41060 Federal Register / Vol. 70, No. 135 / Friday, July 15, 2005 / Notices 

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 July 2005. 

The interest assumptions for performing 

multiemployer plan valuations 

following mass withdrawal under part 

4281 apply to valuation dates occurring 

in August 2005. 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 third quarter (July 

through September) of 2005.

FOR FURTHER INFORMATION CONTACT:

Catherine B. Klion, Attorney, 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: 

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. Pursuant to the Pension 

Funding Equity Act of 2004, for 

premium payment years beginning in 

2004 or 2005, the required interest rate 

is the ‘‘applicable percentage’’

(currently 85 percent) of the annual rate 

of interest determined by the Secretary 

of the Treasury on amounts invested 

conservatively in long-term investment 

grade corporate bonds for the month 

preceding the beginning of the plan year 

for which premiums are being paid. 

Thus, the required interest rate to be 

used in determining variable-rate 

premiums for premium payment years 

beginning in July 2005 is 4.47 percent 

(i.e., 85 percent of the 5.26 percent 

composite corporate bond rate for June 

2005 as determined by the Treasury). 

The following table lists the required 

interest rates to be used in determining 

variable-rate premiums for premium 

payment years beginning between 

August 2004 and July 2005.

For premium payment years 

beginning in: 

The required 

interest rate is: 

August 2004 ......................... 5.10

September 2004 ................... 4.95

October 2004 ........................ 4.79

November 2004 .................... 4.73

December 2004 .................... 4.75

January 2005 ........................ 4.73

February 2005 ...................... 4.66

March 2005 ........................... 4.56

April 2005 ............................. 4.78

May 2005 .............................. 4.72

June 2005 ............................. 4.60

July 2005 .............................. 4.47

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 third 

quarter (July through September) of 

2005, 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) 

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 

1/1/03 ................ 9/30/03 5 

10/1/03 .............. 3/31/04 4 

4/1/04 ................ 6/30/04 5 

7/1/04 ................ 9/30/04 4 

10/1/04 .............. 3/31/05 5 

4/1/05 ................ 9/30/05 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 third 

quarter (July through September) of 

2005 (i.e., the rate reported for June 15, 

2005) is 6.00 percent. 

The following table lists the 

withdrawal liability underpayment and 

overpayment interest rates for the 

specified time periods:

From— Through— Interest rate 

(percent) 

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 

1/1/03 ................ 9/30/03 4.25 

10/1/03 .............. 9/30/04 4.00 

10/1/04 .............. 12/31/04 4.50 

1/1/05 ................ 3/31/05 5.25 

4/1/05 ................ 6/30/05 5.50 

7/1/05 ................ 9/30/05 6.00 

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 

Federal Register / Vol. 70, No. 135 / Friday, July 15, 2005 / Notices 41061

1 15 U.S.C 78s(b)(1).

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release Nos. 45698 

(April 5, 2002), 67 FR 18051 (April 12, 2002) (SR–

AMEX–2001–107); and 46750 (October 30, 2002), 

67 FR 67880 (November 7, 2002) (SR–AMEX–2002–

19) (‘‘Pilot Approval Orders’’).

4See Securities Exchange Act Release No. 47779 

(May 1, 2003), 68 FR 24777 (May 8, 2003) (SR–

Amex–2003–23).

5See Securities Exchange Act Release No. 48657 

(October 17, 2003), 68 FR 61025 (October 24, 2003) 

(SR–Amex–2003–87).

6See Securities Exchange Act Release No. 49613 

(April 26, 2004); 69 FR 24204 (May 3, 2004) (‘‘2004 

Notice’’).

7 15 U.S.C. 78f(b).

8 15 U.S.C. 78f(b)(5).

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 August 

2005 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 7th day 

of July 2005. 

Vincent K. Snowbarger, 

Deputy Executive Director, Pension Benefit 

Guaranty Corporation.

[FR Doc. 05–13905 Filed 7–14–05; 8:45 am] 

BILLING CODE 7708–01–P

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52004; File No. SR–Amex–

2005–043] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Notice 

of Filing and Order Granting 

Accelerated Approval to a Proposed 

Rule Change and Amendment No. 1 

Thereto to Extend Pilots Relating to 

Allocation and Performance Evaluation 

Procedures for Securities Admitted to 

Dealings on an Unlisted Trading 

Privileges Basis 

July 8, 2005. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 22, 

2005, the American Stock Exchange LLC 

(‘‘Amex’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change, as described in Items I and II 

below, which Items have been 

substantially prepared by the Exchange. 

On June 14, 2005, the Exchange filed 

Amendment No. 1 to the proposed rule 

change. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change, as amended, from 

interested persons and simultaneously 

approving the filing.

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Amex proposes to retroactively 

extend from April 6, 2005, through 

April 6, 2006, the pilot programs 

comprising its allocations and 

performance evaluation procedures for 

securities admitted to dealings on an 

unlisted trading privileges (‘‘UTP’’) 

basis to permit these programs to remain 

in effect while the Commission 

considers permanent approval of these 

procedures. The text of the proposed 

rule change is available on the Amex’s 

Web site at http://www.amex.com, at the 

Amex and at the Commission. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Amex included statements concerning 

the purpose of and basis for the 

proposed rule change, as amended, and 

discussed any comments it received on 

the proposed rule change. The text of 

these statements may be examined at 

the places specified in Item III below. 

The Amex has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing to 

reestablish and extend its allocations 

and performance evaluation procedures 

for securities admitted to dealings on a 

UTP basis for one year. The Commission 

previously approved the Exchange’s 

allocation and performance evaluation 

procedures on a pilot basis through two 

independent approval orders 

(‘‘Pilots’’).3 In 2003, the Pilots were 

extended until October 5, 2003,4 and 

April 5, 2004.5 In 2004, the Pilots were 

extended through April 6, 2005.6 The 

instant proposed rule change makes no 

substantive change to the Pilots other 

than to retroactively reinstate their 

operation from April 5, 2005, so that the 

Pilots may continue without having 

lapsed, and extend them until April 6, 

2006.

2. Statutory Basis 

The Exchange believes that the 

proposed rule change, as amended, is 

consistent with Section 6 of the Act,7 in 

general, and furthers the objectives of 

Section 6(b)(5),8 in particular, in that 

the Exchange’s proposed rule change is 

designed to promote just and equitable 

principles of trade, to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest.

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange believes that the 

proposed rule change, as amended, will 

impose no burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

No written comments were solicited 

or received by the Exchange on the 

proposed rule change, as amended. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, is consistent with 

the Act. Comments may be submitted by 

any of the following methods:

Electronic Comments

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–Amex–2005–043 on the 

subject line. 

Paper Comments

• Send paper comments in triplicate 

to Jonathan G. Katz, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–9309.

All submissions should refer to File 

Number SR–Amex–2005–043. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the