34610 Federal Register / Vol. 67, No. 94 / Wednesday, May 15, 2002 / Rules and Regulations

respect to contracts entered into prior to

the conversion, notwithstanding section

460(b)(4)(B)(i).

(4) Effective date. This paragraph (g)

is applicable for transactions on or after

May 15, 2002.

§ 1.1362–2 [Amended]

9. In § 1.1362–2, paragraph (c)(6)

Example 2, first sentence is amended by

removing the language ‘‘§ 1.451–3(b)’’

and adding ‘‘§ 1.460–1(b)(1)’’ in its

place, and removing the language

‘‘§ 1.451–3(c)(1)’’ and adding ‘‘§ 1.460–

4(b)’’ in its place.

§ 1.1374–4 [Amended]

10. In § 1.1374–4, paragraph (g), first

sentence is amended by removing the

language ‘‘§ 1.451–3(d)’’ and adding

‘‘§ 1.460–4(d)’’ in its place, and

removing the language ‘‘§ 1.451–3(c)’’

and adding ‘‘§ 1.460–4(b)’’ in its place.

PART 602—OMB CONTROL NUMBERS

UNDER THE PAPERWORK

REDUCTION ACT

11. The authority section for part 602

continues to read as follows:

Authority: 26 U.S.C. 7805.

12. In § 602.101, paragraph (b) is

amended by revising the entry for

1.460–6 to read as follows:

§ 602.101 OMB Control numbers.

* * * * *

(b) * * *

CFR part or section where identified and described Current OMB

control No.

*******

1.460–6 ........................................................................... 1545–1031; ........................ 1545–1572; ........................ 1545–1732

*******

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Approved: May 2, 2002.

Pamela F. Olson,

Acting Assistant Secretary of the Treasury.

[FR Doc. 02–11792 Filed 5–14–02; 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 June 2002. Interest assumptions

are also published on the PBGC’s Web

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

EFFECTIVE DATE: June 1, 2002.

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 June 2002, (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 June

2002, 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 June 2002.

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 5.70 percent for

the first 25 years following the valuation

date and 4.25 percent thereafter. These

interest assumptions represent a

decrease (from those in effect for May

2002) of 0.20 percent for the first 25

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 4.50 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

represent a decrease (from those in

effect for May 2002) of 0.25 percent for

the period during which a benefit is in

pay status and are otherwise unchanged.

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 June 2002, the

Federal Register / Vol. 67, No. 94 / Wednesday, May 15, 2002 / Rules and Regulations 34611

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

104, 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 dateImmediate

annuity

rate

(percent)

Deferred annuities

(percent)

On or after Before i1 i2 i3 n1 n2

*******

104 .................................................................................. 6–1–02 7–1–02 4.50 4.00 4.00 4.00 7 8

3. In appendix C to part 4022, Rate Set 104, 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 dateImmediate

annuity

rate

(percent)

Deferred annuities

(percent)

On or after Before i1 i2 i3 n1 n2

*******

104 .................................................................................. 6–1–02 7–1–02 4.50 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 =

*******

June 2002 ................................................................................................. .0570 1–25 .0425 >25 N/A N/A

34612 Federal Register / Vol. 67, No. 94 / Wednesday, May 15, 2002 / Rules and Regulations

Issued in Washington, DC, on this 10th day

of May 2002.

Steven A. Kandarian,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 02–12158 Filed 5–14–02; 8:45 am]

BILLING CODE 7708–01–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 165

[CGD01–02–058]

RIN 2115–AA97

Safety Zone; Chelsea River Safety

Zone for McArdle Bridge Repairs,

Chelsea River, East Boston,

Massachusetts

AGENCY: Coast Guard, DOT.

ACTION: Temporary final rule.

SUMMARY: The Coast Guard is

establishing a temporary safety zone for

the Chelsea River to aid completion of

the McArdle Bridge repairs in East

Boston, MA. The safety zone will

temporarily close all waters 100-yards

upstream and downstream of the

McArdle Bridge. The safety zone

prohibits entry into or movement within

this portion of the Chelsea River and is

needed to facilitate repair efforts and

protect the maritime public from the

hazards posed.

DATES: This rule is effective from May

13 until July 13, 2002.

ADDRESSES: Documents indicated in this

preamble are available for inspection or

copying at Marine Safety Office Boston,

455 Commercial Street, Boston, MA

between the hours of 8 a.m. and 3 p.m.,

Monday through Friday, except Federal

holidays.

FOR FURTHER INFORMATION CONTACT: LT

David M. Sherry, Marine Safety Office

Boston, Waterways Safety and Response

Division, at (617) 223–3000.

SUPPLEMENTARY INFORMATION:

Regulatory Information

Pursuant to 5 U.S.C. 553, a notice of

proposed rulemaking (NPRM) was not

published for this rule. Good cause

exists for not publishing an NPRM and

for making this regulation effective in

less than 30 days after Federal Register

publication. Information about this

event was not provided to the Coast

Guard until April 25, 2002, making it

impossible to draft or publish an NPRM

or a final rule 30 days in advance of its

effective date.

The McArdle Bridge repairs were

determined necessary as a result of

recent inspections by the Massachusetts

Highway Department, during which

steel grating and support failures on the

McArdle Bridge were discovered.

Waterway closures in the vicinity of and

beneath the bridge are needed because

repair equipment and portions of the

bridge deck will be extending over the

waterway, and hotwork (welding and

grinding) which will shoot sparks over

the waterway in the vicinity of the

bridge will be conducted. Delaying this

work for sufficient time to conduct a

public notice rulemaking and advanced

publication would be contrary to the

public interest for the reasons outlined

below.

The marine industry representatives

who operate on the Chelsea and Fore

Rivers have stated that it is in their best

interest for this work to be completed

during the prescribed time period. Work

is already scheduled on the Weymouth

Fore River Bridge from June to August

2002, during which time the waterway

underneath the Weymouth Fore River

Bridge will also be periodically closed.

It is in the best interest of the public and

industry that these two channel closures

not have a significant overlap. With the

closures scheduled in this rule (Chelsea

River), there will be minimal overlap

between the two projects (1 week total).

These two rivers receive 100 percent of

the petroleum for commercial sale in the

Captain of the Port (COTP) Boston, MA

zone, and the majority of the petroleum

for all of New England. To have a

significant overlap in the lengthy

closures of both of these waterways

would make planning petroleum vessel

arrivals and departures around the

closures extremely difficult, placing

unmanageable burdens on the marine

industry in both rivers, and as a result

negatively impacting the supply of

petroleum for the entire region. Thus,

due to the already scheduled Weymouth

Fore River safety zones and waterway

restrictions, the next available time

period to schedule the McArdle Bridge

repairs would be fall or winter of 2002.

Delaying the Chelsea River safety

zones until the fall or winter of 2002

will introduce different problems with

respect to the bridge repairs, and place

more burdens on the petroleum industry

in the Chelsea River, than would

conducting this work in the Spring as

proposed. The industry receives more

vessels during the fall and winter

months than any other time due to the

demand for home heating oil. Potential

delays in petroleum-laden vessels

during the critical fall and winter

months could negatively impact local

oil prices and consumers. In addition,

significant delays in the actual McArdle

Bridge repair work could result from

cold weather during this time of year.

Further delaying this work also places

the future operability of the bridge for

waterway and roadway use at risk.

Further delay in the structural steel

work again places at risk the ability of

the marine terminals on the Chelsea

River to continue to receive vessels.

Also, the Massachusetts Highway

Department will need to restrict road

traffic over the bridge to a certain

tonnage if the work is not done soon. If

the work is delayed further, road traffic

may be completely restricted from the

bridge, causing unmanageable traffic

situations in Chelsea and East Boston.

Thus, it is in the best interest of

maintaining safe marine commerce,

avoiding significant road traffic

problems, and ensuring the work is

completed as safely and quickly as

practicable, that these closures come

into effect on May 13, 2002.

This temporary safety zone is only for

evening periods and should have a

minimal impact on vessel transits due to

the fact that the zone will be in effect

only during night time when

recreational boaters do not typically use

the waterway, night time commercial

traffic is already limited by the

constraints of the regulations governing

the Chelsea Street Bridge under 33 CFR

165.120, and the commercial users of

the Chelsea River have stated that

restricting night time use of the

waterway during this time of the year

will place the least burden on their

operations.

Discussion of Rule

This regulation establishes a safety

zone on all waters of the Chelsea River

100-yards upstream and downstream of

the McArdle Bridge. The safety zone is

in effect from May 13 until July 13,

2002, and will be enforced from sunset

until sunrise each day during this

period. This safety zone prohibits entry

into or movement within this portion of

the Chelsea River and is needed to

provide the Middlesex Corporation

sufficient time to safely complete the

necessary repairs, painting, steel

support, and grating work. The work is

needed to ensure the continued safe

operability of the McArdle Bridge. The

Captain of the Port does anticipate

minimal negative impact on vessel

traffic due to this repair work. Public

notifications will be made prior to the

effective period via local notice to

mariners and marine information

broadcasts.

Regulatory Evaluation

This rule is not a ‘‘significant

regulatory action’’ under section 3(f) of