60002 Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Rules and Regulations 

and continue southwesterly along the 

pipeline to the point of beginning at the 

intersection of the pipeline intersection 

and the T23S/T24S township line in 

section 35, T23S/R5W (Yoncalla 

Quadrangle). 

Signed: July 22, 2005. 

John J. Manfreda, 

Administrator. 

Approved: September 2, 2005. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 05–20551 Filed 10–13–05; 8:45 am] 

BILLING CODE 4810–31–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 2005. Interest 

assumptions are also published on the 

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

DATES: Effective November 1, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion, Attorney, 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 November 2005, 

(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 2005, 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 2005. 

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 3.70 

percent for the first 20 years following 

the valuation date and 4.75 percent 

thereafter. These interest assumptions 

represent an increase (from those in 

effect for October 2005) of 0.20 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 2.50 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 

represent an increase (from those in 

effect for October 2005) 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 2005, 

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 

145, as set forth below, is added to the 

table. 

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

Federal Register / Vol. 70, No. 198 / Friday, October 14, 2005 / Rules and Regulations 60003 

Rate set 

For plans with a valuation 

date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i1 i2 i3 n1 n2

* * * * * * * 

145 ............................................ 11–1–05 12–1–05 2.50 4.00 4.00 4.00 7 8 

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

145, as set forth below, is added to the 

table. 

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

* * * * * * * 

145 ............................................ 11–1–05 12–1–05 2.50 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 for November 2005, as set forth 

below, is added to the table. 

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 2005 .................................................................... .0370 1–20 .0475 >20 N/A N/A 

Issued in Washington, DC, on this 7th day 

of October 2005. 

Vincent K. Snowbarger, 

Deputy Executive Director, Pension Benefit 

Guaranty Corporation. 

[FR Doc. 05–20581 Filed 10–13–05; 8:45 am] 

BILLING CODE 7708–01–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 29 

RIN 1505–AB55 

Federal Benefit Payments Under 

Certain District of Columbia 

Retirement Plans 

AGENCY: Departmental Offices, Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury is issuing final regulations to 

amend its DC Pensions rules 

promulgated pursuant to Title XI of the 

Balanced Budget Act of 1997, as 

amended, which was effective on 

October 1, 1997. The Act assigns to the 

Secretary of the Treasury responsibility 

for payment of benefits based on service 

accrued as of June 30, 1997, under the 

retirement plans for District of Columbia 

teachers and police officers and 

firefighters, and payment of past and 

future benefits under the retirement 

plan for District of Columbia judges. 

The amended regulations implement the 

provisions of the Act that provide the 

Secretary with the responsibility to 

ensure the accuracy of payments made 

to annuitants before the effective date of 

the Act. 

DATES: This final rule is effective 

October 14, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Cuffe, Office of the General 

Counsel, MT Room 2209A, Department 

of the Treasury, 1500 Pennsylvania 

Avenue, NW., Washington, DC 20220, 

(202–622–1682, not a toll-free call). 

SUPPLEMENTARY INFORMATION: On April 

13, 2005, the Department of the 

Treasury published (at 70 FR 19366) 

proposed regulations to amend the 

regulations in Part 29 that implement 

Title XI of the Balanced Budget Act of 

1997, Public Law 105–33, 111 Stat. 251, 

712–731, 756–759, as amended (the 

Act). The Act transferred certain 

pension liabilities from the District of 

Columbia Government to the Federal 

Government. The Act requires that the 

Secretary of the Treasury (the Secretary) 

pay certain benefits under the 

retirement plans for District of Columbia 

teachers (Teachers Plan) and police 

officers and firefighters (Police and 

Firefighters Plan) based on service 

accrued on or before June 30, 1997, and 

benefits under the retirement plan for 

District of Columbia judges (Judges 

Plan) regardless of when service 

accrued. On December 23, 2004, the 

District of Columbia Retirement 

Protection Improvement Act of 2004, 

Public Law 108–489, 118 Stat. 3966 (the 

2004 Act) was enacted. The 2004 Act 

amended the Act, in part, to create a 

new fund from the two funds that had 

financed the Teachers Plan and the 

Police and Firefighters Plan and to 

provide the Judges Plan with procedures 

for resolving denied benefit claims. 

The Act provides the Secretary with 

authority to ensure the accuracy of 

Federal Benefit Payments made before 

October 1, 1997, under the Police and 

Firefighters Plan and the Teachers Plan. 

Section 11012 of the Act requires the