Federal Register / Vol. 65, No. 31 / Tuesday, February 15, 2000 / Rules and Regulations 7435

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Part 4044

Allocation of Assets in SingleEmployer Plans; Interest Assumptions

for Valuing Benefits

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty

Corporation’s regulation on Allocation

of Assets in Single-Employer Plans

prescribes interest assumptions for

valuing benefits under terminating

single-employer plans. This final rule

amends the regulation to adopt interest

assumptions for plans with valuation

dates in March 2000. Interest

assumptions are also published on the

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

EFFECTIVE DATE: March 1, 2000.

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. (For TTY/TDD

users, call the Federal relay service tollfree at 1–800–877–8339 and ask to be

connected to 202–326–4024.)

SUPPLEMENTARY INFORMATION: The

PBGC’s regulation on Allocation of

Assets in Single-Employer Plans (29

CFR part 4044) prescribes actuarial

assumptions for valuing plan benefits of

terminating single-employer plans

covered by title IV of the Employee

Retirement Income Security Act of 1974.

Among the actuarial assumptions

prescribed in part 4044 are interest

assumptions. These interest

assumptions are intended to reflect

current conditions in the financial and

annuity markets.

Two sets of interest assumptions are

prescribed, one set for the valuation of

benefits to be paid as annuities and one

set for the valuation of benefits to be

paid as lump sums. This amendment

adds to appendix B to part 4044 the

annuity and lump sum interest

assumptions for valuing benefits in

plans with valuation dates during

March 2000.

For annuity benefits, the interest

assumptions will be 7.10 percent for the

first 25 years following the valuation

date and 6.25 percent thereafter. The

annuity interest assumptions are

unchanged from those in effect for

February 2000.

For benefits to be paid as lump sums,

the interest assumptions to be used by

the PBGC will be 5.25 percent for the

period during which a benefit is in pay

status, 4.50 percent during the sevenyear period directly preceding the

benefit’s placement in pay status, and

4.00 percent during any other years

preceding the benefit’s placement in pay

status. The lump sum interest

assumptions are unchanged from those

in effect for February 2000.

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, as

accurately as possible, current market

conditions.

Because of the need to provide

immediate guidance for the valuation of

benefits in plans with valuation dates

during March 2000, 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 in 29 CFR Part 4044

Pension insurance, Pensions.

In consideration of the foregoing, 29

CFR part 4044 is amended as follows:

PART 4044—ALLOCATION OF

ASSETS IN SINGLE-EMPLOYER

PLANS

1. The authority citation for part 4044

continues to read as follows:

Authority: 29 U.S.C. 1301(a), 1302(b)(3),

1341, 1344, 1362.

2. In appendix B, a new entry is

added to Table I, and Rate Set 77 is

added to Table II, as set forth below.

The introductory text of each table is

republished for the convenience of the

reader and remains unchanged.

Appendix B to Part 4044—Interest

Rates Used to Value Annuities and

Lump Sums

TABLE I.—ANNUITY VALUATIONS

[This table sets forth, for each indicated calendar month, the interest rates (denoted by i1, i2, * * *, and referred to generally as it) assumed to be

in effect between specified anniversaries of a valuation date that occurs within that calendar month; those anniversaries are specified in the

columns adjacent to the rates. The last listed rate is assumed to be in effect after the last listed anniversary date.]

For valuation dates occurring in the month—

The values of it are:

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

*******

March 2000 ............................................................................................... .0710 1–25 .0625 >25 N/A N/A.

7436 Federal Register / Vol. 65, No. 31 / Tuesday, February 15, 2000 / Rules and Regulations

TABLE II.—LUMP SUM VALUATIONS

[In using this table: (1) For benefits for which the participant or beneficiary is entitled to be in pay status on the valuation date, the immediate annuity rate shall apply; (2) For benefits for which the deferral period is y years (where y is an integer and 0 < y ≤ n1), interest rate i1 shall

apply from the valuation date for a period of y years, and thereafter the immediate annuity rate shall apply; (3) For benefits for which the deferral period is y years (where y is an integer and n1 < y ≤ n1 + n2), interest rate i2 shall apply from the valuation date for a period of y—n1

years, interest rate i1 shall apply for the following n1 years, and thereafter the immediate annuity rate shall apply; (4) For benefits for which

the deferral period is y years (where y is an integer and y > n1 + n2), interest rate i3 shall apply from the valuation date for a period of y— n1—n2 years, interest rate i2 shall apply for the following n2 years, interest rate i1 shall apply for the following n1 years, and thereafter the immediate annuity rate shall apply.]

Rate set

For plans with a

valuation date Immediate

annuity

rate (percent)

Deferred annuities (percent)

On or

after Before i1 i2 i3 n1 n2

*******

77 ................................................................................................ 3–1–00 4–1–00 5.25 4.50 4.00 4.00 7 8

Issued in Washington, DC, on this 4th day

of February, 2000.

David M. Strauss,

Executive Director, Pension Benefit Guaranty

Corporation.

[FR Doc. 00–3458 Filed 2–14–00; 8:45 am]

BILLING CODE 7708–01–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 117

[CGD01–00–006]

Drawbridge Operation Regulations:

Norwalk River, CT

AGENCY: Coast Guard, DOT.

ACTION: Notice of temporary deviation

from regulations.

SUMMARY: The Commander, First Coast

Guard District, has issued a temporary

deviation from the drawbridge operation

regulations for the Washington Street

S136 Bridge, mile 0.0, across the

Norwalk River at Norwalk, Connecticut.

This deviation from the regulations

allows the bridge owner to keep the

bridge in the closed position from 8 a.m.

on February 29, 2000, to 4:30 p.m. on

March 2, 2000. This action is necessary

to facilitate structural repairs at the

bridge.

DATES: This deviation is effective

February 29, 2000, through March 2,

2000.

FOR FURTHER INFORMATION CONTACT:

Joseph Schmied, Project Officer, First

Coast Guard District, at (212) 668–7165.

SUPPLEMENTARY INFORMATION: The

Washington Street S136 Bridge, mile

0.0, across the Norwalk River at

Norwalk, Connecticut, has a vertical

clearance of 9 feet at mean high water,

and 16 feet at mean low water in the

closed position. The bridge owner,

Connecticut Department of

Transportation, requested a temporary

deviation from the operating regulations

to facilitate structural repairs at the

bridge. The existing operating

regulations listed at 33 CFR 117.217

require the bridge to open on signal,

except that, from 7 a.m. to 8:45 a.m.,

11:45 a.m. to 1:15 p.m., and 4 p.m. to

6 p.m., Monday through Friday, except

holidays, the draw need not be opened

for the passage of vessels that draw less

than 14 feet of water.

This deviation to the operating

regulations allows the owner of the

bridge to keep the bridge in the closed

position from 8 a.m. on February 29,

2000, through 4:30 p.m. on March 2,

2000. Vessels that can pass under the

bridge without an opening may do so at

all times.

In accordance with 33 CFR 117.35(c),

this work will be performed with all due

speed in order to return the bridge to

normal operation as soon as possible.

This deviation from the operating

regulations is authorized under 33 CFR

117.35.

Dated: February 8, 2000.

R.M. Larrabee,

Rear Admiral, U.S. Coast Guard Commander,

First Coast Guard District.

[FR Doc. 00–3495 Filed 2–14–00; 8:45 am]

BILLING CODE 4910–15–U

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 8

RIN 2900–AJ78

National Service Life Insurance

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: This document amends the

Department of Veterans Affairs

regulations regarding payments of

premiums for National Service Life

Insurance. We are revising provisions

for purposes of clarity and making other

non-substantive changes.

DATES: Effective date: February 15, 2000.

FOR FURTHER INFORMATION CONTACT: Ms.

Jeanne Derrick, Attorney-Advisor,

Department of Veterans Affairs Regional

Office and Insurance Center, P.O. Box

8079, Philadelphia, Pennsylvania

19101, telephone number (215) 842–

2000, ext. 4277, fax number (215) 381–

3504.

SUPPLEMENTARY INFORMATION: This

document revises provisions for

purposes of clarity and makes other

non-substantive changes. Accordingly,

we are dispensing with prior notice and

comment and delayed effective date

provisions of 5 U.S.C. 552 and 553.

The Secretary of Veterans Affairs

hereby certifies that this final rule will

not have a significant economic impact

on a substantial number of small entities

as they are defined in the Regulatory

Flexibility Act, 5 U.S.C. 601–612. This

final rule does not make substantive

changes. Pursuant to 5 U.S.C. 605(b),

this final rule is, therefore, exempt from

the initial and final regulatory flexibility

analysis requirements of 5 U.S.C. 603

and 604.

The Catalog of Federal Domestic

Assistance Program number for this

regulation is 64.103.

List of Subjects in 38 CFR Part 8

Disability benefits, Life insurance,

Loan programs—veterans, Military

personnel, Veterans.