15256 Federal Register / Vol. 77, No. 51 / Thursday, March 15, 2012 / Rules and Regulations 

final Request for Proposals or other 

applicable solicitation documents. 

(d) STAs shall ensure the VE analysis 

meets the following requirements: 

(1) Uses a multidisciplinary team not 

directly involved in the planning or 

design of the project, with at least one 

individual who has the training and 

experience with leading a VE analysis; 

(2) Develops and implements the VE 

Job Plan; 

(3) Produces a formal written report 

outlining, at a minimum: 

(i) Project information; 

(ii) Identification of the VE analysis 

team; 

(iii) Background and supporting 

documentation, such as information 

obtained from other analyses conducted 

on the project (e.g., environmental, 

safety, traffic operations, 

constructability); 

(iv) Documentation of the stages of the 

VE Job Plan which would include 

documentation of the life-cycle costs 

that were analyzed; 

(v) Summarization of the analysis 

conducted; 

(vi) Documentation of the proposed 

recommendations and approvals 

received at the time the report is 

finalized; and 

(vii) The formal written report shall 

be retained for at least 3 years after the 

completion of the project (as specified 

in 49 CFR 18.42). 

(e) For bridge projects, in addition to 

the requirements in paragraph (d) of this 

section, the VE analyses shall: 

(1) Include bridge substructure and 

superstructure requirements that 

consider alternative construction 

materials; and 

(2) Be conducted based on: 

(i) An engineering and economic 

assessment, taking into consideration 

acceptable designs for bridges; and 

(ii) An analysis of life-cycle costs and 

duration of project construction. 

(f) STAs and local public agencies 

may employ qualified consultants (as 

defined in 23 CFR 172) to conduct a VE 

analysis. The consultant shall possess 

the training and experience required to 

lead the VE analysis. A consulting firm 

or individual shall not be used to 

conduct or support a VE analysis if they 

have a conflict of interest (as specified 

in 23 CFR 1.33). 

(g) VECPs, STAs, and local public 

agencies are encouraged to use a VECP 

clause (or other such clauses under a 

different name) in an applicable 

project’s contract, allowing the 

construction contractor to propose 

changes in the project’s plans, 

specifications, or other contract 

documents. Whenever such clauses are 

used, the STA and local authority will 

consider changes that could improve the 

project’s performance, value and 

quality, shorten the delivery time, or 

lower construction costs, while 

considering impacts on the project’s 

overall life-cycle cost and other 

applicable factors. The basis for a STA 

or local authority to consider a VECP is 

the analysis and documentation 

supporting the proposed benefits that 

would result from implementing the 

proposed change in the project’s 

contract or project plans. 

(h) Proposals to accelerate 

construction after the award of the 

contract will not be considered a VECP 

and will not be eligible for Federal-aid 

highway program funding participation. 

Where it is necessary to accelerate 

construction, STAs and local public 

agencies are encouraged to use the 

appropriate incentive or disincentive 

clauses so that all proposers will take 

this into account when preparing their 

bids or price proposals. 

[FR Doc. 2012–6244 Filed 3–14–12; 8:45 am] 

BILLING CODE 4910–22–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4022 and 4044 

Allocation of Assets in SingleEmployer Plans; Benefits Payable in 

Terminated Single-Employer Plans; 

Interest Assumptions for Valuing and 

Paying Benefits 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

Pension Benefit Guaranty Corporation’s 

regulations on Benefits Payable in 

Terminated Single-Employer Plans and 

Allocation of Assets in Single-Employer 

Plans to prescribe interest assumptions 

under the benefit payments regulation 

for valuation dates in April 2012 and 

interest assumptions under the asset 

allocation regulation for valuation dates 

in the second quarter of 2012. The 

interest assumptions are used for 

valuing and paying benefits under 

terminating single-employer plans 

covered by the pension insurance 

system administered by PBGC. 

DATES: Effective April 1, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion 

(Klion.Catherine@PBGC.gov), 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: PBGC’s 

regulations on Allocation of Assets in 

Single-Employer Plans (29 CFR Part 

4044) and Benefits Payable in 

Terminated Single-Employer Plans (29 

CFR Part 4022) prescribe actuarial 

assumptions—including interest 

assumptions—for valuing and paying 

plan benefits under terminating singleemployer plans covered by title IV of 

the Employee Retirement Income 

Security Act of 1974. The interest 

assumptions in the regulations are also 

published on PBGC’s Web site (http:// 

www.pbgc.gov). 

The interest assumptions in Appendix 

B to Part 4044 are used to value benefits 

for allocation purposes under ERISA 

section 4044. PBGC uses the interest 

assumptions in Appendix B to Part 4022 

to determine whether a benefit is 

payable as a lump sum and to determine 

the amount to pay. Appendix C to Part 

4022 contains interest assumptions for 

private-sector pension practitioners to 

refer to if they wish to use lump-sum 

interest rates determined using PBGC’s 

historical methodology. Currently, the 

rates in Appendices B and C of the 

benefit payment regulation are the same. 

The interest assumptions are intended 

to reflect current conditions in the 

financial and annuity markets. 

Assumptions under the asset allocation 

regulation are updated quarterly; 

assumptions under the benefit payments 

regulation are updated monthly. This 

final rule updates the benefit payments 

interest assumptions for April 2012 and 

updates the asset allocation interest 

assumptions for the second quarter 

(April through June) of 2012. 

The second quarter 2012 interest 

assumptions under the allocation 

regulation will be 3.11 percent for the 

first 20 years following the valuation 

date and 3.36 percent thereafter. In 

comparison with the interest 

assumptions in effect for the first 

quarter of 2012, these interest 

assumptions represent no change in the 

select period (the period during which 

the select rate (the initial rate) applies), 

a decrease of 0.63 percent in the select 

rate, and a decrease of 0.34 percent in 

the ultimate rate (the final rate). 

The April 2012 interest assumptions 

under the benefit payments regulation 

will be 1.25 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. In comparison with the interest 

assumptions in effect for March 2011, 

these interest assumptions are 

unchanged. 


sroberts on DSK5SPTVN1PROD with RULES
Federal Register / Vol. 77, No. 51 / Thursday, March 15, 2012 / Rules and Regulations 15257 

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 under plans 

with valuation dates during April 2012, 

PBGC finds that good cause exists for 

making the assumptions set forth in this 

amendment effective less than 30 days 

after publication. 

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 

222, as set forth below, is added to the 

table. 

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

*******

222 4–1–12 5–1–12 1.25 4.00 4.00 4.00 7 8 

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

222, 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

*******

222 4–1–12 5–1–12 1.25 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 April–June 2012, 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 i t are: 

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

*******

April–June 2012 ........................................................................................ 0.0311 1–20 0.0336 >20 N/A N/A 


sroberts on DSK5SPTVN1PROD with RULES
15258 Federal Register / Vol. 77, No. 51 / Thursday, March 15, 2012 / Rules and Regulations 

Issued in Washington, DC, on this 9th day 

of March 2012. 

Laricke Blanchard, 

Deputy Director for Policy, Pension Benefit 

Guaranty Corporation. 

[FR Doc. 2012–6301 Filed 3–14–12; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[Docket No. USCG–2011–1095] 

RIN 1625–AA08 

Special Local Regulations; Patriot 

Challenge Kayak Race, Ashley River, 

Charleston, SC 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing special local regulations on 

the Ashley River in Charleston, South 

Carolina during the Patriot Challenge 

Kayak Race on Saturday, April 28, 2012. 

Approximately 150 paddle boats are 

anticipated to participate in the Patriot 

Challenge Kayak Race. Participant 

paddle boats will include kayaks, 

canoes, and paddleboards. These special 

local regulations are necessary to 

provide for the safety of life on 

navigable waters of the United States 

during the race. The special local 

regulations consist of a series of moving 

buffer zones around participant vessels 

as they transit the Ashley River from 

Brittlebank Park to Tidewater Reach and 

back to Brittlebank Park. Persons and 

vessels that are not participating in the 

race are prohibited from entering, 

transiting through, anchoring in, or 

remaining within any of the buffer 

zones unless authorized by the Captain 

of the Port Charleston or a designated 

representative. 

DATES: This rule is effective from 12:30 

p.m. until 3:30 p.m. on April 28, 2012. 

ADDRESSES: Comments and material 

received from the public, as well as 

documents mentioned in this preamble 

as being available in the docket, are part 

of docket USCG–2011–1095 and are 

available online by going to http:// 

www.regulations.gov, inserting USCG– 

2011–1095 in the ‘‘Keyword’’ box, and 

then clicking ‘‘Search.’’ This material is 

also available for inspection or copying 

at the Docket Management Facility (M– 

30), U.S. Department of Transportation, 

West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email Ensign John R. Santorum, Sector 

Charleston Office of Waterways 

Management, Coast Guard; telephone 

(843) 740–3184, email 

John.R.Santorum@uscg.mil. If you have 

questions on viewing the docket, call 

Renee V. Wright, Program Manager, 

Docket Operations, telephone (202) 

366–9826. 

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

On December 22, 2011, we published 

a notice of proposed rulemaking 

(NPRM) entitled Special Local 

Regulations; Patriot Challenge Kayak 

Race, Ashley River, Charleston, SC in 

the Federal Register (76 FR 79571). We 

received no comments on the proposed 

rule. No public meeting was requested, 

and none was held. 

Basis and Purpose 

The legal basis for the rule is the 

Coast Guard’s authority to establish 

special local regulations: 33 U.S.C. 

1233. The purpose of the rule is to 

insure safety of life on navigable waters 

of the United States during the Patriot 

Challenge Kayak Race. 

Discussion of Rule 

On Saturday, April 28, 2012, the 

Patriot Challenge Kayak Race is 

scheduled to take place on the waters of 

the Ashley River in Charleston, South 

Carolina. The race will begin at 

Brittlebank Park, transit southeast on 

the Ashley River, head north between 

Shutes Folly Island and the Charleston 

peninsula, and then turn around in 

Tidewater Reach. The race will return to 

Brittlebank Park by the same route. 

Approximately 150 paddle boats are 

anticipated to participate in the Patriot 

Challenge Kayak Race. Participant 

paddle boats will include kayaks, 

canoes, and paddleboards. 

This rule establishes special local 

regulations on the Ashley River in 

Charleston, South Carolina consisting of 

a series of buffer zones around vessels 

participating in the Patriot Challenge 

Kayak Race. These buffer zones are as 

follows: (1) All waters within 75 yards 

of the lead safety vessel; (2) all waters 

within 75 yards of the last safety vessel; 

and (3) all waters within 100 yards of all 

other participating vessels, including 

kayaks, canoes, and paddleboards. 

Notice of the special local regulations, 

including the identities of the lead 

safety vessel and the last safety vessel, 

will be provided prior to the marine 

parade by Local Notice to Mariners and 

Broadcast Notice to Mariners. The 

special local regulations will be 

enforced from 12:30 p.m. until 3:30 p.m. 

on April 28, 2012. Persons and vessels 

are prohibited from entering, transiting 

through, anchoring in, or remaining 

within the buffer zones unless 

authorized by the Captain of the Port 

Charleston or a designated 

representative. Persons and vessels may 

request authorization to enter, transit 

through, anchor in, or remain within the 

buffer zones by contacting the Captain 

of the Port Charleston by telephone at 

(843) 740–7050, or a designated 

representative via VHF radio on channel 

16. If authorization to enter, transit 

through, anchor in, or remain within 

any of the buffer zones is granted by the 

Captain of the Port Charleston or a 

designated representative, all persons 

and vessels receiving such authorization 

are required to comply with the 

instructions of the Captain of the Port 

Charleston or a designated 

representative. 

Regulatory Analyses 

We developed this rule after 

considering numerous statutes and 

executive orders related to rulemaking. 

Below we summarize our analyses 

based on 13 of these statutes or 

executive orders. 

Regulatory Planning and Review 

Executive Orders 13563, Improving 

Regulation and Regulatory Review, and 

12866, Regulatory Planning and Review, 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This rule 

has not been designated a significant 

regulatory action under section 3(f) of 

Executive Order 12866. Accordingly, 

the Office of Management and Budget 

has not reviewed this rule under 

Executive Order 12866. 

The economic impact of this rule is 

not significant for the following reasons: 

(1) The special local regulations will be 

enforced for only three hours; (2) 

although persons and vessels will not be 

able to enter, transit through, anchor in, 

or remain within the buffer zones 

without authorization from the Captain 

of the Port Charleston or a designated 

representative, they may operate in the 


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