19890 Federal Register / Vol. 70, No. 72 / Friday, April 15, 2005 / Rules and Regulations 

Inapplicability of Prior Notice and 

Comment and Delayed Effective Date 

Procedures 

This temporary rule merely 

implements an existing agency practice 

by facilitating the removal, without 

Federal tax, of tobacco products and 

cigarette papers and tubes for the use of 

Federal agencies in law enforcement 

operations. The regulatory changes 

address immediate needs of Federal law 

enforcement agencies and relieve an 

existing administrative burden on TTB 

and tobacco industry members. In 

addition, the supplying of tobacco 

products and cigarette papers and tubes 

by manufacturers to Federal agencies 

continues to be voluntary, and this 

regulatory change would only ease an 

existing burden on manufacturers who 

wish to provide their products for this 

purpose. Accordingly, pursuant to 5 

U.S.C. 553(b)(B), we have determined 

that prior public notice and comment 

procedures on this regulation are 

unnecessary and contrary to the public 

interest. For the same reasons, pursuant 

to 5 U.S.C. 553(d) (1) and (3), we find 

that there is good cause for dispensing 

with a delayed effective date. 

Drafting Information 

The principle author of this document 

is Linda Wade Chapman, Regulations 

and Procedures Division, Alcohol and 

Tobacco Tax and Trade Bureau.

List of Subjects in 27 CFR Part 45 

Authority delegations (Government 

agencies), Cigars and cigarettes, Excise 

taxes, Labeling, Packaging and 

containers, Reporting and recordkeeping 

requirements, Tobacco.

Amendments to the Regulations

■ For the reasons discussed in the 

preamble, we amend part 45 of the TTB 

regulations (27 CFR part 45) as follows:

PART 45—REMOVAL OF TOBACCO 

PRODUCTS AND CIGARETTE PAPERS 

AND TUBES, WITHOUT PAYMENT OF 

TAX, FOR USE OF THE UNITED 

STATES

■ 1. The authority citation for part 45 

continues to read as follows:

Authority: 26 U.S.C. 5703, 5704, 5705, 

5723, 5741, 5751, 5762, 5763, 6313, 7212, 

7342, 7606, 7805, 44 U.S.C. 3504(h).

■ 2. Revise the section heading and text 

of § 45.31 to read as follows:

§ 45.31 Removals for delivery to a Federal 

agency. 

(a) Removal of articles. A 

manufacturer may remove tobacco 

products or cigarette papers and tubes 

without payment of tax, in accordance 

with this part, for delivery to a Federal 

agency if: 

(1) The removed articles were 

purchased by the Federal agency with 

funds appropriated by the Congress of 

the United States and are for gratuitous 

distribution under the supervision of 

the Federal agency; 

(2) The removed articles were 

purchased by a donor from the 

manufacturer, or donated directly by the 

manufacturer, for gratuitous distribution 

under the supervision of the Federal 

agency to: 

(i) Charges of the United States; or 

(ii) Patients in a hospital or institution 

operated by the Government of a State 

or the District of Columbia where the 

Federal agency maintains a program for 

distribution to members or veterans of 

the armed forces of the United States in 

the hospital or institution; or 

(3) The removed articles are intended 

for use by the Federal agency in an 

investigation or other Federal law 

enforcement activity. 

(b) Sale prohibited. Except in the case 

of articles described in paragraph (a)(3) 

of this section where a sale is incident 

to the Federal law enforcement activity, 

tobacco products and cigarette papers 

and tubes removed under this section 

may not be sold after their removal.

■ 3. Amend § 45.46 by removing the 

word ‘‘Every’’ and adding, in its place, 

the words ‘‘Except in the case of articles 

described in § 45.31(a)(3), every’’.

Signed: January 31, 2005. 

John J. Manfreda, 

Administrator. 

Approved: February 16, 2005. 

Timothy E. Skud, 

Deputy Assistant Secretary, (Tax, Trade, and 

Tariff Policy).

[FR Doc. 05–7582 Filed 4–14–05; 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 May 2005. Interest assumptions 

are also published on the PBGC’s Web 

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

DATES: Effective Date: May 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). 

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 May 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 May 

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 May 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 3.90 

percent for the first 20 years following 

the valuation date and 4.75 percent 

thereafter. These interest assumptions 

represent an increase (from those in 

Federal Register / Vol. 70, No. 72 / Friday, April 15, 2005 / Rules and Regulations 19891

effect for April 2005) of 0.10 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 2.75 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 April 

2005. 

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 May 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 

139, 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

* * * * * * * 

139 5–1–05 6–1–05 2.75 4.00 4.00 4.00 7 8 

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

139, 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

* * * * * * * 

139 5–1–05 6–1–05 2.75 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 = 

* * * * * * * 

May 2005 .............................................................................. .0390 1–20 .0475 >20 N/A N/A 

19892 Federal Register / Vol. 70, No. 72 / Friday, April 15, 2005 / Rules and Regulations 

Issued in Washington, DC, on this 11th day 

of April 2005. 

Vincent K. Snowbarger, 

Deputy Executive Director, Pension Benefit 

Guaranty Corporation.

[FR Doc. 05–7549 Filed 4–14–05; 8:45 am] 

BILLING CODE 7708–01–P

DEPARTMENT OF THE TREASURY

Office of the Secretary 

31 CFR Part 10 

[TD 9165] 

RIN 1545–BA70 

Regulations Governing Practice Before 

the Internal Revenue Service; 

Correction

AGENCY: Office of the Secretary, 

Treasury.

ACTION: Correcting amendment.

SUMMARY: This document contains 

corrections to (TD 9165), which were 

published in the Federal Register on 

Monday, December 20, 2004 (69 FR 

75839) revising the regulations 

governing practice before the Internal 

Revenue Service (Circular 230).

DATES: This correction is effective 

December 20, 2004.

FOR FURTHER INFORMATION CONTACT:

Heather L. Dostaler at (202) 622–4940 or 

Brinton T. Warren at (202) 622–7800 

(not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9165) that 

are the subject of these corrections are 

under 31 CFR sections 10.33, 10.35, 

10.36, 10.37, 10.38, 10.52 and 10.93. 

Need for Correction 

As published, TD 9165 contains errors 

that may prove to be misleading and are 

in need of clarification.

List of Subjects in 31 CFR Part 10 

Practice before the Internal Revenue 

Service.

Correction of Publication

■ Accordingly, 31 CFR Part 10 is 

corrected by making the following 

correcting amendments:

PART 10—PRACTICE BEFORE THE 

INTERNAL REVENUE SERVICE

■ Paragraph 1. The authority citation for 

31 CFR, part 10 continues to read in part 

as follows:

Authority: Sec.3, 23 Stat. 258, secs. 2–12, 

60 Stat. 237 et seq.; 5 U.S.C. 301, 500, 551–

559; 31 U.S.C. 330; Reorg. Plan No. 26 of 

1950, 15 FR 4935, 64 Stat. 1280, 3 CFR, 

1949–1953 Comp., p. 1017.

§ 10.35 [Corrected]

■ Par. 2. Section 10.35 is amended by 

revising paragraphs (b)(2)(ii)(B) 

introductory text and (b)(4)(i) to read as 

follows:

10.35 Requirements for covered opinions.

* * * * *

(b) * * *

(2) * * * (ii) * * * 

(A) * * * 

(B) Written advice, other than advice 

described in paragraph (b)(2)(i)(A) of 

this section (concerning listed 

transactions) or paragraph (b)(2)(i)(B) of 

this section (concerning the principal 

purpose of avoidance or evasion) that—

* * * * *

(4) Reliance opinion—(i) Written 

advice is a reliance opinion if the advice 

concludes at a confidence level of at 

least more likely than not (a greater than 

50 percent likelihood) that one or more 

significant Federal tax issues would be 

resolved in the taxpayer’s favor.

* * * * *

Dated: April 11, 2005. 

Richard S. Carro, 

Senior Advisor to the General Counsel 

(Regulatory Affairs).

[FR Doc. 05–7552 Filed 4–14–05; 8:45 am] 

BILLING CODE 4830–01–P