Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 47831-47833 [E8-19061]
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Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Rules and Regulations
state, local, or tribal governments, or by
the private sector. This rule will not
result in any such expenditure nor will
it significantly or uniquely affect small
governments.
Executive Orders 12372 and 13132:
Federalism
This rule does not have federalism
implications warranting the application
of Executive Orders No. 12372 and No.
13132. It will not have substantial direct
effects on the States, on the relationship
between the national government and
the States, or on the distribution of
power and responsibilities among the
various levels of government.
Executive Order 12866: Regulatory
Review
The Department of State does not
consider this interim final rule to be a
‘‘significant regulatory action’’ under
Executive Order 12866, section 3(f),
Regulatory Planning and Review. In
addition, the Department is generally
exempt from Executive Order 12866
except to the extent that it is
promulgating regulations in conjunction
with a domestic agency that are
significant regulatory actions. The
Department has nevertheless reviewed
the regulation to ensure its consistency
with the regulatory philosophy and
principles set forth in that Executive
Order.
Executive Order 12988: Civil Justice
Reform
The Paperwork Reduction Act of 1995
Under the Paperwork Reduction Act
of 1995 (PRA), 44 U.S.C. 3501, et seq.,
Federal agencies must obtain approval
from OMB for most collections of
information they conduct, sponsor, or
require through regulation. The
Department of State has determined that
this rule does not require new collection
of information for purposes of the PRA.
sroberts on PROD1PC70 with PROPOSALS
Infants and children, Reporting and
recordkeeping requirements, Treaties.
I For the reasons set forth in the
preamble, 22 CFR part 94 is revised to
read as follows:
PART 94—INTERNATIONAL CHILD
ABDUCTION
1. The authority citation for part 94
continues to read as follows:
I
VerDate Aug<31>2005
17:44 Aug 14, 2008
Jkt 214001
2. Section 94.6 is amended by revising
the introductory text and revising
paragraph (a) and paragraph (l) to read
as follows:
I
§ 94.6 Procedures for children abducted to
the United States.
The U.S. Central Authority, or an
entity acting at its direction, shall
perform the following operational
functions with respect to all Hague
Convention applications seeking the
return of children wrongfully removed
to or retained in the United States or
seeking access to children in the United
States:
(a) Receive all applications seeking
return of children wrongfully retained
in the United States or seeking access to
children in the United States;
*
*
*
*
*
(l) Perform such additional functions
as determined by the U.S. Central
Authority, deemed advisable to
maintain U.S. treaty compliance with
the Hague Convention on the Civil
Aspects of International Child
Abduction.
Dated: July 23, 2008.
Janice Jacobs,
Assistant Secretary of State for Consular
Affairs, Department of State.
[FR Doc. E8–18961 Filed 8–14–08; 8:45 am]
BILLING CODE 4710–06–P
The Department has reviewed the
regulations in light of sections 3 (a) and
3 (b)(2) of Executive Order No. 12988 to
eliminate ambiguity, minimize
litigation, establish clear legal
standards, and reduce burden.
List of Subjects in 22 CFR Part 94
Authority: Hague Convention on the Civil
Aspects of International Child Abduction;
International Child Abduction Remedies Act,
Public Law 100–300.
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 September 2008. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective September 1, 2008.
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47831
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 September 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 September 2008,
and (3) adds to appendix C to part 4022
the interest assumptions for privatesector 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
September 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 6.24 percent for
the first 20 years following the valuation
date and 5.31 percent thereafter. These
interest assumptions represent an
increase (from those in effect for August
2008) of 0.19 percent for the first 20
years following the valuation date and
0.19 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 3.50 percent for the
period during which a benefit is in pay
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15AUR1
47832
Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Rules and Regulations
status and 4.00 percent during any years
preceding the benefit’s placement in pay
status. These interest assumptions
represent an increase (from those in
effect for August 2008) of 0.25 percent
in the immediate annuity rate and are
otherwise unchanged. 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
Rate set
For plans with a valuation
date
On or after
*
179
Before
and payment of benefits in plans with
valuation dates during September 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).
3. In appendix C to part 4022, Rate Set
179, as set forth below, is added to the
table.
For plans with a valuation
date
On or after
*
179
Before
i1
*
*
i2
*
4.00
3.50
*
*
*
i3
4.00
n1
*
n2
*
*
4.00
7
8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
*
i1
3.50
i2
*
4.00
*
10–1–08
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
09–1–08
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
*
Rate set
1. The authority citation for part 4022
continues to read as follows:
I
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
*
I
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
2. In appendix B to part 4022, Rate Set
179, as set forth below, is added to the
table.
29 CFR Part 4022
10–1–08
Employee benefit plans, Pension
insurance, Pensions.
I In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
I
List of Subjects
*
09–1–08
29 CFR Part 4044
i3
4.00
*
*
*
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 September 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
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September 2008 ...............................................................
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Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Rules and Regulations
Issued in Washington, DC, on this 11th day
of August 2008.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension
Benefit Guaranty Corporation.
[FR Doc. E8–19061 Filed 8–14–08; 8:45 am]
BILLING CODE 7709–01–P
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket No. MC2008–5; Order No. 94]
Administrative Practice and Procedure,
Postal Service
Postal Regulatory Commission.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Commission is adding
the Postal Service’s Express Mail
Contract 1 to the competitive product
list. This action is consistent with
changes in a recent law governing postal
operations. Re-publication of the lists of
market dominant and competitive
products is also consistent with new
requirements in the law.
DATES: Effective August 15, 2008.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820 and
stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION:
sroberts on PROD1PC70 with PROPOSALS
I. Background
On July 21, 2008, the Postal Service
filed a request pursuant to 39 U.S.C.
3642 and 39 CFR 3020.30, et seq. to
modify the Mail Classification Schedule
by adding Express Mail Contract 1 to the
competitive product list. The Postal
Service asserts that Express Mail
Contract 1 is a competitive product ‘‘not
of general applicability’’ within the
meaning of 39 U.S.C. 3632(b)(3).1 A
redacted version of the Governors’
Decision establishing the price and
classification and a certification of the
Governors’ vote is included as
Attachment A to the filing (Attachment
A). The requested changes in the Mail
Classification Schedule product list are
included in the filing as Attachment B
with the new product shown in
brackets.2 The statement of supporting
1 Request of the United States Postal Service to
Add Express Mail Contract to Competitive Product
List and Notice of Establishment of Rates and Class
Not of General Applicability, July 21, 2008
(Request).
2 The draft Mail Classification Schedule (MCS)
remains under review. The Commission anticipates
VerDate Aug<31>2005
17:44 Aug 14, 2008
Jkt 214001
justification required by 39 CFR 3020.32
is included as Attachment C to the filing
(Attachment C).
In the same July 21, 2008 filing, the
Postal Service gives notice, pursuant to
39 U.S.C. 3632(b)(3) and 39 CFR 3015.5,
that the Governors have established
prices and classifications not of general
applicability for Express Mail Contract
1. Request at 2.
In support of its Request, the Postal
Service has also filed materials under
seal, including an unredacted version of
an explanation and justification in the
Governors’ Decision and an unredacted
analysis. Also filed under seal are the
cost and revenue data and the
certification of compliance with 39
U.S.C. 3633(a)(1), (2), and (3). The
Postal Service asserts ‘‘that the contract,
related financial information, the
customer’s name and the portions of the
Governors’ Decision and accompanying
analysis that provides prices, terms, and
conditions should remain confidential.’’
Id.
After its initial review, the
Commission sought additional
information with respect to several
issues in this case. Toward that end, it
issued Commission Information Request
No. 1 on July 29, 2008.3 The Postal
Service promptly responded providing
the requested clarifying information on
August 4, 2008.4
As noted above, the Postal Service
filing in this docket was made pursuant
to rule 3015.5 and rule 3020.30 et seq.
As a consequence, the Commission will
review the filing under both rule 3015
and part 3020, subpart B.
II. Comments
Comments were filed by United
Parcel Service (UPS),5 the Public
Representative,6 and David B. Popkin.7
providing interested persons an opportunity to
comment on the draft MCS in the near future.
3 Commission Information Request No. 1, July 29,
2008.
4 See Notice of Response of the United States
Postal Service to Commission Information Request
No. 1, August 4, 2008.
5 Comments of United Parcel Service in Response
to Order Concerning Modification of the Mail
Classification Schedule and Prices Under Express
Mail Negotiated Service Agreement, July 31, 2008
(UPS Comments).
6 Public Representative Comments in Response to
United States Postal Service Request to Modify the
Mail Classification Schedule and Prices Under
Express Mail Negotiated Service Agreement, July
31, 2008 (Public Representative Comments).
7 Initial Comments of David B. Popkin, July 31,
2008 (Popkin Comments). Popkin also filed a Letter
of Intervention and Request for Information. Letter
from David B. Popkin to Steven W. Williams,
Notice of Intervention and Request for Information,
July 30, 2008 (Letter). The Commission notes that
notices of intervention are not necessary for the
filing of comments in these types of proceedings
and are, in fact, discouraged. Where appropriate,
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47833
UPS urges the Commission to require
public disclosure of the proposed
contracts subject to adequate safeguards
to allow meaningful public review. It
believes that if interested parties are
denied access to this information, the
complaint process under section 3662
will be largely rendered a nullity. UPS
Comments at 2.
Along the same lines, Popkin
expresses concern that because the
Postal Service’s filing was largely under
seal, the public cannot comment
meaningfully on it. Popkin Comments at
2. In addition, Popkin offers several
observations about the filing in this case
and waiver of signature upon delivery.
Id. at 3.
The Public Representative comments
on several aspects of the Postal Service’s
filings in this case including (1)
confidentiality; (2) pricing, cost
coverage, and contribution; and (3) the
specific agreement. With respect to
confidentiality, the Public
Representative argues that the Postal
Service should justify the limits of all
confidentiality requests to comport with
the spirit of Federal Rules of Civil
Procedure 26(c) and the Freedom of
Information Act. Public Representative
Comments at 3. With respect to pricing,
cost coverage and contribution, the
Public Representative acknowledges
that the pricing in the negotiated service
agreement (NSA) comports with the
provisions of title 39. With respect to
the specific agreement, the Public
Representative believes that it promotes
an increased Express Mail volume,
specifically pieces that are less costly to
process. Id. at 5.
III. Commission Analysis
A. Statutory Requirements
The statutory responsibility of the
Commission, in this instance, is to
assign a new product to either the
market dominant list or the competitive
product list. 39 U.S.C. 3642. As part of
this responsibility, the Commission also
will preliminarily review the proposal
for compliance with the requirements of
the Postal Accountability and
Enhancement Act (PAEA) of 2006. For
proposed competitive products, this
includes a review of the provisions
applicable to rates for competitive
products. 39 U.S.C. 3633.
The Postal Service contends that
adding the Express Mail Contract 1
product will result in processing
Express Mail pieces that are less costly
for the Postal Service than the average
Express Mail piece. See Request,
Attachment A. It believes that its
motions may be filed under Commission rule
3001.21.
E:\FR\FM\15AUR1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 159 (Friday, August 15, 2008)]
[Rules and Regulations]
[Pages 47831-47833]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-19061]
=======================================================================
-----------------------------------------------------------------------
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 September 2008. Interest assumptions
are also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective September 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 September 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 September 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 September 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 6.24 percent for the first 20 years following the
valuation date and 5.31 percent thereafter. These interest assumptions
represent an increase (from those in effect for August 2008) of 0.19
percent for the first 20 years following the valuation date and 0.19
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 3.50
percent for the period during which a benefit is in pay
[[Page 47832]]
status and 4.00 percent during any years preceding the benefit's
placement in pay status. These interest assumptions represent an
increase (from those in effect for August 2008) of 0.25 percent in the
immediate annuity rate and are otherwise unchanged. 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 September
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 179, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
179 09-1-08 10-1-08 3.50 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 179, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
179 09-1-08 10-1-08 3.50 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 September 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
September 2008.............. .0624 1-20 .0531 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
[[Page 47833]]
Issued in Washington, DC, on this 11th day of August 2008.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension Benefit Guaranty Corporation.
[FR Doc. E8-19061 Filed 8-14-08; 8:45 am]
BILLING CODE 7709-01-P
