Federal Register / Vol. 64, No. 10 / Friday, January 15, 1999 /Rules and Regulations 2569

Electronic Tax Administration’s Request

for Agreement released on November

26, 1997. For taxable years beginning

after 1998, the rules on electronic

postmarks are effective for documents

submitted to electronic return

transmitters that are authorized to

provide an electronic postmark

pursuant to § 301.7502–1T(d)(2).

Special Analyses

It has been determined that this

Treasury decision is not a significant

regulatory action as defined in EO

12866. Therefore, a regulatory

assessment is not required. It also has

been determined that section 553(b) of

the Administrative Procedure Act (5

U.S.C. chapter 5) does not apply to these

regulations, and because these

regulations do not impose a collection

of information on small entities, the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) does not apply. Pursuant to

section 7805(f) of the Internal Revenue

Code, these regulations will be

submitted to the Chief Counsel for

Advocacy of the Small Business

Administration for comment on their

impact on small business.

Drafting information: The principal

author of these regulations is Charles A.

Hall, Office of Assistant Chief Counsel

(Income Tax & Accounting). However,

other personnel from the IRS and

Treasury Department participated in

their development.

List of Subjects in 26 CFR Part 301

Employment taxes, Estate taxes,

Excise taxes, Gift taxes, Income taxes,

Penalties, Reporting and recordkeeping

requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 301 is

amended as follows:

PART 301—PROCEDURE AND

ADMINISTRATION

Paragraph 1. The authority citation

for part 301 is amended by adding an

entry in numerical order to read as

follows:

Authority: 26 U.S.C. 7805 * * *

Section 301.7502–1T also issued

under 26 U.S.C. 7502(c) * * *

Par. 2. Section 301.7502–1 is

amended by:

1. Redesignating paragraphs (d) and

(e) as paragraphs (e) and (f) respectively.

2. Adding new paragraph (d).

The addition reads as follows:

§ 301.7502–1 Timely mailing treated as

timely filing.

* * * * *

(d) [Reserved]. For further guidance

regarding timely filing of electronically

filed documents for taxable years

beginning after December 31, 1997, see

§ 301.7502–1T(d).

* * * * *

Par. 3. Section 301.7502–1T is added

to read as follows:

§ 301.7502–1T Timely mailing treated as

timely filing (temporary).

(a) through (c) [Reserved]. For further

guidance, see § 301.7502–1(a) through

(c).

(d) Electronically filed documents—

(1) In general. A document filed

electronically with an electronic return

transmitter (as defined in paragraph

(d)(3)(i) of this section and authorized

pursuant to paragraph (d)(2) of this

section) in the manner and time

prescribed by the Commissioner is

deemed to be filed on the date of the

electronic postmark (as defined in

paragraph (d)(3)(ii) of this section) given

by the authorized electronic return

transmitter. Thus, if the electronic

postmark is timely, the document is

considered filed timely although it is

received by the agency, officer, or office

after the last date, or the last day of the

period, prescribed for filing such

document.

(2) Authorized electronic return

transmitters. The Commissioner may

enter into an agreement with an

electronic return transmitter or

prescribe in forms, instructions, or other

appropriate guidance the procedures

under which the electronic return

transmitter is authorized to provide

taxpayers with an electronic postmark

to acknowledge the date and time that

the electronic return transmitter

received the electronically filed

document.

(3) Definitions—(i) Electronic return

transmitter. For purposes of this

paragraph (d), the term electronic return

transmitter has the same meaning as

contained in section 3.02(4) of Rev.

Proc. 98–50 (1998–38 I.R.B. 8

(September 21, 1998)), and section

3.02(3) of Rev. Proc. 98–51 (1998–38

I.R.B. 20 (September 21, 1998)) (See

§ 601.601(d)(2) of this chapter.), or in

procedures subsequently prescribed by

the Commissioner.

(ii) Electronic postmark. For purposes

of this paragraph (d), the term electronic

postmark means a record of the date and

time (in a particular time zone) that an

authorized electronic return transmitter

receives the transmission of a taxpayer’s

electronically filed document on its host

system. However, if the taxpayer and

the electronic return transmitter are

located in different time zones, it is the

time in the taxpayer’s time zone that

controls the timeliness of the

electronically filed document.

(e) through (f)(2) [Reserved]. For

further guidance, see § 301.7502–1(e)

through (f)(2).

(f)(3) Electronically filed documents—

(i) For taxable year 1998. For taxable

year 1998, paragraph (d) of this section

only applies to electronically filed

income tax returns transmitted to an

electronic return transmitter that was

authorized to provide an electronic

postmark pursuant to an agreement

entered into in response to submissions

received in reply to the Electronic Tax

Administration’s Request for Agreement

released on November 26, 1997.

(ii) For taxable years after 1998. For

taxable years after 1998, paragraph (d) of

this section applies to any electronically

filed return, claim, statement, or other

document transmitted to an electronic

return transmitter that is authorized to

provide an electronic postmark

pursuant to paragraph (d)(2) of this

section. This section expires on January

14, 2002.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Approved: December 30, 1998.

Donald C. Lubick,

Assistant Secretary of the Treasury.

[FR Doc. 99–700 Filed 1–14–99; 8:45 am]

BILLING CODE 4830–01–U

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Interest Assumptions

for Valuing Benefits

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty

Corporation’s regulation on Allocation

of Assets in Single-Employer Plans

prescribes interest assumptions for

valuing benefits under terminating

single-employer plans. This final rule

amends the regulation to adopt interest

assumptions for plans with valuation

dates in February 1999.

EFFECTIVE DATE: February 1, 1999.

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. (For TTY/TDD

users, call the Federal relay service tollfree at 1–800–877–8339 and ask to be

connected to 202–326–4024.)
2570 Federal Register / Vol. 64, No. 10 / Friday, January 15, 1999 /Rules and Regulations

SUPPLEMENTARY INFORMATION: The

PBGC’s regulation on Allocation of

Assets in Single-Employer Plans (29

CFR part 4044) prescribes actuarial

assumptions for valuing plan benefits of

terminating single-employer plans

covered by title IV of the Employee

Retirement Income Security Act of 1974.

Among the actuarial assumptions

prescribed in part 4044 are interest

assumptions. These interest

assumptions are intended to reflect

current conditions in the financial and

annuity markets.

Two sets of interest assumptions are

prescribed, one set for the valuation of

benefits to be paid as annuities and one

set for the valuation of benefits to be

paid as lump sums. This amendment

adds to appendix B to part 4044 the

annuity and lump sum interest

assumptions for valuing benefits in

plans with valuation dates during

February 1999.

For annuity benefits, the interest

assumptions will be 5.40 percent for the

first 20 years following the valuation

date and 5.25 percent thereafter. The

annuity interest assumptions represent

an increase (from those in effect for

January 1999) of 0.10 percent for the

first 20 years following the valuation

date and are otherwise unchanged. For

benefits to be paid as lump sums, the

interest assumptions to be used by the

PBGC will be 4.00 percent for the period

during which a benefit is in pay status

and during any years preceding the

benefit’s placement in pay status. The

lump sum interest assumptions are

unchanged from those in effect for

January 1999.

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 of

benefits in plans with valuation dates

during February 1999, 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 in 29 CFR Part 4044

Pension insurance, Pensions.

In consideration of the foregoing, 29

CFR part 4044 is amended as follows:

PART 4044—ALLOCATION OF

ASSETS IN SINGLE-EMPLOYER

PLANS

1. The authority citation for part 4044

continues to read as follows:

Authority: 29 U.S.C. 1301(a), 1302(b)(3),

1341, 1344, 1362.

2. In appendix B, a new entry is

added to Table I, and Rate Set 64 is

added to Table II, as set forth below.

The introductory text of each table is

republished for the convenience of the

reader and remains unchanged.

Appendix B to Part 4044—Interest Rates Used to Value Annuities and Lump Sums

TABLE I.—ANNUITY VALUATIONS

[This table sets forth, for each indicated calendar month, the interest rates (denoted by i1, i2, . . . , and referred to generally as it) assumed to be

in effect between specified anniversaries of a valuation date that occurs within that calendar month; those anniversaries are specified in the

columns adjacent to the rates. The last listed rate is assumed to be in effect after the last listed anniversary date.]

For valuation dates occurring in the month—

The values of it are:

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

* * * * * * *

February 1999 ......................................................................... .0540 1–20 .0525 >20 N/A N/A

TABLE II.—LUMP SUM VALUATIONS

[In using this table: (1) For benefits for which the participant or beneficiary is entitled to be in pay status on the valuation date, the immediate annuity rate shall apply; (2) For benefits for which the deferral period is y years (where y is an integer and 0 < y ≤ n1), interest rate i1 shall

apply from the valuation date for a period of y years, and thereafter the immediate annuity rate shall apply; (3) For benefits for which the deferral period is y years (where y is an integer and n1 < y ≤ n1 + n2), interest rate i2 shall apply from the valuation date for a period of y¥n1

years, interest rate i1 shall apply for the following n1 years, and thereafter the immediate annuity rate shall apply; (4) For benefits for which

the deferral period is y years (where y is an integer and y > n1 + n2), interest rate i3 shall apply from the valuation date for a period of

y¥n1¥n2 years, interest rate i2 shall apply for the following n2 years, interest rate i1 shall apply for the following n1 years, and thereafter the

immediate annuity rate shall apply.]

Rate set

For plans with a valuation

date Immediate

annuity rate

(percent)

Deferred annuities (percent)

On or after Before i1 i2 i3 n1 n2

* * * * * * *

64 02–1–99 03–1–99 4.00 4.00 4.00 4.00 7 8

Issued in Washington, DC, on this 11th day of January 1999.

David M. Strauss,

Executive Director, Pension Benefit Guaranty Corporation.

[FR Doc. 99–937 Filed 1–14–99; 8:45 am]

BILLING CODE 7708–01–P