40850 Federal Register / Vol. 67, No. 115 / Friday, June 14, 2002 / Rules and Regulations 

Dated: June 11, 2002. 

Timothy Egert, 

Federal Register Liaison, Department of State.

[FR Doc. 02–15096 Filed 6–13–02; 8:45 am] 

BILLING CODE 4710–06–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 July 2002. Interest assumptions 

are also published on the PBGC’s Web 

site (http://www.pbgc.gov).

EFFECTIVE DATE: July 1, 2002.

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 July 2002, (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 July 

2002, 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 July 2002. 

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 5.70 percent for 

the first 25 years following the valuation 

date and 4.25 percent thereafter. These 

interest assumptions are unchanged 

from those in effect for June 2002. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in appendix B to 

part 4022) will be 4.50 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 are 

unchanged from those in effect for June 

2002. 

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 July 2002, 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 

105, 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

* * * * * * * 

105 7–1–02 8–1–02 4.50 4.00 4.00 4.00 7 8 

Federal Register / Vol. 67, No. 115 / Friday, June 14, 2002 / Rules and Regulations 40851

3. In appendix C to part 4022, Rate Set 

105, 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

* * * * * * * 

105 7–1–02 8–1–02 4.50 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 = 

* * * * * * * 

July 2002 .............................................................................. .0570 1–25 .0425 >25 N/A N/A 

Issued in Washington, DC, on this 10th day 

of June, 2002. 

Steven A. Kandarian, 

Executive Director, Pension Benefit Guaranty 

Corporation.

[FR Doc. 02–15038 Filed 6–13–02; 8:45 am] 

BILLING CODE 7708–01–P

DEPARTMENT OF TRANSPORTATION

Coast Guard 

33 CFR Part 165 

[CGD09–01–124] 

RIN 2115–AA97 

Security Zone: Lake Ontario, Oswego, 

NY

AGENCY: Coast Guard, DOT.

ACTION: Temporary final rule; change in 

effective period. 

SUMMARY: The Coast Guard is revising 

the effective period for a temporary 

security zone in the Captain of the Port 

Buffalo zone for the Nine Mile Point and 

Fitzpatrick Nuclear Power Plants. This 

security zone is necessary to protect the 

Nine Mile Point and Fitzpatrick Nuclear 

Power Plants from possible sabotage or 

other subversive acts, accidents, or 

possible acts of terrorism. This security 

zone is intended to restrict vessel traffic 

from a portion of Lake Ontario.

DATES: The amendment to § 165.T09–

999(b) in this rule is effective on June 

14, 2002. Section 165.T09–999, added at 

66 FR 49286, September 27, 2001, 

effective from September 12, 2001, 

through June 15, 2002 as amended in 

this rule, is extended in effect through 

August 15, 2002.

ADDRESSES: Comments and material 

received from the public, as well as 

documents indicated in this preamble as 

being available in the docket, are part of 

docket CGD09–01–124 and are available 

for inspection or copying at U.S. Coast 

Guard Marine Safety Buffalo, 1 

Fuhrmann Blvd., Buffalo, NY 14203 

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

through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT:

Lieutenant Commander David Flaherty, 

U.S. Coast Guard Marine Safety Office 

Buffalo, 1 Fuhrmann Blvd., Buffalo, NY 

14203. The telephone number is (716) 

843–9574.

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

On September 27, 2001, we published 

a temporary final rule entitled Security 

Zone: Lake Ontario, Oswego, NY in the 

Federal Register (66 FR 49285). The 

temporary final rule established a 

temporary security zone in the Captain 

of the Port Buffalo zone for the Nine 

Mile Point and Fitzpatrick Nuclear 

Power Plants. This security zone is 

necessary to protect this nuclear power 

plant from possible sabotage or other 

subversive acts, accidents, or possible 

acts of terrorism. 

We are extending the effective period 

of the temporary final rule so that we 

can complete a rulemaking CGD09–02–

005 Security Zones; Captain of the Port 

Buffalo Zone to permanently establish 

four permanent security zones on the 

navigable waters of Lake Ontario and 

the St. Lawrence River in the Captain of 

the Port Buffalo Zone. These security 

zones are necessary to protect the 

Nuclear Power Plants and the St. 

Lawrence Seaway system from possible 

acts of terrorism. Extending the effective 

date until August 15, 2002 should 

provide us enough time to complete the 

rulemaking. 

We did not publish a notice of 

proposed rulemaking (NPRM) for this 

rule and it is being made effective less 

than 30 days after publication in the 

Federal Register. When we promulgated 

the September 12, 2001 rule, we 

intended to either allow it to expire on 

June 15, 2002, or to cancel it if we made 

permanent changes before that date. We 

published an NPRM on May 30, 2002 to 

propose permanent security zones for 

this and other power plants (67 FR 

37748). That rulemaking will follow 

normal notice and comment procedures, 

and a final rule should be published 

before August 15, 2002. Continuing the 

temporary final rule in effect while the 

permanent rulemaking is in progress 

will help ensure the safety of critical 

infrastructure that may be the subject of 

subversive activity. Nuclear power 

plants are an important means of