Federal Register / Vol. 69, No. 73 / Thursday, April 15, 2004 / Rules and Regulations 19925 

Regulatory Flexibility Act, as amended, 

is not required. 

Paperwork Reduction Act 

These final rules impose no 

additional reporting or recordkeeping 

requirements requiring OMB clearance. 

(Catalog of Federal Domestic Assistance 

Program Nos. 96.001, Social Security—

Disability Insurance; 96.002, Social 

Security—Retirement Insurance; 96.004, 

Social Security—Survivors Insurance) 

List of Subjects in 20 CFR Part 404 

Administrative practice and 

procedure, Blind, Disability benefits, 

Old-age, Survivors and disability 

insurance, Reporting and recordkeeping 

requirements, Social Security. 

Dated: March 30, 2004. 

Jo Anne B. Barnhart, 

Commissioner of Social Security. 

■ For the reasons set forth in the 

preamble, we are amending subpart C of 

part 404 of Title 20 of the Code of 

Federal Regulations as follows: 

PART 404—FEDERAL OLD-AGE, 

SURVIVORS AND DISABILITY 

INSURANCE (1950—) 

Subpart C—[Amended] 

■ 1. The authority citation for subpart C 

of part 404 continues to read as follows: 

Authority: Secs. 202(a), 205(a), 215, and 

702(a)(5) of the Social Security Act (42 U.S.C. 

402(a), 405(a), 415, and 902(a)(5)). 

■ 2. Sections 404.273, 404.274 and 

404.275 are revised to read as follows: 

§ 404.273 When are automatic cost-ofliving increases effective? 

We make automatic cost-of-living 

increases if the applicable index, either 

the CPI or the AWI, rises over a 

specified measuring period (see the 

rules on measuring periods in 

§ 404.274). If the cost-of-living increase 

is to be based on an increase in the CPI, 

the increase is effective in December of 

the year in which the measuring period 

ends. If the increase is to be based on 

an increase in the AWI, the increase is 

effective in December of the year after 

the year in which the measuring period 

ends. 

§ 404.274 What are the measuring periods 

we use to calculate cost-of-living 

increases? 

(a) General. Depending on the OASDI 

fund ratio, we measure the rise in one 

index or in both indexes during the 

applicable measuring period (described 

in paragraphs (b) and (c) of this section) 

to determine whether there will be an 

automatic cost-of-living increase and if 

so, its amount. 

(b) Measuring period based on the 

CPI—(1) When the period begins. The 

measuring period we use for finding the 

amount of the CPI increase begins with 

the later of—

(i) Any calendar quarter in which an 

ad hoc benefit increase is effective; or 

(ii) The third calendar quarter of any 

year in which the last automatic 

increase became effective. 

(2) When the period ends. The 

measuring period ends with the third 

calendar quarter of the following year. If 

this measuring period ends in a year 

after the year in which an ad hoc 

increase was enacted or took effect, 

there can be no cost-of-living increase at 

that time. We will extend the measuring 

period to the third calendar quarter of 

the next year. 

(c) Measuring period based on the 

AWI—(1) When the period begins. The 

measuring period we use for finding the 

amount of the AWI increase begins with 

the later of—

(i) The calendar year before the year 

in which an ad hoc benefit increase is 

effective; or 

(ii) The calendar year before the year 

in which the last automatic increase 

became effective. 

(2) When the period ends. The 

measuring period ends with the 

following year. If this measuring period 

ends in a year in which an ad hoc 

increase was enacted or took effect, 

there can be no cost-of-living increase at 

that time. We will extend the measuring 

period to the next calendar year. 

§ 404.275 How is an automatic cost-ofliving increase calculated? 

(a) Increase based on the CPI. We 

compute the average of the CPI for the 

quarters that begin and end the 

measuring period by adding the three 

monthly CPI figures (which are 

published to one decimal place), 

dividing the total by 3, and rounding the 

result to the nearest 0.1. If the average 

for the ending quarter is higher than the 

average for the beginning quarter, we 

divide the average for the ending quarter 

by the average for the beginning quarter 

to determine the percentage increase in 

the CPI over the measuring period. 

(b) Increase based on the AWI. If the 

AWI for the year that ends the 

measuring period is higher than the 

AWI for the year which begins the 

measuring period and all the other 

conditions for an AWI-based increase 

are met, we divide the higher AWI by 

the lower AWI to determine the 

percentage increase in the AWI. 

(c) Rounding rules. We round the 

increase from the applicable paragraph 

(a) or (b) of this section to the nearest 

0.1 percent by rounding 0.05 percent 

and above to the next higher 0.1 percent 

and otherwise rounding to the next 

lower 0.1 percent. For example, if the 

applicable index is the CPI and the 

increase in the CPI is 3.15 percent, we 

round the increase to 3.2 percent. We 

then apply this percentage increase to 

the amounts described in § 404.271 and 

round the resulting dollar amounts to 

the next lower multiple of $0.10 (if not 

already a multiple of $0.10). 

(d) Additional increase. See § 404.278 

for the additional increase that is 

possible. 

§ 404.278 [Amended] 

■ 3. In § 404.278, remove the 

parenthetical phrase at the end of 

paragraph (a)(2). 

[FR Doc. 04–8573 Filed 4–14–04; 8:45 am] 

BILLING CODE 4191–02–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 2004. Interest assumptions 

are also published on the PBGC’s Web 

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

EFFECTIVE DATE: May 1, 2004. 

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: 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 

19926 Federal Register / Vol. 69, No. 73 / Thursday, April 15, 2004 / Rules and Regulations 

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 2004, (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 

2004, 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 2004. 

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 5.00 percent 

thereafter. These interest assumptions 

represent a decrease (from those in 

effect for April 2004) 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 3.00 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 

2004. 

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 2004, 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 

127, 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

* * * * * * * 

127 5–1–04 6–1–04 3.00 4.00 4.00 4.00 7 8 

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

127, 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

* * * * * * * 

127 5–1–04 6–1–04 3.00 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 

* * * * * 

Federal Register / Vol. 69, No. 73 / Thursday, April 15, 2004 / Rules and Regulations 19927 

For valuation dates 

occurring in 

the month—

The values of it are: 

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

* * * * * * * 

May 2004 ... .0390 1–20 .0500 >20 N/A N/A 

Issued in Washington, DC, on this 8th day 

of April 2004. 

Joseph H. Grant, 

Deputy Executive Director and Chief 

Operating Officer, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 04–8588 Filed 4–14–04; 8:45 am] 

BILLING CODE 7708–01–P 

DEPARTMENT OF THE INTERIOR 

Office of Surface Mining Reclamation 

and Enforcement 

30 CFR Part 925 

Clarification of Substituted Federal 

Enforcement for Parts of Missouri’s 

Permanent Regulatory Program and 

Findings on the Status of Missouri’s 

Permanent Regulatory Program 

AGENCY: Office of Surface Mining 

Reclamation and Enforcement, Interior. 

ACTION: Final rule; clarification. 

SUMMARY: On November 21, 1980, the 

Secretary of the Interior (the Secretary) 

conditionally approved the Missouri 

permanent regulatory program (Missouri 

program) under the Surface Mining 

Control and Reclamation Act of 1977 

(SMCRA or the Act). On August 4, 2003, 

we, the Office of Surface Mining 

Reclamation and Enforcement (OSM), 

notified the Governor of Missouri that 

serious problems existed that were 

adversely affecting the Missouri 

Department of Natural Resources, Air 

and Land Protection Division, Land 

Reclamation Program’s (MLRP) 

implementation and enforcement of the 

Missouri program. In accordance with 

the provisions of 30 CFR 733.12(f), we 

announced our decision, effective 

August 22, 2003, to institute direct 

Federal enforcement for those portions 

of the Missouri program that the MLRP 

could not adequately implement and 

enforce. With the substitution of Federal 

enforcement authority, we outlined a 

process by which Missouri could regain 

full authority for its program. 

This document clarifies the portions 

of the Missouri program that we directly 

enforce and sets forth our findings 

regarding the status of those portions of 

Missouri’s program for which we 

required remedial actions. 

This rule is being made effective 

immediately in order to expedite the 

actions required of the State to resume 

full authority for its approved program. 

EFFECTIVE DATE: April 15, 2004. 

FOR FURTHER INFORMATION CONTACT: John 

W. Coleman, Mid-Continent Regional 

Coordinating Center, Office of Surface 

Mining, 501 Belle Street, Alton, Illinois 

62002. Telephone: (618) 463–6460. 

SUPPLEMENTARY INFORMATION: 

I. Background on the Missouri Program 

II. Clarification of OSM’s August 22, 2003, 

Decision to Substitute Federal 

Enforcement for Parts of the Missouri 

Program 

III. OSM’s Decision 

IV. Disposition of Comments 

V. Procedural Determinations 

I. Background on the Missouri Program 

Section 503(a) of the Act permits a 

State to assume primacy for the 

regulation of surface coal mining and 

reclamation operations on non-Federal 

and non-Indian lands within its borders 

by demonstrating that its State program 

includes, among other things, ‘‘a State 

law which provides for the regulation of 

surface coal mining and reclamation 

operations in accordance with the 

requirements of this Act * * *; and 

rules and regulations consistent with 

regulations issued by the Secretary 

pursuant to this Act.’’ See 30 U.S.C. 

1253(a)(1) and (7). On the basis of these 

criteria, the Secretary conditionally 

approved the Missouri program on 

November 21, 1980. You can find 

background information on the Missouri 

program, including the Secretary’s 

findings, the disposition of comments, 

and conditions of approval, in the 

November 21, 1980, Federal Register 

(45 FR 77017). You can also find later 

actions concerning the Missouri 

program and program amendments at 30 

CFR 925.10, 925.12, 925.15, 925.16, 

925.17, 925.18, and 925.19. 

The Abandoned Mine Land 

Reclamation (AMLR) Program was 

established by Title IV of the Act (30 

U.S.C. 1201 et seq.) in response to 

concerns over extensive environmental 

damage caused by past coal mining 

activities. The program is funded by a 

reclamation fee collected on each ton of 

coal that is produced. The money 

collected is used to finance the 

reclamation of abandoned coal mines 

and for other authorized activities. 

Section 405 of the Act allows States and 

Indian Tribes to assume exclusive 

responsibility for reclamation activity 

within the State or on Indian lands if 

they develop and submit to the 

Secretary for approval, a program (often 

referred to as a plan) for the reclamation 

of abandoned coal mines. Section 405(c) 

of the Act also requires States to have 

an approved State regulatory program 

before the Secretary can approve a State 

program for the reclamation of 

abandoned coal mines. On the basis of 

these criteria, the Secretary approved 

the Missouri plan on January 29, 1982. 

You can find background information 

on the Missouri plan, including the 

Secretary’s findings, the disposition of 

comments, and the approval of the plan 

in the January 29, 1982, Federal 

Register (47 FR 4253). You can find 

later actions concerning the Missouri 

plan and amendments to the plan at 30 

CFR 925.25. 

Section 410 of SMCRA authorizes the 

Secretary to use funds under the AMLR 

program to abate or control emergency 

situations in which adverse effects of 

past coal mining pose an immediate 

danger to the public health, safety, or 

general welfare. In a Federal Register 

notice dated September 29, 1982 (47 FR 

42729), we invited States to amend their 

AMLR plans for the purpose of 

undertaking emergency reclamation 

programs on our behalf. We approved 

Missouri’s assumption of the AMLR 

emergency program on June 24, 1998. 

You can find background information, 

including our findings, the disposition 

of comments, and the approval of the 

Missouri AMLR emergency program in 

the June 24, 1998, Federal Register (63 

FR 34277). 

On June 19, 2003, the MLRP notified 

us that the Missouri Legislature passed 

House Bill (HB) 6 that appropriated 

funds for the Missouri program. In HB 

6, the Missouri Legislature did not fully 

fund the Missouri program for the 

period beginning July 1, 2003, and 

ending June 30, 2004. The Governor of 

Missouri signed the appropriation bill 

on May 30, 2003 (Administrative Record 

No. MO–664). 

On July 2, 2003, we met with the 

MLRP at the Missouri Department of 

Natural Resources’ office in Jefferson 

City, Missouri (Administrative Record