Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 53115-53116 [E8-21415]
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Federal Register / Vol. 73, No. 179 / Monday, September 15, 2008 / Rules and Regulations
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BILLING CODE 4910–9X–P
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VerDate Aug<31>2005
17:00 Sep 12, 2008
Jkt 214001
Dated: September 8, 2008.
Samuel Podberesky,
Assistant General Counsel for Aviation
Enforcement and Proceedings, U.S.
Department of Transportation.
[FR Doc. E8–21204 Filed 9–12–08; 8:45 am]
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 October 2008. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective October 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
payable as a lump sum and to determine
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
53115
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 October 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
October 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 October 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 6.18
percent for the first 20 years following
the valuation date and 5.25 percent
thereafter. These interest assumptions
represent a decrease (from those in
effect for September 2008) of 0.06
percent for the first 20 years following
the valuation date and 0.06 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 a decrease (from those in
effect for September 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 October 2008,
the PBGC finds that good cause exists
for making the assumptions set forth in
E:\FR\FM\15SER1.SGM
15SER1
53116
Federal Register / Vol. 73, No. 179 / Monday, September 15, 2008 / Rules and Regulations
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
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE–EMPLOYER
PLANS
29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
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.
29 CFR Part 4044
2. In appendix B to part 4022, Rate Set
180, as set forth below, is added to the
table.
■
Employee benefit plans, Pension
insurance, Pensions.
In consideration of the foregoing, 29
CFR parts 4022 and 4044 are amended
as follows:
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
For plans with a
valuation date
Rate set
On or after
*
180
*
10–1–08
3. In appendix C to part 4022, Rate Set
180, as set forth below, is added to the
table.
■
For plans with a
valuation date
On or after
*
180
*
10–1–08
*
*
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
3.25
i2
*
4.00
*
11–1–08
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Before
i2
*
4.00
3.25
*
Rate set
i1
*
11–1–08
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Before
*
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 October 2008, as set forth
below, is added to the table.
*
■
4. The authority citation for part 4044
continues to read as follows:
■
*
*
*
*
The values of i t are:
For valuation dates occurring in the month—
it
*
*
*
October 2008 ....................................................................
Issued in Washington, DC, on this 8th day
of September 2008.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension
Benefit Guaranty Corporation.
[FR Doc. E8–21415 Filed 9–12–08; 8:45 am]
for t =
it
for t =
1–20
*
.0525
>20
*
.0618
DEPARTMENT OF LABOR
Mine Safety and Health Administration
30 CFR Part 49
RIN 1219–AB56
jlentini on PROD1PC65 with RULES
BILLING CODE 7709–01–P
Mine Rescue Team Equipment
Mine Safety and Health
Administration (MSHA), Labor.
ACTION: Final rule.
AGENCY:
VerDate Aug<31>2005
17:00 Sep 12, 2008
Jkt 214001
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
it
*
for t =
*
N/A
N/A
SUMMARY: The final rule amends
MSHA’s existing standards addressing
mine rescue team equipment at mine
rescue stations serving underground
coal and metal and nonmetal mines. It
updates the existing standards to reflect
advances in mine rescue team
equipment technology to increase safety
and improve the effectiveness of mine
rescue teams.
This final rule is effective on
November 14, 2008.
DATES:
E:\FR\FM\15SER1.SGM
15SER1
]]>Agencies
[Federal Register Volume 73, Number 179 (Monday, September 15, 2008)]
[Rules and Regulations]
[Pages 53115-53116]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-21415]
=======================================================================
-----------------------------------------------------------------------
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 October 2008. Interest assumptions
are also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective October 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 October 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 October 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 October 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 6.18 percent for the first 20 years following the
valuation date and 5.25 percent thereafter. These interest assumptions
represent a decrease (from those in effect for September 2008) of 0.06
percent for the first 20 years following the valuation date and 0.06
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 a decrease (from those in
effect for September 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 October
2008, the PBGC finds that good cause exists for making the assumptions
set forth in
[[Page 53116]]
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 180, 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) i 1 i 2 i 3 n 1 n 2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
180 10-1-08 11-1-08 3.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 180, 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) i 1 i 2 i 3 n 1 n 2
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
180 10-1-08 11-1-08 3.25 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
PART 4044--ALLOCATION OF ASSETS IN SINGLE-EMPLOYER PLANS
0
4. The authority citation for part 4044 continues to read as follows:
Authority: 29 U.S.C. 1301(a), 1302(b)(3), 1341, 1344, 1362.
0
5. In appendix B to part 4044, a new entry for October 2008, as set
forth below, is added to the table.
Appendix B to Part 4044--Interest Rates Used To Value Benefits
* * * * *
----------------------------------------------------------------------------------------------------------------
The values of i t are:
For valuation dates -----------------------------------------------------------------------------------
occurring in the month-- i t for t = i t for t = i t for t =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
October 2008................ .0618 1-20 .0525 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 8th day of September 2008.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension Benefit Guaranty Corporation.
[FR Doc. E8-21415 Filed 9-12-08; 8:45 am]
BILLING CODE 7709-01-P
