
AGENCY: Pension Benefit Guaranty Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the Pension Benefit Guaranty Corporation's
regulation on Allocation of Assets in Single-Employer Plans by
substituting a new table that applies to any plan being terminated
either in a distress termination or involuntarily by the PBGC with a
valuation date falling in 2008, and is used to determine expected
retirement ages for plan participants. This table is needed in order to
compute the value of early retirement benefits and, thus, the total
value of benefits under the plan.
DATES: Effective Date: January 1, 2008.
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 regulation on Allocation of
Assets in Single-Employer Plans (29 CFR part 4044) sets forth (in
subpart B) the methods for valuing plan benefits of terminating single-
employer plans covered under Title IV of the Employee Retirement Income
Security Act of 1974. Under ERISA section 4041(c), guaranteed benefits
and benefit liabilities under a plan that is undergoing a distress
termination must be valued in accordance with part 4044, subpart B. In
addition, when the PBGC terminates an underfunded plan involuntarily
pursuant to ERISA Section 4042(a), it uses the subpart B valuation
rules to determine the amount of the plan's underfunding.
Under Sec. 4044.51(b) of the asset allocation regulation, early
retirement benefits are valued based on the annuity starting date, if a
retirement date has been selected, or the expected retirement age, if
the annuity starting date is not known on the valuation date. Sections
4044.55 through 4044.57 set forth rules for determining the expected
retirement ages for plan participants entitled to early retirement
benefits. Appendix D of part 4044 contains tables to be used in
determining the expected early retirement ages.
Table I in appendix D (Selection of Retirement Rate Category) is
used to determine whether a participant has a low, medium, or high
probability of retiring early. The determination is based on the year a
participant would reach ``unreduced retirement age'' (i.e., the earlier
of the normal retirement age or the age at which an unreduced benefit
is first payable) and the participant's monthly benefit at unreduced
retirement age. The table applies only to plans with valuation dates in
the current year and is updated annually by the PBGC to reflect changes
in the cost of living, etc.
Tables II-A, II-B, and II-C (Expected Retirement Ages for
Individuals in the Low, Medium, and High Categories respectively) are
used to determine the expected retirement age after the probability of
early retirement has been determined using Table I. These tables
establish, by probability category, the expected retirement age based
on both the earliest age a participant could retire under the plan and
the unreduced retirement age. This expected retirement age is used to
compute the value of the early retirement benefit and, thus, the total
value of benefits under the plan.
This document amends appendix D to replace Table I-07 with Table I-
08 in order to provide an updated correlation, appropriate for calendar
year 2008, between the amount of a participant's benefit and the
probability that the participant will elect early retirement. Table I-
08 will be used to value benefits in plans with valuation dates during
calendar year 2008.
The PBGC has determined that notice of and public comment on this
rule are impracticable and contrary to the public interest. Plan
administrators need to be able to estimate accurately the value of plan
benefits as early as possible before initiating the termination
process. For that purpose, if a plan has a valuation date in 2008, the
plan administrator needs the updated table being promulgated in this
rule. Accordingly, the public interest is best served by issuing this
table expeditiously, without an opportunity for notice and comment, to
allow as much time as possible to estimate the value of plan benefits
with the proper table for plans with valuation dates in early 2008.
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 regulation, the Regulatory Flexibility Act of 1980 does not apply
(5 U.S.C. 601(2)).
List of Subjects in 29 CFR Part 4044
Pension insurance, Pensions.
0
In consideration of the foregoing, 29 CFR part 4044 is amended as
follows:
PART 4044--[AMENDED]
0
1. 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
2. Appendix D to part 4044 is amended by removing Table I-07 and
[[Page 67646]]
adding in its place Table I-08 to read as follows:
Appendix D to Part 4044--Tables Used to Determine Expected Retirement
Age
TABLE I-08.--Selection of Retirement Rate Category
[(For Plans with valuation dates after December 31, 2007, and before January 1, 2009)]
----------------------------------------------------------------------------------------------------------------
Participant's Retirement Rate Category is--
---------------------------------------------------------------
Low \1\ if Medium \2\ if monthly benefit High \3\ if
Participant reaches URA in year-- monthly at URA is monthly
benefit at -------------------------------- benefit at
URA is less URA is greater
than-- From To than--
----------------------------------------------------------------------------------------------------------------
2009............................................ 536 536 2,264 2,264
2010............................................ 549 549 2,320 2,320
2011............................................ 563 563 2,376 2,376
2012............................................ 576 576 2,430 2,430
2013............................................ 589 589 2,486 2,486
2014............................................ 602 602 2,544 2,544
2015............................................ 616 616 2,602 2,602
2016............................................ 630 630 2,662 2,662
2017............................................ 645 645 2,723 2,723
2018 or later................................... 660 660 2,786 2,786
----------------------------------------------------------------------------------------------------------------
\1\ Table II-A.
\2\ Table II-B.
\3\ Table II-C.
* * * * *
Issued in Washington, DC, this 27th day of November, 2007.
Vincent K. Snowbarger,
Deputy Director, Pension Benefit Guaranty Corporation.
[FR Doc. E7-23270 Filed 11-29-07; 8:45 am]
BILLING CODE 7709-01-P
