12388 Federal Register / Vol. 68, No. 50 / Friday, March 14, 2003 / Notices 

OFFICE OF MANAGEMENT AND 

BUDGET 

OMB Circular No. A–76, Performance 

of Commercial Activities

AGENCY: Office of Management and 

Budget, Executive Office of the 

President.

ACTION: Issuance of Transmittal 

Memorandum No. 25, amending OMB 

Circular No. A–76, ‘‘Performance of 

Commercial Activities.’’

SUMMARY: This Transmittal 

Memorandum updates the annual 

federal pay raise assumptions and 

inflation factors used for computing the 

government’s in-house personnel and 

non-pay costs, as generally provided in 

the President’s Budget for Fiscal Year 

2004.

DATES: All changes in the Transmittal 

Memorandum are effective immediately 

and shall apply to all OMB Circular A–

76 cost comparisons in process where 

the government’s in-house cost estimate 

has not been publicly revealed before 

this date.

FOR FURTHER INFORMATION CONTACT: Mr. 

David C. Childs, Office of Federal 

Procurement Policy, NEOB, Room 9013, 

Office of Management and Budget, 725 

17th Street, NW., Washington, DC 

20503, Tel. No. (202) 395–6104. 

Availability: Copies of the OMB 

Circular A–76, its Revised 

Supplemental Handbook and currently 

applicable Transmittal Memoranda 

changes may be obtained at the online 

OMB Homepage address (URL): http://

www.whitehouse.gov/omb/.

Mitchell E. Daniels, Jr., 

Director.

Circular No. A–76 (Revised), Transmittal 

Memorandum No. 25

To the Heads of Executive Departments and 

Agencies 

Subject: Performance of Commercial 

Activities.

This Transmittal Memorandum updates 

the annual federal pay raise assumptions and 

inflation factors used for computing the 

government’s in-house personnel and nonpay costs, as generally provided in the 

President’s Budget for Fiscal Year 2004. 

The non-pay inflation factors are for 

purposes of A–76 cost comparison 

determinations only. They reflect the generic 

non-pay inflation assumptions used to 

develop the fiscal year 2004 budget baseline 

estimates required by law. The law requires 

that a specific inflation factor (GDP FY/FY 

chained price index) be used for this 

purpose. These inflation factors should not 

be viewed as estimates of expected inflation 

rates for major long-term procurement items 

or as an estimate of inflation for any 

particular agency’s non-pay purchases mix.

FEDERAL PAY RAISE ASSUMPTIONS

[In percent] 

Effective date Civilian Military 

January 2002 .... 4.6 1 6.9

January 2003 .... 4.1 4.7 

January 2004 .... 2.0 4.1 

January 2005 .... 3.4 3.4 

January 2006 .... 3.4 3.4 

January 2007 .... 3.4 3.4 

January 2008 2 .. 3.4 3.4 

1Average of various longevity- and rankspecific increases. 2Any subsequent years included in the period of performance and cost comparison shall 

continue to use the 3.4% figures, until otherwise revised by OMB. 

NON-PAY CATEGORIES (SUPPLIES AND

EQUIPMENT, ETC.) 

Percent 

FY 2002 ........................................ 1.3 

FY 2003 ........................................ 1.3 

FY 2004 ........................................ 1.5 

FY 2005 ........................................ 1.5 

FY 2006 ........................................ 1.6 

FY 2007 ........................................ 1.7 

FY 2008 ........................................ 1 1.8 

1Any subsequent years included in the period of performance and cost comparison shall 

continue to use the 1.8% figure, until otherwise revised by OMB. 

The pay rate (including geographic pay 

differentials) that are in effect for 2003 shall 

be included for the development of in-house 

personnel costs. The pay raise factors 

provided for 2004 and beyond shall be 

applied to all employees, with no assumption 

being made as to how they will be distributed 

between possible locality and ECI-based 

increases. 

Agencies are reminded that OMB Circular 

No. A–76, Transmittal Memoranda 1 through 

Transmittal Memorandum 14 are canceled. 

Transmittal Memorandum No. 15 provides 

the Revised Supplemental Handbook, and is 

dated March 27, 1996 (Federal Register, 

April 1, 1996, pages 14338–14346). 

Transmittal Memoranda No. 16, 17, 18 and 

19 (to the extent they provided Circular A–

76 federal pay raise and inflation factors) are 

canceled. Transmittal Memorandum No. 20 

provided changes to the Revised 

Supplemental Handbook to implement the 

Federal Activities Inventory Reform Act of 

1998 (Pub. L. 105.270). Transmittal 

Memorandum No. 21, provided A–76 federal 

pay raise and inflation factor assumptions 

and is canceled. Transmittal Memorandum 

No. 22 made technical changes to the Revised 

Supplemental Handbook regarding the 

implementation of the FAIR Act, A–76 

administrative appeals and, the participation 

of directly affected employees on A–76 

Source Selection Boards and their evaluation 

teams. Transmittal Memorandum No. 23 and 

Transmittal Memorandum No. 24, which 

provided last year’s Circular A–76 federal 

pay raise and inflation factor assumptions are 

canceled.

Mitchell E. Daniels, Jr., 

Director.

[FR Doc. 03–6127 Filed 3–13–03; 8:45 am] 

BILLING CODE 3110–01–P

PENSION BENEFIT GUARANTY 

CORPORATION 

Required Interest Rate Assumption for 

Determining Variable-Rate Premium; 

Interest Assumptions for 

Multiemployer Plan Valuations 

Following Mass Withdrawal

AGENCY: Pension Benefit Guaranty 

Corporation.

ACTION: Notice of interest rates and 

assumptions. 

SUMMARY: This notice informs the public 

of the interest rates and assumptions to 

be used under certain Pension Benefit 

Guaranty Corporation regulations. These 

rates and assumptions are published 

elsewhere (or can be derived from rates 

published elsewhere), but are collected 

and published in this notice for the 

convenience of the public. Interest rates 

are also published on the PBGC’s Web 

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

DATES: The required interest rate for 

determining the variable-rate premium 

under part 4006 applies to premium 

payment years beginning in March 

2003. The interest assumptions for 

performing multiemployer plan 

valuations following mass withdrawal 

under part 4281 apply to valuation dates 

occurring in April 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: 

Variable-Rate Premiums 

Section 4006(a)(3)(E)(iii)(II) of the 

Employee Retirement Income Security 

Act of 1974 (ERISA) and § 4006.4(b)(1) 

of the PBGC’s regulation on Premium 

Rates (29 CFR part 4006) prescribe use 

of an assumed interest rate (the 

‘‘required interest rate’’) in determining 

a single-employer plan’s variable-rate 

premium. The required interest rate is 

the ‘‘applicable percentage’’ (currently 

100 percent) of the annual yield on 30-

year Treasury securities for the month 

preceding the beginning of the plan year 

for which premiums are being paid (the 

‘‘premium payment year’’). (Although 

the Treasury Department has ceased 

issuing 30-year securities, the Internal 

Federal Register / Vol. 68, No. 50 / Friday, March 14, 2003 / Notices 12389

Revenue Service announces a surrogate 

yield figure each month—based on the 

30-year Treasury bond maturing in 

February 2031—which the PBGC uses to 

determine the required interest rate.) 

The required interest rate to be used 

in determining variable-rate premiums 

for premium payment years beginning 

in March 2003 is 4.81 percent. 

The following table lists the required 

interest rates to be used in determining 

variable-rate premiums for premium 

payment years beginning between April 

2002 and March 2003.

For premium payment years 

beginning in: 

The required interest rate is: 

April 2002 ................................. 5.71 

May 2002 .................................. 5.68 

June 2002 ................................. 5.65 

July 2002 .................................. 5.52 

August 2002 ............................. 5.39 

September 2002 ....................... 5.08 

October 2002 ............................ 4.76 

November 2002 ........................ 4.93 

December 2002 ........................ 4.96 

January 2003 ............................ 4.92 

February 2003 .......................... 4.94 

March 2003 ............................... 4.81 

Multiemployer Plan Valuations 

Following Mass Withdrawal 

The PBGC’s regulation on Duties of 

Plan Sponsor Following Mass 

Withdrawal (29 CFR part 4281) 

prescribes the use of interest 

assumptions under the PBGC’s 

regulation on Allocation of Assets in 

Single-Employer Plans (29 CFR part 

4044). The interest assumptions 

applicable to valuation dates in April 

2003 under part 4044 are contained in 

an amendment to part 4044 published 

elsewhere in today’s Federal Register. 

Tables showing the assumptions 

applicable to prior periods are codified 

in appendix B to 29 CFR part 4044.

Issued in Washington, DC, on this 10th day 

of March, 2003. 

Joseph H. Grant, 

Deputy Executive Director and Chief 

Operating Officer, Pension Benefit Guaranty 

Corporation.

[FR Doc. 03–6141 Filed 3–13–03; 8:45 am] 

BILLING CODE 7708–01–P

PENSION BENEFIT GUARANTY 

CORPORATION 

Privacy Act of 1974; System of 

Records

AGENCY: Pension Benefit Guaranty 

Corporation.

ACTION: Notice of a new routine use of 

records for PBGC–6, Plan Participant 

and Beneficiary Data—PBGC. 

SUMMARY: The Pension Benefit Guaranty 

Corporation is proposing to add a 

routine use of records for a system of 

records maintained pursuant to the 

Privacy Act of 1974, as amended, 

entitled PBGC–6, Plan Participant and 

Beneficiary Data—PBGC. The new 

routine use permits PBGC to disclose to 

a state workforce agency the names of 

and certain identifying information 

about PBGC pension recipients residing 

in the state who may be eligible for 

health insurance coverage assistance 

from the state workforce agency under 

the Trade Act of 2002. Participating 

state workforce agencies are authorized 

to provide health insurance coverage 

assistance to eligible PBGC pension 

recipients until a Federal income tax 

credit advance payment program 

becomes effective in August 2003.

DATES: Comments on the new routine 

use must be received by April 14, 2003. 

The new routine use will become 

effective April 15, 2003, without further 

notice, unless comments result in a 

contrary determination and a notice is 

published to that effect.

ADDRESSES: Comments may be mailed to 

the Office of the General Counsel, 

Pension Benefit Guaranty Corporation, 

1200 K Street, NW., Washington, DC 

20005–4026, or delivered to Suite 340 at 

the above address. Comments also may 

be sent by Internet e-mail to 

regcomments@pbgc.gov. Copies of 

comments may be obtained by writing 

to the PBGC’s Communications and 

Public Affairs Department at Suite 240 

at the above address or by visiting that 

office or calling 202–326–4040 during 

normal business hours.

FOR FURTHER INFORMATION CONTACT: D. 

Bruce Campbell, Attorney, Office of the 

General Counsel, Pension Benefit 

Guaranty Corporation, 1200 K Street, 

NW., Washington, DC 20005–4016, 202–

326–4020 (extension 3672). (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 Trade 

Act of 2002 amended the Internal 

Revenue Code to create an income tax 

credit for health insurance costs of 

eligible individuals. Public Law 107–

210, sec. 201, 116 Stat. 933, 954 (Aug. 

6, 2002) (to be codified at 26 U.S.C. 35). 

The legislation requires the Department 

of Treasury to establish a program for 

making advance payments to eligible 

individuals of the income tax credit. 

Public Law 107–210, sec. 202, 116 Stat. 

at 960 (to be codified at 26 U.S.C. 7527). 

The tax credit is to be made available on 

an advance payment basis by August 1, 

2003. 

The income tax credit and advance 

payment program are open to, among 

others, any individual who is an 

‘‘eligible PBGC pension recipient.’’ 26 

U.S.C. 35(c) and 26 U.S.C. 7527(d)(2). 

An eligible PBGC pension recipient is 

defined to mean, with respect to any 

month, an individual ‘‘who has attained 

age 55 as the first day of such month, 

and * * * is receiving a benefit for such 

month any portion of which is paid by 

the (PBGC).’’ 26 U.S.C. 35(c)(4). 

The income tax credit and advance 

payment program are also open to any 

individual who is an ‘‘eligible TAA 

recipient’’ 26 U.S.C. 35(c) and 26 U.S.C. 

7527(d)(2). The term eligible TAA 

recipient is defined to include, for any 

month, an individual who is receiving 

‘‘a trade readjustment allowance under 

* * * the Trade Act of 1974.’’ The 

Department of Labor, with the states, is 

responsible for implementing the trade 

readjustment assistance program for 

eligible workers. 19 U.S.C. 2271–2296. 

The Trade Act of 2002 also amended 

the Workforce Investment Act of 1988 to 

permit states to use National Emergency 

Grant funds from the Department of 

Labor to pay the cost of qualified health 

insurance coverage for eligible 

individuals during the initial start up 

period from September 1, 2002, (the first 

full month beginning after the date of 

enactment) until such time as the 

advance payment program is 

implemented. Public Law 107–210, sec. 

203, 116 Stat. 933, 963 (to be codified 

at 29 U.S.C. 2918(a) and (f)). The new 

routine use permits the PBGC to 

disclose the names, addresses, social 

security numbers, and dates of birth of 

eligible PBGC pension recipients 

residing in a state to the state’s 

workforce agency if the agency received 

a grant to provide health insurance 

coverage assistance and support services 

for state residents under section 203 of 

the Trade Act of 2002. 

For the convenience of the public, 

PBGC–6, as amended, is published in 

full below with new routine use 15 

italicized.

Issued in Washington, DC, this 11th day of 

March, 2003. 

Steven A. Kandarian, 

Executive Director, Pension Benefit Guaranty 

Corporation.

PBGC–6

SYSTEM NAME: 

Plan Participant and Beneficiary 

Data—PBGC. 

SECURITY CLASSIFICATION: 

Not applicable.