Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 20164-20166 [E8-7939]

Download as PDF 20164 Federal Register / Vol. 73, No. 73 / Tuesday, April 15, 2008 / Rules and Regulations (Lat. 30°14′09″ N., long. 81°40′50″ W.) Whitehouse NOLF, FL (Lat. 30°21′01″ N., long. 81°52′59″ W.) Herlong Airport (Lat. 30°16′40″ N., long. 81°48′21″ W.) That airspace extending upward from the surface of the Earth, to and including 2,600 feet MSL, within a 4.3-mile radius of Cecil Field; excluding that airspace within the Jacksonville NAS Class D airspace area, excluding that airspace north of a line from lat. 30°17′00″ N., long. 81°50′24″ W. to lat. 30°17′00″ N., long. 81°54′47″ W., which abuts the Jacksonville Whitehouse NOLF Class D airspace, and excluding that airspace within a 1.8-mile radius of Herlong Airport. This Class D airspace area is effective during the specific days and times established in advance by a Notice to Airmen. The effective days and times will thereafter be continuously published in the Airport/ Facility Directory. * * * * * Paragraph 6004 Class E Airspace Areas Designated as an Extension to a Class D Surface Area. * * * * * ASO FL E4 Jacksonville Cecil Field, FL [New] Cecil Field, FL (Lat. 30°13′07″ N., long. 81°52′36″ W.) Cecil VOR (Lat. 30°12′47″ N., long. 81°53′27″ W.) That airspace extending upward from the surface of the Earth within 2.4 miles each side of the Cecil VOR 286 radial extending from the 4.3-mile radius to 7 miles west of the VOR. This Class E airspace area is effective during the specific days and times established in advance by a Notice to Airmen. The effective days and times will thereafter be continuously published in the Airport/Facility Directory. * * * * * Issued in College Park, Georgia, on March 27, 2008. Mark D. Ward, Manager, System Support Group, Eastern Service Center. [FR Doc. E8–7669 Filed 4–14–08; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 135 Use of Radar in Instrument Approach Procedures Federal Aviation Administration (FAA), DOT. ACTION: Final rule; technical amendment. rfrederick on PROD1PC67 with RULES AGENCY: SUMMARY: This final rule corrects an inaccurate cross-reference citation in one of the FAA regulations. This correction is necessary to direct the VerDate Aug<31>2005 15:34 Apr 14, 2008 Jkt 214001 reader to the actual paragraph that addresses the use of radar in instrument approaches. DATES: This rule is effective April 15, 2008. FOR FURTHER INFORMATION CONTACT: Dennis Pratte, 135 Air Carrier Operations Branch, AFS–250, Flight Standards Service, Federal Aviation Administration, 800 Independence Avenue, SW., Washington, DC 20591; Telephone No. (202) 493–4971; e-mail dennis.pratte@faa.gov. SUPPLEMENTARY INFORMATION: Background Section 135.211 was added to Title 14 of the Code of Federal Regulations on October 10, 1978 (43 FR 46783). Paragraph (a)(2) of this section originally contained a cross-reference to paragraph (f) of 14 CFR 91.116, which addressed the use of radar in instrument approach procedures for landings. On August 18, 1989, 14 CFR part 91 was revised (54 FR 34294). As part of the revision, the information previously contained in § 91.116 transferred to § 91.175. The information formerly in § 91.116(f) became § 91.175(i). A second amendment on that same day amended § 135.211(a)(2) to change the crossreference from § 91.116 to § 91.175 (54 FR 34332). However, the Regional Air Cargo Carriers Association informed the FAA that the reference to paragraph (f) was not changed to paragraph (i), as it should have been. As a result, the current regulations mistakenly refer readers to paragraph (f) of § 91.175, which addresses the minimum weather conditions for takeoffs under instrument flight rules, instead of paragraph (i) of § 91.175, which addresses the use of radar in instrument approach procedures for landings. This inaccurate cross-reference may cause confusion for pilots who are looking for the guidance on the use of radar when landing. Therefore, the FAA is amending § 135.211(a)(2) to correct this crossreference. Technical Amendment This technical amendment will correct the cross-reference in § 135.211(a)(2) to properly refer to § 91.175(i). Justification for Immediate Adoption Because this action corrects an incorrect paragraph reference, the FAA finds that notice and public comment under 5 U.S.C. 553(b) is unnecessary. For the same reason, the FAA finds that good cause exists under 5 U.S.C. 553(d) for making this rule effective upon publication. PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 List of Subjects in 14 CFR Part 135 Aircraft, Airmen, Aviation safety. The Amendment In consideration of the foregoing, the Federal Aviation Administration amends Chapter I of Title 14, Code of Federal Regulations, part 135, as follows: I PART 135—OPERATING REQUIREMENTS: COMMUTER AND ON DEMAND OPERATIONS AND RULES GOVERNING PERSONS ON BOARD SUCH AIRCRAFT 1. The authority citation for part 135 continues to read as follows: I Authority: 49 U.S.C. 106(g), 41706, 40113, 44701–44702, 44705, 44709, 44711–44713, 44715–44717, 44722, 45101–45105. § 135.211 [Amended] 2. Amend § 135.211(a)(2) by removing the citation ‘‘§ 91.175(f)’’ and adding in its place the citation ‘‘§ 91.175(i)’’. I Issued in Washington, DC, on April 9, 2008. Pamela Hamilton-Powell, Director, Office of Rulemaking. [FR Doc. E8–7966 Filed 4–14–08; 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 May 2008. Interest assumptions are also published on the PBGC’s Web site (https://www.pbgc.gov). DATES: Effective May 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, E:\FR\FM\15APR1.SGM 15APR1 20165 Federal Register / Vol. 73, No. 73 / Tuesday, April 15, 2008 / Rules and Regulations 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 May 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 May 2008, and (3) adds to Appendix C to Part 4022 the interest assumptions for private-sector pension practitioners to Rate set For plans with a valuation date On or after * 175 refer to if they wish to use lump-sum interest rates determined using the PBGC’s historical methodology for valuation dates during May 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 5.81 percent for the first 20 years following the valuation date and 4.88 percent thereafter. These interest assumptions represent an increase (from those in effect for April 2008) of 0.17 percent for the first 20 years following the valuation date and 0.17 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 April 2008. 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 May 2008, the * 05–1–08 3. In appendix C to part 4022, Rate Set 175, as set forth below, is added to the table. I For plans with a valuation date rfrederick on PROD1PC67 with RULES On or after * 175 VerDate Aug<31>2005 * 05–1–08 15:34 Apr 14, 2008 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 175, as set forth below, is added to the table. I Appendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments * * * * * i3 * n1 * 4.00 n2 * 7 8 n1 n2 Appendix C to Part 4022—Lump Sum Interest Rates for Private-Sector Payments * * * 06–1–08 Jkt 214001 4.00 * * Deferred annuities (percent) Immediate annuity rate (percent) Before 29 CFR Part 4022 i2 * 4.00 3.25 * Rate set it * 06–1–08 List of Subjects Deferred annuities (percent) Immediate annuity rate (percent) Before 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). PO 00000 3.25 Frm 00017 i1 i2 * 4.00 4.00 Fmt 4700 Sfmt 4700 i3 * * 4.00 E:\FR\FM\15APR1.SGM 15APR1 * 7 8 20166 Federal Register / Vol. 73, No. 73 / Tuesday, April 15, 2008 / Rules and Regulations 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 May 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 * * * May 2008 .......................................................................... Issued in Washington, DC, on this 7th day of April 2008. Vincent K. Snowbarger, Deputy Director, Pension Benefit Guaranty Corporation. [FR Doc. E8–7939 Filed 4–14–08; 8:45 am] BILLING CODE 7709–01–P DEPARTMENT OF THE INTERIOR Minerals Management Service 30 CFR Part 250 [Docket ID: MMS–2007–OMM–0060] RIN 1010–AD48 Incorporate American Petroleum Institute Hurricane Bulletins Minerals Management Service (MMS), Interior. ACTION: Final rule. rfrederick on PROD1PC67 with RULES AGENCY: SUMMARY: The direct final rule will incorporate by reference three American Petroleum Institute hurricane bulletins into MMS’s regulations. The three bulletins supplement the American Petroleum Institute’s Recommended Practice 2A–WSD, Recommended Practice for Planning, Designing, and Constructing Fixed Offshore Platforms— Working Stress Design, which contains engineering design principles and good practices for new platforms and assessments of existing platforms. These bulletins are needed to increase survivability during hurricane events by imposing more stringent design and assessment criteria for both new and existing structures located within particular Gulf of Mexico areas. By increasing survivability during hurricane conditions, fewer platforms will be damaged, thereby, protecting critical oil and gas resources and making those resources available after hurricane events. DATES: Effective Date: This rule becomes effective on May 15, 2008. The incorporation by reference of the publication listed in the regulation was VerDate Aug<31>2005 15:34 Apr 14, 2008 Jkt 214001 for t = it for t = 1–20 * .0488 >20 * .0581 approved by the Director of the Federal Register on May 15, 2008. FOR FURTHER INFORMATION CONTACT: Kirk Malstrom, Office of Offshore Regulatory Programs, Regulations and Standards Branch, at (703) 787–1751. SUPPLEMENTARY INFORMATION: Background After the 2004 and 2005 hurricane seasons, there was significant damage to the oil and gas infrastructure. There were 123 fixed structures destroyed, one floating facility destroyed, and significant damage to dozens of other fixed and floating structures. The offshore oil and gas industry operating in the Gulf of Mexico (GOM) realized that there was a disparity in the metocean criteria in American Petroleum Institute’s (API) Recommended Practice (RP) 2A–WSD, Recommended Practice for Planning, Designing, and Constructing Fixed Offshore Platforms—Working Stress Design, for the central GOM. The metocean criteria are the standards to which structures are designed and assessed to withstand certain meteorological events involving wind, wave, current, and surge. Following the 2005 hurricane season, MMS, the API, and other industry representatives worked collectively to produce the API hurricane bulletins to increase the survivability of Outer Continental Shelf (OCS) structures during hurricanes. Each hurricane bulletin updates criteria contained within current MMS incorporated-by-reference API documents. The MMS will incorporate the following API Bulletins in § 250.901: • BULLETIN 2INT–MET, Interim Guidance on Hurricane Conditions in the Gulf of Mexico, updates hurricane metocean conditions (wind, wave, current, and surge) documented in Sections 2.3.4.c and 17.6.2.a of API RP 2A–WSD. • BULLETIN 2INT–DG, Interim Guidance for Design of Offshore Structures for Hurricane Conditions, contains guidance on how to utilize the PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 it * for t = * N/A N/A updated metocean conditions in Bulletin 2INT–MET for designing new offshore structures required in the following API design documents: RP 2A–WSD; RP 2FPS, Recommended Practice for Planning, Designing and Constructing Floating Production Systems; RP 2RD, Design of Risers for Floating Production Systems and Tension-Leg Platforms; RP 2SK, Design and Analysis of Stationkeeping Systems for Floating Structures; RP 2T, Planning Designing and Constructing Tension Leg Platforms; and BULLETIN 2TD, Guidelines for Tie-downs on Offshore Production Facilities for Hurricane Season. • BULLETIN 2INT–EX, Interim Guidance for Assessment of Existing Offshore Structures for Hurricane Conditions, gives guidance on how to utilize the updated metocean conditions in Bulletin 2INT–MET for the assessment of existing offshore structures required in the following API design documents: RP 2A–WSD; RP 2FPS; RP 2RD; RP 2SK; RP 2T; and BULLETIN 2TD. You may inspect these bulletins at the Minerals Management Service, 381 Elden Steet, Room 3313, Herndon, Virginia; or at the National Archives and Records Administration. You may obtain these bulletins from API, 1220 L Street, NW., Washington, DC. The MMS uses standards, specifications, and recommended practices developed by standard-setting organizations and the oil and gas industry as a means of establishing requirements for activities on the OCS. This practice, known as incorporation by reference, allows us to incorporate the provisions of technical standards into the regulations. The legal effect of incorporation by reference is the material is treated as if the entire document were published in the Federal Register. This material, like any other properly issued regulation, has the force and effect of law. We hold operators/lessees accountable for complying with the documents E:\FR\FM\15APR1.SGM 15APR1

Agencies

[Federal Register Volume 73, Number 73 (Tuesday, April 15, 2008)]
[Rules and Regulations]
[Pages 20164-20166]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-7939]


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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 May 2008. Interest assumptions are 
also published on the PBGC's Web site (https://www.pbgc.gov).

DATES: Effective May 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,

[[Page 20165]]

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 May 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 May 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 May 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 5.81 percent for the first 20 years following the 
valuation date and 4.88 percent thereafter. These interest assumptions 
represent an increase (from those in effect for April 2008) of 0.17 
percent for the first 20 years following the valuation date and 0.17 
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 April 2008. 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 May 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 175, 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)            it               i2               i3               n1               n2
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          175           05-1-08          06-1-08             3.25             4.00             4.00             4.00                7                8
--------------------------------------------------------------------------------------------------------------------------------------------------------


0
3. In appendix C to part 4022, Rate Set 175, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
          175           05-1-08          06-1-08             3.25             4.00             4.00             4.00                7                8
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 20166]]

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 May 2008, 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 =
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
May 2008....................        .0581          1-20         .0488           >20           N/A           N/A
----------------------------------------------------------------------------------------------------------------


    Issued in Washington, DC, on this 7th day of April 2008.
Vincent K. Snowbarger,
Deputy Director, Pension Benefit Guaranty Corporation.
 [FR Doc. E8-7939 Filed 4-14-08; 8:45 am]
BILLING CODE 7709-01-P
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