Federal Register / Vol. 67, No. 199 / Tuesday, October 15, 2002 / Notices 63707

PENSION BENEFIT GUARANTY 

CORPORATION 

Required Interest Rate Assumption for 

Determining Variable-Rate Premium; 

Interest on Late Premium Payments; 

Interest on Underpayments and 

Overpayments of Single-Employer 

Plan Termination Liability and 

Multiemployer Withdrawal Liability; 

Interest Assumptions for 

Multiemployer Plan Valuations 

Following Mass Withdrawal

AGENCY: Pension Benefit Guaranty 

Corporation.

ACTION: Notice of interest rates and 

assumptions. 

SUMMARY: This notice informs the public 

of the interest rates and assumptions to 

be used under certain Pension Benefit 

Guaranty Corporation regulations. These 

rates and assumptions are published 

elsewhere (or can be derived from rates 

published elsewhere), but are collected 

and published in this notice for the 

convenience of the public. Interest rates 

are also published on the PBGC’s Web 

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

DATES: The required interest rate for 

determining the variable-rate premium 

under part 4006 applies to premium 

payment years beginning in October 

2002. The interest assumptions for 

performing multiemployer plan 

valuations following mass withdrawal 

under part 4281 apply to valuation dates 

occurring in November 2002. The 

interest rates for late premium payments 

under part 4007 and for underpayments 

and overpayments of single-employer 

plan termination liability under part 

4062 and multiemployer withdrawal 

liability under part 4219 apply to 

interest accruing during the fourth 

quarter (October through December) of 

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: 

Variable-Rate Premiums 

Section 4006(a)(3)(E)(iii)(II) of the 

Employee Retirement Income Security 

Act of 1974 (ERISA) and § 4006.4(b)(1) 

of the PBGC’s regulation on Premium 

Rates (29 CFR part 4006) prescribe use 

of an assumed interest rate (the 

‘‘required interest rate’’) in determining 

a single-employer plan’s variable-rate 

premium. The required interest rate is 

the ‘‘applicable percentage’’ (currently 

100 percent) of the annual yield on 30-

year Treasury securities for the month 

preceding the beginning of the plan year 

for which premiums are being paid (the 

‘‘premium payment year’’). (Although 

the Treasury Department has ceased 

issuing 30-year securities, the Internal 

Revenue Service announces a surrogate 

yield figure each month—based on the 

30-year Treasury bond maturing in 

February 2031—which the PBGC uses to 

determine the required interest rate.) 

The required interest rate to be used 

in determining variable-rate premiums 

for premium payment years beginning 

in October 2002 is 4.76 percent. 

The following table lists the required 

interest rates to be used in determining 

variable-rate premiums for premium 

payment years beginning between 

November 2001 and October 2002.

For premium payment years 

beginning in: 

The required interest rate is: 

November 2001 ........................ 4.52 

December 2001 ........................ 4.35 

January 2002 ............................ 5.48 

February 2002 .......................... 5.45 

March 2002 ............................... 5.40 

April 2002 ................................. 5.71 

May 2002 .................................. 5.68 

June 2002 ................................. 5.65 

July 2002 .................................. 5.52 

August 2002 ............................. 5.39 

September 2002 ....................... 5.08 

October 2002 ............................ 4.76 

Late Premium Payments; 

Underpayments and Overpayments of 

Single-Employer Plan Termination 

Liability 

Section 4007(b) of ERISA and 

§ 4007.7(a) of the PBGC’s regulation on 

Payment of Premiums (29 CFR part 

4007) require the payment of interest on 

late premium payments at the rate 

established under section 6601 of the 

Internal Revenue Code. Similarly, 

§ 4062.7 of the PBGC’s regulation on 

Liability for Termination of SingleEmployer Plans (29 CFR part 4062) 

requires that interest be charged or 

credited at the section 6601 rate on 

underpayments and overpayments of 

employer liability under section 4062 of 

ERISA. The section 6601 rate is 

established periodically (currently 

quarterly) by the Internal Revenue 

Service. The rate applicable to the 

fourth quarter (October through 

December) of 2002, as announced by the 

IRS, is 6 percent. 

The following table lists the late 

payment interest rates for premiums and 

employer liability for the specified time 

periods:

From— Through—

Interest 

rate (percent) 

7/1/96 .................... 3/31/98 9 

4/1/98 .................... 12/31/98 8 

1/1/99 .................... 3/31/99 7 

4/1/99 .................... 3/31/00 8 

4/1/00 .................... 3/31/01 9 

4/1/01 .................... 6/30/01 8 

7/1/01 .................... 12/31/01 7 

1/1/02 .................... 12/31/02 6 

Underpayments and Overpayments of 

Multiemployer Withdrawal Liability 

Section 4219.32(b) of the PBGC’s 

regulation on Notice, Collection, and 

Redetermination of Withdrawal 

Liability (29 CFR part 4219) specifies 

the rate at which a multiemployer plan 

is to charge or credit interest on 

underpayments and overpayments of 

withdrawal liability under section 4219 

of ERISA unless an applicable plan 

provision provides otherwise. For 

interest accruing during any calendar 

quarter, the specified rate is the average 

quoted prime rate on short-term 

commercial loans for the fifteenth day 

(or the next business day if the fifteenth 

day is not a business day) of the month 

preceding the beginning of the quarter, 

as reported by the Board of Governors 

of the Federal Reserve System in 

Statistical Release H.15 (‘‘Selected 

Interest Rates’’). The rate for the fourth 

quarter (October through December) of 

2002 (i.e., the rate reported for 

September 16, 2002) is 4.75 percent. 

The following table lists the 

withdrawal liability underpayment and 

overpayment interest rates for the 

specified time periods:

From Through 

Interest 

rate (percent) 

4/1/96 .................... 6/30/97 8.25 

7/1/97 .................... 12/31/98 8.50 

1/1/99 .................... 9/30/99 7.75 

10/1/99 .................. 12/31/99 8.25 

1/1/00 .................... 3/31/00 8.50 

4/1/00 .................... 6/30/00 8.75 

7/1/00 .................... 3/31/01 9.50 

4/1/01 .................... 6/30/01 8.50 

7/1/01 .................... 9/30/01 7.00 

10/1/01 .................. 12/31/01 6.50 

1/1/02 .................... 12/31/02 4.75 

Multiemployer Plan Valuations 

Following Mass Withdrawal 

The PBGC’s regulation on Duties of 

Plan Sponsor Following Mass 

Withdrawal (29 CFR part 4281) 

prescribes the use of interest 

assumptions under the PBGC’s 

regulation on Allocation of Assets in 

Single-Employer Plans (29 CFR part 

4044). The interest assumptions 

applicable to valuation dates in 

63708 Federal Register / Vol. 67, No. 199 / Tuesday, October 15, 2002 / Notices 

November 2002 under part 4044 are 

contained in an amendment to part 4044 

published elsewhere in today’s Federal 

Register. Tables showing the 

assumptions applicable to prior periods 

are codified in appendix B to 29 CFR 

part 4044.

Issued in Washington, DC, on this 8th day 

of October, 2002. 

Joseph H. Grant, 

Deputy Executive Director and Chief 

Operating Officer, Pension Benefit Guaranty 

Corporation.

[FR Doc. 02–26112 Filed 10–11–02; 8:45 am] 

BILLING CODE 7708–01–P

SECURITIES AND EXCHANGE 

COMMISSION 

[Rel. No. IC–25766; File No. 812–12742] 

Minnesota Life Insurance Company, et 

al.; Notice of Application 

October 8, 2002.

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’).

ACTION: Notice of application for an 

order pursuant to section 11(a) of the 

Investment Company Act of 1940 (the 

‘‘Act’’) approving the terms of an offer 

of exchange. 

APPLICANTS: Minnesota Life Insurance 

Company (‘‘Minnesota Life’’), 

Minnesota Life Variable Life Account 

(the ‘‘Variable Life Account’’), and 

Securian Financial Services, Inc. 

(‘‘Securian Financial,’’ collectively with 

Minnesota Life and the Variable Life 

Account, the ‘‘Applicants’’).

SUMMARY OF APPLICATION: Applicants 

seek an order pursuant to Section 11(a) 

of the Act approving the terms of a 

proposed offer of exchange of new 

variable adjustable life insurance 

policies issued by Minnesota Life and 

made available through the Variable Life 

Account (the ‘‘New Policies’’) for certain 

outstanding variable adjustable life 

insurance policies issued by Minnesota 

Life and made available through the 

Variable Life Account (‘‘VAL ‘‘87’’ or 

‘‘VAL ‘‘95,’’ collectively, the ‘‘Old 

Policies;’’ collectively with the New 

Policies, the ‘‘Policies’’).

FILING DATE: The Application was filed 

on December 31, 2001.

HEARING OR NOTIFICATION OF HEARING: An 

order granting the Application will be 

issued unless the Commission orders a 

hearing. Interested persons may request 

a hearing by writing to the 

Commission’s Secretary and serving 

Applicants with a copy of the request, 

in person or by mail. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on November 1, 2002, and 

should be accompanied by proof of 

service on the Applicants, in the form 

of an affidavit or, for lawyers, a 

certificate of service. Hearing requests 

should state the nature of the writer’s 

interest, the reason for the request, and 

the issues contested. Persons who wish 

to be notified of a hearing may request 

notification by writing to the Secretary 

of the Commission.

ADDRESSES: Secretary, Securities and 

Exchange Commission, 450 Fifth Street, 

NW., Washington, DC 20549–0609. 

Applicants, c/o Anna Marie Ettel, Esq., 

Minnesota Life, 400 Robert Street North, 

St. Paul, MN 55101–2098; copies to W. 

Randolph Thompson, Esq., Of Counsel, 

Jones & Blouch L.L.P., 1025 Thomas 

Jefferson Street, NW., Suite 410E, 

Washington, DC 20007.

FOR FURTHER INFORMATION CONTACT:

Martha Atkins, Senior Counsel, or Lorna 

J. MacLeod, Branch Chief, at (202) 942–

0670, Office of Insurance Products, 

Division of Investment Management.

SUPPLEMENTARY INFORMATION: The 

following is a summary of the 

Application. The complete application 

is available for a fee from the 

Commission’s Public Reference Branch, 

450 Fifth Street, NW., Washington, DC 

20549–0102 ((202) 942–8090). 

Applicants’ Representations 

1. Minnesota Life is a life insurance 

company organized under the laws of 

Minnesota. Minnesota Life was formerly 

known as The Minnesota Mutual Life 

Insurance Company, a mutual life 

insurance company organized in 1880 

under the laws of Minnesota. Effective 

October 1, 1998, The Minnesota Mutual 

Life Insurance Company reorganized by 

forming a mutual insurance holding 

company named ‘‘Minnesota Mutual 

Companies, Inc.’’ The Minnesota 

Mutual Life Insurance Company 

continued its corporate existence 

following conversion to a Minnesota 

stock life insurance company. All of the 

shares of the voting stock of Minnesota 

Life are owned by a second tier 

intermediate stock holding company 

named ‘‘Securian Financial Group, 

Inc.,’’ which is a wholly-owned 

subsidiary of a first tier intermediate 

stock holding company named 

‘‘Securian Holding Company,’’ which in 

turn is a wholly-owned subsidiary of the 

ultimate parent, Minnesota Mutual 

Companies, Inc. 

2. The Variable Life Account was 

established on October 21, 1985, by the 

Minnesota Life Board of Trustees in 

accordance with certain provisions of 

Minnesota insurance law. Minnesota 

Life is the legal owner of the assets in 

the Variable Life Account. The 

obligations to Policy owners and 

beneficiaries arising under the Policies 

are general corporate obligations of 

Minnesota Life and thus Minnesota 

Life’s general assets back the Policies. 

The Minnesota law under which the 

Variable Life Account was established 

provides that the assets of the Variable 

Life Account shall not be chargeable 

with liabilities arising out of any other 

business which Minnesota Life may 

conduct, but shall be held and applied 

exclusively to the benefit of the holders 

of those variable life insurance policies 

for which the separate account was 

established. The investment 

performance of the Variable Life 

Account is entirely independent of both 

the investment performance of 

Minnesota Life’s General Account and 

of any other separate account which 

Minnesota Life may have established or 

may later establish. The Variable Life 

Account is organized and registered 

under the Act as a unit investment trust 

(File No. 811–4585) and is a ‘‘separate 

account’’ as defined in section 2(a)(37) 

of the Act. 

3. Securian Financial is registered 

with the Commission as a broker-dealer 

and is a member of the National 

Association of Securities Dealers, Inc. 

Securian Financial is the principal 

underwriter for the Policies. Securian 

Financial is a wholly-owned subsidiary 

of Advantus Capital Management, Inc., 

which in turn is a wholly-owned 

subsidiary of Minnesota Life.

The New Policies 

4. The New Policies are offered 

pursuant to a registration statement 

under the Securities Act of 1933 (the 

‘‘1933 Act’’) filed on February 8, 2000 

(File No. 333–96383). 

5. The New Policies are variable 

adjustable life insurance policies that 

permit the Policy owner to determine 

the amount of life insurance protection 

he or she requires and the amount of 

money the Policy owner can afford to 

pay. Based on the Policy owner’s 

selection of the premium, face amount 

and death benefit option, Minnesota 

Life will calculate the guaranteed plan 

of insurance. Subject to certain 

minimums, maximums, and Minnesota 

Life’s underwriting standards, a Policy 

owner may choose any level of premium 

or death benefit he or she wishes. This 

flexibility results in a broad range of 

plans of insurance. 

6. The New Policies have a level 

premium for a specified number of 

years, for the life of the insured, or until 

the Policy becomes paid up. 

7. Policy values of the Old and New 

Policies may be invested in the Variable