Federal Register / Vol. 71, No. 135 / Friday, July 14, 2006 / Rules and Regulations 40011 

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 August 2006. Interest 

assumptions are also published on the 

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

DATES: Effective August 1, 2006. 

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: 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 August 2006, (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 

August 2006, 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 August 2006. 

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 6.40 

percent for the first 20 years following 

the valuation date and 4.75 percent 

thereafter. These interest assumptions 

represent an increase (from those in 

effect for July 2006) of 0.10 percent for 

the first 20 years following the valuation 

date and are otherwise unchanged. 

These interest assumptions reflect the 

PBGC’s recently updated mortality 

assumptions, which are effective for 

terminations on or after January 1, 2006. 

See the PBGC’s final rule published 

December 2, 2005 (70 FR 72205), which 

is available at http://www.pbgc.gov/ 

docs/05–23554.pdf. Because the 

updated mortality assumptions reflect 

improvements in mortality, these 

interest assumptions are higher than 

they would have been using the old 

mortality assumptions. 

The interest assumptions that the 

PBGC will use for its own lump-sum 

payments (set forth in Appendix B to 

part 4022) will be 3.50 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 no change from those in effect 

for July 2006. 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 August 2006, 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 

154, 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

* * * * * * * 

154 .................................... 8–1–06 9–1–06 3.50 4.00 4.00 4.00 7 8 


cprice-sewell on PROD1PC66 with RULES
40012 Federal Register / Vol. 71, No. 135 / Friday, July 14, 2006 / Rules and Regulations 

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

154, 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

* * * * * * * 

154 .................................... 8–1–06 9–1–06 3.50 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 for August 2006, 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 = 

* * * * * * * 

August 2006 ...................................................................... .0640 1–20 .0475 >20 N/A N/A 

Issued in Washington, DC, on this 7th day 

of July 2006. 

Vincent K. Snowbarger, 

Acting Executive Director, Pension Benefit 

Guaranty Corporation. 

[FR Doc. E6–11101 Filed 7–13–06; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[CGD07–06–108] 

RIN 1625–AA08 

Special Local Regulation; Annual 

Greater Jacksonville Kingfish 

Tournament; Jacksonville, FL 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: This rule temporarily 

suspends the current special local 

regulations, established for the Annual 

Greater Jacksonville Kingfish 

Tournament, Jacksonville, Florida, and 

adds a temporary final rule for the event 

due to changes in the tournament this 

year. This special local regulation is 

necessary to reflect the changes made to 

the tournament by the sponsor and to 

ensure the safety of participating vessels 

and spectators within the regulated area. 

DATES: This rule is effective from July 

17, 2006 to July 22, 2006. 

ADDRESSES: Documents mentioned in 

this preamble as being available in the 

docket are part of docket [CGD 07–06–

108] and are available for inspection 

and copying at Coast Guard Sector 

Jacksonville Prevention Department, 

7820 Arlington Expressway, Suite 400, 

Jacksonville, Florida, 32211, between 8 

a.m. and 4 p.m., Monday through 

Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: 

Ensign Kira Peterson at Coast Guard 

Sector Jacksonville Prevention 

Department, Florida, tel: (904) 232–

2640, ext. 108. 

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

We did not publish a notice of 

proposed rulemaking (NPRM) for this 

regulation. Under 5 U.S.C. 553(b)(B), the 

Coast Guard finds that good cause exists 

for not publishing a NPRM. The changes 

to this event were not relayed to the 

Coast Guard with enough time to allow 

for public comment. Publishing a NPRM 

with a comment period would delay the 

rule’s effective date and is contrary to 

public interest because immediate 

action is necessary to protect the public 

and waters of the United States. 

For the same reasons, under 5 U.S.C. 

553(d)(3), the Coast Guard finds that 

good cause exists for making this rule 

effective less than 30 days after 

publication in the Federal Register. The 

Coast Guard will issue a broadcast 

notice to mariners and Coast Guard or 

local law enforcement vessels will be in 

the vicinity of this zone to advise 

mariners of the restriction. 

Background and Purpose 

The Greater Jacksonville Kingfish 

Tournament is held annually the second 

full week of July along the waters of the 

St. Johns River and the Atlantic Ocean. 

This regulation will temporarily change 

the eastern boundary of the regulated 

area found in paragraph (a) of Section 

100.710 from Lighted Buoy 7 (LLNR 

7145) in approximate position 30–

23.56N, 081–23.04W, and Lighted Buoy 

8 (LLNR 7150) in position 30–24.03N, 

081–23.01W, to Lighted Buoy 10 (LLNR 

2190) at approximate position 30–

24.376N, 081–24.998W. Changes are 

also being made to the effective dates 

found in paragraph (c) of Section 

100.710 as the tournament will now 

take place the second full week after 

July 4th. Additionally, a new paragraph 

(b) is being added to define ‘‘Minimum 

Safe Speed’’ and existing paragraphs (b) 

and (c) are being redesignated (c) and 

(d) accordingly. Coast Guard Sector 

Jacksonville will issue a Local Notice to 

Mariners announcing times and dates 

the regulated area is in effect. Vessels 

transiting within the regulated area 

must travel at a Minimum Safe Speed. 

Discussion of Rule 

This temporary rule is necessary to 

accommodate the changes by the 


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