Federal Register / Vol. 71, No. 231 / Friday, December 1, 2006 / Rules and Regulations 69481 

PBGC to participants in single-employer 

plans that have terminated in that year. 

Section 230(d) of the Social Security 

Act (42 U.S.C. 430(d)) provides special 

rules for determining the contribution 

and benefit base for purposes of ERISA 

section 4022(b)(3)(B). Each year the 

Social Security Administration 

determines, and notifies the PBGC of, 

the contribution and benefit base to be 

used by the PBGC under these 

provisions, and the PBGC publishes an 

amendment to Appendix D to Part 4022 

to add the guarantee limit for the 

coming year. 

The PBGC has been notified by the 

Social Security Administration that, 

under section 230 of the Social Security 

Act, $72,600 is the contribution and 

benefit base that is to be used to 

calculate the PBGC maximum 

guaranteeable benefit for 2007. 

Accordingly, the formula under section 

4022(b)(3)(B) of ERISA and 29 CFR 

4022.22(b) is: $750 multiplied by 

$72,600/$13,200. Thus, the maximum 

monthly benefit guaranteeable by the 

PBGC in 2007 is $4,125.00 per month in 

the form of a life annuity beginning at 

age 65. This amendment updates 

Appendix D to Part 4022 to add this 

maximum guaranteeable amount for 

plans that terminate in 2007. (If a 

benefit is payable in a different form or 

begins at a different age, the maximum 

guaranteeable amount is the actuarial 

equivalent of $4,125.00 per month.) 

General notice of proposed 

rulemaking is unnecessary. The 

maximum guaranteeable benefit is 

determined according to the formula in 

section 4022(b)(3)(B) of ERISA, and 

these amendments make no change in 

its method of calculation but simply list 

2007 maximum guaranteeable benefit 

amounts for the information of the 

public. 

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 

regulation, the Regulatory Flexibility 

Act of 1980 does not apply (5 U.S.C. 

601(2)). 

List of Subjects in 29 CFR Part 4022 

Pension insurance, Pensions, 

Reporting and recordkeeping 

requirements. 

■ In consideration of the foregoing, 29 

CFR part 4022 is 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. Appendix D to part 4022 is 

amended by adding a new entry to the 

end of the table to read as follows. The 

introductory text is reproduced for the 

convenience of the reader and remains 

unchanged. 

Appendix D to Part 4022—Maximum 

Guaranteeable Monthly Benefit 

The following table lists by year the 

maximum guaranteeable monthly benefit 

payable in the form of a life annuity 

commencing at age 65 as described by 

§ 4022.22(b) to a participant in a plan that 

terminated in that year: 

Year 

Maximum 

guaranteeable 

monthly 

benefit 

*****

2007 ...................................... $4,125.00 

Issued in Washington, DC, this 17th day of 

November, 2006. 

Vincent K. Snowbarger, 

Interim Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. E6–20389 Filed 11–30–06; 8:45 am] 

BILLING CODE 7709–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Part 4044 

Allocation of Assets in SingleEmployer Plans; Valuation of Benefits 

and Assets; Expected Retirement Age 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: This rule amends the Pension 

Benefit Guaranty Corporation’s 

regulation on Allocation of Assets in 

Single-Employer Plans by substituting a 

new table that applies to any plan being 

terminated either in a distress 

termination or involuntarily by the 

PBGC with a valuation date falling in 

2007, and is used to determine expected 

retirement ages for plan participants. 

This table is needed in order to compute 

the value of early retirement benefits 

and, thus, the total value of benefits 

under the plan. 

DATES: Effective Date: January 1, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion, Manager, Regulatory 

and Policy Division, 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 regulation on Allocation of 

Assets in Single-Employer Plans (29 

CFR part 4044) sets forth (in subpart B) 

the methods for valuing plan benefits of 

terminating single-employer plans 

covered under Title IV of the Employee 

Retirement Income Security Act of 1974. 

Under ERISA section 4041(c), 

guaranteed benefits and benefit 

liabilities under a plan that is 

undergoing a distress termination must 

be valued in accordance with part 4044, 

subpart B. In addition, when the PBGC 

terminates an underfunded plan 

involuntarily pursuant to ERISA Section 

4042(a), it uses the subpart B valuation 

rules to determine the amount of the 

plan’s underfunding. 

Under § 4044.51(b) of the asset 

allocation regulation, early retirement 

benefits are valued based on the annuity 

starting date, if a retirement date has 

been selected, or the expected 

retirement age, if the annuity starting 

date is not known on the valuation date. 

Sections 4044.55 through 4044.57 set 

forth rules for determining the expected 

retirement ages for plan participants 

entitled to early retirement benefits. 

Appendix D of part 4044 contains tables 

to be used in determining the expected 

early retirement ages. 

Table I in appendix D (Selection of 

Retirement Rate Category) is used to 

determine whether a participant has a 

low, medium, or high probability of 

retiring early. The determination is 

based on the year a participant would 

reach ‘‘unreduced retirement age’’ (i.e., 

the earlier of the normal retirement age 

or the age at which an unreduced 

benefit is first payable) and the 

participant’s monthly benefit at 

unreduced retirement age. The table 

applies only to plans with valuation 

dates in the current year and is updated 

annually by the PBGC to reflect changes 

in the cost of living, etc. 

Tables II–A, II–B, and II–C (Expected 

Retirement Ages for Individuals in the 

Low, Medium, and High Categories 

respectively) are used to determine the 

expected retirement age after the 

probability of early retirement has been 

determined using Table I. These tables 

establish, by probability category, the 

expected retirement age based on both 


rmajette on PROD1PC67 with RULES1
69482 Federal Register / Vol. 71, No. 231 / Friday, December 1, 2006 / Rules and Regulations 

the earliest age a participant could retire 

under the plan and the unreduced 

retirement age. This expected retirement 

age is used to compute the value of the 

early retirement benefit and, thus, the 

total value of benefits under the plan. 

This document amends appendix D to 

replace Table I–06 with Table I–07 in 

order to provide an updated correlation, 

appropriate for calendar year 2007, 

between the amount of a participant’s 

benefit and the probability that the 

participant will elect early retirement. 

Table I–07 will be used to value benefits 

in plans with valuation dates during 

calendar year 2007. 

The PBGC has determined that notice 

of and public comment on this rule are 

impracticable and contrary to the public 

interest. Plan administrators need to be 

able to estimate accurately the value of 

plan benefits as early as possible before 

initiating the termination process. For 

that purpose, if a plan has a valuation 

date in 2007, the plan administrator 

needs the updated table being 

promulgated in this rule. Accordingly, 

the public interest is best served by 

issuing this table expeditiously, without 

an opportunity for notice and comment, 

to allow as much time as possible to 

estimate the value of plan benefits with 

the proper table for plans with valuation 

dates in early 2007. 

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 

regulation, the Regulatory Flexibility 

Act of 1980 does not apply (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—[AMENDED] 

■ 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. Appendix D to part 4044 is 

amended by removing Table I–06 and 

adding in its place Table I–07 to read as 

follows: 

Appendix D to Part 4044—Tables Used 

To Determine Expected Retirement Age 

TABLE I–07.—SELECTION OF RETIREMENT RATE CATEGORY

[For plans with valuation dates after December 31, 2006, and before January 1, 2008] 

Participant reaches URA in year—

Participant’s Retirement Rate Category is—

Low 1 if 

monthly 

benefit at 

URA is less 

than—

Medium 2 if monthly benefit 

at URA is 

High 3 if 

monthly 

benefit at 

URA is 

greater 

From To than—

2008 ................................................................................................................................. 522 522 2,204 2,204 

2009 ................................................................................................................................. 534 534 2,257 2,257 

2010 ................................................................................................................................. 547 547 2,311 2,311 

2011 ................................................................................................................................. 560 560 2,367 2,367 

2012 ................................................................................................................................. 574 574 2,426 2,426 

2013 ................................................................................................................................. 588 588 2,486 2,486 

2014 ................................................................................................................................. 603 603 2,549 2,549 

2015 ................................................................................................................................. 618 618 2,612 2,612 

2016 ................................................................................................................................. 634 634 2,678 2,678 

2017 or later .................................................................................................................... 649 649 2,745 2,745 

1Table II–A. 2Table II–B. 3Table II–C. 

* * * * * 

Issued in Washington, DC, this 17th day of 

November, 2006. 

Vincent K. Snowbarger, 

Interim Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. E6–20387 Filed 11–30–06; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 1 

Privacy Act; Implementation 

AGENCY: Internal Revenue Service, 

Treasury. 

ACTION: Interim final rule. 

SUMMARY: In accordance with the 

requirements of the Privacy Act of 1974, 

as Amended, the Department of the 

Treasury gives notice of an amendment 

to this part by revising the titles of two 

Privacy Act systems of records and 

removing five other Privacy Act systems 

of records. The systems of records are 

related to the functions of the Internal 

Revenue Service (IRS), Office of 

Professional Responsibility (OPR). 

DATES: Effective Date: January 2, 2007. 

Comments must be received no later 

than January 2, 2007. You may also 

submit comments through the Federal 

rulemaking portal at http:// 

www.regulations.gov (follow the 

instructions for submitting comments). 

ADDRESSES: Comments should be sent to 

the Office of Governmental Liaison and 

Disclosure, IRS, 1111 Constitution 

Avenue, NW., Washington, DC 20224. 

To arrange to see the comments, see FOR

FURTHER INFORMATION CONTACT below. 

FOR FURTHER INFORMATION CONTACT: Earl 

Prater, Senior Counsel, OPR, at (202) 

874–5936, or for voice mail, (202) 622–

8018 (not toll free numbers). 

SUPPLEMENTARY INFORMATION: The IRS is 

proposing to simplify the administration 

of OPR’s Privacy Act systems of records 

by consolidating the current 11 OPR 

systems. A proposed notice to revise 

and consolidate the Privacy Act systems 

of records maintained by the OPR will 

be published separately in the Federal 

Register. The proposed notice to alter 

OPR’s current 11 systems of records will 

consolidate all records into the three 

revised systems of records: Treasury/IRS 

37.006—Correspondence, Miscellaneous 

Records, and Information Management 

Records; Treasury/IRS 37.007—

Practitioner Disciplinary Records; and 

Treasury/IRS 37.009—Enrolled Agent 

Records. 


rmajette on PROD1PC67 with RULES1