12072 Federal Register / Vol. 69, No. 50 / Monday, March 15, 2004 / Rules and Regulations 

taxable year the original return for 

which is due (without regard to 

extensions) after December 11, 2003. 

However, groups may apply paragraph 

(a)(4) of this section to discharges of 

indebtedness that occur after August 29, 

2003, and during a taxable year the 

original return for which is due (without 

regard to extensions) on or before 

December 11, 2003. For discharges of 

indebtedness that occur after August 29, 

2003, and during a taxable year the 

original return for which is due (without 

regard to extensions) on or before 

December 11, 2003, paragraph (a)(4) of 

this section shall apply as in effect on 

August 29, 2003. 

(3) Paragraphs (b)(4), (b)(5), and 

(b)(6)(ii) of this section apply to 

discharges of indebtedness that occur 

after August 29, 2003, but only if the 

discharge occurs during a taxable year 

the original return for which is due 

(without regard to extensions) after 

March 12, 2004. However, groups may 

apply paragraphs (b)(4), (b)(5), and (b)(6) 

of this section to discharges of 

indebtedness that occur after August 29, 

2003, and during a taxable year the 

original return for which is due (without 

regard to extensions) on or before March 

12, 2004.

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: March 4, 2004. 

Gregory F. Jenner, 

Acting Assistant Secretary of the Treasury.

[FR Doc. 04–5666 Filed 3–12–04; 8:45 am] 

BILLING CODE 4830–01–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 April 2004. Interest 

assumptions are also published on the 

PBGC’s Web site (http://www.pbgc.gov).

EFFECTIVE DATE: April 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 

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 April 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 April 

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 April 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 4.00 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 March 

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 

March 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 April 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 

126, as set forth below, is added to the 

table. (The introductory text of the table 

is omitted.)

Federal Register / Vol. 69, No. 50 / Monday, March 15, 2004 / Rules and Regulations 12073

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

* * * * * * * 

126 4–1–04 5–1–04 3.00 4.00 4.00 4.00 7 8 

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

126, 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

* * * * * * * 

126 4–1–04 5–1–04 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

* * * * *

For valuation dates occurring in the month—

The values of it are: 

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

* * * * * * 

April 2004 ................................................................................................................. .0400 1–20 .0500 20 N/A N/A 

Issued in Washington, DC on this 9th day 

of March 2004. 

Joseph H. Grant, 

Deputy Executive Director and Chief 

Operating Officer, Pension Benefit Guaranty 

Corporation.

[FR Doc. 04–5762 Filed 3–12–04; 8:45 am] 

BILLING CODE 7708–01–P

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[CGD05–04–012] 

RIN 1625–AA08 

Special Local Regulations for Marine 

Events; Severn River, College Creek, 

and Weems Creek, Annapolis, MD

AGENCY: Coast Guard, DHS.

ACTION: Notice of implementation of 

regulation. 

SUMMARY: The Coast Guard is 

implementing the special local 

regulations for the 25th Annual Safety at 

Sea Seminar, a marine event to be held 

March 27, 2004, on the waters of the 

Severn River at Annapolis, Maryland. 

These special local regulations are 

necessary to control vessel traffic due to 

the confined nature of the waterway and 

expected vessel congestion during the 

event. The effect will be to restrict 

general navigation in the regulated area 

for the safety of spectators and vessels 

transiting the event area.

DATES: 33 CFR 100.518 will be enforced 

from 11:30 a.m. to 2 p.m. on March 27, 

2004.

FOR FURTHER INFORMATION CONTACT: R.L. 

Houck, Marine Information Specialist, 

Commander, Coast Guard Activities 

Baltimore, 2401 Hawkins Point Road, 

Baltimore, MD 21226–1971, (410) 576–

2674.

SUPPLEMENTARY INFORMATION: The U.S. 

Naval Academy Sailing Squadron will 

sponsor the 25th Annual Safety at Sea 

Seminar on the waters of the Severn 

River, near the entrance to College Creek 

at Annapolis, Maryland. Waterborne 

activities will include exposure suit and 

life raft demonstrations, a pyrotechnics 

live-fire exercise, and a helicopter 

rescue. In order to ensure the safety of 

participants, spectators and transiting 

vessels, 33 CFR 100.518 will be in 

enforced for the duration of the event. 

Under provisions of 33 CFR 100.518, 

vessels may not enter the regulated area 

without permission from the Coast 

Guard Patrol Commander. Spectator 

vessels may anchor outside the 

regulated area but may not block a 

navigable channel. Because these 

restrictions will only be enforced for a 

limited period, they should not result in