2420 Federal Register / Vol. 73, No. 10 / Tuesday, January 15, 2008 / Rules and Regulations 

nonrecognition of any income that M2 

realizes on account of consideration received 

(or deemed received) on its assumption of X’s 

liability to furnish or deliver the newspaper, 

magazine, or other periodical to which the 

prepaid subscription income relates. 

(7) Effective/applicability date. This 

paragraph (g) applies to transactions 

occurring after April 14, 2008. 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: January 8, 2008. 

Eric Solomon, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. E8–575 Filed 1–14–08; 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 February 2008. Interest 

assumptions are also published on the 

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

DATES: Effective February 1, 2008. 

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 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). 

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 February 2008, 

(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 

February 2008, 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 

February 2008. 

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 5.50 

percent for the first 20 years following 

the valuation date and 4.57 percent 

thereafter. These interest assumptions 

represent an increase (from those in 

effect for January 2008) of 0.08 percent 

for the first 20 years following the 

valuation date and 0.08 percent for all 

years thereafter. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in Appendix B to 

part 4022) will be 3.25 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 an increase (from those in 

effect for January 2008) of 0.25% in the 

immediate rate 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 current 

market conditions as accurately as 

possible. 

Because of the need to provide 

immediate guidance for the valuation 

and payment of benefits in plans with 

valuation dates during February 2008, 

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 

172, as set forth below, is added to the 

table. 

Appendix B to Part 4022—Lump Sum 

Interest Rates for PBGC Payments 

* * * * * 


yshivers on PROD1PC71 with RULES
Federal Register / Vol. 73, No. 10 / Tuesday, January 15, 2008 / Rules and Regulations 2421 

Rate set 

For plans with a 

valuation date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i1 i2 i3 n1 n2

* * * * * * * 

172 02–1–08 03–1–08 3.25 4.00 4.00 4.00 7 8 

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

172, as set forth below, is added to the 

table. 

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

* * * * * * * 

172 02–1–08 03–1–08 3.25 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 for February 2008, as set forth 

below, is added to the table. 

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 = 

* * * * * * * 

February 2008 .................................................................. .0550 1–20 .0457 >20 N/A N/A 

Issued in Washington, DC, on this 9th day 

of January 2008. 

Vincent K. Snowbarger, 

Deputy Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. E8–600 Filed 1–14–08; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 21 

RIN 2900–AL28 

Veterans Education: Incorporation of 

Miscellaneous Statutory Provisions 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: This document amends 

regulations governing various aspects of 

the education programs administered by 

the Department of Veterans Affairs. 

These amendments reflect some of the 

provisions of the Veterans Education 

and Benefits Expansion Act of 2001, the 

Veterans Benefits Act of 2003, and the 

Veterans Benefits, Health Care, and 

Information Technology Act of 2006. 

The changes include: Restoration of 

certain education benefits for 

individuals being ordered to active 

duty; restoration of Survivors’ and 

Dependents’ Educational Assistance to 

certain full-time National Guard 

members; an opportunity for certain 

Vietnam-era veterans to qualify for 

Montgomery GI Bill education benefits; 

an increase in the maximum amount an 

individual can receive under the Senior 

Reserve Officer Training Corps 

educational assistance program and still 

qualify for the Montgomery GI Bill—

Active Duty program; establishment of 

an ending date of the eligibility period 

for spouses under the Survivors’ and 

Dependents’ Educational Assistance 

program; expansion of special 

restorative training benefits to certain 

disabled spouses or disabled surviving 

spouses; and providing educational 

benefits for an independent study 

course that leads to a certificate 

reflecting educational attainment 

offered by an institution of higher 

learning. The document also amends the 

education regulations by making 

changes to reflect current agency 

organization and nonsubstantive 

changes for the purpose of readability or 

clarity. 

DATES: Effective Date: This final rule is 

effective January 15, 2008. 

Applicability Dates. Amendments in 

this final rule are applied retroactively 

to conform to the effective date of 

statutory provisions. For more 

information concerning the dates of 

applicability, see the SUPPLEMENTARY

INFORMATION section. 

FOR FURTHER INFORMATION CONTACT: 

Lynn M. Nelson, Assistant Director, 

Policy and Program Administration 

(225), Education Service, Veterans 

Benefits Administration, Department of 

Veterans Affairs, 810 Vermont Avenue, 

NW., Washington, DC 20420, (202) 461–

9827. 

SUPPLEMENTARY INFORMATION: The 

Veterans Education and Benefits 

Expansion Act of 2001 (Pub. L. 107–

103) (‘‘Act’’) provides eligibility under 

the Montgomery GI Bill—Active Duty 

(MGIB) program to some additional 

Vietnam-era veterans. Previously, only 


yshivers on PROD1PC71 with RULES