Federal Register / Vol. 68, No. 199 / Wednesday, October 15, 2003 / Rules and Regulations 59315

Dated: August 20, 2003. 

Hector V. Barreto, 

Administrator.

[FR Doc. 03–26036 Filed 10–14–03; 8:45 am] 

BILLING CODE 8025–01–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

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 singleemployer plans. This final rule amends 

the regulations to adopt interest 

assumptions for plans with valuation 

dates in November 2003. Interest 

assumptions are also published on the 

PBGC’s Web site (http://www.pbgc.gov).

EFFECTIVE DATE: November 1, 2003.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General 

Counsel, Office of the General Counsel, 

Pension Benefit Guaranty Corporation, 

1200 K Street, NW., Washington, DC 

20005, 202–326–4024. (TTY/TDD users 

may call the Federal relay service tollfree 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). 

Accordingly, 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 2003, 

(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 2003, 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 2003. 

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 4.60 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 

October 2003) of 0.30 percent for the 

first 20 years following the valuation 

date and are otherwise unchanged. 

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 October 2003) of 0.25 percent 

for the period during which a benefit is 

in pay status 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, as 

accurately as possible, current market 

conditions. 

Because of the need to provide 

immediate guidance for the valuation 

and payment of benefits in plans with 

valuation dates during November 2003, 

the PBGC finds that good cause exists 

for making the assumptions set forth in 

this amendment effective less than 30 

days after publication. 

The PBGC has determined that this 

action is not a ‘‘significant regulatory 

action’’ under the criteria set forth in 

Executive Order 12866. 

Because no general notice of proposed 

rulemaking is required for this 

amendment, the Regulatory Flexibility 

Act of 1980 does not apply. See 5 U.S.C. 

601(2).

List of Subjects 

29 CFR Part 4022 

Employee benefit plans, Pension 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

29 CFR Part 4044 

Employee benefit plans, Pension 

insurance, Pensions.

■ In consideration of the foregoing, 29 

CFR parts 4022 and 4044 are amended as 

follows:

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 

121, as set forth below, is added to the 

table. (The introductory text of the table 

is omitted.) 

Appendix B to Part 4022—Lump Sum 

Interest Rates For PBGC Payments

* * * * *

Rate set 

For plans with a valuation 

date Immediate

annuity rate

(percent) 

Deferred annuities (percent) 

On or after Before i1 i2 i3 n1 n2

* * * * * * * 

121 11–1–03 12–1–03 3.25 4.00 4.00 4.00 7 8 

59316 Federal Register / Vol. 68, No. 199 / Wednesday, October 15, 2003 / Rules and Regulations 

■ 3. In appendix C to part 4022, Rate Set 

121, as set forth below, is added to the 

table. (The introductory text of the table 

is omitted.) 

Appendix C to Part 4022—Lump Sum 

Interest Rates For Private-Sector 

Payments

* * * * *

Rate set 

For plans with a valuation 

date Immediate

annuity rate

(percent) 

Deferred annuities (percent) 

On or after Before i1 i2 i3 n1 n2

* * * * * * * 

121 11–1–03 12–1–03 3.25 4.00 4.00 4.00 7 8 

PART 4044—ALLOCATION OF 

ASSETS IN SINGLE-EMPLOYER 

PLANS

■ 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.

■ 5. In appendix B to part 4044, a new 

entry, as set forth below, is added to the 

table. (The introductory text of the table 

is omitted.) 

Appendix B to Part 4044—Interest 

Rates Used to Value Benefits

* * * * *

For valuation dates occurring in the month—

The values of it are: 

it for t= it for t= it for t= 

* * * * * * * 

November 2003 ................................................................ .0460 1–20 .0525 20 N/A N/A 

Issued in Washington, DC, on this 7th day 

of October 2003. 

Joseph H. Grant, 

Deputy Executive Director and Chief 

Operating Officer, Pension Benefit Guaranty 

Corporation.

[FR Doc. 03–26026 Filed 10–14–03; 8:45 am] 

BILLING CODE 7708–01–P

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[CGD08–03–026] 

RIN 1625–AA09 

Drawbridge Operation Regulation; 

Illinois Waterway, IL

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

SUMMARY: The Commander, Eighth 

Coast Guard District is temporarily 

changing the regulation governing the 

McDonough Street Bridge, mile 287.3; 

Jefferson Street Bridge, mile 287.9; Cass 

Street Bridge, mile 288.1; Jackson Street 

Bridge, mile 288.4; and the Ruby Street 

Bridge, mile 288.7, across the Illinois 

Waterway at Joliet, Illinois. The 

drawbridges, with the exception of the 

Jefferson Street Bridge, will be allowed 

to remain closed to navigation from 7:30 

a.m. to 9 a.m. and 4 p.m. to 5:30 p.m., 

Monday through Saturday. The Jefferson 

Street Bridge will remain in the open to 

navigation position while unscheduled 

structural steel repairs are made. This 

temporary rule is issued to facilitate 

vehicle traffic management and 

structural steel repairs to the Jefferson 

Street Bridge.

DATES: This temporary rule is effective 

from 7:30 a.m., July 18, 2003 until 7:30 

a.m., November 1, 2003.

ADDRESSES: Documents referred to in 

this rule are available for inspection or 

copying at room 2.107f in the Robert A. 

Young Federal Building at Eighth Coast 

Guard District, Bridge Branch, 1222 

Spruce Street, St. Louis, MO 63103–

2832, between 8 a.m. and 4 p.m., 

Monday through Friday, except Federal 

holidays. The telephone number is (314) 

539–3900, extension 2378. The Bridge 

Branch maintains the public docket for 

this rulemaking.

FOR FURTHER INFORMATION CONTACT: Mr. 

Roger K. Wiebusch, Bridge 

Administrator, (314) 539–3900, 

extension 2378.

SUPPLEMENTARY INFORMATION:

Good Cause for Not Publishing an 

NPRM 

We did not publish a notice of 

proposed rulemaking (NPRM) for this 

regulation. Under 5 U.S.C. 553(b)(B), the 

Coast Guard finds that good cause exists 

for not publishing an NPRM. Structural 

steel deficiencies developed after a 

barge allided with the Jefferson Street 

Bridge, requiring the bridge to be closed 

to vehicular traffic and remain open to 

navigation. Until such time as the 

Jefferson Street Bridge is repaired, 

vehicular traffic in the City of Joliet, 

Illinois must be diverted to other 

bridges in the area, resulting in greater 

congestion and an increased likelihood 

of vehicular accidents and injuries. 

Since the repairs will take 

approximately four months to complete, 

it is important that the other bridges in 

the area immediately modify their hours 

to allow rush hour traffic to flow 

efficiently, reducing the likelihood of 

accident or injury. 

Good Cause for Making Rule Effective 

in Less Than 30 Days 

Under 5 U.S.C. 553(d)(3), the Coast 

Guard finds that good cause exists for 

making this rule effective less than 30 

days after publication in the Federal 

Register. Structural steel deficiencies 

developed after a barge allided with the 

Jefferson Street Bridge, requiring the 

bridge to be closed to vehicular traffic 

and remain open to navigation. Until 

such time as the Jefferson Street Bridge 

is repaired, vehicular traffic in the City 

of Joliet, Illinois must be diverted to 

other bridges in the area, resulting in 

greater congestion and an increased 

likelihood of vehicular accidents and 

injuries. Since the repairs will take 

approximately four months to complete, 

it is important that the other bridges in 

the area immediately modify their hours 

to allow rush hour traffic to flow