Benefits Payable in Terminated Single-Employer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits, 61352-61354 [E8-24651]
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61352
Federal Register / Vol. 73, No. 201 / Thursday, October 16, 2008 / Rules and Regulations
IV. Findings and Certifications
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (2 U.S.C. 1531–
1538) (UMRA) establishes requirements
for federal agencies to assess the effects
of their regulatory actions on state,
local, and tribal governments and the
private sector. This proposed rule does
not impose any federal mandates on any
state, local, or tribal government or the
private sector within the meaning of
UMRA.
Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits an agency from
publishing any rule that has federalism
implications if the rule either imposes
substantial direct compliance costs on
state and local governments and is not
required by statute, or the rule preempts
state law, unless the agency meets the
consultation and funding requirements
of section 6 of the Order. This rule does
not have federalism implications and
would not impose substantial direct
compliance costs on state and local
governments nor preempt state law
within the meaning of the Order.
rwilkins on PROD1PC63 with NOTICES
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 601 et seq.), generally requires
an agency to conduct a regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements, unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. This rule,
consistent with recent statutory
amendments, provides PHAs with the
flexibility to enter into energy
performance contracts with terms of not
more than 20 years. These revisions
impose no significant economic impact
on a substantial number of small
entities. Therefore, the undersigned
certifies that this rule will not have a
significant impact on a substantial
number of small entities.
Notwithstanding HUD’s view that this
rule will not have a significant effect on
a substantial number of small entities,
HUD specifically invites comments
regarding any less burdensome
alternatives to this rule that will meet
HUD’s objectives as described in this
preamble.
Environmental Impact
This final rule does not direct,
provide for assistance or loan and
mortgage insurance for, or otherwise
govern or regulate real property
acquisition, disposition, leasing,
rehabilitation, alteration, demolition, or
VerDate Aug<31>2005
16:18 Oct 15, 2008
Jkt 217001
new construction; or establish, revise, or
provide for standards for construction or
construction materials, manufactured
housing, or occupancy. Accordingly,
under 24 CFR 50.19(c)(1), this rule is
categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321).
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic
Assistance program number is 14.850.
List of Subjects in 24 CFR Part 990
Accounting, Grant programs—housing
and community development, Public
housing, Reporting and recordkeeping
requirements.
■ Accordingly, for the reasons described
in the preamble, HUD amends 24 CFR
part 990 as follows:
PART 990—THE PUBLIC HOUSING
OPERATING FUND PROGRAM
approval to extend the term of an
executed energy performance contract.
*
*
*
*
*
(3) * * *
(iv) If energy cost savings are less than
the amount necessary to meet
amortization payments specified in a
contract, the contract term may be
extended (up to the 20-year limit) if
HUD determines that the shortfall is the
result of changed circumstances, rather
than a miscalculation or
misrepresentation of projected energy
savings by the contractor or PHA. The
contract term may be extended only to
accommodate payment to the contractor
and associated direct costs.
*
*
*
*
*
Dated: September 11, 2008.
Paula O. Blunt,
General Deputy Assistant Secretary for Public
and Indian Housing.
[FR Doc. E8–24573 Filed 10–15–08; 8:45 am]
BILLING CODE 4210–67–P
1. The authority citation for part 990
continues to read as follows:
■
Authority: 42 U.S.C. 1437g; 42 U.S.C.
3535(d).
PENSION BENEFIT GUARANTY
CORPORATION
2. In § 990.185, revise paragraph (a)
introductory text and paragraph
(a)(3)(iv), to read as follows:
29 CFR Parts 4022 and 4044
■
§ 990.185 Utilities expense level:
Incentives for energy conservation/rate
reduction.
(a) General/consumption reduction. If
a PHA undertakes energy conservation
measures that are financed by an entity
other than HUD, the PHA may qualify
for the incentives available under this
section. For a PHA to qualify for these
incentives, the PHA must enter into a
contract to finance the energy
conservation measures, and must obtain
HUD approval. Such approval shall be
based on a determination that payments
under a contract can be funded from
reasonably anticipated energy cost
savings. The contract period shall not
exceed 20 years. The energy
conservation measures may include, but
are not limited to: Physical
improvements financed by a loan from
a bank, utility, or governmental entity;
management of costs under the
performance contract; or a shared
savings agreement with a private energy
service company. All such contracts
shall be known as energy performance
contracts. PHAs may extend an
executed energy performance contract
with a term of less than 20 years to a
term of not more than 20 years, to
permit additional energy conservation
improvements without the
reprocurement of energy performance
contractors. The PHA must obtain HUD
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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 November 2008. Interest
assumptions are also published on the
PBGC’s Web site (https://www.pbgc.gov).
DATES: Effective November 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
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61353
Federal Register / Vol. 73, No. 201 / Thursday, October 16, 2008 / Rules and Regulations
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 November 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
November 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
November 2008.
For valuation of benefits for allocation
purposes, the interest assumptions that
Rate set
For plans with a
valuation date
On or after
*
181
the PBGC will use (set forth in
Appendix B to part 4044) will be 7.09
percent for the first 20 years following
the valuation date and 6.16 percent
thereafter. These interest assumptions
represent an increase (from those in
effect for October 2008) of 0.91 percent
for the first 20 years following the
valuation date and 0.91 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 3.75 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 an increase (from those in
effect for October 2008) of 0.50 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 November 2008,
the PBGC finds that good cause exists
for making the assumptions set forth in
*
11–1–08
3. In appendix C to part 4022, Rate Set
181, as set forth below, is added to the
table.
■
For plans with a
valuation date
rwilkins on PROD1PC63 with NOTICES
On or after
*
181
VerDate Aug<31>2005
*
11–1–08
16:18 Oct 15, 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:
■
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
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.
2. In appendix B to part 4022, Rate Set
181, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates for PBGC Payments
*
*
*
*
*
i3
*
n1
*
4.00
n2
*
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8
n1
n2
Appendix C to Part 4022—Lump Sum
Interest Rates for Private-Sector
Payments
*
*
*
12–1–08
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4.00
*
*
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Before
29 CFR Part 4022
i2
*
4.00
3.75
*
Rate set
i1
*
12–1–08
List of Subjects
Deferred annuities
(percent)
Immediate
annuity rate
(percent)
Before
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).
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61354
Federal Register / Vol. 73, No. 201 / Thursday, October 16, 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 November 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 it are:
For valuation dates occurring in the month—
for t =
*
*
*
November 2008 ................................................................
Issued in Washington, DC, on this 9th day
of October 2008.
Vincent K. Snowbarger,
Deputy Director for Operations,Pension
Benefit Guaranty Corporation.
[FR Doc. E8–24651 Filed 10–15–08; 8:45 am]
BILLING CODE 7709–01–P
it
for t =
1–20
it
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.0616
>20
*
.0709
Individuals with disabilities can
obtain this document in an alternative
format (e.g., Braille, large print,
audiotape, or computer diskette) on
request to the contact person listed
under FOR FURTHER INFORMATION
CONTACT.
On May 8,
2008 the Secretary published a notice of
proposed rulemaking (NPRM) for this
part in the Federal Register (73 FR
26056). In the summary to the NPRM,
on pages 26056 and 26507, the Secretary
discussed how the proposed regulations
would amend the Department’s Privacy
Act regulations to exempt from certain
Privacy Act requirements investigative
material in a new system of records. The
new system of records is the Office of
Inspector General Data Analytics
System (ODAS) and the exemption
would apply to materials compiled by
the Office of Inspector General (OIG) for
law enforcement purposes.
There are no differences between the
NPRM and these final regulations.
SUPPLEMENTARY INFORMATION:
DEPARTMENT OF EDUCATION
34 CFR Part 5b
RIN 1880–AA85
[Docket ID ED, ED–2008–OM–0004]
Privacy Act Regulations
Office of Management,
Department of Education.
ACTION: Final regulations.
rwilkins on PROD1PC63 with NOTICES
AGENCY:
SUMMARY: The Secretary amends the
regulations implementing the Privacy
Act of 1974, as amended (Privacy Act).
These changes are intended to exempt
from certain Privacy Act requirements
investigative material in a new system
of records maintained by the
Department that will be known as the
Office of Inspector General Data
Analytics System (ODAS) (18–10–02).
Specifically, the exemption applies to
materials compiled by the Department’s
Office of Inspector General (OIG) for law
enforcement purposes to identify
internal control weaknesses and system
issues and to improve methods of data
modeling and annual audit planning in
order to detect and investigate fraud,
waste, and mismanagement in
Department programs and operations.
DATES: These regulations are effective
November 17, 2008.
FOR FURTHER INFORMATION CONTACT:
Shelley Shepherd, Office of Inspector
General, U.S. Department of Education,
400 Maryland Avenue, SW., room 8166,
Washington, DC 20202–5920.
Telephone: (202) 245–7077.
If you use a telecommunications
device for the deaf (TDD), you may call
the Federal Relay Service (FRS) at
1–800–877–8339.
VerDate Aug<31>2005
16:18 Oct 15, 2008
Jkt 217001
Analysis of Comments and Changes
In response to the Secretary’s
invitation in the NPRM, the Department
received no comments on the proposed
regulations.
Executive Order 12866
We have reviewed these final
regulations in accordance with
Executive Order 12866. Under the terms
of the order we have assessed the
potential costs and benefits of this
regulatory action.
The potential costs associated with
the final regulations are those resulting
from statutory requirements and those
we have determined to be necessary for
administering this program effectively
and efficiently.
In assessing the potential costs and
benefits—both quantitative and
qualitative—of these final regulations,
we have determined that the benefits of
the regulations justify the costs.
We have also determined that this
regulatory action does not unduly
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for t =
it
*
*
N/A
N/A
interfere with State, local, and tribal
governments in the exercise of their
governmental functions.
We summarized the potential costs
and benefits of these final regulations in
the NPRM at 73 FR 26058.
Paperwork Reduction Act of 1995
These regulations do not contain any
information collection requirements.
Electronic Access to This Document
You can view this document, as well
as all other documents of this
Department published in the Federal
Register, in text and Adobe Portable
Document Format (PDF) on the Internet
at the following site: https://www.ed.gov/
news/fedregister.
To use PDF you must have Adobe
Acrobat Reader, which is available free
at this site. If you have questions about
using PDF, call the U.S. Government
Printing Office (GPO), toll free, at 1–
888–293–6498; or in the Washington,
DC area at (202) 512–1530.
Note: The official version of this document
is the document published in the Federal
Register. Free Internet access to the official
edition of the Federal Register and the Code
of Federal Regulations is available on GPO
Access at: https://www.gpoaccess.gov/nara/
index.html.
(Catalog of Federal Domestic Assistance
Number does not apply.)
Dated: October 10, 2008.
Christopher P. Marston,
Assistant Secretary for Management.
For the reasons discussed in the
preamble, the Secretary amends Part 5b
of title 34 of the Code of Federal
Regulations as follows:
■
PART 5b—PRIVACY ACT
REGULATIONS
1. The authority citation for part 5b
continues to read as follows:
■
Authority: 5 U.S.C. 301, 5 U.S.C. 552a.
2. Section 5b.11 is amended by
revising paragraph (c)(1) introductory
text to read as follows:
■
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]]>Agencies
[Federal Register Volume 73, Number 201 (Thursday, October 16, 2008)]
[Rules and Regulations]
[Pages 61352-61354]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-24651]
=======================================================================
-----------------------------------------------------------------------
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 November 2008. Interest assumptions
are also published on the PBGC's Web site (https://www.pbgc.gov).
DATES: Effective November 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
[[Page 61353]]
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 November 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 November 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 November 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 7.09 percent for the first 20 years following the
valuation date and 6.16 percent thereafter. These interest assumptions
represent an increase (from those in effect for October 2008) of 0.91
percent for the first 20 years following the valuation date and 0.91
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 3.75
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 an increase (from those in
effect for October 2008) of 0.50 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 November
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 181, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
181 11-1-08 12-1-08 3.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
0
3. In appendix C to part 4022, Rate Set 181, 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
181 11-1-08 12-1-08 3.75 4.00 4.00 4.00 7 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 61354]]
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 November 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 =
----------------------------------------------------------------------------------------------------------------
* * * * * * *
November 2008............... .0709 1-20 .0616 >20 N/A N/A
----------------------------------------------------------------------------------------------------------------
Issued in Washington, DC, on this 9th day of October 2008.
Vincent K. Snowbarger,
Deputy Director for Operations,Pension Benefit Guaranty Corporation.
[FR Doc. E8-24651 Filed 10-15-08; 8:45 am]
BILLING CODE 7709-01-P
