Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 71071-71072 [E7-24245]
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71071
Federal Register / Vol. 72, No. 240 / Friday, December 14, 2007 / Rules and Regulations
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 January 2008. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective 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 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
Rate set
For plans with a valuation
date
On or after
*
rmajette on PROD1PC64 with RULES
171
VerDate Aug<31>2005
Before
*
01–1–08
14:52 Dec 13, 2007
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 January 2008, (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
January 2008, 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 January 2008.
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 5.42
percent for the first 20 years following
the valuation date and 4.49 percent
thereafter. These interest assumptions
represent an increase (in comparison to
those in effect for December 2008) of
0.05 percent for the first 20 years
following the valuation date and a
decrease of 0.55 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
represent no change from those in effect
for December 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
Immediate
annuity rate
(percent)
*
02–1–08
Jkt 214001
PO 00000
3.00
Frm 00017
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 January 2008, 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
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
171, 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
4.00
Fmt 4700
Sfmt 4700
i3
n1
*
*
4.00
E:\FR\FM\14DER1.SGM
14DER1
N2
*
7
8
71072
Federal Register / Vol. 72, No. 240 / Friday, December 14, 2007 / Rules and Regulations
3. In appendix C to part 4022, Rate Set
171, 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
Rate set
On or after
*
Before
*
Immediate
annuity rate
(percent)
*
171
*
*
01–1–08
02–1–08
3.00
*
*
Deferred annuities
(percent)
i1
i2
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 January 2008, 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
for t =
it
for t =
it
for t =
*
January 2008
*
.0542
*
1–20
*
.0449
*
>20
*
N/A
*
N/A
Issued in Washington, DC, on this 10th day
of December 2007.
Vincent K. Snowbarger,
Deputy Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E7–24245 Filed 12–13–07; 8:45 am]
BILLING CODE 7709–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 50 and 51
[EPA–HQ–OAR–2005–0159; FRL–8506–6]
RIN 2060–AN40
Exceptional Events Rule; Notice of
Action Denying Petition for
Reconsideration
Environmental Protection
Agency (EPA).
ACTION: Notice of Action Denying
Petition for Reconsideration.
AGENCY:
rmajette on PROD1PC64 with RULES
SUMMARY: The EPA is providing notice
that it has responded to a petition for
reconsideration of the Exceptional
Events Rule (EER). On March 22, 2007,
EPA finalized a rule in the Federal
Register to govern the review and
handling of air quality monitoring data
influenced by exceptional events.
Section 319 of the Clean Air Act (CAA),
as amended by section 6013 of the Safe
Accountable Flexible EfficientTransportation Equity Act: A Legacy for
Users (SAFE–TEA–LU) of 2005 required
the Administrator to publish a proposed
rule in the Federal Register by March 1,
2006. Further, SAFE–TEA–LU required
the EPA Administrator to publish a final
rule within 1 year of the proposal. The
final rule on the ‘‘Treatment of Data
Influenced by Exceptional Events’’
became effective on May 21, 2007.
Subsequent to the publication of this
action, a petition for reconsideration
from the Natural Resources Defense
Council (NRDC) was received by EPA
on May 21, 2007, signed by John D.
Walke; Director, Clean Air Program;
Natural Resources Defense Council;
1200 New York Avenue, NW., Suite
400, Washington, DC 20005–3928. The
EPA considered the petition and
supporting information along with
information contained in the
rulemaking docket (Docket number
EPA–HQ–OAR–2005–0159–0163) in
reaching a decision on the petitions.
EPA Administrator Stephen L. Johnson
denied the petition for reconsideration
in a letter to the petitioner dated
Jkt 214001
SUPPLEMENTARY INFORMATION:
I. How Can I Get Copies of This
Document and Other Related
Information?
This Federal Register notice, the
petition for reconsideration, and the
letter denying the petition for
reconsideration are available in the
docket that EPA established for the
Exceptional Events Rule (docket number
EPA–HQ–OAR–2005–0159). The table
below identifies the petition received by
EPA, the date EPA received the petition,
the document identification number for
the petition, the date of EPA’s response,
and the document identification number
for EPA’s response. (Note that all the
document numbers listed in the table
are in the form of ‘‘EPA–HQ–OAR–
XXXX–XXXX-xxxx.’’)
Petition: Document No. in
docket
5/21/2007
0163
Natural Resources Defense Council ...............................................................
14:52 Dec 13, 2007
FOR FURTHER INFORMATION CONTACT:
Padmini Singh, U.S. EPA, Office of
General Counsel, Mail Code 2344A,
1200 Pennsylvania Avenue, NW.,
Washington, DC 20460, telephone (202)
564–5641, e-mail at
singh.padmini@epa.gov.
Date of
petition to EPA
Petitioner
VerDate Aug<31>2005
November 5, 2007. The letter documents
EPA’s reasons for the denial.
PO 00000
Frm 00018
Fmt 4700
Sfmt 4700
E:\FR\FM\14DER1.SGM
14DER1
Date of EPA
response
11/05/2007
EPA response:
Document No.
in docket
0175
Agencies
[Federal Register Volume 72, Number 240 (Friday, December 14, 2007)]
[Rules and Regulations]
[Pages 71071-71072]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-24245]
[[Page 71071]]
-----------------------------------------------------------------------
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 January 2008. Interest assumptions
are also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective 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 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 January 2008, (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 January 2008, 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 January 2008.
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 5.42 percent for the first 20 years following the
valuation date and 4.49 percent thereafter. These interest assumptions
represent an increase (in comparison to those in effect for December
2008) of 0.05 percent for the first 20 years following the valuation
date and a decrease of 0.55 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 represent no change from those in
effect for December 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 January
2008, 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 171, 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 date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 N2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
171 01-1-08 02-1-08 3.00 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 71072]]
0
3. In appendix C to part 4022, Rate Set 171, 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 date Immediate Deferred annuities (percent)
Rate set ---------------------------------- annuity rate ------------------------------------------------------------------------------------
On or after Before (percent) i1 i2 i3 n1 n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
171 01-1-08 02-1-08 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 January 2008, as set
forth below, is added to the table.
Appendix B to Part 4044--Interest Rates Used To Value Benefits
* * * * *
----------------------------------------------------------------------------------------------------------------
For valuation The values of it are:
dates occurring ------------------------------------------------------------------------------------------------
in the month-- it for t = it for t = it for t =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
January 2008 .0542 1-20 .0449 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 10th day of December 2007.
Vincent K. Snowbarger,
Deputy Director, Pension Benefit Guaranty Corporation.
[FR Doc. E7-24245 Filed 12-13-07; 8:45 am]
BILLING CODE 7709-01-P